Mar 31, 2018
Report on the Standalone Financial Statements
1. We have audited the accompanying Standalone financial statements of TECHNOFAB ENGINEERING LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March, 2018, the Statement of Profit and Loss, including the statement of other Comprehensive income, the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
2. The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these Standalone financial statements to give a true and fair view of the financial position, financial performance including other Comprehensive income and cash flows and the statement of change in Equity 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, 2015 (as amended). This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
3. Our responsibility is to express an opinion on these Standalone financial statements based on our audit.
4. We have taken into account the provisions of the Act and the Rules made there under including the accounting standards and matters which are required to be included in the audit report.
5. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements 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.
6. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view, in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
7. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Standalone financial statements.
Opinion
8. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2018, and its profit including other comprehensive income and its cash flows and the Statement of Changes in Equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
9. As required by ''the Companies (Auditor''s Report) Order, 2016, issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act (hereinafter referred to as the "Order"), and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure B a statement on the matters specified in paragraphs 3 and 4 of the Order.
10. As required by Section 143 (3) of the Act, we report to the extent applicable that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss including other Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid Standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Indian Accounting Standards) Rules, 2015 as amended.
(e) On the basis of written representation received from the directors as on 31st March, 2018, taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in Annexure A.
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our knowledge and belief and according to the information and explanations given to us:
i. The Company has disclosed the impact of pending litigations as at 31st March, 2018 on its financial position in its financial statements - Refer Note 45
ii. The Company did not have any long-term contracts including derivative contracts as at 31st March, 2018
iii. There were no amounts, which were required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended on 31st March, 2018.
Referred to in paragraph 10 (f) of the Independent Auditors'' Report of even date to the members of TECHNOFAB ENGINEERING LIMITED on the standalone financial statements for the year ended 31st March, 2018
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Act
1. We have audited the internal financial controls over financial reporting of TECHNOFAB ENGINEERING LIMITED ("the Company") as of 31st March, 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
2. The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
Auditors'' Responsibility
3. Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing deemed to be prescribed under section 143(10) of the Act to the extent applicable to an audit of internal financial controls, both applicable to an audit of internal financial controls and both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. 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.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
6. A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
7. Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
8. In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
Referred to in paragraph 9 of the Independent Auditors'' Report of even date to the members of TECHNOFAB ENGINEERING LIMITED on the Standalone financial statements as of and for the year ended 31st March, 2018
The Annexure referred to in our Independent Auditors'' Report to the members of the Company on the standalone financial statements for the year ended 31st March 2018, we report that:
1. (a) The Company has maintained proper records showing full particulars including quantitative details and situation of all fixed assets.
(b) As explained to us, the management during the financial year has physically verified the fixed assets in a phased periodical manner, which in our opinion is reasonable, having regard to the size of the Company and nature of its assets. No material discrepancies were noticed on such physical verification.
(c) The title deeds of immovable properties are held in the name of the company.
2. (a) According to the information and explanations given to us the inventories have been physically verified by the management during the year at reasonable intervals.
(b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and nature of its business.
(c) The Company has maintained the proper records of inventories. The discrepancies noticed on verification between the physical verification and the book records were not material and have been properly dealt with in the books of accounts.
3. According to the information and explanation given to us, the Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Accordingly, paragraphs 3(iii) (a) and (b) of the order are not applicable.
4. In our opinion and according to the information and explanations given to us, the company has complied with the provision of section 185 and 186 of the Act, with respect to loans and investment made. As per the information and explanation given to us, the Company has not given any guarantee or provides any security in connection with a loan to anybody corporate or person.
5. According to the information given to us, the Company has not accepted any deposits under the provisions of section 73 to 76 of the Companies Act, 2013 or any other relevant provisions of the companies Act and the Companies (Acceptance of Deposits) Rules, 2014 as amended from time to time. No order has been passed with respect to Section 73 to 76, by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other tribunal.
6. To the best of our knowledge and as explained, the maintenance of cost records as specified by the Central Government under sub-section (l) of section 148 of the Companies Act, 2013 is not applicable to the company.
7. (a) Undisputed statutory dues including provident fund, employee'' state insurance, income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, cess and other statutory dues have generally been regularly deposited with the appropriate authorities and there are no undisputed dues outstanding as at 31st March, 2018 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no material dues in respect of service tax, duty of customs, duty of excise wherever applicable to the company which have not been deposited with the appropriate authorities on account of any dispute. The due in respect of Income tax, Sales-tax,WCT and value added tax that have not been deposited with the appropriate authorities on account of dispute and the forum where the dispute is pending is given below:
Name of the Statute |
Name of dues |
Amount |
Period to which the amount relates |
forum where dispute is pending |
Orissa Sales Tax, Orissa |
Works Contract Tax |
1,355,000 |
2002-03 |
Before Sales Tax Tribunal-Orissa |
Contral Sales Tax Act 1956, Delhi |
Central Sales Tax |
3,653,158 |
2010-11 |
Before Sales Tax Tribunal-New Delhi |
Contral Sales Tax Act 1956, Delhi |
penalty on CST wrongly assessed |
3,571,082 |
2010-11 |
Before Sales Tax Tribunal-New Delhi |
MP VAT Act, 2002 (MP) |
Local Sales Tax |
477,351 |
2014-15 |
Dy. Commissioner (Appeals) Bhopal (MP) |
MP VAT Act, 2002 (Maharashtra) |
Local Sales Tax |
2,932,732 |
2010-11 |
Jt. Commissioner (Appeals), Mumbai |
MP VAT Act, 2002 (Maharashtra) |
Central Sales Tax Interest amount |
3,755130 2,175,322 |
2011-12 |
Jt. Commissioner (Appeals), Mumbai |
MP VAT Act, 2002 (Maharashtra) |
Local Sales Tax Interest amount |
1,987,912 1,521,862 |
2012-13 |
Jt. Commissioner (Appeals), Mumbai |
WBVAT Act, 2003 (West Bengal) |
Local Sales Tax |
6,487,777 |
2014-15 |
WB Appellate and Board, Kolkata |
Income Tax Act, 1961 |
Exependiture disallowed |
571,960 |
2013-14 |
CIT Appeal, New Delhi |
8. In our opinion, on the basis of books and records examined by us and according to the information and explanations given to us, the company has not defaulted in repayment of dues to banks and financial institutions. The company does not have any dues to government or debenture holders.
9. The Company has not raised any money by way of initial public offer or further public offer or debt instruments. In our opinion, and according to the information and explanation given to us, the term loans have been applied for the purposes for which they were raised, other than temporary deployment pending allocation.
10. According to the information and explanations given to us and as represented by the Management and based on our examination of the books and records of the Company and in accordance with generally accepted auditing practices in India, we have been informed that no case of frauds has been committed on or by the Company or by its officers or employees during the year.
11. According to the information and explanations given to us and based on our examination of the record of the Company, the Company has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V of the Act.
12. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the order is not applicable.
13. According to the information and explanations given to us and based on or examinations of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transaction have been disclosed in the financial statements as required by the applicable accounting standards.
14. The Company has not made any preferential allotment or private allotment of shares or fully or partly convertible debentures during the year. Accordingly, provisions of clause 3 (xiv) of the Order are not applicable to the Company.
15. According to the information and explanations given to us and based on our examination of the record of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the order is not applicable.
16. According to the information and explanations given to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India, 1934. Accordingly, provisions of clause 3 (xvi) of the Order are not applicable to the Company.
For G C Agarwal & Associates
Chartered Accountants
Firm Registration No: 017851N
G. C. Agarwal
Place: New Delhi Proprietor
Date: 26th May, 2018 M.No. 083820
Mar 31, 2016
Report on the Financial Statements
We have audited the accompanying standalone financial statements of TECHNOFAB ENGINEERING LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March, 2016, 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 Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 (" the Act") with respect to the preparation and presentation of these standalone financial statements that give a true and fair view of financial position, financial performance and cash flow of the company in accordance with the accounting principles generally accepted in India, including the Accounting standards specified under section 133 of the act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement , whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone 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 the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis of our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March 2016 and its profit and its 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, 2016 ("the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure A, a statement on the matters specified in the paragraph 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, we report that:
(a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) in our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
(c) the balance sheet, the statement of profit and loss and the cash flow statement dealt with by this Report are in agreement with the books of account;
(d) in our opinion, the aforesaid standalone 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 the written representations received from the directors as on 31st March 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March 2016 from being appointed as a director in terms of Section 164 (2) of the Act; and
(f) with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in "Annexure B"; and
(g) with respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 2.21(a) to the financial statements;
ii. The Company did not have any long-term contracts including derivative contracts which were any material foreseeable losses;
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
The Annexure referred to in our Independent Auditors'' Report to the members of the Company on the standalone financial statements for the year ended 31st March 2016, we report that:
1. (a) The Company has maintained proper records showing full particulars including quantitative details and situation of all fixed assets.
(b) As explained to us, the management during the financial year has physically verified the fixed assets in a phased periodical manner, which in our opinion is reasonable, having regard to the size of the Company and nature of its assets. No material discrepancies were noticed on such physical verification.
(c) The title deeds of immovable properties are held in the name of the company.
2. (a) According to the information and explanations given to us the inventories have been physically verified by the management during the year at reasonable intervals.
(b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and nature of its business.
(c) The Company has maintained the proper records of inventories. The discrepancies noticed on verification between the physical verification and the book records were not material and have been properly dealt with in the books of accounts.
3. According to the information and explanation given to us, the Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Accordingly, paragraphs 3(iii)(a) and (b) of the order are not applicable.
4. In our opinion and according to the information and explanations given to us, the company has complied with the provision of section 185 and 186 of the Act, with respect to loans and investment made. As per the information and explanation given to us, the Company has not given any guarantee or provides any security in connection with a loan to anybody corporate or person
5. The Company has not accepted any deposits from the public.
6. The nature of the company''s business activities is such maintenance of Cost Records under section 148(1) of the Act is not applicable to the Company.
7. (a) According to the records of the Company, undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employee State Insurance, Income Tax, Sales Tax, VAT, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other statutory dues to the extent applicable have generally been regularly deposited by the company during the year with the appropriate authorities. According to the information given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31st March, 2016 for a period of more than six months from the date of becoming payable
(b) The disputed statutory dues aggregating to '' 92,82,836/- that have not been deposited on account of matters pending before different Authorities as provided by the Company are stated below :-
8. According to the information and explanation given to us the company has not defaulted in repayment of loan or borrowing to a financial institution, bank, government or due to debenture holders.
Name of the Statute |
Nature of dues |
Amount ('') |
Period to which the amount relates |
Forum where dispute is pending |
Sales Tax Orissa |
WCT Wrongly Assessed |
1,355,000 |
2002-03 |
Before Sales Tax Tribunal - Orissa |
Delhi |
CST Wrongly Assessed by Audit |
4,356,754 |
2010-11 |
Before Sales Tax Tribunal - New Delhi |
Delhi |
Penalty on CST Wrongly Assessed by Audit |
3,571,082 |
2010-11 |
Before Sales Tax Tribunal - New Delhi |
9. The company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, paragraph 3(ix) of the order is not applicable. In our opinion and according to the information and the explanations given to us,
10. 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.
11. According to the information and explanations given to us and based on our examination of the record of the Company, the Company has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V of the Act.
12. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the order is not applicable.
13. According to the information and explanations given to us and based on or examinations of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transaction have been disclosed in the financial statements as required by the applicable accounting standards.
14. According to the information and explanations given to us and based on our examination of the record of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
15. According to the information and explanations given to us and based on our examination of the record of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the order is not applicable.
16. The Company is not required to be registered under section 45-IA of the Reserve bank of India Act, 1934 and the Company has obtained the registration.
Report on the Internal Financial Control under clause (i) of sub section 3 of section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Technophobe Engineering Limited ("the Company") as of 31st March 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (''ICAI''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. 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.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Rajesh Suresh Jain & Associates
Chartered Accountants
Firm Reg. No. 017163N
Rajesh Jain
Place : New Delhi Partner
Dated : 27th May 2016 Mem. No. 098229
Mar 31, 2015
We have audited the accompanying standalone financial statements of
TECHNOFAB ENGINEERING LIMITED ("the Company"), which comprise the
Balance Sheet as at March 31, 2015, 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 Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in section 134(5) of the Companies Act, 2013 (" the Act") with respect
to the preparation and presentation of these standalone financial
statements that give a true and fair view of financial position,
financial performance and cash flow of the company in accordance with
the accounting principles generally accepted in India, including the
Accounting standards specified under section 133 of the act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for ensuring
the accuracy and completeness of the accounting records, relevant to
the preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement , whether
due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
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 the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis of our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March 2015 and its Profit and its 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 in 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 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 it appears from our examination of those
books;
(c) the balance sheet, the statement of Profit and loss and the cash
flow statement dealt with by this Report are in agreement with the
books of account;
(d) in our opinion, the aforesaid standalone 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 the 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; and
(f) with respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us,
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements  Refer Note 2.21(a) to
the financial statements;
ii. The Company did not have any long- term contracts including
derivative contracts which were any material foreseeable losses;
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
Annexure to the Independent Auditors' Report
The Annexure referred to in our Independent Auditors' Report to the
members of the Company on the standalone financial statements for the
year ended 31 March 2015, we report that:
i) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars
including quantitative details and situation of all fixed assets.
(b) As explained to us, the fixed assets have been physically verified
by the management during the year which, in our opinion is reasonable
having regard to the size of the Company and nature of its assets. No
material discrepancies were noticed on such physical Verification.
ii) In respect of its inventories:
(a) According to the information and explanations given to us the
inventories have been physically verified by the management during the
year at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical Verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and nature of its business.
(c) The Company has maintained the proper records of inventories. The
discrepancies noticed on verification between the physical Verification
and the book records were not material and have been properly dealt
with in the books of accounts.
iii) (a) According to the information and explanation given to us, the
Company has not granted any loan, secured or unsecured to companies,
firms or other
parties covered in the register maintained under section 189 of the
Companies Act, 2013. Accordingly, paragraphs 3(iii)(a) and (b) of the
order are not applicable.
iv) In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory, fixed assets and for the sale of goods and
services. Further, on the basis of our examination and according to
the information and explanations given to us, we have neither come
across nor have we been informed of any instance of major weakness in
the aforesaid internal control system.
v) The Company has not accepted any deposits from the public.
vi) The nature of the business activities is such that Clause 3 (vi) of
the Companies (Auditors Report 2015) regarding maintenance of Cost
Records is not applicable to the Company.
vii) In respect of statutory dues :
(a) According to the records of the Company and information and
explanations given to us, undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employee State Insurance,
Income Tax, Sales Tax, VAT, Wealth Tax, Service Tax, Customs Duty,
Excise Duty, Cess and other statutory dues to the extent applicable
have generally been regularly deposited with the appropriate
authorities. However, there have been some delays in few cases.
(b) The disputed statutory dues that have not been deposited on account
of matters pending before different Authorities as provided by the
Company are stated below :-
Name of the Nature of dues Amount
Statute (Rs)
Sales Tax Orissa WCT Wrongly 1,355,000
Assessed
Delhi CST Wrongly 4,356,754
Assessed by Audit
Delhi Penalty on CST 3,571,082
Wrongly Assessed
by Audit
Name of the statute Period to Forum where
which the dispute is
amount relates pending
Sales Tax Orissa 2002-03 Before Sales Tax
TribunalÂOrissa
Delhi 2010-11 Before Special
Commissioner  II
(VAT) Â New Delhi
Delhi 2010-11 Before Special
Commissioner  II
(VAT) Â New Delhi
(c) According to the information and explanations given to us there was
no amount which was required to be transferred to the investor
education and protection fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and rules thereon.
viii) The Company has no accumulated losses and has not incurred any
cash losses during the financial year covered by our audit or in the
immediate preceding financial year.
ix) According to the information and explanations given to us, the
Company has not made any default during the year towards dues of
financial institutions, banks and debenture holders.
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) According to the information and explanations given to us, the
Company has applied term loan for the purpose for which the loan was
taken.
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 Rajesh Suresh Jain & Associates
Chartered Accountants
Firm Reg. No. 017163N
Rajesh Jain
Partner
Mem. No. 098229
Place: New Delhi
Dated: 21/05/2015
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of TECHNOFAB
ENGINEERING 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 the se 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 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 over all 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, 2013;
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
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
sub section (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, taken on record by the Board of Directors, none
of the Directors is disqualified as on March 31, 2013, from being
appointed as a Director in terms of clause (g) of sub-section (1) of
Section 274 of the Companies Act, 1956.
(Referred to in Paragraph 1 under the heading of "Report on other legal
and Regulatory Requirements" of our report of even date for the year
ended 31st March, 2013)
i) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars
including quantitative details and situation of all fixed assets.
(b) As explained to us, the fixed assets have been physically verified
by the management during the year which, in our opinion is reasonable
having regard to the size of the Company and nature of its assets. No
material discrepancies were noticed on such physical verification.
(c) The Company has not disposed off any substantial part of fixed
assets during the year and therefore going concern status of the
Company is not affected.
ii) In respect of its inventories:
(a) According to the information and explanations given to us the
inventories have been physically verified by the management during the
year at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and nature of its business.
(c) The Company has maintained the proper records of inventories. The
discrepancies noticed on verification between the physical verification
and the book records were not material and have been properly dealt
with in the books of accounts.
iii) (a) According to the information and explanation given to us, the
Company has not granted any loan, secured or unsecured to companies,
firms or other parties covered in the register maintained under Section
301 of the Companies Act, 1956 accordingly paragraphs 4(iii)(a), (b),
(c) and (d) of the order are not applicable.
(b) The Company has not taken unsecured loans from parties covered in
register maintained under Section 301 of the Companies Act, 1956.
iv) In our opinion and according to the information and explanations
given to us, there is adequate internal control systems commensurate
with the size of the Company and the nature of its business for the
purchase of inventory, fixed assets and for the sale of goods and
services. Further, on the basis of our examination and according to the
information and explanations given to us, we have neither come across
nor have we been informed of any instance of major weakness in the
aforesaid internal control system.
v) In respect of transaction covered under Section 301 of the Companies
Act 1956:
(a) According to the information and explanations given to us, the
particulars of contracts or arrangements that needed to be entered into
the register required to be 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 into 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 from the public within
the meaning of Section 58A and 58AA or any other relevant provisions of
the Companies Act.1956
vii) According to the information and explanations given to us, the
Company has an internal audit system commensurate with its size and the
nature of its business.
viii) The nature of the business activities is such that Clause 4
(viii) of the Companies (Auditors Report 2003) regarding maintenance of
Cost Records is not applicable to the Company.
ix) In respect of statutory dues:
(a) According to the records of the Company and information and
explanations given to us, undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employee State Insurance,
Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise
Duty, Cess and other statutory dues to the extent applicable have
generally been regularly deposited with the appropriate authorities.
However, there have been some delays in few cases.
(b) The disputed statutory dues that have not been deposited on account
of matters pending before different Authorities as provided by the
Company are stated below :-
Name of Nature of dues Amount
the Statute (Rs.)
Sales Tax WCT Wrongly 13,55,000
Orissa Assessed
Delhi CST Wrongly 2,88,12,219
Assessed
Delhi CST Wrongly 9,92,86,985
Assessed
Delhi CST Wrongly 43,56,754
Assessed by Audit
Delhi Penalty on CST 35,71,082
Wrongly Assessed
by Audit
Name of the Statute Period to Forum where dispute
which the is pending
amount
relates
Sales Tax Orrissa 2002-03 Before Sales Tax
Tribunal-Orissa
Delhi 2009-10 Before Special
Commissioner(VAT) - Delhi
Delhi 2010-11 Before Special
Commissioner(VAT) - Delhi
Delhi 2010-11 Before Special
Commissioner(VAT) - Delhi
Delhi 2010-11 Before Special
Commissioner(VAT) - Delhi
x) The Company has no accumulated losses and has not incurred any cash
losses during the financial year covered by our audit or in the
immediate preceding financial year.
xi) According to the information and explanations given to us, the
Company has not made any default during the year towards dues of
financial institutions, banks and debenture holders.
xii) According to the information and explanations given to us, the
Company has not granted any loan or advance on the basis of security by
way of pledge of shares, debentures and other securities.
xiii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
xiv) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, clause 4 (xiii) of the Companies
(Auditor''s Report) Order 2003 is not applicable to the Company.
xv) According to the information and explanations given to us, the
Company is not dealing in or trading in shares, securities, debentures
and other investments. Accordingly, the provisions of clause 4 (xiv) of
the Companies (Auditor''s Report) Order, 2003 (as amended) are not
applicable to the Company.
xvi) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks and financial institutions during the year.
xvii) According to the information and explanations given to us, the
Company has not taken any term loans during the year.
xviii) On the basis of overall examination of the Balance Sheet of the
Company and information and explanations given to us, we report that
during the year short term funds have not been used to finance long
term investments.
xix) During the year, the Company has not made any preferential
allotment of shares to parties covered in the register maintained under
Section 301 of Companies Act, 1956.
xx) The Company has not issued any debentures during the year.
xxi) The Management has disclosed the utilization and pending
utilization of money raised by public issue and we have verified the
same.
xxii) In our opinion and according to the information and explanations
given to us, no material fraud on or by the Company have been noticed
or reported during the year nor have we been informed of any such case
by the Management.
For Rajesh Suresh Jain & Associates
Chartered Accountants
Firm Reg. No. 017163N
Rajesh Jain
Partner
Mem. No. 098229
Place: New Delhi
Dated: 23.05.2013
Mar 31, 2012
We have audited the attached Balance Sheet of TECHNOFAB ENGINEERING
LIMITED, as at March 31st, 2012 and also the annexed Profit and Loss
Account and Cash Flow Statement of the Company for the year ended on
that date. These financial statements are the responsibility of the
Company's Management. Our responsibility is to express an opinion on
these financial statements based on our audit.
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 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 of the said order.
3. Further to our comments in the Annexure referred to in paragraph 2
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 purposes of our
audit;
b. in our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books;
c. the Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by the report are in agreement with the books of accounts;
d. 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; and
e. on the basis of the written representations received from the
Directors / Companies, as on March 31st, 2012, and taken on record by
the Board of Directors, we report that none of the Directors of the
Company is disqualified as on 31stMarch, 2012 from being appointed as a
Director in terms of clause (g) of sub-section (1) of section 274 of
the Companies Act, 1956;
f. in our opinion and to the best of our information and according to
the explanation given to us, they said financial statements read
together with notes thereon 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.
(i) in the case of Balance Sheet, of the state of affairs of the
Company as at March 31st , 2012;
(ii) in the case of Profit and Loss Account, of the Profit of the
Company for the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
i) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars
including quantitative details and situation of all fixed assets.
(b) As explained to us, the fixed assets have been physically verified
by the management during the year which, in our opinion is reasonable
having regard to the size of the Company and nature of its assets.
No material discrepancies were noticed on such physical verification.
(c) The Company has not disposed off any substantial part of fixed
assets during the year and therefore going concern status of the
Company is not affected.
ii) In respect of its inventories:
(a) According to the information and explanations given to us the
inventories have been physically verified by the management during the
year at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and nature of its business.
(c) The Company has maintained the proper records of inventories. The
discrepancies noticed on verification between the physical verification
and the book records were not material and have been properly dealt
within the books of accounts.
iii) (a) According to the information and explanation given to us, the
Company has not granted any loan, secured or unsecured to companies,
firms or other parties covered in the register maintained under section
301 of the Companies Act,1956. Accordingly, paragraphs 4(iii)(a), (b),
(c) and (d) of the order are not applicable.
(b) The Company has not taken unsecured loans from parties covered in
register maintained under section 301 of the Companies Act, 1956.
iv) In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory, fixed assets and for the sale of goods and
services. Further on the basis of our examination and according to the
information and explanations given to us, we have neither come across
nor have we been informed of any instance of major weakness in the
aforesaid internal control system.
v) In respect of transaction covered under section 301 of the Companies
Act 1956:
(a) According to the information and explanations given to us the
particulars of contracts or arrangements that needed to be entered into
the register required to be 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 into 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 from the public within
the meaning of Section 58A and 58AA or any other relevant provisions of
the Companies Act.1956
vii) According to the information and explanations given to us, the
Company has an internal audit system commensurate with its size and the
nature of its business.
viii) The nature of the business activities is such that Clause 4
(viii) of the Companies (Auditors Report 2003) regarding maintenance of
Cost Records is not applicable to the Company.
ix) In respect of statutory dues:
(a) According to the records of the Company and information and
explanations given to us, undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employee State Insurance,
Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise
Duty, Cess and other statutory dues to the extent applicable have
generally been regularly deposited with the appropriate authorities.
However, there have been some delays in few cases.
(b) The disputed statutory dues that have not been deposited on account
of matters pending before different Authorities as provided by the
Company are stated below :-
Name of the Nature of dues Amount Period to Forum where
Statute (Rs.) the amount dispute is
relates pending
Sales Tax Wrongly 13,55,000 2002-03 Before Sales
Tax
Orissa Assessed Tribunal -
Orissa
Income Tax On Assessment 26,02,637 A.Y.
2004-05 Before CIT
Appeal
Income Tax On Assessment 3,58,789 A.Y.
2005-06 Before CIT
Appeal
x) The Company has no accumulated losses and has not incurred any cash
losses during the financial year covered by our audit or in the
immediate preceding financial year.
xi) According to the information and explanations given to us, the
Company has not made any default during the year towards dues of
financial institutions, banks and debenture holders.
xii) According to the information and explanations given to us, the
Company has not granted any loan or advance on the basis of security by
way of pledge of shares, debentures and other securities.
xiii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
xiv) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, clause 4 (xiii) of the Companies
(Auditor's Report) Order 2003 is not applicable to the Company.
xvi) According to the information and explanations given to us, the
Company is not dealing in or trading in shares, securities, debentures
and other investments. Accordingly, the provisions of clause 4 (xiv) of
the Companies (Auditor's Report) Order, 2003 (as amended) are not
applicable to the Company.
xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks and financial institutions during the year.
xvii) According to the information and explanations given to us, the
Company has not taken any term loans during the year.
xviii) On the basis of overall examination of the Balance Sheet of the
Company and information and explanations given to us, we report that
during the year short term funds have not been used to finance long
term investments.
xix) During the year, the Company has not made any preferential
allotment of shares to parties covered in the register maintained u/s
301 of Companies Act, 1956.
xx) The Company has not issued any debentures during the year.
xxi) The Management has disclosed the utilization and pending
utilization of money raised by public issue and we have verified the
same.
xxii) In our opinion and according to the information and explanations
given to us, no material fraud on or by the Company have been noticed
or reported during the year nor have we been informed of any such case
by the management.
Rajesh Suresh Jain & Associates
Chartered Accountants
Rajesh Jain
Proprietor
M. No. 98229
FRN No.017163N
Place: New Delhi
Dated: 29.05.2012
Mar 31, 2011
We have audited the attached Balance Sheet of TECHNOFAB ENGINEERING
LIMITED, as at 31 st March 2011 and also the annexed Profit and Loss
Account and Cash Flow Statement of the Company for the year ended on
that date. These financial statements are the responsibility of the
Company's Management. Our responsibility is to express an opinion on
these financial statements, based on our audit.
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 in terms of sub-section (4A) of Section 227
of the Companies Act, 1956, we annexe hereto a statement on the matters
specified in paragraphs 4 of the said order.
3. Further to our comments in the Annexure referred to in paragraph 2
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 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, Profit and Loss Account and Cash Flow Statement
dealt with by the report are in agreement with the books of account.
d. 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 Section 211 (3C) of the Companies Act, 1956.
e. On the basis of the written representations received from the
Directors and taken on record by the Board of Directors, we report that
none of the Directors of the company is disqualified as on 31st March,
2011 from being appointed as a Director in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956.
f. In our opinion and to the best of our information and according to
the explanation given to us, the said financial statements read
together with notes thereon 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.
(i) in the case of Balance Sheet, of the state of affairs of the
Company as at March 31 st, 2011,
(ii) in the case of Profit and Loss Account, of the Profit of the
Company for the year ended on that date, and
(iii) 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 AUDITOR'S REPORT (Statement referred to in Paragraph 2
of our Report of even date)
i) In respect of its fixed assets:
(a) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) As explained to us, the fixed assets have been physically verified
by the management during the year, which in our opinion is reasonable,
having regard to the size of the Company and nature of its assets. No
material discrepancies were noticed on such physical verification.
(c) The Company has not disposed off any substantial part of fixed
assets during the year and therefore going concern status of the
Company is not affected.
ii) In respect of its inventories:
(a) According to the information and explanations given to us the
inventories have been physically verified by the management during the
year at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and nature of its business.
(c) The Company has maintained the proper records of inventories. The
discrepancies noticed on verification between the physical verification
and the book records were not material and have been properly dealt
with in the books of accounts.
iii) a) According to the information and explanation given to us, the
Company has not granted any loan, secured or unsecured, to companies,
firms or other parties covered in the register maintained under Section
301 of the Companies Act, 1956. Accordingly, paragraphs 4 (iii)(a),
(b), (c) and (d) of the order, are not applicable.
b) The Company has taken unsecured loans from parties covered in
register maintained under Section 301 of the Companies Act, 1956. The
amount of loans received during the year was Rs. 1,20,00,000 from two
parties, the maximum amount involved during the year was Rs.
1,49,00,000 and the year end balance of loan taken from such parties
was Rs.NIL.
c) The above loan is interest free and other terms and condition on
which loan have been taken from the party listed in the register
maintained under Section 301 of the Companies Act 1956, are prima facie
not prejudicial to the interest of the Company.
d) Since the above loans were fully repaid during the year, hence there
is no question of over due amount.
iv) In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory, fixed assets and for the sale of goods and
services. Further on the basis of our examination and according to the
information and explanations given to us, we have neither come across
nor have we been informed of any instance of major weakness in the
aforesaid internal control system.
v) In respect of transaction covered under section 301 of the Companies
Act 1956:
a) According to the information and explanations given to us, the
particulars of contracts or arrangements that needed to be entered into
the register required to be 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 into 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 from the public within
the meaning of section 58A and 58AA or any other relevant provisions of
the Act.
vii) According to the information and explanations given to us, the
Company has an internal audit system commensurate with its size and the
nature of its business.
viii) The nature of the business activities is such that Clause 4
(viii) of the Companies (Auditors Report 2003) regarding maintenance of
Cost Record, is not applicable to the company.
ix) In respect of statutory dues:
(a) According to the records of the Company and information and
explanations given to us, undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employee State Insurance,
Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise
Duty, Cess and other statutory dues to the extent applicable have
generally been regularly deposited with the appropriate authorities.
However, there have been some delays in few cases.
b) The disputed statutory dues that have not been deposited on account
of matters pending before different Authorities as provided by the
company are stated below :-
Name of Nature of dues Amount Period to Forum where
the (Rs.) which the dispute is pending
Statute amount
relates
Sales Tax
Orissa
Wrongly Assessed 13,55,000 2002-03 Before Sales Tax
Tribunal -Orissa
x) The Company has no accumulated losses and has not incurred any cash
losses during the financial year covered by our audit or in the
immediate preceding financial year.
xi) According to the information and explanations given to us, the
Company has not made any default during the year towards dues of
financial institutions, banks and debenture holders.
xii) According to the information and explanations given to us, the
Company has not granted any loan or advance on the basis of security by
way of pledge of shares, debentures and other securities.
xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, clause 4 (xiii) of the Companies
(Auditor's Report) order 2003 is not applicable to the Company.
xiv) According to the information and explanations given to us, the
company is not dealing in or trading in shares, securities, debentures
and other investments. Accordingly, the provisions of clause 4 (xiv) of
the Companies (Auditor's Report) Order, 2003 (as amended) are not
applicable to the company.
xv) According to the information and explanations given to us, during
the year the Company has not given any guarantee for loans taken by
others from banks and financial institutions.
xvi) According to the information and explanations given to us, the
Company has not taken any term loans during the year.
xvii) On the basis of overall examination of the Balance Sheet of the
Company and information and explanations given to us, we report that
during the year short term funds have not been used to finance long
term investments.
xviii) During the year, the Company has not made any preferential
allotment of shares to parties covered in the register maintained u/s
301 of Companies Act, 1956.
xix) The Company has not issued any debentures during the year.
xx) The Management has disclosed the utilization and pending
utilization of money raised by public issue and we have verified the
same.
xxi) In our opinion and according to the information and explanations
given to us, no fraud, by the Company have been noticed or reported
during the year nor we have been informed of any such case by the
management.
For Rajesh Suresh Jain & Associates
Chartered Accountants
Rajesh Jain
Proprietor
M. No. 098229
Place: New Delhi
Dated: 24.05.2011