Mar 31, 2014
Report on the Financial Statements
We have audited the accompanying financial statements of Toyama
Electric Limited (''the Company'') which comprise the Balance Sheet as at
31st March 2014, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
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 flow of the company in accordance with
the accounting principles generally accepted in India, including
Accounting Standards notified under the Companies Act. 1956 ("The Act")
read with General circular 15/ 2003 dated 13th September, 2013 issued
by Ministry of Corporate Affairs in respect of section 133 of the
Companies Act,2013. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give 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 Char red
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing, procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Basis for Qualified Opinion
The Company has not done (he actuarial valuation of the liability
towards the employee gratuity (amount unascertained). Provision for
gratuity liability has been made on the management estimate and on the
basis of a gratuity report given by the Life Insurance Corporation of
India, which constitutes a departure from the accounting standard AS 15
referred to in sub-section 3C of Section 211 of the Companies Act,
1956.Refer note no 33 (b) of the Notes to financial statements.
Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matter
described in the Basis for Qualified Opinion paragraph, the financial
statements give the information required by the Act in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31" March 2014;
(ii) in the case of the Statement of Profit and Loss, of the loss for
the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order"), as amended, issued by the Central Government of India in terms
of sub-section (4 A) of section 227 of the Act, we give in the Annexure
a statement on the matters specified in * paragraphs 4 and 5 of tile
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. except for the matter described in the Basis for Qualified Opinion
paragraph, in our opinion, the Balance Sheet, the Statement of Profit
and Loss 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
e. on the basis of written representations received from the directors
as on 31st March 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Act.
Annexure to the Independent Auditors'' Report
(Referred to in paragraph 1 under "Report on other legal and regulatory
requirements" of our report of even date on the financial statements
for the year ended on 31st March, 2014 of Toyama Electric Limited
(i)
(a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) All the assets have been physically verified by the Management
during the year and there is a regular programme of verification, which
in our opinion is reasonable having regard to the size of the Company
and the nature of its assets. No material discrepancies were noticed on
the verification.
(c) The Company has not disposed off a substantia] part of its fixed
assets during the year and the going concern status of the Company is
not affected.
(ii)
(a) The inventory has been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material and have properly dealt with in the
books of account.
(iii)
(a) According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured to companies,
firms or other parties covered in the register maintained under Section
301 of the Companies Act, 1956. Accordingly, the provisions of clause
4 (iii) (a) to (d) of the Order are not applicable to the Company and
hence not commented upon.
b) According to the information and explanations given to us, the
Company has not taken any loans, secured or unsecured from companies,
firms or other parties covered in the register maintained under Section
301 of the Companies Act, 1956. Accordingly, the provisions of clause
4 (iii) (e) to (g) of the Order are not applicable to the Company and
hence not commented upon.
(vi) In our opinion and according to the information and explanations
given to us. there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of Raw Materials, stores, components. Plant and Machinery,
Equipment and other assets and with regard to the sale of goods. During
the course of our audit, we have not observed any continuing failure to
correct major weaknesses in internal control system.
(v)
(a) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements referred to
in Section 301 of the Companies Act, 1956 that need to be entered into
the Register maintained under Section 301 of the Companies Act. 1956
have been so entered.
(b) In our opinion and according to the information and explanations
given to us, there are no transactions made in pursuance of such
contracts or arrangements exceeding Rs Five Lakhs each which have been
made at prices, which are not reasonable having regard to the
prevailing market prices, for such goods, materials or service at the
relevant time.
(vi) According to the information and explanations given to us, the
Company has not accepted any deposits Under Section 58A of the
Companies Act, 1956.
(vii) In our opinion, the Company has an internal Audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the books of account and records
maintained by the Company pursuant to the Rules made by Central
Government for the maintenance of cost records under Section 209(1)
(d) of the Companies Act, 1956 and we are of the opinion that, prima
facie, the prescribed accounts and records have been made and
maintained. However, we have not made detailed examination of the
records for determining whether they are accurate or complete.
(ix)
(a) According to information and explanation given to us, and as per
our verification of records of the Company, the Company is regular in
depositing with appropriate authorities undisputed statutory dues
including Provident Fund and Employees State Insurance, income tax,
sales tax, wealth tax, custom duty, excise duty, cess and other
material statutory dues applicable to it.
(b) According to the information and explanations given to us no
undisputed amounts payable in respect of income tax wealth tax, sales
tax, customs duty, excise duty and cess were in arrears as at 31st
March 2014 tor a period of more than six months from the date they
became payable.
(c) According to the information and explanations given to us there are
no dues of sales tax, income tax, customs duty, wealth tax, excise duty
and cess which have not been deposited on account of any dispute.
(x) The Company does not have any accumulated losses as at the end of
the financial year and has however incurred cash Josses during the
financial year.
(xi) Based on the information and explanations given by the management,
anti as reflected in the books the Company did not have any outstanding
dues to any financial institution or bank.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion and according to the information and explanations
given to us, the company is not a chit fund or a nidhi/mutual benefit
fund/society. Therefore, the provisions of clause 4(xiii) of the
Companies (Auditor''s Report) Order, 2003 are not applicable to the
company.
(xiv) According to information and explanations given to us, Company is
not a dealer or trader in share, securities, debentures and other
securities.
(xv) According to information and explanations given to us, the Company
has not given any guarantees for loans taken by others from banks or
financial institutions.
(xvi) According to the information and explanation given to us and as
per the books of account the Company has not taken any term loans
during the year.
(xvii) According to the information and explanations given to us and as
per the hooks of account the Company has not raised any funds on short
term basis.
(xviii) The Company has not made any preferential allotment of shares
to any parties during the year.
(xix) The Company has not issued any debentures during the year.
(xx) The Company has not raised any money by public issue during ihe
year.
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the year
under audit.
For K.S.AIYAR & CO.,
Chartered Accountants
Firm Registration Number 100186W
Bangalore
RAMA MOHAN R HEGDE
29th May, 2014
Partner
Membership No.23206
Mar 31, 2012
We have audited the attached Balance Sheet of TOYAMA ELECTRIC LIMITED,
BANGALORE as at 31st March 2012 and also the Statement of Profit and
Loss the year ended on that date' annexed thereto and the Cash Flow
Statement for the year ended on that date. These financial statements
are the responsibility of the Company's management. Our responsibility
is to express an opinion on these financial statements based on our
audit.
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.
As required by the Company's (Auditors 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 matters specified in paragraphs 4 and 5 of the said Order
I. Further to our comments above, we state 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 the Companies
Act, 1956 have been kept by the Company so far as appears from our
examination of the books.
c. The Balance Sheet and Statement of Profit and Loss dealt with by
this report are in agreement with the books of account.
d. In our opinion, the Statement of Profit and Loss and the Balance
Sheet dealt with by this report comply with the accounting standards
referred to in sub section (3C) of section 211 of the Companies Act,
1956 except Accounting Standard-15, Employee benefit, (Revised 2005)
where in the company has not done actuarial valuation of the liability
towards employee gratuity but provided based on the management estimate
on the basis of a report of the life Insurance Corporation of India
(Amount not ascertainable).
e. 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
f. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts subject to -
i) Confirmation of balances to be received from few parties as referred
to in note no 27 (Impact on Company's profit/reserves not
ascertainable)
ii) Non valuation Actuarial liability towards employee gratuity as
required under Accounting Standard-15, Employee benefit, (Revised 2005)
as referred in Para I d above (Impact on Company's profit/reserves not
ascertainable) 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 Balance Sheet of the state of affairs of the Company
as at 31st March, 2012 and
b) In the case of Statement of Profit and Loss of the Loss of the
Company for the year ended on that date.
c) In the case of Cash flow statement of the cash flows for the year
ended on that date
ANNEXURE TO THE AUDITORS REPORT
Statement referred to in paragraph J of our report of even date to the
members of TOYAMA ELECTRIC LIMITED BANGALORE, on the Accounts for the
year ended 31st March, 2012.
In our opinion and on the basis of such-checks of the books and records
as we considered appropriate, and according to the information and
explanations given to us during the normal course of audit, which were
necessary to the best of our knowledge and belief, we report that: -
(a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) All the assets have been physically verified by the Management
during the year and there is a regular programme of verification, which
in our opinion is reasonable having regard to the size the nature of
its assets. No material discrepancies were noticed on the verification.
(c) In our opinion, the Company has not disposed off a substantial part
of its fixed assets during the year and the going concern status of the
Company is not affected.
(ii) a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(iii) a) The Company has hot granted loans, secured or unsecured to
companies, firms or other parties listed in the Register, maintained
Under Section 301 of the Companies Act, 1956.
b) The Company has not given any loans to parties except interest free
staff advances, and the principal amounts of such advances are being
repaid as stipulated.
(iv)In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of stores, components, Plant and
Machinery, Equipment and other assets and with regard to the sale of
goods. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal controls.
a) In our opinion and according to the information and explanations
given to us, the transactions that need to be entered into the Register
maintained under Section 301 of the Companies Act, 1956 have been so
entered
b) In our opinion and according to the information and explanations
given to us, there are no transactions exceeding Rs Five Lakhs each
which have been made at prices, which are not reasonable having regard
to the prevailing market prices, for such goods, materials or service
at the relevant time.
(vi) According to the information and explanations given to us, the
Company has not accepted any deposits Under Section 58A of the
Companies Act, 1956.
(Vii) In our opinion, the Company has an internal Audit system
commensurate with the size and nature of its business.
(viii) As informed to us maintenance of cost records Under Section
209(1) (d) of the Companies Act, 1956 is not prescribed to the Company.
(a) According to information and explanation given to us, and as per
our verification of records of the Company, the Company is regular in
depositing with appropriate authorities undisputed statutory dues
including Provident Fund and Employees State Insurance, income tax,
sales tax, wealth tax, custom duty, excise duty, cess and other
material statutory dues applicable to it
(b) According to the information and explanations given to us no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, customs duty, excise duty and cess were in arrears as at 31st
March 2012 for a period of more than six months from the date they
became payable.
(c) According to the information and explanations given to us there are
no dues of sales tax, income tax, customs duty, wealth tax, excise duty
and cess which have not been deposited on account of any dispute
(x) The Company has neither accumulated losses as at 31st March 2012
nor it has incurred any cash losses during the financial year ended on
that date.
(xi) based on the information and explanations given by the management,
and as reflected in the books the company has not taken any loan from
any financial institution or bank.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor's Report) Order, 2003 are not applicable to the
company.
(xiv) According to information and explanations given to us, Company is
not a dealer or trader in securities.
(xv) As explained to us, the Company has not given any guarantees for
loans taken by others from banks or financial institutions.
(xvi) According to the information and explanation given to us and as
per the books of account the company has not taken any term leans
during the year.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short- term basis have been used for long term
investment. No long-term funds have been used to finance short-term
assets except permanent working capital.
(xviii) The Company has not made any preferential allotment of shares
to any parties during the year.
(xix) The Company has not issued any debentures during the
(xx) The Company has not raised any money by public issue during the
year.
(xxi) According to the information and explanations given to us no
fraud on or by the company has been noticed or reported during the year
under audit.
For K. S. AIYAR & CO.,
Chartered Accountants
Firm Registration Number 100186W
RAMAMOHAN R. HEGDE
Partner
M. No. 23206
Bangalore
28-May-2012
Mar 31, 2011
We have audited the attached Balance Sheet of TOYAMA ELECTRIC LIMITED,
BANGALORE as at 31st March 2011 and also the Profit and Loss Account
for the year ended on that date annexed thereto and the Cash Flow
Statement for the year ended on that date. These financial statements
are the responsibility of the Company's management. Our responsibility
is to express an opinion on these financial statements based on our
audit.
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.
As required by the Company's (Auditors 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 matters specified in paragraphs 4 and 5 of the said Order.
I. Further to our comments above, we state 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 the Companies
Act, 1956 have been kept by the Company so far as appears from our
examination of the books.
c. The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account.
d. In our opinion, the Profit and Loss Account and the Balance Sheet
dealt with by this report 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
and taken on record by the Board of Directors, we report that none of
the Directors 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 explanations given to us, the said accounts subject to -
i) Confirmation of balances to be received from few parties as referred
to in note 2 in Schedule S (Impact on Company's profit/reserves not
ascertainable)
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 Balance Sheet of the state of affairs of the Company
as at 31st March 2011 and
b) In the case of Profit and Loss account of the Profit of the Company
for the year ended on that date.
c) In the case of Cashflow statement of the cashflows for the year
ended on that date
ANNEXURE TO THE AUDITORS REPORT
Statement referred to in paragraph 1 of our report of even date to the
members of TOYAMA ELECTRIC LIMITED BANGALORE, on the Accounts for the
year ended 31st March 2011.
In our opinion, and on the basis of such checks of the books and
records as we considered appropriate, and according to the information
and explanations given to us during the normal course of audit, which
were necessary to the best of our knowledge and belief, we report that:
-
(I)
(a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) All the assets have been physically verified by the Management
during the year and there is a regular programme of verification, which
in our opinion is reasonable having regard to the size of the Company
and the nature of its assets. No material discrepancies were noticed on
the verification.
(c) The company has not disposed off any fixed assets during the year.
(ii)
a) The inventory has been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(iii)
a) The Company has not granted loans, secured or unsecured to
companies, firms or other parties listed in the Register, maintained
Under Section 301 of the Companies Act, 1956.
b) The Company has not given any loans to parties except interest free
staff advances and the principal amounts of such advances are being
repaid as stipulated.
(iv)
In our opinion and according to the information and explanations given
to us, there are adequate internal control procedures commensurate with
the size of the Company and the nature of its business with regard to
purchase of stores, components, Plant and Machinery, Equipment and
other assets and with regard to the sale of goods. During the course
of our audit, we have not observed any continuing failure to correct
major weaknesses in internal controls.
(v)
a) In our opinion and according to the information and explanations
given to us, the transactions that need to be entered into the Register
maintained under Section 301 of the Companies Act,1956 have been so
entered
b) In our opinion and according to the information and explanations
given to us, there are no transactions exceeding Rs Five Lakhs each
which have been made at prices, which are not reasonable having regard
to the prevailing market prices, for such goods, materials or service
at the relevant time.
(vi)
According to the information and explanations given to us, the Company
has not accepted any deposits Under Section 58A of the Companies Act,
1956.
(vii)
In our opinion, the Company has an internal Audit system commensurate
with the size and nature of its business.
(viii)
As informed to us maintenance of cost records Under Section 209(1) (d)
of the Companies Act, 1956 is not prescribed to the Company.
(ix)
(a) According to information and explanation given to us, and as per
our verification of records of the Company, the Company is regular in
depositing with appropriate authorities undisputed statutory dues
including Provident Fund and Employees State Insurance, income tax,
sales tax, wealth tax, custom duty, excise duty, cess and other
material statutory dues applicable to it.
(b) According to the information and explanations given to us no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, customs duty, excise duty and cess were in arrears as at 31st
March 2011 for a period of more than six months from the date they
became payable.
é According to the information and explanations given to us there are
no dues of sales tax, income tax, customs duty, wealth tax, excise duty
and cess which have not been deposited on account of any dispute.
(x)
The Company has neither accumulated losses as at 31st March 2011 nor it
has incurred any cash losses during the financial year ended on that
date.
(xi)
Based on the information and explanations given by the management, and
as reflected in the books the company has not taken any loan from any
financial institution or bank.
(xii)
The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii)
In our opinion, the company is not a chit fund or a nidhi/ mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor's Report) Order, 2003 are not applicable to the
company.
(xiv)
According to information and explanations given to us, Company is not a
dealer or trader in securities.
(xv)
As explained to us, the Company has not given any guarantees for loans
taken by others from banks or financial institutions.
(xvi)
According to the information and explanation given to us and as per the
books of account the company has not taken any term loans during the
year.
(xvii)
According to the information and explanations given to us and on an
overall examination of the balance sheet of the
company, we report that no funds raised on short-term basis have been
used for long term investment. No long- term funds have been used to
finance short-term assets except permanent working capital.
(xviii)
The Company has not made any preferential allotment of shares to any
parties during the year.
(xix)
The Company has not issued any debentures during the year.
(xx)
The Company has not raised any money by public issue during the year.
(xxi)
According to the information and explanations given to us no fraud on
or by the company has been noticed or reported during the year under
audit.
For K.S.AIYAR & CO.,
Chartered Accountants
Firm Registration Number 100186W
RAMAMOHAN R HEGDE
Partner
M.No.23206
Bangalore
30-May-2011
Mar 31, 2010
We have audited the attached Balance Sheet of TOYAMA ELECTRIC LIMITED,
BANGALORE as at 31st March 2010 and also the Profit and Loss Account
for the year ended on that date annexed thereto and the Cash Flow
Statement for the year ended on that date. 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
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 Companys (Auditors 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 matters specified in paragraphs 4 and 5 of the said Order.
I. Further to our comments above, we state 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 the Companies
Act, 1956 have been kept by the Company so far as appears from our
examination of the books.
c. The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account.
d. In our opinion, the Profit and Loss Account and the Balance Sheet
dealt with by this report 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
and taken on record by the Board of Directors, we report that none of
the Directors is disqualified as on 31" 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
f In our opinion and to the best of our information and according to
the explanations given to us, the said accounts subject to
(i) Confirmation of balances to be received from few parties as
referred to in note 2 in Schedule S (Impact on Companys
profit/reserves not ascertainable)
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 Balance Sheet of the state of affairs of the Company
as at 31st March 2010 and
b) In the case of Profit and Loss account of the Profit of the Company
for the year ended on that date.
c) In the case of Cash flow statement of the cash flows for the year
ended on that date
ANNEXURE TO THE AUDITORS REPORT
Statement referred to in paragraph 1 of our report of even date to the
members of TOYAMA ELECTRIC LIMITED BANGALORE, on the Accounts for the
year ended 31st March 2010.
In our opinion, and on the basis of such checks of the books and
records as we considered appropriate, and according to the information
and explanations given to us during the normal course of audit, which
were necessary to the best of our knowledge and belief, we report that:
-
(i)(a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) All the assets have been physically verified by the Management
during the year and there is a regular programme of verification, which
in our opinion is reasonable having regard to the size of the Company
and the nature of its assets. No material discrepancies were noticed on
the verification.
(c) In our opinion, the Company has not disposed off a substantial part
of its fixed assets during the year and the going concern status of the
Company is not affected.
(ii)a) The inventory has been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical slocks and
the book records were not material.
(iii)a) The Company has not granted loans, secured or unsecured to
companies, firms or other parties listed in the Register, maintained
Under Section 301 of the Companies Act, 1956.
b) The Company has not given any loans to parties except interest free
staff advances and the principal amounts of such advances are being
repaid as stipulated.
(iv)In our opinion and according to the information and explanations given
to us. (here are adequate internal control procedures commensurate with
the size of the Company and the nature of its business with regard to
purchase of stores, components, Plant and Machinery, Equipment and
other assets and with regard to the sale of goods. During the course of
our audit, we have not observed any continuing failure to correct major
weaknesses in internal controls.
(v) a) In our opinion and according to the information and explanations
given to us, the transactions that need to be entered into the Register
maintained under Section 301 of the Companies Act, 1956 have been so
entered
b) In our opinion and according to the information and explanations
given to us, there arc no transactions exceeding Rs Five Lakhs each
which have been made at prices, which are not reasonable having regard
to the prevailing market prices, for such goods, materials or service
at the relevant time.
According to the information and explanations given to us, the Company
has not accepted any deposits Under Section 58 A of the Companies Act,
1956.
(vii) In our opinion, the Company has an Internal Audit system
commensurate with the size and nature of its business.
(viii) As informed to us maintenance of cost records Under Section 209(1)
(d) of the Companies Act, 1956 is not prescribed to the Company.
(ix) a) According to information and explanation given to us, and as
per our verification of records of the Company, the Company is regular in
depositing with appropriate authorities undisputed statutory dues
including Provident Fund and Employees Stale Insurance, income lax,
sales lax, wealth tax, custom duty, excise duly, cess and other
material statutory dues applicable to il.
(b) According to the information and explanations given to us no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, customs duty, excise duty and cess were in arrears as at 3 f March
2010 for a period of more than six months from the date they became
payable.
(c) According to the information and explanations given to us there are
no dues of sales tax, income tax, customs duty, wealth tax. excise duty
and cess which have not been deposited on account of any dispute.
(x) The Company has neither accumulated losses as at 31st March 2010 nor
has incurred any cash losses during the financial year ended on that
date.
(xi) Based on the information and explanations given by the management, and
as reflected in the books the company has not taken any loan from any
financial institution or bank.
(xii) The Company has nol granted any loans and advances 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, the provisions of clause 4(xiii) of
the Companies (Auditors Report) Order, 2003 are not applicable to the
company.
(xiv)According to information and explanations given to us, Company is not a
dealer or trader in securities.
(xv) As explained to us, the Company has not given any guarantees for loans
taken by others from banks or financial institutions.
(xvi) According to the information and explanation given to us and as per the
books of account the company has not taken any term loans during the
year.
(xvii) According to the information and explanations given to us and
on an overall examination of the balance sheet of the
company, we report that no funds raised on short-term basis have been
used for long term investment. No long- term funds have been used to
finance short-term assets except permanent working capital.
(xviii)The Company has not made any preferential allotment of shares to
any parlies during the year.
(xix) The Company has not issued any debentures during the year.
(xx) The Company has not raised any money by public issue during the year.
(xxi) According to the information and explanations given to us no fraud on
or by the company has been noticed or reported during the year under
audit.
For K.S.AIYAR & CO.,
Chartered Accountants
Firm Registration Number I00186W
Bangalore RAMAMOHAN R HEGDE
28-May-2010 Partner
M.No.23206