Mar 31, 2015
We have audited the accompanying financial statements of Sunil Agro
Foods Limited ("the Company"), which comprise the Balance Sheet as at
31st March, 2015, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
2. Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible 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 the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
3. Auditors' Responsibility
3.1 Our responsibility is to express an opinion on these 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.
3.2 An audit involves performing procedures to obtain audit evidence
about the amounts and the 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 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 controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
3.3 We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the
standalone financial statements.
4. Basis for Qualified Opinion
4.1 As per Accounting Policy number 2.8, the company has valued the
investment at cost. As on March 31, 2015 there is a fall in the value
of investments to the extent of Rs.30.07 lacks. The company has created
provision for fall in the value of investment only to the extent of
Rs.0.91 lacks in the earlier years. The impact of non-provision for the
fall in the value of investment is,
* Profit is overstated to the extent of Rs.29.16 lacks and investment
are overstated to the same extent
5. Qualified Opinion
In our opinion and to the best of our information and according to the
explanation given to us, except for the effects of the matter described
in the Basis for Qualified Opinion paragraph above, the aforesaid
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 31 st March, 2015 and its profit and its
cash flows for the year ended on that date.
6. Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid 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:
* in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2015;
* in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
* in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
7. Report on Other Legal and Regulatory Requirements
7.1 As required by the Companies (Auditor's Report) Order, 2015 ("the
order"), 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 of the matters specified in paragraphs 3 and 4 of the Order.
7.2 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 of our knowledge and belief were necessary for the
purposes of our audit.
b. In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
c. The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d. In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. Except in para 4.1
above.
e. On the basis of the written representations received from the
directors as on 31 st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164(2) of the
Act.
f. 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 explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - refer note 30.
ii. the Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii. there were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company;
ANNEXURE TO INDEPENDENT AUDITORS' REPORT
Referred to in paragraph 7.1 of our report of even date
Based upon the information and explanations furnished to us and the
books and records examined by us in the normal course of audit and to
the best of our knowledge and belief, we report that:
1. In respect of Fixed Assets:
a. The company has maintained proper records showing particulars of
fixed assets and has been updated.
b. As explained to us, the fixed assets have been physically verified
by the management during the year in a phased periodical manner, which
in our opinion is reasonable, having regard to the size of the company
and nature of its assets. As informed to us, no material discrepancies
were noticed on such physical verification.
c. The company has not disposed off substantial part of fixed assets
during the year and therefore do not affect the going concern
assumption.
2. In respect of its inventories:
a. As explained to us, inventories have been physically verified by
the management during the year. In our opinion, frequency of
verification is reasonable.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. The Company is maintaining proper records of inventory. As
explained to us, there were no material discrepancies noticed on
physical verification of inventory as compared to the book records.
3. In respect of loans secured or unsecured, granted or taken by the
Company to/from Companies, firms or other parties covered in the
register maintained under Section 189 of the Companies Act, 2013:
During the period covered by our audit, company has not granted any
loan to any person covered under the register maintained under section
189 of the Companies Act, 2013. Hence, provisions of paragraph 3(iii)
of the Order are not applicable.
4. In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the Company and the nature of its business
for the purchase of inventory, fixed assets and with regard to the sale
of goods and services. During the course of our audit, no major weakness
has been noticed in the internal control system in respect of these
areas.
5. During the year covered under our audit, the company has not
accepted any deposits from the public. Hence commenting on the
compliance of Section 73 to 76 of the Companies Act, 2013 read with
rule framed thereunder and the directives issued by the Reserve Bank of
India does not arise.
6. According to the information and explanations given to us,
maintenance of cost records under sub section (1) of section 148 of the
Companies Act, 2013 read with companies (cost records and audit)
Rules,2014 has been prescribed to the Company. We are of the opinion
that, prima facie, the prescribed cost records are maintained. We have,
however, not made a detailed examination of the cost records with a
view to determine whether they are accurate or complete.
7. In respect of statutory dues:
a. Undisputed statutory dues including Provident Fund, Investor
Education and Protection Fund, Employees' State Insurance, Sales Tax,
Wealth Tax, Custom Duty, Excise Duty, Cess and other material statutory
dues applicable to it have generally been regularly deposited with the
appropriate authorities though there have been slight delays in
remittance of Tax deducted at source and Value Added Tax in a few
cases.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund, Investor
Education and Protection Fund, Employees' State Insurance, Wealth Tax,
Custom Duty, Excise Duty, Cess and other undisputed statutory dues were
outstanding, at the year end, for a period of more than six months from
the date they became payable.
b. According to the information and explanations given to us, except
income tax dues as detailed below there are no dues of sales tax,
custom duty, wealth tax, excise duty, and cess which have not been
deposited on account of any dispute.
Name of the Act Financial Year Amount of Demand Amount paid
(In Rs.) under protest
(In Rs.)
Income Tax Act, 1962 2010-2011 17,782 17,782
Name of the Act Forum where
dispute is pending
Income Tax Act, 1962 CIT (Appeals) - VI
Bangalore
c. According to the information and explanations given to us, there
are no amounts 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.
8. The company does not have any accumulated losses as at the end of
the financial year. Further, the Company has not incurred any cash
losses during the financial year covered by our audit and also in the
immediately preceding financial year.
9. Based on our audit procedures performed and according to the
information and explanations given by the management, the company has
not defaulted in the repayment of dues to any banks / financial
institutions. Also, the company has not issued any debentures.
10. According to information given to us and based on the records and
documents produced to us, the company has not given any security /
guarantee for loan taken by others from banks/ financial institutions.
11. During the year covered under our audit, the company has taken a
term loan. According to the information and explanations given to us,
the term loan was utilized for the purpose for which it was availed.
12. Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the company has been noticed or reported during
the course of our audit
For MSSV & CO.
Chartered Accountants
Firm Reg. No. 001987S
Place : Bangalore D. R. Venkatesh
Date : May 30, 2015 Partner
Membership No. 25087
Mar 31, 2014
We have audited the accompanying Financial Statements of M/s Sunil Agro
Foods Limited (''the company'') which comprise the Balance sheet as at
March 31,2014 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''s Responsibility for the Financial Statements
The 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 (Âthe ActÂ) read with the General
Circular 15/2013 dated 13 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
financial statements that give a true and fair view and are free from
material mis-statement, whether due to fraud or error.
3. Auditor''s Responsibility
3.1 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 mis-statement.
3.2 An audit involves performing procedures to obtain audit evidence
about the amounts and disclosure 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, but not for the purpose of
expressing an opinion on the effectiveness of the entity''s internal
control. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by the management, as well as evaluating the overall
presentation of financial statements.
3.3 We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
4. Qualifications
4.1 As per Accounting Policy number 2.8, the Company has valued the
investments at cost. As on March 31, 2014 there is a fall in the value
of investments to the extent of Rs.33.08 lakhs. The Company has created
provision for fall in the value of investments only to the extent of
Rs.0.91 lakhs in the earlier years. The impact of non- provision for
the fall in the value of investments is,
- Profit is overstated to the extent of Rs.32.17 lakhs and investments
are overstated to the same extent.
5. Opinion
Subject to the observation referred in Para 4.1 above, 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 March 31, 2014;
(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 Cash Flow Statement, of the cash flows for the year
ended on that date.
6. Report on other Legal and Regulatory requirements
6.1 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 of the matters specified in paragraphs 4 and 5 of
the Order.
6.2 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 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, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
accounts;
(d) Subject to para 4.1 above, 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 read with the General Circular 15/2013
dated 13 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 Act;
ANNEXURE TO INDEPENDENT AUDITORS'' REPORT
Referred to in paragraph 6.1 of our report of even date
Based upon the information and explanations furnished to us and the
books and records examined by us in the normal course of audit and to
the best of our knowledge and belief, we report that:
1. In respect of Fixed Assets:
a) The company has maintained proper records showing particulars of
fixed assets and has been updated.
b) As explained to us, the fixed assets have been physically verified
by the management during the year in a phased periodical manner, which
in our opinion is reasonable, having regard to the size of the company
and nature of its assets. As informed to us, no material discrepancies
were noticed on such physical verification.
c) The company has not disposed off substantial part of fixed assets
during the year and therefore do not affect the going concern
assumption.
2. In respect of its inventories:
a. As explained to us, inventories have been physically verified by the
management during the year. In our opinion, frequency of verification
is reasonable.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. The Company is maintaining proper records of inventory. As explained
to us, there were no material discrepancies noticed on physical
verification of inventory as compared to the book records.
3. In respect of loans secured or unsecured, granted or taken by the
Company tofrom Companies, firms or other parties covered in the regis
-ter maintained under Section 301 of the Companies Act, 1956.
a. As informed to us, during the year, the company has given the
advance of Rs.7.45 lakhs to one party covered under register maintained
under Section 301 of the Companies Act, 1956. The maximum amount
involved during the year and the year end balance of the said advance
was Rs.68.33 lakhs (including interest accrued but not due).
b. In our opinion, the rate of interest, wherever applicable and other
terms and conditions of loan are not, prima facie, prejudicial to the
interest of the Company.
c. As per the terms understanding, no amount was due for repayment as
on 31st March 2014.
d. Since there is no amount was outstanding as on March 31 2014,
commenting on the steps taken for recovery does not arise.
e. During the year, company has taken loan from four parties amounting
to Rs.264.23 lakhs and repaid to the extent of Rs.258.50 lakhs
(including opening balance). The maximum balance outstanding at any
time during the year was Rs.84.71lakhs. The year-end outstanding
balance of loans is Rs.21.34 lakhs.
f. In our opinion and according to the information and explanations
given to us in respect of loans taken by the Company, the rate of
interest, wherever applicable and other terms and conditions are not
prima facie prejudicial to the interest of the Company.
g. In respect of loans taken by the Company the payment of principal
and interest is as per the understanding with the parties.
4. In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the Company and the nature of its
business for the purchase of inventory, fixed assets and with regard to
the sale of goods and services. During the course of our audit, no
major weakness has been noticed in the internal control system in
respect of these areas.
5. In respect of transactions covered under Section 301 of the
Companies Act, 1956;
a. According to the information and explanations provided by the
management, we are of the opinion that the particulars of transactions
made in pursuance of contracts or arrangements referred to in Section
301 of the Companies Act, 1956 that need to be entered into the
register maintained under section 301 have been so entered.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements exceeding the value of Rupees five lakhs has been entered
into during the financial year at a price which is reasonable having
regard to prevailing market prices at the relevant time.
6. During the year, Company has not accepted any deposits from the
public. Hence commenting on the compliance of Section 58A and 58AA of
the Companies Act, 1956 read with Companies (Acceptance of Deposit)
Rules, 1975 does not arise.
7. In our opinion, the Company has an internal audit function
commensurate with the size and nature of its business.
8. We have broadly reviewed the cost records maintained by the Company
pursuant to Companies (Cost Accounting Records) Rules, 2011 prescribed
by the Central Government under Section 209(1)(d) of the Companies Act,
1956 and are of the opinion that, prima facie, the prescribed cost
records are maintained. We have, however, not made a detailed
examination of the cost records with a view to determine whether they
are accurate or complete.
9. In respect of statutory dues:
a. According to the records of the Company, undisputed statutory dues
including Investor Education and Protection Fund, Employees'' State
Insurance, Sales Tax, Service Tax, Income Tax, Wealth Tax, Custom Duty,
Excise Duty, Cess and other material statutory dues have been generally
regularly deposited with the appropriate authorities though there is a
delay in remittance of TDS in some cases.
b. According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, custom duty, excise duty, provident fund, investor education and
protection fund, Employees state insurance, service tax and cess and
other undisputed statutory dues were outstanding, at the year end, for
the period of more than six months from the date they became payable.
c. According to the information and explanations given to us, there are
no dues of sales tax, income tax, custom duty, wealth tax, excise duty,
cess and service tax which have not been deposited on account of any
dispute.
10. The Company has no accumulated losses and has not incurred any cash
losses during the financial year covered by our audit or in the
immediately preceding financial year.
11. In our opinion 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 the banks.
12. According to the information and explanations given to us and based
on the records produced to us, Company has not granted loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund/society. Therefore the provisions of Paragraph 4 (xiii) of
the Companies (Auditor''s Report) Order, 2003 (as amended) are not
applicable to the Company.
14. The company is not dealing in or trading in shares, securities, and
debentures. But in the earlier years, company has invested the funds to
earn the income from investment. According to information and
explanation given to us and in our opinion:
-The company has maintained the records for transactions and
contracts entered into for purchase and sale of shares and Securities.
- Investments are in the company''s own name.
15. According to information given to us and based on the records and
documents produced to us, during the financial year, company has not
given guarantee for loan taken by others from banks or financial
institutions. Hence commenting on the prejudicial to the interest of
the company does not arise.
16. In our opinion, the term loans have been applied for the purpose
for which they were raised.
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 funds raised on short -term basis have been used for long-term
investment.
18. 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. Hence commenting on the prejudicial of
issue price to the interest of the company does not arise.
19. During the year, the Company has not issued Debentures.
20. The Company has not raised any money by way of public issue during
the year. Hence verification of the end use of the same does not arise.
21. Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanation given by the management, we report that
no fraud on or by the company has been noticed during the course of our
audit
For MSSV & CO.
Chartered Accountants
Firm Reg. No. 001987S
Place : Bangalore D. R. Venkatesh
Date : 26th May, 2014 Partner
Membership No. 25087
Mar 31, 2012
1. Report on the Financial Statements
We have audited the accompanying Financial Statements of Sunil Agro
Foods Limited which comprise the balance sheet as at March 31,2012 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's 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
mis-statement, whether due to fraud or error.
3. Auditor's Responsibility
3.1 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 mis-statement.
3.2 An audit involves performing procedures to obtain audit evidence
about the amounts and disclosure in the financial statements. The
procedures selected depend on the auditor's judgement, 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 principles used and reasonableness of the
accounting estimates made by the management, as well as evaluating the
overall presentation of financial statements.
3.3 We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basisfor our audit opinion.
4. Qualifications
4.1 As per Accounting Policy number 2.8, the Company has valued the
investments at cost. As on March 31, 2012 there is a fall in the value
of investments. The Company has not made provision for fall in the
value of investments to the extent of Rs.35.55 lakhs and profit is
overstated to the same extent.
4.2 As per Accounting Policy Number 2.9.1, the company has to value the
liability for gratuity on actuarial basis. But, during the financial
year company has not made the provision for gratuity which is contrary
to accounting policy and accounting standard - 15(revised) -
'Employee Benefits' which requires the liability for gratuity need
to be provided on actuarial basis. The effect of non-provision for
liability for gratuity on financial statements is not ascertainable
since the relevant information is not readily available.
5. Opinion
Subject to the observation referred in Para 4 above, 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 March 31, 2012;
(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 Cash Flow Statement, of the cash flows for the year
ended on that date.
6. Emphasis of Matter
We draw attention to Note No.25.13 of the financial statements
regarding the fact that the balances of Sundry Creditors, Sundry
Debtors, Loans and advances are subject to confirmation, reconciliation
or adjustment, if any. ,
7. Report on other Legal and Regulatory requirements
7.1 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 of the matters specified in paragraphs 4 and 5 of the
Order.
7.2 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 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, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
accounts;
(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 Act;
(e) On the basis of written representations received from the
directors, as on March 31, 2012, and taken on record by the Board of
Directors, none of the directors 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 Act;
(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 Act
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.
Based upon the information and explanations furnished to us and the
books and records examined by us in the normal course of audit and to
the best of our knowledge and belief, we report that:
1. In respect of Fixed Assets:
a) The company has maintained proper records showing particulars of
fixed assets and has been updated.
b) As explained to us, the fixed assets have been physically verified
by the management during the year in a phased periodical manner, which
in our opinion is reasonable, having regard to the size of the company
and nature of its assets. As informed to us, no material discrepancies
were noticed on such physical verification.
c) The company has not disposed off substantial part of fixed assets
during the year and therefore do not affect the going concern
assumption.
2. In respect of its inventories:
a. As explained to us, inventories have been physically verified by
the management during the year. In our opinion, frequency of
verification is reasonable.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. The Company is maintaining proper records of inventory. As
explained to us, there were no material discrepancies noticed on
physical verification of inventory as compared to the book records.
3. In respect of loans secured or unsecured, granted or taken by the
Company tofrom Companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
a. As informed to us, during the year, the company has not granted any
loans, secured or unsecured to companies, firms and other parties
covered under register maintained under Section 301 ofthe Companies
Act, 1956. Hence commenting on Paragraph 3(a) to 3(d) of the said
order does not arise.
b. During the year, company has taken loan from two parties amounting
to Rs.50.25 Lakhs and repaid to the extent of Rs.80.56 Lakhs to three
parties. The maximum balance outstanding at any time during the year
was Rs.66.70 lakhs. The year-end balance of loans taken from such
parties was Rs.19.18 Lakhs.
c. In our opinion and according to the information and explanations
given to us in respect of loans taken by the Company, the rate of
interest, wherever applicable and other terms and conditions are not
prima facie prejudicial to the interest of the Company.
d. In respect of loans taken by the Company the payment of principal
and interest is as per the understanding with the parties.
4. In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the Company and the nature of its
business for the purchase of inventory, fixed assets and with regard to
the sale of goods and services. During the course of our audit, no
major weakness has been noticed in the internal control system in
respect of these areas.
5. In respect of transactions covered under section 301 ofthe
Companies Act, 1956;
a. According to the information and explanations provided by the
management, we are of the opinion that the particulars of transactions
made in pursuance of contracts or arrangements referred to in Section
301 of the Companies Act, 1956 that need to be entered into the
register maintained under section 301 have been so entered.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements exceeding the value of Rupees five lakhs has been entered
into during the financial year at a price which is reasonable having
regard to prevailing market prices at the relevant time.
6. During the year, Company has not accepted any deposits from the
public. Hence commenting on the compliance of Section 58Aand 58AAof the
Companies Act, 1956 read with Companies (Acceptance of Deposit) Rules,
1975 does not arise.
7. In our opinion, the Company has an internal audit function
commensurate with the size and nature of its business.
8. To the best of our Knowledge and as explained, the central
government has not prescribed maintenance of Cost Records under clause
(d) subsection (1) of section 209 of the Companies Act, 1956 for the
products of the company.
9. In respect of statutory dues:
a. According to the records of the Company, undisputed statutory dues
including Investor Education and Protection Fund, Employees' State
Insurance, Sales Tax, Service Tax, Income Tax, Wealth Tax, Custom Duty,
Excise Duty, Cess and other material statutory dues have been generally
regularly deposited with the appropriate authorities though there is a
delay in remittance of TDS in some cases.
Further, since the Central Government has till date not prescribed the
amount of cess payable under section 441A of the Companies Act, 1956,
we are not in a position to comment upon the regularity or otherwise of
the company in depositing the same.
b. According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, custom duty, excise duty, provident fund, investor education and
protection fund, Employees state insurance, service tax and cess and
other undisputed statutory dues were outstanding, at the year end, for
the period of more than six months from the date they became payable.
c. According to the information and explanations given to us, there
are no dues of sales tax, income tax, custom duty, wealth tax, excise
duty, cess and service tax which have not been deposited on account of
any dispute.
10. The Company has no accumulated losses and has not incurred any
cash losses during the financial year covered by our audit or in the
immediately preceding financial year.
11. In our opinion 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 the banks.
12. According to the information and explanations given to us and
based on the records produced to us, Company has not granted loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund/society. Therefore the provisions of Paragraph 4 (xiii) of
the Companies (Auditor's Report) Order, 2003 (as amended) are not
applicable to the Company.
14. The company is not dealing in or trading in shares, securities,
and debentures. But company has invested the surplus funds to earn the
income from investment. According to information and explanation given
to us and in our opinion:
- The company has maintained the records for transactions and
contracts entered into for purchase and sale of shares and Securities.
- Investments are in the company's own name.
15. According to information given to us and based on the records and
documents produced to us, during the financial year, company has not
given guarantee for loan taken by others from banks or financial
institutions. Hence commenting on the prejudicial to the interest of
the company does not arise.
16. In our opinion, the term loans have been applied for the purpose
for which they were raised.
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 funds raised on short -term basis have been used for long-term
investment.
18. 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. Hence commenting on the prejudicial of
issue price to the interest of the company does not arise.
19. During the year, the Company has not issued Debentures.
20. The Company has not raised any money by way of public issue during
the year. Hence verification of the end use of the same does not arise.
21. Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanation given by the management, we report that
no fraud on or by the company has been noticed during the course of our
audit.
For MSSV & CO.
Chartered Accountants
Firm Reg. No. 001987S
Place : Bangalore D. R. Venkatesh
Date : 24th May, 2012 Partner
Membership No. 025087
Mar 31, 2011
1. We have audited the attached Balance Sheet of M/s. SUNIL AGRO
FOODS LIMITED, as at March 31,2011 and also the Profit & Loss Account
and Cash Flow Statement for the year 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 mis-statement. 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), 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. 4.1 As per Accounting Policy number.8 the
Company has valued the investments at cost. As on March 31, 2011 there
is a fall in the value of investments. The Company has not made
provision for fall in the value of investments to the extent offts.
29.75 lakhs and profit is overstated to the same extent.
4.2 As per Accounting Policy Number 9.1, the company has to value the
liability for gratuity on actuarial basis. But, during the financial
year company has not made the provision for gratuity which is contrary
to accounting policy and accounting standard - 15(revised) - 'Employee
Benefits' which requires the liability for gratuity need to be provided
on acruarial basis. The effect of non provision for liability for
gratuity on financial statements is not ascertainable since the
relevant information is not readily available.
5. Further to our comments above, we report that:
5.1 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.
5.2 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;
5.3 The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts;
5.4 Subject to the observation referred in Para 4 above, in our
opinion, the Balance Sheet, Profit and Loss Account and Cash Flow
Statement dealt with by this report comply with the mandatory
accounting standards, referred to in sub-section (3C) of section 211 of
the Companies Act, 1956;
5.5 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 are 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;
6. Subject to our comments as referred in Para 3 and 4 above, 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
significant accounting policies & Notes to accounts thereon, gives 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 March 31, 2011;
(b) in the case of the Profit and Loss Account, of the Profit of the
Company for the year then ended on that date; and
(c) in the case of Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
ANNEXURE TO AUDITORS' REPORT
Referred to in paragraph 3 of our report of even date
Based upon the information and explanations furnished to us and the
books and records examined by us in the normal course of audit and to
the best of our knowledge and belief, we report that:
1. In respect of Fixed Assets:
a) The company has maintained proper records showing particulars of
fixed assets and has been updated.
b) As explained to us, the fixed assets have been physically verified
by the management during the year in a phased periodical manner, which
in our opinion is reasonable, having regard to the size of the company
and nature of its assets. As informed, no material discrepancies were
noticed on such physical verification.
c) The company has not disposed off substantial part of fixed assets
during the year and therefore do not affect the going concern
assumption.
2. In respect of its inventories:
a. As explained to us, inventories have been physically verified by
the management during the year. In our opinion, frequency of
verification is reasonable.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. The Company is maintaining proper records of inventory. As
explained to us, there were no material discrepancies noticed on
physical verification of inventory as compared to the book records.
3. In respect of loans secured or unsecured, granted or taken by the
Company to/from Companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
a. As informed, during the year, the company has not granted any
loans, secured or unsecured to companies, firms and other parties
covered under register maintained under Section 301 of the Companies
Act, 1956. Hence commenting on Paragraph 3(a) to 3(d) of the said order
does not arise.
b. During the year, company has taken loan from three parties
amounting to Rs.36.24 Lakhs and repaid to the extent of Rs.54.04 Lakhs
to three parties. The maximum balance outstanding at any time during
the year was Rs.83.62 lakhs. The year-end balance of loans taken from
such parties was Rs.51.71 Lakhs.
c. In our opinion and according to the information and explanations
given to us in respect of loans taken by the Company, the rate of
interest, wherever applicable and other terms and conditions are not
prima facie prejudicial to the interest of the Company.
d. In respect of loans taken by the Company the payment of principal
and interest is as per the understanding with the parties.
4. In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the Company and the nature of its
business for the purchase of inventory, fixed assets and with regard to
the sale of goods and services. During the course of our audit, no
major weakness has been noticed in the internal control system in
respect of these areas.
5. In respect of transactions covered under section 301 of the
Companies Act, 1956;
a. According to the information and explanations provided by the
management, we are of the opinion that the particulars of transactions
made in pursuance of contracts or arrangements referred to in Section
301 of the Companies Act, 1956 that need to be entered into the
register maintained under section 301 have been so entered.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements exceeding the value of Rupees five lakhs has been entered
into during the financial year at a price which is reasonable having
regard to prevailing market prices at the relevant time.
6. During the year, Company has not accepted any deposits from the
public. Hence commenting on the compliance of Section 58A and 58AA of
the Companies Act, 1956 read with Companies (Acceptance of Deposit)
Rules 1975 does not arise.
7. In our opinion, the Company has an internal audit function
commensurate with the size and nature of its business.
8. To the best of our Knowledge and as explained, the central
government has not prescribed maintenance of Cost Records under clause
(d) subsection (1) of section 209 of the Companies Act, 1956 for the
products of the company.
9. In respect of statutory dues:
a. According to the records of the Company, undisputed statutory dues
including Investor Education and Protection Fund, Employees' State
Insurance, Sales Tax, Service Tax, Income Tax, Wealth Tax, Custom Duty,
Excise Duty, Cess and other material statutory dues have been generally
regularly deposited with the appropriate authorities.
Further, since the Central Government has till date not prescribed the
amount of cess payable under section 441A of the Companies Act, 1956,
we are not in a position to comment upon the regularity or otherwise of
the company in depositing the same.
b. According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, custom duty, excise duty, provident fund, investor education and
protection fund, Employees state insurance, service tax and cess and
other undisputed statutory dues were outstanding, at the year end, for
the period of more than six months from the date they became payable.
c. According to the information and explanations given to us, there
are no dues of sales tax, income tax, custom duty, wealth tax, excise
duty, cess and service tax which have not been deposited on account of
any dispute.
10. The Company has no accumulated losses and has not incurred any
cash losses during the financial year covered by our audit or in the
immediately preceding financial year.
11. In our opinion 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 the banks.
12. According to the information and explanations given to us and
based on the records produced to us, Company has not granted loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund/society. Therefore the provisions of Paragraph 4 (xiii) of
the Companies (Auditor's Report) Order, 2003 (as amended) are not
applicable to the Company.
14. The company is not dealing in or trading in shares, securities,
and debentures. But company has invested the surplus funds to earn the
income from investment. According to information and explanation given
to us and in our opinion:
- The company has maintained the records for transactions and contracts
entered into for purchase and sale of shares and Securities.
- Investments are in the companies own name.
15. According to information given to us and based on the records and
documents produced to us, during the financial year, company has not
given guarantee for loan taken by others from banks or financial
institutions. Hence commenting on the prejudicial to the interest of
the company does not arise.
16. In our opinion, the term loan has been applied for the purpose for
which they were raised.
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 funds raised on short -term basis have been used for long -term
investment.
18. 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. Hence commenting on the prejudicial of
issue price to the interest of the company does not arise.
19. During the year, the Company has not issued Debentures.
20. The Company has not raised any money by way of public issue during
the year. Hence verification of the end use of the same does not arise.
21. Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanation given by the management, we report that
no fraud on or by the company has been noticed during the course of our
audit.
For MSSV & CO.
Chartered Accountants
Firm Reg. No. 001987S
D.R.Venkatesh
Partner
Membership No. 25087
Place Bangalore
Date 30th May, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of Messrs SUNIL AGRO
FOODS LIMITED, as at March 31,2010 and also the Profit & Loss Account
and 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 Statements are free of material mis- statement. 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 (Auditors Report) Order, 2003 (as
amended), issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose
in the Annexure a statement on the matters specified in paragraphs 4
and 5 of the said Order.
4. Further to our comments in the annexure referred to above, we
report that:
4.1 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.
4.2 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;
4.3 The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts;
4.4 Subject to the observation referred in Para 4.6 below, in our
opinion, the Balance Sheet, Profit and Loss Account and Cash Flow
Statement dealt with by this report comply with the mandatory
Accounting Standards, referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956;
4.5 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 are disqualified 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;
4.6 As per Accounting Policy number 8 the Company has valued the
investments at cost. As on March 31, 2010 there is a fall in the value
of investments. The Company has not made provision for fall in the
value of investments to the extent of Rs. 21.64 lakhs and profit is
overstated to the same extent.
4.7 Subject to our comments as referred in Para 3 and 4.6 above, 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
significant Accounting Policies & Notes to Accounts thereon, gives 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 March 31,2010;
(b) in the case of the Profit and Loss Account, of the Profit of the
Company for the year then ended on that date; and
(c) in the case of Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
ANNEXURE TO AUDITORS REPORT Referred to in paragraph 3 of our
report of even date
Based upon the information and explanations furnished to us and the
books and records examined by us in the normal course of audit and to
the best of our knowledge and belief, we report that:
1. In respect of Fixed Assets:
a) The Company has maintained proper records showing particulars of
fixed assets and has been updated.
b) As explained to us, the fixed assets have been physically verified
by the Management during the year in a phased periodical manner, which
in our opinion is reasonable, having regard to the size of the Company
and nature of its assets. As informed, no material discrepancies were
noticed on such physical verification.
c) The Company has not disposed off substantial part of fixed assets
during the year and therefore do not affect the going concern
assumption.
2. In respect of its inventories:
a. As explained to us, inventories have been physically verified by
the Management during the year. In our opinion, frequency of
verification is reasonable.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the Management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. The Company is maintaining proper records of inventory. As
explained to us, there were no material discrepancies noticed on
physical verification of inventory as compared to the book records.
3. In respect of loans secured or unsecured, granted or taken by the
Company to/from Companies, firms or other parties covered in the
Register maintained under Section 301 of the Companies Act, 1956.
a. As informed, during the year, the Company has not granted any loans,
secured or unsecured to companies, firms and other parties covered
under register maintained under Section 301 of the Companies Act, 1956.
Hence commenting on para vs clause 3(a) to 3(d) of the said order does
not arise.
b. During the year, the Company has taken loan from three parties
amounting to Rs.64.34 Lakhs and repaid to the extent of Rs.79.26 Lakhs
to three parties. The balance payable as on the balance sheet date is
Rs. 70.85 Lakhs.
c. In our opinion and according to the information and explanations
given to us in respect of loans taken by the Company, the rate of
interest, wherever applicable and other terms and conditions are not
prima facie prejudicial to the interest of the Company.
d. In respect of loans taken by the Company the payment of principal
and interestas per the understanding of the parties.
4. In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the Company and the nature of its
business for the purchase of inventory, fixed assets and with regard to
the sale of goods and services. During the course of our audit, no
major weaknesses has been noticed in the internal control system in
respect of these areas.
5. In respect of transactions covered under Section 301 of the
Companies Act, 1956;
a. According to the information and explanations provided by the
Management, we are of the opinion that the particulars of transactions
made in pursuance of contracts or arrangements referred to in Section
301 of the Companies Act, 1956 that need to be entered into the
Register maintained under Section 301 have been so entered.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of -such contracts or
arrangements exceeding the value of Rupees five lakhs has been entered
into during the financial year at a price which is reasonable having
regard to prevailing market prices at the relevant time.
6. During the year, the Company has not accepted any deposits from the
public. Hence commenting on the compliance of Section 58A and 58AA of
the Companies Act, 1956 read with Companies (Acceptance of Deposit)
Rules, 1975 does not arise.
7. In our opinion, the Company has an internal audit function to
commensurate with the size and nature of its business.
8. To the best of our Knowledge and as explained, the Central
Government has not prescribed maintenance of Cost Records under clause
(d) subsection (1) of Section 209 of the Companies Act, 1956 for the
products of the Company.
9. In respect of statutory dues:
a. According to the records of the Company, undisputed statutory dues
including Investor Education and Protection Fund, Employees State
Insurance, Sales Tax, Service Tax, Income Tax, Wealth Tax, Custom Duty,
Excise Duty, Cess and other statutory dues have been generally
regularly deposited with the appropriate authorities.
b. According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, custom duty, excise duty, provident fund, investor education and
protection fund, Employees state insurance, service tax and cess and
other undisputed statutory dues were outstanding, at the year end, for
a period of more than six months from the date they became payable.
c. According to the information and explanations given to us, there
are no dues of sales tax, income tax, custom duty, wealth tax, excise
duty, cess and service tax which have not been deposited on account of
any dispute.
10. The Company has no accumulated losses which is in excess of 50% of
its net worth and has not incurred any cash losses during the financial
year covered by our audit or in the immediately preceeding financial
year.
11. Based on our audit procedures and according to the information and
explanations given by the Management, we are of the opinion that the
Company has not defaulted in repayment of dues to the Banks.
12. According to the information and explanations given to us and
based on the records produced to us, Company has not granted loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund/society. Therefore the provisions of para vs clause 4
(xiii) of the Companies (Auditors Report) Order, 2003 (as amended) are
not applicable to the Company.
14. The Company is not dealing in or trading in shares, securities,
and debentures. But the Company has invested the surplus funds to earn
the income from investment. According to information and explanations
given to us and in our opinion:
- The Company has maintained the records for transactions and contracts
entered into for purchase and sale of Shares and Securities.
- Investments are in the companies own name.
15. According to information given to us and based on the records and
documents produced to us, during the financial year, the Company has
not given guarantee for loan taken by others from banks or financial
institutions. Hence commenting on the prejudicial to the interest of
the Company does not arise.
16. In our opinion, term loan has been applied for the purpose for
which they were raised.
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 funds raised on short-term basis have been used for long -term
investment.**
18. 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. Hence commenting on paragraph 18 of
Company Audit Report Order, 2003 does not arise.
19. During the year, the Company has not issued Debentures.
20. The Company has not raised any money by way of public issue during
the year. Hence verification of the end use of the same does not arise.
21. Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the informations and explanations given by the Management, we report
that no fraud on or by the Company has been noticed during the course
of our audit.
For MSSV & CO.
Chartered Accountants
Firm Reg. No. 001987S
Place : Bangalore D. R. Venkatesh
Date : 31st July, 2010 Partner
Membership No. 25087
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