Mar 31, 2015
We have audited the accompanying financial statements of Switching
Technologies Gunther 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
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 thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor'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, 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 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.
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;
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 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, 2015 ('the
Order") issued by the Central Government of India it terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in the paragraph 3 and 4 of the
Order, to the extent applicable.
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 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.
e) On the basis of written representations received from the directors
as on 31st 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 and
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. 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 required to be transferred.
ANNEXURE REFERRED TO IN THE AUDITORS' REPORT
The Annexure referred to in our Independent Auditors' Report to the
members of the Company on the financial statements for the year ended
31st March 2015, we report that:
i. The Company is maintaining proper records showing full particulars
including quantitative details and situation of fixed assets. The
Company has formulated a programme of physical verification of all the
fixed assets which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets, in accordance with
this programme, fixed assets have been physically verified as at the
end of the year by the management and no material discrepancies were
noticed on such verification.
ii. a) Physical verification of inventories was conducted by the
management at the year end.
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) On the basis of our examination of the records of inventory and in
our opinion, the Company is maintaining proper records of inventory and
no material discrepancies have been noticed on physical verification of
inventories as compared to the books and records.
iii. The Company has neither granted nor taken any loans, secured or
unsecured, to/from companies, firms or other parties listed in the
register maintained under section 189 of the Companies Act, 2013 and
therefore paragraph 3(iii) of the order is not applicable.
i v. In our opinion and according to information and explanations given
to us, having regard to the explanation that most of the items
purchased / sold are of a special nature for which alternative
quotations are not available, there are adequate internal control
systems commensurate with size of the Company and the nature of its
business with regard to purchase of inventory and fixed assets and for
the purchase or sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses, if
any, in internal control system.
v. The company has not accepted any deposits from the public.
vi. We have broadly reviewed the cost records maintained by the company
specified by the Central Government under Section 148 (1) of the
Companies Act, 2013 and are of the opinion that prima facie the
prescribed cost records have been maintained.
vii. (a) In our opinion and according to the information and
explanations given to us, the Company is generally regular in
depositing undisputed statutory dues including Provident Fund,
Employees State Insurance, Income Tax, Sales tax, Excise duty, Cess,
Investor Education Protection Fund, Wealth tax, VAT and other material
statutory dues, if any, applicable to it with the appropriate
authorities during the year. As at the last day of the financial year,
there are no arrears of such undisputed statutory dues outstanding for
a period of more than six months from the date they became payable.
(b) As at 31st March 2015 according to the records of the Company, the
following dues of Income tax, have not been deposited by the Company on
account of disputes:
Name Nature of Amount Period to which Forum where dispute
of the Dues (in Rupees) the amount is pending
Statute relates
Income tax Income tax 20,61,790 Assessment Year CIT(Appeals),
Act, 1961 2012-13 Chennai and
Assistant
Commissioner of
Income
tax, Company Range,
Chennai
viii. The accumulated losses at the end of the year are not more than
fifty percent of its net worth and the Company has not incurred cash
losses during the current financial year as well as in the previous
financial year.
ix. The Company did not have any outstanding dues to financial
institutions, banks or debenture holders during the year.
x. In our opinion and according to the information and the explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions.
xi. The Company did not have any term loans outstanding during the
year.
xii. According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of our audit.
For M.L.Srinivasan & Associates
Chartered Accountants
Firm Registration No.006505S
M.L.SRINIVASAN
Place : Chennai Partner
Date : 10-06-2015 Membership No. 203154
Mar 31, 2014
We have audited the accompanying financial statements of Switching
Technologies Gunther 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 principles generally accepted in India including
Accounting Standards referred to in Section 211(3C) 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.
Auditors'' 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 misstatements.
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 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 31,2014;
(b) In the case of the Statement of Profit and Loss, 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 Section
227(4A) 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, 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 Balance Sheet, the Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
referred to in section 211(3C) of the Act;
e) On the basis of the 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 Section 274(1)(g) of the
Act.
Annexure referred to in the auditors'' report to the members of
Switching Technologies Gunther Limited on the accounts for the year
ended 31st March 2014
i. The Company is maintaining proper records showing full particulars
including quantitative details and situation of fixed assets. The
Company has formulated a programme of physical verification of all the
fixed assets which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets, In accordance with
this programme, fixed assets have been physically verified as at the
end of the year by the management and no material discrepancies were
noticed on such verification.
During the year, the Company has not disposed off any substantial part
of fixed assets, and therefore paragraph 4(i) (c) of the Companies
(Auditor''s Report) Order, 2003 (hereinafter referred to as ''the Order'')
is not applicable.
ii a) Physical verification of inventories was conducted by the
management at the year end.
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) On the basis of our examination of the records of inventory and in
our opinion, the Company is maintaining proper records of inventory and
no material discrepancies have been noticed on physical verification of
inventories as compared to the books and records.
iii. The Company has neither granted nor taken any loans, secured or
unsecured, to/from companies, firms or other parties listed in the
register maintained under section 301 of the Companies Act, 1956 and
therefore paragraph 4(iii) of the order is not applicable.
iv. In our opinion and according to information and explanations given
to us, having regard to the explanation that most of the items
purchased / sold are of a special nature for which alternative
quotations are not available, there are adequate internal control
systems commensurate with size of the Company and the nature of its
business with regard to purchase of inventory and fixed assets and for
the purchase or sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses, if
any, in internal control system.
v. In our opinion and according to the information and explanations
given to us, the Company has not entered into any transactions of
purchase of goods and material and sale of goods, materials and
services made in pursuance of contracts or arrangements that need to be
entered in the register maintained under section 301 of the Companies
Act, 1956 and therefore paragraph 4(v) of the Order is not applicable.
vi. In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits from the public and
therefore paragraph 4(vi) of the Order is not applicable.
vii. In our opinion the Company has an internal audit system which is
commensurate with the size and nature of its business.
viii. We have broadly reviewed the cost records maintained by the
Company pursuant to the 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 have been maintained.
ix. (a) In our opinion and according to the information and
explanations given to us, the Company is generally regular in
depositing undisputed statutory dues including Provident Fund,
Employees State Insurance, Income Tax, Sales tax, Excise duty, Cess,
Investor Education Protection Fund, Wealth tax, VAT and other material
statutory dues, if any, applicable to it with the appropriate
authorities during the year. As at the last day of the financial year,
there are no arrears of such undisputed statutory dues outstanding for
a period of more than six months from the date they became payable.
(b) As at 31st March 2014 according to the records of the Company, the
following dues of Income tax, have not been deposited by the Company on
account of disputes:
Name Nature of Amount Period to Forum where dispute
of the Dues (in Rupees) which the is pending
Statute amount
relates
Income tax Income tax 20,61,790 Assessment CIT(Appeals),
Act, 1961 Year Chennai and Assistant
2012-13 Commissioner of Income
tax, Company Range,
Chennai
x. The accumulated losses at the end of the year are more than fifty
percent of its net worth and the Company has not incurred cash losses
during the current financial year as well as in the previous financial
year.
xi. The Company had availed vehicle loan during the financial year
2008-09 from a bank and has paid the installments due during the
financial year 2013-14, without default. No loans have been availed
from financial institution during the financial year 2013-14. No loan
is outstanding to Bank /Financial institutions as on 31.03.2014
xii. The Company has not granted any loans or advances on the basis of
security by way pledge of shares, debentures and other securities and
therefore paragraph 4(xii) of the Order is not applicable.
xiii. The provisions of any special statute applicable to chit fund
and Nidhi/Mutual benefit fund/ Society are not applicable to the
Company and therefore paragraph 4(xiii) of the Order is not applicable.
xiv. The Company is not dealing or trading in shares, securities,
debentures and other investments and therefore paragraph 4(xiv) of the
Order is not applicable.
xv. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions and therefore paragraph 4(xv) of the
Order is not applicable.
xvi. The Company had not availed any term loans during the year and
therefore paragraph 4(xvi) of the Order is not applicable.
xvii. The company has not availed any short term loans during the
year.
xviii. The company has not made any preferential allotment of shares
during the year and therefore paragraph 4(xviii) of the Order is not
applicable.
xix. The Company has not issued any debentures during the year and
therefore paragraph 4(xix) of the Order is not applicable.
xx. The Company has not raised any money by way of public issues
during the year and therefore paragraph 4(xx) of the Order is not
applicable.
xxi. We have been informed that an accountant of the company by name
Mr. Shankar had misappropriated funds during the preceding years and
the year under audit. The factum of misappropriation came to the
knowledge of the company. The company had immediately taken action by
filing a criminal complaint at Tambaram Police Station, Chennai vide
CSR No. 273/13. With the assistance of the police officials the
company had recovered an amount of 36,59,000/-. The company did not
pursue the CSR No. 273/13 further since the company''s genuine dues have
been recovered. Hence, the matter is closed from company''s end.
For M.L.Srinivasan & Associates
Chartered Accountants
Firm Registration No.006505S
M.L.SRINIVASAN
Place : Chennai Partner
Date : 09-06-2014 Membership No. 203154
Mar 31, 2012
We have audited the attached Balance Sheet of Switching Technologies
Gunther Limited as at March 31, 2012 and also the Profit and 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.
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 the
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditor's Report) Order, 2003 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 paragraph 4 and 5 of the said
Order to the extent they are applicable to the company.
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 and the Cash Flow
statement dealt with by this report are in agreement with the books of
account;
(iv) in our opinion, the balance sheet, Profit and Loss account and
Cash Flow statement dealt with by this report comply with the
accounting standards 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, and taken on record by the Board of Directors, we report
that none of the directors is disqualified as on 31st March 2012 from
being appointed as a director in terms of clause (g) of sub-section (1)
of section 274 of the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
Significant Accounting Policies and Notes there on 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 March 31, 2012;
b. in the case of the Statement of Profit and Loss account, of the
Profit for the year ended on that date; and
c. in the case of the Cash Flow statement, of the cash flows for the
year ended on that date;
Annexure referred to in paragraph 3 of the auditor's report to the
members of Switching Technologies Gunther Limited on the accounts for
the year ended 31st March 2012
i. The Company is maintaining proper records showing full particulars
including quantitative details and situation of fixed assets. The
Company has formulated a programme of physical verification of all the
fixed assets which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. In accordance with
this programme, fixed assets have been physically verified as at the
end of the year by the management and no material discrepancies were
noticed on such verification.
During the year, the Company has not disposed off any substantial part
of fixed assets, and therefore paragraph 4(i) (c) of the Companies
(Auditor's Report) Order, 2003 (hereinafter referred to as 'the Order')
is not applicable.
ii. (a) Physical verification of inventories was conducted by the
management at the year end.
(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) On the basis of our examination of the records of inventory and in
our opinion, the Company is maintaining proper records of inventory and
no material discrepancies have been noticed on physical verification of
inventories as compared to the books and records.
iii. The Company has neither granted nor taken any loans, secured or
unsecured, to/from companies, firms or other parties listed in the
register maintained under section 301 of the Companies Act, 1956 and
therefore paragraph 4(iii) of the order is not applicable.
iv. In our opinion and according to information and explanations given
to us, having regard to the explanation that most of the items
purchased/sold are of a special nature for which alternative quotations
are not available, there are adequate internal control systems
commensurate with size of the Company and the nature of its business
with regard to purchase of inventory and fixed assets and for the
purchase or sale of goods. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses, if any, in
internal control system.
v. In our opinion and according to the information and explanations
given to us, the Company has not entered into any transactions of
purchase of goods and material and sale of goods, materials and
services made in pursuance of contracts or arrangements that need to be
entered in the register maintained under section 301 of the Companies
Act, 1956 and therefore paragraph 4(v) of the Order is not applicable.
vi. In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits from the public and
therefore paragraph 4(vi) of the Order is not applicable.
vii. In our opinion the Company has an internal audit system which is
commensurate with the size and nature of its business.
viii. We have broadly reviewed the cost records maintained by the
Company pursuant to the 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 have been maintained.
ix. (a) In our opinion and according to the information and
explanations given to us, the Company is generally regular in
depositing undisputed statutory dues including Provident Fund,
Employees State Insurance, Income Tax, Sales tax, Excise duty, Cess,
Investor Education Protection Fund, Wealth tax, VAT and other material
statutory dues, if any, applicable to it with the appropriate
authorities during the year. As at the last day of the financial year,
there are no arrears of such undisputed statutory dues outstanding for
a period of more than six months from the date they became payable.
(b) As at 31st March 2012 according to the records of the Company,
there are no disputed dues on account of Sales tax, Excise duty,
Customs duty, Income tax, Service tax and Cess.
x. The accumulated losses at the end of the year are more than fifty
percent of its net worth and the Company has not incurred cash losses
during the current financial year as well as in the previous financial
year.
xi. The Company had availed vehicle loan during the financial year
2008-09 from a bank and has paid the installments due during the
financial year 2011-12, without default. No loans have been availed
from financial institution during the financial year 2011-12.
xii. The Company has not granted any loans or advances on the basis of
security by way pledge of shares, debentures and other securities and
therefore paragraph 4(xii) of the Order is not applicable.
xiii. The provisions of any special statute applicable to chit fund and
Nidhi/Mutual benefit fund/Society are not applicable to the Company
and therefore paragraph 4(xiii) of the Order is not applicable.
xiv. The Company is not dealing or trading in shares, securities,
debentures and other investments and therefore paragraph 4(xiv) of the
Order is not applicable.
xv. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions and therefore paragraph 4(xv) of the
Order is not applicable.
xvi. The Company had not availed any term loans during the year and
therefore paragraph 4(xvi) of the Order is not applicable.
xvii. The company has not availed any short term loans during the year.
xviii. The Company has not issued any debentures during the year and
therefore paragraph 4(xviii) of the Order is not applicable.
xix. The Company has not raised any money by way of public issues
during the year and therefore paragraph 4(xix) of the Order is not
applicable.
xx. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the year.
For M.L. Srinivasan & Associates
Chartered Accountants
Firm Registration No. 006505S
M.L. SRINIVASAN
Partner
Membership No. 203154
Place : Chennai
Date : 03-06-2012
Mar 31, 2010
We have audited the attached Balance Sheet of Switching Technologies
Gunther Limited as at March 31, 2010 and also the Profit and 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. 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 the disclosures in the financial
statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe
that our audit provides a reasonable basis for our opinion. As
required by the Companies (AuditorÃs Report) Order, 2003 issued by the
Central Government of India in terms of sub-section (4 A) of Section
227 of the Companies Act, 1956, we enclose in the Annexure a statement
on the matters specified in paragraph 4 and 5 of the said Order to the
extent they are applicable to the company.
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 and the Cash flow
statement dealt with by this report are in agreement with the books of
account;
(iv) in our opinion, the balance sheet, profit and loss account and
cash flow statement dealt with by this report comply with the
accounting standards 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, 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;
(vi) The Accounts for the year has been prepared on the basis that the
Company is a ÃGoing Concernà (Refer note 2(ii)); (vii) Subject to our
comments in paragraph
(vi) above, the effect of which on the financial statements could not
be determined, in our opinion and to the best of our information and
according to the explanations given to us, the said accounts give the
information required by the Companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
a. in the case of the Balance sheet, of the state of affairs of the
Company as at March 31, 2010;
b. in the case of the Profit and loss account, of the loss for the
year ended on that date;
c. in the case of the Cash flow statement, of the cash flows for the
year ended on that date;
Annexure referred to in paragraph 3 of the auditorÃs report to the
members of Switching Technologies Gunther Limited on the accounts for
the year ended 31st March 2010
i. The Company is maintaining proper records showing full particulars
including quantitative details and situation of fixed assets. The
Company has formulated a programme of physical verification of all the
fixed assets which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. In accordance with
this programme, fixed assets have been physically verified as at the
end of the year by the management and no material discrepancies were
noticed on such verification.
During the year, the Company has not disposed off a substantial part of
fixed assets, and therefore paragraph 4(i) (c) of the Companies
(Auditors Report) Order, 2003 (hereinafter referred to as Ãthe OrderÃ)
is not applicable.
ii (a) Physical verification of inventories was conducted by the
management at the year end.
(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) On the basis of our examination of the records of inventory and in
our opinion, the Company is maintaining proper records of inventory and
no material discrepancies have been noticed on physical verification of
inventories as compared to the books and records.
iii. The Company has neither granted nor taken any loans, secured or
unsecured, to/from companies, firms or other parties listed in the
register maintained under section 301 of the Companies Act, 1956 and
therefore paragraph 4(iii) of the order is not applicable.
iv. In our opinion and according to information and explanations given
to us, having regard to the explanation that most of the items
purchased / sold are of a special nature for which alternative
quotations are not available, there are adequate internal control
systems commensurate with size of the Company and the nature of its
business with regard to purchase of inventory and fixed assets and for
the purchase or sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses, if
any, in internal control system.
v. In our opinion and according to the information and explanations
given to us, the Company has not entered into any transactions of
purchase of goods and material and sale of goods, materials and
services made in pursuance of contracts or arrangements that need to be
entered in the register maintained under section 301 of the Companies
Act, 1956 and therefore paragraph 4(v) of the Order is not applicable.
vi. In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits from the public and
therefore paragraph 4(vi) of the Order is not applicable.
vii. In our opinion the Company has an internal audit system which is
commensurate with the size and nature of its business.
viii. We have been informed that the Central Government has not
prescribed maintenance of cost records under section 209(1)(d) of the
Companies Act, 1956 for the CompanyÃs products and therefore paragraph
4(viii) of the Order is not applicable.
ix. (a) In our opinion and according to the information and
explanations given to us, the Company is generally regular in
depositing undisputed statutory dues including Provident Fund,
Employees State Insurance, Income Tax, Sales tax, Customs duty, Excise
duty, Cess, Service tax, Investor Education Protection Fund, Wealth
tax, VAT and other material statutory dues, if any, applicable to it
with the appropriate authorities during the year. As at the last day of
the financial year, there are no arrears of such undisputed statutory
dues outstanding for a period of more than six months from the date
they became payable except for Provident Fund dues amounting to Rs.
1,02,399/- and Rs. 20,943/- relating to financial year 2006-07 and
2007-08 respectively, Which have since been remitted to the appropriate
authorities.
(b) As at 31st March 2010 according to the records of the Company,
there are no disputed dues on account of Sales tax, Excise duty,
Customs duty, Income tax, Service tax and Cess.
x. The accumulated losses at the end of the year are more than fifty
percent of its net worth and the Company has not incurred cash losses
during the current financial year as well as in the previous financial
year.
xi. The Company had availed vehicle loan during the financial year
2008-09 from a bank and has paid the installments due during the
financial year 2009-10, without default. No loans have been availed
from financial institution during the financial year 2009-10.
xii. The Company has not granted any loans or advances on the basis of
security by way pledge of shares, debentures and other securities and
therefore paragraph 4(xii) of the Order is not applicable.
xiii. The provisions of any special statute applicable to chit fund and
Nidhi/Mutual benefit fund/Society are not applicable to the Company and
therefore paragraph 4(xiii) of the Order is not applicable.
xiv. The Company is not dealing or trading in shares, securities,
debentures and other investments and therefore paragraph 4(xiv) of the
Order is not applicable.
xv. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions and therefore paragraph 4(xv) of the
Order is not applicable.
xvi. The Company had not availed any term loans during the year and
therefore paragraph 4(xvi) of the Order is not applicable.
xvii. The company has not availed any short term loans during the
year.
xviii. The Company has not issued any debentures during the year and
therefore paragraph 4(xviii) of the Order is not applicable.
xix. The Company has not raised any money by way of public issues
during the year and therefore paragraph 4(xix) of the Order is not
applicable.
xx. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the year.
For R.Subramanian and Company
Chartered Accountants
N.KRISHNAMURTHY
Partner Place : Chennai Membership No. 19339
Date : 24-06-2010 Firm Regn. No. 004137S
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