Mar 31, 2015
Report on the Financial Statements We have audited the accompanying
financial statements of SWARNAJYOTHI AGROTECH & POWER LIMITED ("the
company"),which comprise the Balance Sheet as at 31 March 2015, the
Statement of Profit and Loss, 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
The Company's Board of Directors is responsible for the matters in
section 134(5) of the Companies Act, 2013 ("the Act") with respect to
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 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 the maintenance of
adequate accounting records in accordance with the provision of the Act
for safeguarding of the assets of the Company and for preventing and
detecting the 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 internal financial control, 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.
Auditor's Responsibility
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 there under.
We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor'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 true and fair view 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 Company's Directors, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Basis for Qualified Opinion
With reference to the Note No.12 of the financial statements wherein
the management of the company has considered Trade receivables
amounting to Rs.9,54,85,831 as good and fully recoverable. In the
absence of external confirmations from the customers from whom these
amounts are due or other alternate audit evidence to corroborate
management's assessment of recoverability of these balances and with
regard to the age of these balances, we are unable to comment the
extent to which these balances are recoverable.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the possible effect of the matters
described in the basis for qualified opinion paragraph, 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;
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
b) in the case of the Statement of Profit and Loss, of the loss for the
year ended on that date; and
c) in the case of Cash Flow statement, of the cash flows for the year
ended on that date.
Emphasis of Matter Paragraph
Note No.25 K to the Financial Statements, with regarding to
transferring or settling dues of the Bank through ARC subsequent to the
reporting period is undergoing.
However our opinion is not modified in respect of this matter.
Report on other Legal and Regulatory Requirements
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 given in the Annexure a
statement on the matters specified in the paragraph 3 and 4 of the
order, to the extent applicable.
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 appears from our examination of those
books.
c) the Balance Sheet, the 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 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.
e) On the basis of written representations received from the directors
as on 31 March, 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on 31 March, 2015, from being
appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the other matters included in the Auditor's Report
and to our best of our information and according to the explanations
given to us:
i. The Company does not have any pending litigations which would
impact its financial position
ii. Company did not have any long-term contracts including derivatives
contracts for which there were any material foreseeable losses
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT (This is the Annexure
referred to in our Report of even date)
i.
a. The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
b. All fixed assets have been physically verified by the Management
during the year, in our opinion, is reasonable having regard to the
size of the Company and the nature of it's Assets. No material
discrepancies were noticed on such verification.
ii.
a. The Management has conducted physical verification of inventory at
reasonable intervals during the year.
b. The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c. The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
iii.
a. The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act, 2013.
iv. In our opinion, there are adequate internal control procedures
commensurate with the size of the company and the nature of it's
business for the purchase of inventory and fixed assets and for the
sale of goods and services. During the course of our audit no major
weaknesses have been noticed in internal controls in these areas.
v. The Company has not accepted any deposits from the public.
vi. In our opinion, and according to the information and explanations
given to us, the company is not required to maintain cost records and
accounts as provided under sub section (1) of section 148 of the
Companies Act, 2013.
vii.
a. According to the records provided to us, the Company is regular
except for certain cases in depositing undisputed statutory dues
including Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty,
Excise Duty, Cess and any other statutory dues applicable to it with
appropriate authorities and according to the information and
explanations given to us, except for below mentioned, no undisputed
amounts payable in respect of Income- tax, Sales-tax, Wealth-tax,
Service Tax, Customs Duty, Excise Duty and Cess were in arrears as at
31st March, 2015 for a period of more than six months from the date they
became payable.
Particulars Rs. in Lakhs
Tax Deducted at Source 12.43
Providend Fund 3.55
Income Tax (A.Y.2014-15) 9.20
b. According to the records of the Company and on the basis of the
information and explanations given to us, there are no dues in respect
of VAT, Service Tax, Duty of Excise, Income Tax, customs duty, wealth
tax that have not been deposited with the appropriate authorities on
account of any dispute. However following dues are not deposited on
account of dispute by the company;
Particulars Period to which Forum Where the Amount
the amount dispute is (Rs in Lakhs)
relates pending
Income Tax F.Y.2005-06 Mumbai Tribunal 26.00
Income Tax F.Y.2007-08 Mumbai Tribunal 9.11
Income Tax F.Y.2011-12 CIT (Appeals) 36.14
c. The Company is not required to transfer any amount to investor
education and protection fund during the year in accordance with the
relevant provisions of the Companies Act, 1956 (1 of 1956) and rules
made there under.
viii.The Company has no accumulated losses as at the end of the
financial year and has not incurred cash losses during the financial
year covered by our audit and in the immediately preceding financial
year.
ix. Based on our audit procedures and on the information and
explanation given by the management, the company has defaulted in
repayment of dues to the following financial institutions, banks as at
the end of the balance sheet date. Further as stated in Note no.25 K of
the financial statements, the matter in this respect is pending before
the Corporate Debt Restructuring cell. The company has not issued any
debentures during the year and not having any outstanding dues to
debenture holders, hence clause shall not applicable to the company in
this respect.
The details of the defaults of repayment are as follows;
Rupees in Lakhs
Particulars (Principle Interest)
1 State Bank of India 1468.40
2 IDBI 375.70
x. The Company has not given any guarantee for loans taken by others
from banks or financial institutions.
xi. In our opinion, Term Loans were applied for the purpose for which
the said loans were obtained.
xii. As per the checks carried out by us, no fraud on or by the company
has been noticed or reported during the year under report.
For RRK & Associates
Chartered Accountants
R.Radha Krishna
Partner
M.No.210777
FRN.09785S
Date:02.12.2015
Place: Hyderabad
Mar 31, 2014
We have audited the accompanying financial statements of Swarnajyothi
Agrotech& Power Limited formerly Octant Industries Limited ("the
Company"), which comprise the Balance Sheet as at March 31,2014, the
Statement of Profit and Loss and Cash Flow Statement for the year then
ended, and a summary of significant accounting policies and other
explanatory information.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the 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.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
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 the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A)of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account
d. in our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in subsection (3C) of section 211 of the Companies Act, 1956;
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 are disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Annexure to the Auditor's Report
The annexure referred to in our report to the members of Swarnajyothi
Agrotech & power Limited formerly Octant Industries Limited ('the
Company') for the year ended 31 March, 2014. We Report that:
i) (a) According to the information and explanations given to us the
Company has maintained Proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) According to the information and explanations given to us the
company has physically verified during the year its fixed assets. We
have been informed that no material discrepancies were noticed on such
physical verification.
(c) According to the information and explanations given to us that
there was no substantial disposal of fixed assets during year.
ii) (a) The Inventory has been physically verified by the Management
during the year at reasonable intervals.
(b) In our opinion the procedures of physical verification of inventory
followed by the Management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) The Company is maintaining proper record of inventory. In our
opinion the discrepancies noticed on physical verification of stocks as
compared to book records were not material. However they have been
properly dealt with in the books of account.
iii) (a) According to the information and explanations given to us the
Company has not granted interest free unsecured loans to the parties
covered in the register maintained under section 301 of the Companies
Act, 1956.
(b) In our opinion the terms and conditions of loans so granted to the
party are prima facie not prejudicial to the interest of the company.
(c) According to the information and explanations given to us the loans
given to the parties covered in the register maintained under section
301 of the Companies Act 1956 are repayable on demand.
(d) According to the information and explanations given to us the
Company has taken interest free unsecured loans aggregating as at the
Balance Sheet date, Rs.250.49 Lakhs from two parties (Sri Manmohan Sahu
and Smt. Indira Sahu) covered in the register maintained under section
301 of the Companies Act, 1956.
(e) In our opinion the terms and conditions on which the loans have
been taken by the company from two parties covered in the register
maintained under section 301 of the Companies Act, 195 are prima-facie
not prejudicial to the interest of the company.
(g) According to the information and explanations given to us the loans
given to the parties covered in the register maintained under section
301 of the Companies Act 1956 are repayable on demand.
iv) In our opinion there are adequate internal control systems
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. In our opinion according the
information and explanations given to us there is no continuing failure
to correct major weaknesses in internal control during the year.
v) a) In our opinion and according to the information and explanations
given to us the contracts or arrangements that need to be entered into a
register in pursuance of section 301 of the Companies Act, 1956 have
been properly so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions that need to be entered into a register in
pursuance of section 301 of the Companies Act, 1956 have been made at
prices which are reasonable having regard to the prevailing market
prices at the relevant time.
vi) In our opinion and according to the information and explanations
given to us, during the year under review the company has not accepted
any deposits from the public within the purview of Section 58A of the
Companies Act, 1956 and Rules made there under.
vii) In our opinion and the information furnished to us, the company
has and internal audit system carried out by the external auditor and
also has the inbuilt internal audit system. In our opinion the scope
and coverage of the internal audit is commensurate with the size of the
company and nature of its business.
viii) In our opinion and according to the information and explanations
given to us the Central Government has prescribed the maintenance of
cost records by the company as specified in sub section (1) of section
209 of the companies Act, 1956.
ix) a) According to the information and explanations given to us and
according to the books and records examined by us in respect of
statutory dues, the Company has been regular except for certain cases in
depositing undisputed statutory dues with appropriate authorities
including Provident Fund, Investor Education and Protection Fund,
Employee's State Insurance, Income Tax, Sales Tax, Excise Duty, Service
Tax, Cess and Other material statutory dues applicable to it.
b) With reference to the dues of Taxes which has not been deposited as
at March 31, 2014 on account of disputes (which is belongs to the
period before the appointed date of the Scheme of Arrangement and
pertains to the Old Management), the amounts involved and forum where
dispute is pending reported below:
Particulars Period to which Forum Where the Amount
the amount relates dispute is pending (Rs in Lakhs)
Income Tax Assessment Year Mumbai Tribunal 26.00
2006-07
Income Tax Assessment Year Mumbai Tribunal 9.11
2008-09
Income Tax Assessment Year CIT (Appeals) 36.14
2012-13
x) In our opinion and according to the information and explanations
given to us and according to the books of account examined by us the
there are no accumulated losses at the end of the financial year.
xi) Based on our audit procedures and on the information and
explanation given by the management, the company has defaulted in
repayment of dues to the following financial institutions, banks as at
the end of the balance sheet date.
The details of the defaults of repayment is as follows;
Rupees in Lakhs
Particulars (Principal Interest)
1 State Bank of India 1468.40
2 IDBI 313.31
xii) According to the information and explanations given to us by the
management and according to the records of the company examined by us
the company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii) In our opinion and according to the information and explanations
furnished to us the company is not a chit, nidhi or mutual benefit
fund/society.
xiv) According to the information and explanations furnished to us the
company is not dealing in shares, securities debentures and other
investments.
xv) In our opinion and according to the information and explanation
given to us, the company has not given any guarantee for the loans
taken by others from banks or financial institutions.
xvi) In our opinion and according to the information and explanations
furnished to us the term loans have been applied for the purpose for
which they were raised.
xvi) On the basis of an overall examination of the Balance sheet of the
company, and according to the information and explanations given to us,
we are of the opinion that there are no funds raised on short term
basis, which have been used for long term investments.
xvi) According to the information and explanations furnished to us,
during the period covered by our audit, the company has not made any
preferential allotment of equity shares to parties covered in the
register maintained under section 301 of the companies Act, 1956 and
thus the opinion on the price at which shares have been issued are not
prejudicial to the interest of the company do not arise.
xix) According to the information and explanations given to us the
company has not issued any debentures during the year and hence
commenting under this clause does not arise.
xx) According to the information and explanations furnished to us by
the Management, the company has not raised money by way of further
public issue (preferential issue) during the year and as verified by us
the end use of money raised by public issues has been spend for the
purpose the same has been raised.
xxi) Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the company has been noticed or reported during the year.
For RRK & ASSOCIATES
Chartered Accountants
FRN No. 009785 S
Sd/-
R.Radha Krishna
Partner
M.No.210777
Date:
Place: Hyderabad
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Swarnajyothi
Agrotech & Power Limited formerly Octant Industries Limited (''the
Company"), which comprise the Balance Sheet as at March 31, 2013, the
Statement of Profit and Loss and Cash Flow Statement for the year then
ended, and a summary of significant accounting policies and other
explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 (''the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the 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.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
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, 2013;
(b) in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
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 on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account
d. in our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in subsection (3C) of section 211 of the Companies Act, 1956;
e. on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors are disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Annexure to the Auditor''s Report
The annexure referred to in our report to the members of Swarnajyothi
Agrotech & power Limited formerly Octant Industries Limited (Âthe
Company'') for the year ended 31 March, 2013. We Report that:
i) (a) According to the information and explanations given to us the
Company has maintained Proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) According to the information and explanations given to us the
company has physically verified during the year its fixed assets. We
have been informed that no material discrepancies were noticed on such
physical verification.
(c) According to the information and explanations given to us that
there was no substantial disposal of fixed assets during year.
ii) (a) The Inventory has been physically verified by the Management
during the year at reasonable intervals.
(b) In our opinion the procedures of physical verification of inventory
followed by the Management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) The Company is maintaining proper record of inventory. In our
opinion the discrepancies noticed on physical verification of stocks as
compared to book records were not material. However they have been
properly dealt with in the books of account.
iii) (a) According to the information and explanations given to us the
Company has not granted interest free unsecured loans to the parties
covered in the register maintained under section 301 of the Companies
Act, 1956.
(b) In our opinion the terms and conditions of loans so granted to the
party are prima facie not prejudicial to the interest of the company.
(c) According to the information and explanations given to us the loans
given to the parties covered in the register maintained under section
301 of the Companies Act 1956 are repayable on demand.
(d) According to the information and explanations given to us the
Company has taken interest free unsecured loans aggregating as at the
Balance Sheet date, Rs.257.16 Lakhs from two parties (Sri Manmohan Sahu
and Smt. Indira Sahu) covered in the register maintained under section
301 of the Companies Act, 1956.
(e) In our opinion the terms and conditions on which the loans have
been taken by the company from two parties covered in the register
maintained under section 301 of the Companies Act, 195 are prima-facie
not prejudicial to the interest of the company.
(g) According to the information and explanations given to us the loans
given to the parties covered in the register maintained under section
301 of the Companies Act 1956 are repayable on demand.
iv) In our opinion there are adequate internal control systems
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. In our opinion according the
information and explanations given to us there is no continuing failure
to correct major weaknesses in internal control during the year.
v) a) In our opinion and according to the information and explanations
given to us the contracts or arrangements that need to be entered into
a register in pursuance of section 301 of the Companies Act, 1956 have
been properly so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions that need to be entered into a register
in pursuance of section 301 of the Companies Act, 1956 have been made
at prices which are reasonable having regard to the prevailing market
prices at the relevant time.
vi) In our opinion and according to the information and explanations
given to us, during the year under review the company has not accepted
any deposits from the public within the purview of Section 58A of the
Companies Act, 1956 and Rules made there under.
vii) In our opinion and the information furnished to us, the company
has and internal audit system carried out by the external auditor and
also has the inbuilt internal audit system. In our opinion the scope
and coverage of the internal audit is commensurate with the size of the
company and nature of its business.
viii) In our opinion and according to the information and explanations
given to us the Central Government has prescribed the maintenance of
cost records by the company as specified in sub section (1) of section
209 of the companies Act, 1956.
ix) According to the information and explanations given to us and
according to the books and records examined by us in respect of
statutory dues, the Company has been regular except for certain cases
in depositing undisputed statutory dues with appropriate authorities
including Provident Fund, Investor Education and Protection Fund,
Employee''s State Insurance, Income Tax, Sales Tax, Excise Duty, Service
Tax, Cess and Other material statutory dues applicable to it
x) In our opinion and according to the information and explanations
given to us and according to the books of account examined by us the
there are no accumulated losses at the end of the financial year.
xi) Based on our audit procedures and on the information and
explanation given by the management, we are of the opinion that the
company has not defaulted in repayment of dues to the financial
institutions, banks.
xii) According to the information and explanations given to us by the
management and according to the records of the company examined by us
the company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii) In our opinion and according to the information and explanations
furnished to us the company is not a chit, nidhi or mutual benefit
fund/society
xiv) According to the information and explanations furnished to us the
company is not dealing in shares, securities debentures and other
investments.
xv) In our opinion and according to the information and explanation
given to us, the company has not given any guarantee for the loans
taken by others from banks or financial institutions.
xvi) In our opinion and according to the information and explanations
furnished to us the term loans have been applied for the purpose for
which they were raised
xvii) On the basis of an overall examination of the Balance sheet of
the company, and according to the information and explanations given to
us, we are of the opinion that there are no funds raised on short term
basis, which have been used for long term investments.
xviii) According to the information and explanations furnished to us,
during the period covered by our audit, the company has not made any
preferential allotment of equity shares to parties covered in the
register maintained under section 301 of the companies Act, 1956 and
thus the opinion on the price at which shares have been issued are not
prejudicial to the interest of the company do not arise.
xix) According to the information and explanations given to us the
company has not issued any with shares have been issued or not
prejudicial to the interest of the company do not arise.
xx) According to the information and explanations furnished to us by
the Management, the company has not raised money by way of further
public issue (preferential issue) during the year and as verified by us
the end use of money raised by public issues has been spend for the
purpose the same has been raised.
xxi) Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the company has been noticed or reported during the year.
For N SIVAPRASAD ASSOCITES
Chartered Accountants
Firm''s Registration No.003885 S
Sd/-
Place: Secunderabad G Venkatachalam
Date : 29th July 2013 Partner
Membership No.200616
Mar 31, 2012
We have audited the attached Balance Sheet of Octant Industries Limited
(Formerly Octant Interactive Technologies Limited) as at 31 st March
2012 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.
1. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
2. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government of India in terms of Section 227 (4A) of the
Companies Act, 1956, we enclose in the annex hereto a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
3. Further to our comments in the annexure referred to in paragraph 3
above, 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 accounts as required by law have
been kept by the company, so for as appears from our examination of
such books.
c. The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
d. In our opinion and to the best of our information and according to
the explanations given to us, the profit and loss account and balance
sheet are prepared in accordance with accounting standards referred in
sub section (3c) of section 211 of the Companies Act, 1956 to the
extent applicable and except as specifically mentioned in the notes on
account.
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, we
report that none of the Directors are disqualified as on March 31, 2012
from being appointed as Director in terms of clause (g) of subsection
(1) of Section 274 of the Companies Act, 1956.
4. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with notes thereon
give the information required by the Companies Act, 1956 in the manner
so required and give a true and fair view.
a. In the case of Balance sheet, of the state of affairs of the
company as at 31 st March 2012 and:
b. In the case of Profit and Loss Account, of the Profit for the year
ended on that date.
c. in the case of the Cash-How Statement, of the Cash flows of the
Company for the year ended on that date.
Annexure to the Auditors' Report
(Referred to in Paragraph 3 of our Report of even date)
In terms of the information and explanations given 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 state as under:
i. a. According to the information and explanations given to us the
Company has maintained Proper records showing full particulars
including quantitative details and situation of fixed assets.
b. According to the information and explanations given to us the
company has physically verified during the year its fixed assets. We
have been informed that no material discrepancies were noticed on such
physical verification.
c. According to the information and explanations given to us that
there was no substantial disposal of fixed assets during year.
ii. a. The Inventory has been physically verified by the Management
during the year at reasonable intervals.
b. In our opinion the procedures of physical verification of inventory
followed by the Management are reasonable and adequate in relation to
the size of the company and the nature of its business.
c. The Company is maintaining proper record of inventory. In our
opinion the discrepancies noticed on physical verification of stocks as
compared to book records were not material. However they have been
properly dealt with in the books of account.
iii. a. According to the information and explanations given to us the
Company has granted interest free unsecured loans aggregating as at
Balance Sheet date, of Rs.6.835Lakhs to the parties covered in the
register maintained under section 301 of the Companies Act, 1956.
b. In our opinion the terms and conditions of loans so granted to the
party are prima facie not prejudicial to the interest of the company.
c. According to the information and explanations given to us the loans
given to the parties covered in the register maintained under section
301 of the Companies Act 1956 are repayable on demand.
d. According to the information and explanations given to us the
Company has taken interest free unsecured loans aggregating as at the
Balance Sheet date, to Rs.575.04 Lakhs from two parties (Sri Manmohan
Sahu and Smt. Indira Sahu) covered in the register maintained under
section 301 of the Companies Act, 1956.
e. In our opinion the terms and conditions on which the loans have
been taken by the company from two parties covered in the register
maintained under section 301 of the Companies Act, 1956 are prima-facie
not prejudicial to the interest of the company.
g. According to the information and explanations given to us the loans
given to the parties covered in the register maintained under section
301 of the Companies Act 1956 are repayable on demand.
iv. In our opinion there are adequate internal control systems
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 sae of goods and services. In our opinion according the
information and explanations given to us there is no continuing failure
to correct major weaknesses in internal control during the year.
v. a. In our opinion and according to the information and explanations
given to us the contracts or arrangements that need to be entered into
a register in pursuance of section 301 of the Companies Act, 1956 have
been properly so entered.
b. In our opinion and according to the information and explanations
given to us, the transactions that need to be entered into a register
in pursuance of section 301 of the Companies Act. 1956 have been made
at prices which are reasonable having regard to the prevailing market
prices at the relevant time.
vi. In our opinion and according to the information and explanations
given to us, during the year under review the company has not accepted
any deposits from the public within the purview of Section 58A of the
Companies Act, 1956 and Rules made there under.
vii. In our opinion and the information furnished to us, the company
has and internal audit system carried out by the external auditor and
aso has the inbuilt internal audit system. In our opinion the scope
and coverage of the internal audit is commensurate with the size of the
company and nature of its business.
viii. In our opinion and according to the information and explanations
given to us the Central Government has not prescribed the maintenance
of cost records by the company as specified in sub section (1) of
section 209 of the companies Act, 1956.
ix. a. According to the information and explanations given to us and
according to the books and records examined by us in respect of
statutory dues, the company has not been regular in depositing
undisputed statutory dues with appropriate authorities including
Provident Fund, Investor Education and Protection Fund, Employee's
State Insurance, Income Tax, Sales Tax, Excise Duty, Service Tax, Cess
and Other material statutory dues applicable to it and accordingly the
Undisputed amounts payable in respect of Provident Fund of Rs. 4,69,867,
Employees' State Insurance of Rs.21,232, Professional Tax of U5.430,
Income Tax of Rs.30,84,571, Service Tax of Rs. 1,50,695.
b. With reference to the dues of Taxes which has not been deposited as
at March 31, 2012 on account of disputes (which is belongs to the
period before the appointed date of the Scheme of Arrangement and
pertains to the Old Management), the amounts involved and forum where
dispute is pending reported below:
Particulars Period to Forum Amount
which the where the (Rs. in
amount dispute Lakhs)
relates is pending
Income Tax Assessment Mumbai 26.00
Year Tribunal
2006-07
Income Tax Assessment Mumbai 9.11
Year Tribunal
2008-09
Income Tax Assessment Mumbai 1813.69
Year Tribunal
2009-10
x. In our opinion and according to the information and explanations
given to us and according to the books of account examined by us the
there are no accumulated losses at the end of the financial year.
xi. Based on our audit procedures and on the information and
explanation given by the management, we are of the opinion that the
company has not defaulted in repayment of dues to the financial
institutions, banks.
xii. According to the information and explanations given to us by the
management and according to the records of the company examined by us
the company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii. In our opinion and according to the information and explanations
furnished to us the company is not a chit, nidhi or mutual benefit
fund/society.
xiv. According to the information and explanations furnished to us the
company is not dealing in shares, securities debentures and other
investments.
xv. In our opinion and according to the information and explanation
given to us, the company has not given any guarantee for the loans
taken by others from banks or financial institutions.
xvi. In our opinion and according to the information and explanations
furnished to us the term loans have been applied for the purpose for
which they were raised.
xvii. On the basis of an overall examination of the Balance sheet of
the company, and according to the information and explanations given to
us, we are of the opinion that there are no funds raised on short term
basis, which have been used for long term investments.
xviii. According to the information and explanations furnished to us,
during the period covered by our audit, the company has made
preferential allotment of equity shares of 56,52,174 of shares at Rs.23
each, of which 11,71,789 Shares at Rs.23 have been made to parties
covered in the register maintained under section 301 of the companies
Act, 1956 and the price at which shares have been issued are not
prejudicial to the interest of the company.
xix. According to the information and explanations given to us the
company has not issued any debentures during the year and hence
commenting under this clause does not arise.
xx. According to the information and explanations furnished to us by
the Management, the company has raised money by way of further public
issue (preferential issue) during the year and as verified by us the
end use of money raised by public issues has been spend for the purpose
the same has been raised.
xxi. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the company has been noticed or reported during the year.
For M/s. N. Sivaprasad Associates
Firm Registration No. 003885S
Chartered Accountants
G. Venkatachalam
Partner
Membership No. 200616
Hyderabad
September 4, 2012
Mar 31, 2011
1. We have audited the attached Balance Sheet of Octant Industries
Limited (Formerly Octant Interactive Technologies Limited) as at 31st
March 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 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 issued
by the Central Government of India in terms of Section 227 (4A) of the
Companies Act, 1956, we enclose in the annex hereto a statement on the
matters specified in paragraph 4 and 5 of the said Order.
4. Further to our comments in the annexure referred to in paragraph 3
above, 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 accounts as required by law have
been kept by the company, so for as appears from our examination of
such books.
c. The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
d. In our opinion and to the best of our information and according to
the explanations given to us, the profit and loss account and balance
sheet are prepared in accordance with accounting standards referred in
sub section (3c) of section 211 of the companies act, 1956 to the
extent applicable and except as specifically mentioned in the notes on
account.
e. 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 Director in terms of clause (g) of subsection
(1) of Section 274 of the Companies Act, 1956.
5. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with notes thereon
give the information required by the companies Act, 1956 in the manner
so required and give a true and fair view.
a. In the case of Balance sheet, of the state of affairs of the
company as at 31st March 2011 and:
b. In the case of Profit and Loss Account, of the Profit for the year
ended on that date.
c. in the case of the Cash-flow Statement, of the Cash flows of the
Company for the year ended on that date.
Annexure to the Auditors' Report (Referred to in Paragraph 3 of our
Report of even date)
In terms of the information and explanations given 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 state as under:
i. a. According to the information and explanations given to us the
Company has maintained Proper records showing full particulars
including quantitative details and situation of fixed assets.
b. According to the information and explanations given to us the
company has physically verified during the year its fixed assets. We
have been informed that no material discrepancies were noticed on such
physical verification.
c. According to the information and explanations given to us that the
Company demerged its Finance Business during the financial year.
ii. a. The Inventory has been physically verified by the Management
during the year at reasonable intervals.
b. In our opinion the procedures of physical verification of inventory
followed by the Management are reasonable and adequate in relation to
the size of the company and the nature of its business.
c. The Company is maintaining proper record of inventory. In our
opinion the discrepancies noticed on physical verification of stocks as
compared to book records were not material. However they have been
properly dealt with in the books of account.
iii. a. According to the information and explanations given to us the
Company has not granted interest free unsecured loans to the parties
covered in the register maintained under section 301 of the Companies
Act, 1956.
b. In our opinion the rate of interest and other terms and conditions
of loans so granted to the party are prima facie not prejudicial to the
interest of the company.
c. According to the information and explanations given to us the loans
given to the parties covered in the register maintained under section
301 of the Companies Act 1956 are repayable on demand.
d. According to the information and explanations given to us the
Company has taken interest free unsecured loans aggregating as at the
Balance Sheet date, to Rs.112.16 Lakhs from two parties (Sri Manmohan
Sahu and Smt. Indira Sahu) covered in the register maintained under
section 301 of the Companies Act, 1956.
e. In our opinion the rate of interest and terms and conditions on
which the loans have been taken by the company from two parties covered
in the register maintained under section 301 of the Companies Act, 195
are prima-facie not prejudicial to the interest of the company.
g. According to the information and explanations given to us the loans
given to the parties covered in the register maintained under section
301 of the Companies Act 1956 are repayable on demand.
iv. In our opinion there are adequate internal control systems
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. In our opinion according to the
information and explanations given to us there is no continuing failure
to correct major weaknesses in internal control during the year.
v. a. In our opinion and according to the information and explanations
given to us the contracts or arrangements that need to be entered into
a register in pursuance of section 301 of the Companies Act, 1956 have
been properly so entered.
b. In our opinion and according to the information and explanations
given to us, the transactions that need to be entered into a register
in pursuance of section 301 of the Companies Act, 1956 have been made
at prices which are reasonable having regard to the prevailing market
prices at the relevant time.
vi. In our opinion and according the information and explanations given
to us, during the year under review the company has not accepted any
deposits from the public within the purview of Section 58A of the
Companies Act, 1956 and Rules made there under.
vii. In our opinion and the information furnished to us, the company
has no internal audit system carried out by the external auditor and
has the inbuilt internal audit system. In our opinion the scope and
coverage of the internal audit is commensurate with the size of the
company and nature of its business.
viii In our opinion and according to the information and explanations
given to us the Central Government has not prescribed the maintenance
of cost records by the company as specified in sub section (1) of
section 209 of the companies Act, 1956.
ix. a. According to the information and explanations given to us and
according to the books and records examined by us, except in some
cases, the company is regular in deducting and depositing with the
appropriate authorities the undisputed statutory dues including
provident fund, employee's state Insurance, income tax, sales tax,
excise duty, service tax, cess and other material statutory dues
applicable to it.
b. According to the information furnished to us and as per records of
the company examined by us there were no dues, as at the Balance Sheet
date, of sales tax/ income tax/custom tax/excise duty/ service
tax/cess/that have not been deposited on account of any dispute.
x. In our opinion and according to the information and explanations
given to us and according to the books of account examined by us the
there are no accumulated losses at the end of the financial year.
xi. Based on our audit procedures and on the information and
explanation given by the management, we are of the opinion that the
company has not defaulted in repayment of dues to the financial
institutions, banks.
xii. According to the information and explanations given to us by the
management and according to the records of the company examined by us
the company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii. In our opinion and according to the information and explanations
furnished to us the company is not a chit, nidhi or mutual benefit
fund/society
xiv. According to the information and explanations furnished to us the
company is not dealing in shares, securities debentures and other
investments.
xv. In our opinion and according to the information and explanation
given to us, the company has not given any guarantee for the loans
taken by others from banks or financial institutions.
xvi. In our opinion and according to the information and explanations
furnished to us the term loans have been applied for the purpose for
which they were raised.
xvii. On the basis of an overall examination of the Balance sheet of
the company, and according to the information and explanations given to
us, we are of the opinion that there are no funds raised on short term
basis, which have been used for long term investments.
xviii.According to the information and explanations furnished to us, in
line with the scheme of Merger, the company has made allotment of
Equity shares of 14645010 Shares of Rs.10/- each other than cash to
shareholders of merged companies and companies covered in the register
maintained under section 301 of the Companies Act, 1956 during the year
under review.
xix. According to the information and explanations given to us the
company has not issued any debentures during the year and hence
commenting under this clause does not arise.
xx. The company has not raised any money by public issues during the
year and hence commenting under this clause does not arise.
xxi. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the company has been noticed or reported during the year.
For M/s. N. Sivaprasad Associates
Firm Registration No. 003885S
Chartered Accountants
G. Venkatachalam
Partner
Membership No. 200616
Hyderabad
August 10, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of Octant Interactive
Technologies Limited as at 31st March 2010, the Profit and Loss account
and the Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conduct 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 (Auditors Report) (Amendment) Order,
2004 issued by the Central Government of India in terms of sub-section
(4A) of section 227 of the Companies Act, 1956, we enclose in the
Annexure, a statement on the matters specified in paragraphs 4 and 5 of
the said Order.
4. Further to our comments in the Annexure referred to 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 and loss account dealt with by this
report are in agreement with the books of account.
(iv) In our opinion, the balance sheet, profit and loss account dealt
with by this report comply with the accounting standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956.
(v) On the basis of written representations received from the
directors, as on 3 Is March 2010 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March 2010 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956.
5. In our opinion and to the best of our information and according to
the explanation given to us, the said accounts give the information
required by the Companies Act, 1956. in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
a) In the case of the Balance Sheet, of the state of affairs of the
company as at 31st March 2010.
b) In the case of the Profit and Loss Account, of the Profit of the
Company for the year ended on that date; and
c) In case of the Cash Flow Statement of the Cash Flows of the Company
for the year ended on that date.
ANNEXURE TO THE REPORT OF THE AUDITORS TO THE MEMBERS Referred to in
paragraph 3 of our report of even date, we state that:
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets on the basis of information available.
(b) We are informed that fixed assets have been physically verified by
the management during the year. There is a regular programme of
verification which, in our opinion, is reasonable having regard to the
size of the company and the nature of its assets. No material
discrepancies were noticed on such verification.
(c) During the year the company has initiated de-merger process, where
by the Finance Division of the Company to be separated and to that
extent it said that major part of Fixed assets are to be disposed which
has affected the going concern status of the company.
(ii) (a) The stock of shares held as stock in trade have been
physically verified by the management at reasonable intervals during
the year. In our opinion, frequency of the verification is reasonable.
(b) In our opinion and according to the information and explanation
given to us, 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) In our opinion and according to the information and explanation
given to us the company is maintaining proper records of inventory. No
material discrepancies were noticed on physical verification between
physical stock and book records.
(iii) a) The Company has granted loans secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions for
loans mentioned in para (iii) (a) above, are prima facie not
prejudicial to the interest of the company.
c) Since the loans mentioned in para (iii) (a) above are without any
fixed repayment schedule, the question of examining the regularity of
repayment of the Principal amount and interest thereon, does not arise.
d) For the same reasons given in para (iii) (c) above, the question of
examining the regularity of repayment of the Principal amount and
interest thereon, does arise.
e) The Company has not taken any loans from party covered in the
register maintained under section 301 of the Companies Act, 1956.
Accordingly, clauses (iii) (f) and (iii) (g) of paragraph 4 (iii) of
the order are not applicable to the company.
(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 purchases of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in
internal controls.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered into
the register maintained under section 301 of the Companies Act, 1956
have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
(vi) The company has not accepted any deposits during the year &
consequently the provision of section 58 A and 58AA of the companies
Act 1956 and the rules framed there under are not applicable.
(via) According to the information provided to us, the Company does not
have the separate Internal Audit system carried out by the Independent
Internal Auditor. However has the inbuilt Internal Audit System, in our
opinion, the same is commensurate with the size and nature of its
business.
(viii) According to the information and explanation given to us the
maintenance of Cost Record has not been prescribed by the central
Government u/s 209(l)(d) of the Companies Act, 1956 for any of the
activities of the company.
(ix) a) According to the information and explanations given to us, the
Company is generally regular in depositing with appropriate authorities
undisputed statutory dues including income tax, sales tax, wealth tax,
service tax, custom duty, excise duty, cess and other material
statutory dues applicable to it.
b) According to the Information and explanation given to us, no
undisputed amount payable in respect of sales tax, income tax, custom
duty, wealth tax, service tax, excise duty and cess were in arrears, as
at 31st March, 2010 for a period of more than six months from the date
they become payable.
(x) The accumulated losses of the company are not more than fifty
percent of its net worth. The company has not incurred cash losses
during the current and immediatelypreceding financial year.
(xi) According to the information and explanations provided to us the
company does not have any outstanding dues to financial institutions,
banks or debenture holders.
(xii) In our opinion and according to the information and explanations
provided to us the company has not granted loans and advances on the
basis of security by way of pledge of shares, debenture and other
securities.
(xiii) In our opinion and according to the information and explanations
provided to us the nature of activities of the company does not attract
special statute applicable to Chit Fund and Niddhi / Mutual Benefit
Fund/ Society.
(xiv) The company has maintained proper records for dealing in shares
and debentures and timely entries have been made therein. All shares,
debentures and other investments have been held by the company in its
own name except to the extent of the exemption granted under section 49
of the Companies Act, 1956 and save for certain shares which are either
lodged for transfer or held with transfer forms.
(xv) In our opinion and according to the information and explanations
provided to us the company has not given any guaranteed for loans taken
by others from banks or financial institutions.
(xvi) The company has not accepted any term loan during the year.
(xvii) In our opinion and according t o the information and
explanations provided to us and cash flow statement and other records
of the company examined by us, we report that the company ahs not
raised short terms funds during the year.
(xviii) During the year the company has not made any preferential
allotment of shares to parties or companies covered in the register
maintained u/s 301 of the Companies Act 1956.
(xix) The company has not issued any debentures till date.
(xx) The company has not raised any money through public issue during
the year.
(xxi) According to the information given to us. No fraud on or by the
company has been noticed or reported during the course of the audit.
For N. Siva Prasad Associates.
Chartered Accountants
Sd/-
G Venkatachalam
Partner.
Place : Hyderabad
Dated: 01-12-2010