Dec 31, 2013
We have audited the accompanying financial statements of Trend
Electronics Limited ( ACI-the Company ACI-), which comprise the Balance Sheet
as at 31st December, 2013, 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.
2. Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance
with the Accounting Standards referred to in Sub-Section (3C) of
Section 211 of the Companies Act, 1956 ( ACI-the Act ACI-) read with the
General Circular 15/2013 dated 13th September, 2013, of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act, 2013
and in accordance with the accounting principles generally accepted in
India. 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.
3. Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material 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 control relevant to the
Company''s preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the Company''s Internal Control. 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.
4. 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 31st December, 2013 ADs-
b) in the case of the Statement of Profit and Loss, of the loss for
the year ended on that date ADs- and
c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
5. Report on Other Legal and Regulatory Requirements
A. As required by the Companies (Auditor''s Report) Order, 2003 ( ACI-the
Order ACI-) 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.
B. 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 ADs-
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 ADs-
c) the Balance Sheet, Statement of Profit and Loss, and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account ADs-
d) in our opinion, the Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement comply with the Accounting Standards
referred to in Sub- Section (3C) of Section 211 of the Act, read with
the General Circular 15/2013 dated 13th September, 2013, of the
Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013.
e) on the basis of written representations received from the directors
as on 31st December, 2013, and taken on record by the Board of
Directors, none of the Directors is disqualified as on 31st December,
2013, from being appointed as a director in terms of Clause (g) of
Sub-Section (1) of Section 274 of the Act.
Statement referred to in paragraph 5 of the Independent Auditors''
Report of even date to the Members of Trend Electronics Limited ( ACI-the
Company ACI-) on the financial statements for the year ended 31st
December, 2013.
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situations of fixed
assets.
(b) As per the information and explanations given to us, physical
verification of fixed assets has been carried out in terms of the
phased programme of verification adopted by the Company and no
material discrepancies were noticed on such verification. In our
opinion, the frequency of verification is reasonable, having regard to
the size of the Company and nature of its business.
(c) During the year the Company has not disposed off any substantial
part of fixed assets.
(ii) (a) As per the information and explanation given to us, the
inventories have been physically verified during the year by the
management. In our opinion, having regard to the nature and location of
stocks, the frequency of the physical verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, procedures of physical verification of inventory followed
by the management are reasonable and adequate in relation to the size
of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. As per
information and explanation given to us, the discrepancies noticed on
physical verification of stocks were not material in relation to the
operations of the Company and the same have been properly dealt with in
the books of account.
(iii) (a) As per the information and explanation given to us, the
Company has not granted or taken any loans, secured or unsecured,
to/from companies, firms or other parties covered in the register
maintained under Section 301 of the Companies Act, 1956.
(b) As the Company has not granted or taken any loans, secured or
unsecured, to/from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956, Sub-
Clauses (b), (c), (d), (f) and (g) of Clause (iii) of paragraph 4 of
the Order are not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory and fixed assets and for the sale of goods
and services. During the course of our audit, no major weakness has
been noticed in the internal control systems.
(v) (a) Based on the audit procedures applied by us and according to
the information and explanations provided by the management, we are of
the opinion that the transactions that need to be entered in the
register maintained under Section 301 of the Companies Act, 1956, have
been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of Rupees Five Lacs, in
respect of any party during the year, 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 the provisions of Section 58A, 58AA or any other
relevant provisions of the Companies Act, 1956 and rules framed there
under.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size of the Company and the nature of its
business.
(viii) The Central Government has prescribed maintenance of the cost
records under Section 209(1)(d) of the Companies Act, 1956, in respect
to the Company''s products. We have broadly reviewed the books of
accounts and records maintained by the Company in this connection and
are of the opinion that, prima facie, the prescribed accounts and
records have been made and maintained. We have however, not made a
detailed examination of the records with a view to determining whether
they are accurate or complete.
(ix) (a) According to the information and explanations given to us and
the records examined by us, the Company is regular in depositing with
appropriate authorities undisputed statutory dues including Provident
Fund, Employees'' State Insurance, Income-tax, Sales-tax, Wealth-tax,
Service tax, Custom duty, Excise-duty, Cess and other statutory dues
wherever applicable. According to the information and explanations
given to us, no undisputed arrears of statutory dues were outstanding
as at 31st December, 2013, for a period of more than six months from
the date they became payable.
(b) According to the records of the Company examined by us and
information and explanations given to us, the particulars of dues of
Income-tax, Sales- tax, Wealth-tax, Service tax, Custom duty,
Excise-duty, Cess which have not been deposited on account of any
dispute, are given below:
Name of the Nature of Rs. in
Million Forum where
Statute the Dues dispute is pending
1. Customs Act, Custom 3.31 Asst. Commissioner
1962 Duty 0.75 Commissioner
2. Central Excise Excise 4.03 CESTAT
Act, 1944 Duty 2.98 High Court
0.12 Asst. Commissioner
3. Finance Act, Service
Tax 0.69 Asst. Commissioner
1994 6.95 Commissioner
(Service Tax 0.93 Dy. Commissioner
Provisions)
4. Sales Tax Sales Tax 0.02 Appellate Tribunal
Act of
various 44.71 Joint Commissioner
States 0.28 STO
(x) There are accumulated losses ofRs. 545.13 Million as on 31st
December, 2013, which are not more than Fifty percent of its net worth.
The Company has incurred cash losses during the financial year and
also during the immediately preceding financial year.
(xi) Based on our audit procedures and the information and explanations
given to us, we observed that, the Company has defaulted in repayment
of loans and payment of interest to banks is summarized below :
Particulars Rs. in Million Delay in Days - Range
Principal Repayment 1.72 86 to 87 days
Interest 18.61 55 to 88 days
(xii) Based on our examination of the records and the information and
explanations given to us, the Company has not granted any loans and/or
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 Company or
nidhi/mutual benefit fund/society. Therefore, the Clause (xiii) of
paragraph 4 of the Order is not applicable to the Company.
(xiv) The Company has maintained proper records of transactions and
contracts in respect of dealing and trading in shares, securities,
debentures and other investment and that timely entries have generally
been made therein. All shares, debentures and other securities have
been held by the Company in its own name except to the extent exemption
granted under Section 49 of the Companies Act, 1956.
(xv) According to the information and explanations given to us, the
terms and conditions of guarantees given by the Company for loans taken
by others from banks or financial institutions are, prima facie, not
prejudicial to the interest of the Company.
(xvi) According to the information and explanations given to us, the
term loans raised during the year were applied, on an overall basis,
for the purpose for which the loans were obtained.
(xvii) On the basis of overall examination of the Balance Sheet of the
Company, we observed that, the Company has not used funds raised on
short term basis for long term investments.
(xviii)According to the information and explanation given to us, the
Company has not made any preferential allotment of shares during the
year to parties and companies covered in the register maintained under
Section 301 of the Companies Act, 1956.
(xix) The Company has not issued any debentures during the year.
(xx) The Company has not raised any money by way of public issues
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.
For KHANDELWAL JAIN ACY- CO. For KADAM ACY- CO.
Chartered Accountants Chartered Accountants
Firm Registration No.: 105049W Firm Registration No.: 104524W
BHUPENDRA Y. KARKHANIS U. S. KADAM
Partner Partner
Membership No.:108336 Membership No.:31055
Place : Mumbai
Date : 28th February, 2014
Dec 31, 2012
1. We have audited the attached Balance Sheet of TREND ELECTRONICS
LIMITED ("the CompanyÂ), as at 31st December, 2012, the Statement of
Profit and Loss and the Cash Flow Statement of the Company for the year
ended on that date annexed thereto. These financial statements are the
responsibility of the Company''s management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with Auditing Standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor''s Report) Order, 2003 issued
by the Central Government in terms of Section 227(4A) of the Companies
Act, 1956, and on the basis of such checks as considered appropriate
and according to the information and explanations given to us during
the course of the audit, we give in the Annexure hereto a statement on
the matters specified in Paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) The Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this report are in agreement with the
books of account;
d) In our opinion, the Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement dealt with by the report comply with the
Accounting Standards referred to in Section 211(3C) of the Companies
Act, 1956;
e) On the basis of written representations received from the directors
of the Company as on 31st December, 2012 and taken on record by the
Board of Directors, we report that none of the directors is
disqualified as on 31st December, 2012 from being appointed as a
director in terms of Section 274(1)(g) 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 financial statements, read with
the 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 the Balance Sheet, of the state of affairs of the
Company as at 31st December, 2012;
(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.
ANNEXURE TO THE AUDITORS'' REPORT
Statement referred to in paragraph 3 of the Auditors'' Report of even
date to the Members of TREND ELECTRONICS LIMITED ("the CompanyÂ) on the
financial statements for the year ended 31st December, 2012.
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situations of fixed
assets.
(b) As per the information and explanations given to us, physical
verification of fixed assets has been carried out in terms of the
phased programmer of verification adopted by the Company and no material
discrepancies were noticed on such verification. In our opinion, the
frequency of verification is reasonable, having regard to the size of
the Company and nature of its business.
(c) During the year the Company has not disposed off any substantial
part of fixed assets.
(ii) (a) As per the information and explanation given to us, the
inventories have been physically verified during the year by the
management. In our opinion, having regard to the nature and location
of stocks, the frequency of the physical verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, procedures of physical verification of inventory followed
by the management are reasonable and adequate in relation to the size
of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. As per
information and explanation given to us, the discrepancies noticed on
physical verification of stocks were not material in relation to the
operations of the Company and the same have been properly dealt with in
the books of account.
(iii) (a) As per the information and explanation given to us, the
Company has not granted or taken any loans, secured or unsecured,
to/from companies, firms or other parties covered in the register
maintained under Section 301 of the Companies Act, 1956. (b) As the
Company has not granted or taken any loans, secured or unsecured,
to/from companies, firms or other parties covered in the register
maintained under Section 301 of the Companies Act, 1956, Sub-clauses
(b), (c), (d), (f) and (g) of Clause (iii) of paragraph
4 of the Order are not applicable. (iv) In our opinion and according
to the information and explanations given to us, there are adequate
internal control systems commensurate with the size of the Company and
the nature of its business with regard to purchase of inventory and
fixed assets and for the sale of goods and services. During the course
of our audit, no major weakness has been noticed in the internal
control systems. (v) (a) Based on the audit procedures applied by us
and according to the information and explanations provided by the
management, we are of the opinion that the transactions that need to be
entered in the register maintained under section 301 of the Companies
Act, 1956 have been so entered. (b) In our opinion and according to
the information and explanations given to us, the transactions made in
pursuance of contracts or arrangements entered in the register
maintained under Section 301 of the Companies Act, 1956 and exceeding
the value of Rupees Five Lacs, in respect of any party during the year,
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 the provisions of Section 58A, 58AA or any other
relevant provisions of the Companies Act, 1956 and rules framed
thereunder.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size of the Company and the nature of its
business.
(viii) The Central Government has prescribed maintenance of the cost
records under section 209(1)(d) of the Companies Act, 1956 in respect
of the Company''s products. We have broadly reviewed the books of
accounts and records maintained by the Company in this connection and
are of the opinion that, prima facie, the prescribed accounts and
records have been made and maintained. We have however, not made a
detailed examination of the records with a view to determining whether
they are accurate or complete.
(ix) (a) According to the information and explanations given to us and
the records examined by us, the Company is regular in depositing with
appropriate authorities undisputed statutory dues including Provident
Fund, the Investor Education and Protection Fund, Employees'' State
Insurance, Income tax, Sales tax, Wealth tax, Service tax, Custom duty,
Excise duty, Cess and other statutory dues wherever applicable.
According to the information and explanations given to us, no
undisputed arrears of statutory dues were outstanding as at 31st
December, 2012 for a period of more than six months from the date they
became payable.
(b) According to the records of the Company examined by us and
information and explanations given to us, the particulars of dues of
Sales tax, Income tax, Custom duty, Wealth tax, Service tax, Excise
duty, Cess which have not been deposited on account of any dispute, are
given below:
Name of the
Statute Nature of the
Dues Amount Forum where dispute
(in
Million) is pending
1.Customs Act, 1962 Custom Duty 3.31 Asst. Commissioner
(Including
Penalty) 4.03 CESTAT
0.75 Commissioner
2.Central Excise
Act, 1944 Excise Duty 3.97 CESTAT
(Including
Penalty) 0.29 High Court
3.Finance Act, 1994 Service Tax 0.16 Asst. Commissioner
(Service Tax
Provisions)
6.95 Commissioner
0.93 Dy. Commissioner
4.Sales Tax Act of Sales Tax 0.21 Addl. Commissioner
various States
54.71 Joint Commissioner
33.45 Dy. Commissioner
0.28 Asst. Commissioner
(x) There are accumulated losses of Rs. 44.64 Million as on 31st
December, 2012, which are not more than fifty percent of its net worth.
The Company has incurred cash losses during the financial year covered
by our audit but there was no cash loss incurred during immediately
preceding financial year.
(xi) Based on our audit procedures and the information and explanations
given to us, we observed that, the Company has defaulted in repayment
of dues to banks. The delays have been summarized below indicating the
principal amount, interest amount and period.
Particulars Principal Interest Delay in
(in Million) (Rs.in Million) Days - Range
Amount paid
before the year end - 184.81 3 to 71 days
Amount outstanding
as at 31st December,
2012 and paid
Total - 184.81
(xii) Based on our examination of the records and the information and
explanations given to us, the Company has not granted any loans and/ or
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 Company or
nidhi/mutual benefit fund/society. Therefore, the Clause (xiii) of
paragraph 4 of the Order is not applicable to the Company.
(xiv) The Company has maintained proper records of transactions and
contracts in respect of dealing and trading in shares, securities,
debentures and other investment and that timely entries have generally
been made therein. All shares, debentures and other securities have
been held by the Company in its own name except to the extent to the
exemption granted under section 49 of the Companies Act, 1956.
(xv) According to the information and explanations given to us, the
terms and conditions of guarantees given by the Company for loans taken
by others from banks or financial institutions are, prima facie, not
prejudicial to the interest of the Company.
(xvi) According to the information and explanations given to us, the
term loans raised were applied, on an overall basis, for the purpose
for which the loans were obtained.
(xvii) According to the information and explanation given to us and on
overall examination of the Balance Sheet of the Company, we report
that, the Company has not used funds raised on short term basis for
long term investments.
(xviii) The Company has not made any preferential allotment of shares
during the year to parties and companies covered in the register
maintained under section 301 of the Companies Act, 1956.
(xix) The Company has not issued any debentures during the year.
(xx) The Company has not raised any money by way of public issues
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.
For KHANDELWAL JAIN & CO. For KADAM & CO.
Chartered Accountants Chartered Accountants
(Firm Registration No. 105049W) (Firm Registration
No. 104524W)
SHIVRATAN AGARWAL U. S. KADAM
Partner Partner
Membership No.: 104180 Membership No.: 31055
Place : Mumbai
Date : 28th February, 2013
Dec 31, 2011
1. We have audited the attached Balance Sheet of TREND ELECTRONICS
LIMITED, as at 31st December, 2011, Profit and Loss Account and also
the Cash Flow Statement of the Company for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Company's management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003,
issued by the Central Government in terms of Section 227(4A) of the
Companies Act, 1956 and on the basis of such checks as considered
appropriate and according to the information and explanations given to
us during the course of the audit, we give in the Annexure hereto a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. Further to our comments in the Annexure referred to in above
paragraph, 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, Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d) In our opinion, the Balance Sheet, Profit and Loss Account and the
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) According to the information and explanations given to us and on the
basis of written representations received from the directors of the
Company and taken on record by the Board of Directors, we report that
none of the directors is disqualified as on 31st December, 2011, from
being appointed as a director in terms of Section 274(1)(g) 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 financial statements, read
together with the significant accounting policies and 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 the Balance Sheet, of the state of affairs of the
Company as at 31st December, 2011;
(ii) In the case of the Profit and Loss Account, of the profit 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.
ANNEXURE TO THE AUDITORS' REPORT
Statement referred to in paragraph 3 of the Auditors' Report of even
date to the Members of TREND ELECTRONICS LIMITED on the financial
statements for the year ended 31st December, 2011.
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situations of fixed
assets.
(b) As per the information and explanations given to us, physical
verification of fixed assets has been carried out in terms of the
phased programme of verification adopted by the Company and no material
discrepancies were noticed on such verification. In our opinion, the
frequency of verification is reasonable, having regard to the size of
the Company and the nature of its business.
(c) During the year, the Company has not disposed off any
substantial/major part of its fixed assets.
(ii) (a) As per the information furnished, the inventories have been
physically verified during the year by the management. In our opinion,
having regard to the nature and location of stocks, the frequency of
the physical verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, procedures of physical verification of inventory followed
by the management are reasonable and adequate in relation to the size
of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. As per the
information and explanations given to us, the discrepancies noticed on
physical verification of stocks were not material in relation to the
operations of the Company and the same have been properly dealt with in
the books of account.
(iii) (a) As per the information and explanations given to us, the
Company has not granted or taken any loans, secured or unsecured,
to/from companies, firms or other parties covered in the register
maintained under Section 301 of the Companies Act, 1956.
(b) As the Company has neither granted nor taken any loans, secured or
unsecured, to/from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956,
Sub-clauses (b), (c), (d), (f) and (g) of Clause (iii) of paragraph 4
of the Order are not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weakness in the internal control
systems.
(v) (a) Based on the audit procedures applied by us and according to
the information and explanations provided by the management, we are of
the opinion that the particulars of contracts or arrangements referred
to in Section 301 of the Companies Act, 1956, have been entered in the
register required to be maintained under that Section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of Rupees Five Lakhs,
in respect of any party during the year, have been made at prices which
are reasonable having regard to the prevailing market prices at the
relevant time.
(vi) The Company has not accepted any deposits from the public within
the meaning of the provisions of Section 58A, 58AA or any other
relevant provisions of the Companies Act, 1956 and rules made
there under.
(vii) In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
(viii) The Central Government has prescribed maintenance of the cost
records under Section 209(1)(d) of the Companies Act, 1956, in respect
of the Company's products. As per the information and explanations
provided to us, we are of the opinion that prima facie, the prescribed
records have been made and maintained. We have however, not made a
detailed examination of the records with a view to determine whether
they are accurate or complete.
(ix) (a) According to the information and explanations given to us and
the records examined by us, the Company is regular in depositing with
appropriate authorities undisputed statutory dues including Provident
Fund, the Investor Education and Protection Fund, Employees' State
Insurance, Income tax, Sales tax, Wealth tax, Service tax, Custom duty,
Excise duty, Cess and other statutory dues wherever applicable.
According to the information and explanations given to us, no
undisputed arrears of statutory dues were outstanding as at 31st
December, 2011 for a period of more than six months from the date they
became payable.
(b) According to the records of the Company examined by us and
information and explanation given to us, the particulars of dues of
Sales tax, Income tax, Custom duty, Wealth tax, Service tax, Excise
duty, Cess which have not been deposited on account of disputes, are
given below:
Amount Forum where dispute
Nature of
the Statute Nature of Dues
(Rs.in Million) is pending
1.Customs Act,
1962 Interest and
Penalty 4.03 CESTAT
Custom Duty 0.75 Commissioner
3.31 Asst. Commissioner
2.Central
Excise
Act, 1944 Excise Duty 0.29 High Court,
Aurangabad
3.97 CESTAT
3.Finance
Act, 1994
(Service Tax
Provisions) Service Tax 6.95
Commissioner
0.93 Dy. Commissioner
0.16 Asst. Commissioner
4.Sales Tax
Act of
various
States Sales Tax 0.19 Appellate Tribunal
33.45 Dy. Commissioner
54.71 Joint Commissioner
0.28 Asst. Commissioner
(x) There are no accumulated losses as on 31st December, 2011. The
Company has not incurred any cash losses during the financial year
covered by our audit and the immediately preceding financial year.
(xi) Based on our audit procedures and the information and explanations
given by the management, we are of the opinion that the Company has not
defaulted in repayment of dues to financial institutions, banks or
debenture holders.
(xii) Based on our examination of the records and the information and
explanations given to us, the Company has not granted any loans and/or
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 company or
nidhi/mutual benefit fund/society. Therefore, the Clause (xiii) of
paragraph 4 of the Order is not applicable to the Company.
(xiv) The Company has maintained proper records of transactions and
contracts in respect of dealing and trading in shares, securities,
debentures and other investments and that timely entries have generally
been made therein. All shares, debentures and other securities have
been held by the Company in its own name except to the extent of the
exemption granted under Section 49 of the Companies Act, 1956.
(xv) According to the information and explanations given to us, the
terms and conditions of guarantees given by the Company for loans taken
by others from banks or financial institutions are, prima facie, not
prejudicial to the interest of the Company.
(xvi) According to the information and explanations given to us, the
term loans raised during the year were applied, on an overall basis,
for the purpose for which the loans were obtained.
(xvii) On the basis of overall examination of the Balance Sheet of the
Company, we observed that, the Company has not used funds raised on
short term basis for long term investments.
(xviii) According to the information and explanation given to us, the
Company has not made any preferential allotment of shares during the
year to parties and companies covered in the register maintained under
Section 301 of the Companies Act, 1956.
(xix) The Company has not issued any debentures during the year.
(xx) The Company has not raised any money by public issues 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.
For KHANDELWAL JAIN & CO. For KADAM & CO.
Chartered Accountants Chartered Accountants
(Firm Registration No. 105049W) (Firm Registration No. 104524W)
SHIVRATAN AGARWAL U. S. KADAM
Partner Partner
Membership No. 104180 Membership No. 31055
Place : Mumbai
Date : 15th May, 2012
Dec 31, 2010
1. We have audited the attached Balance Sheet of TREND ELECTRONICS
LIMITED, as at 31st December 2010, the Profit and Loss Account and also
the Cash Flow Statement of the Company for the period ended on that
date annexed thereto. These financial statements are the responsibility
of the CompanyÃs management. Our responsibility is to express an
opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (AuditorÃs Report) Order, 2003, issued
by the Central Government in terms of Section 227(4A) of the Companies
Act, 1956, and on the basis of such checks as considered appropriate
and according to the information and explanations given to us during
the course of the audit, we give in the Annexure hereto a statement on
the matters specified in Paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in above
paragraph, 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, Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by the report comply with the Accounting
Standards referred to in Section 211(3C) of the Companies Act, 1956;
e) According to the information and explanations given to us and on the
basis of written representations received from the directors of the
Company and taken on record by the Board of Directors, we report that
none of the directors is disqualified as on 31st December, 2010 from
being appointed as a director in terms of Section 274(1)(g) 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 financial statements, read
together with the significant accounting policies and 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 the Balance Sheet, of the state of affairs of the
Company as at 31st December, 2010;
(ii) In the case of the Profit and Loss Account, of the profit for the
period ended on that date; and
(iii) In the case of the Cash Flow Statement, of the cash flows for the
period ended on that date.
ANNEXURE TO THE AUDITORSÃ REPORT
Statement referred to in paragraph 3 of the Auditorsà Report of even
date to the Members of TREND ELECTRONICS LIMITED on the accounts for
the period ended 31st December, 2010.
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situations of fixed
assets.
(b) As per the information and explanations given to us, physical
verification of fixed assets has been carried out in terms of the
phased programme of verification adopted by the Company and no material
discrepancies were noticed on such verification. In our opinion, the
frequency of verification is reasonable, having regard to the size of
the Company and nature of its business.
(c) During the period, the Company has not disposed off any
substantial/major part of fixed assets.
(ii) (a) As per the information furnished, the inventories have been
physically verified during the period by the management. In our
opinion, having regard to the nature and location of stocks, the
frequency of the physical verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, procedures of physical verification of inventory followed
by the management are reasonable and adequate in relation to the size
of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. As per
information and explanation given to us discrepancies noticed on
physical verification of stocks were not material in relation to the
operations of the Company and the same have been properly dealt with in
the books of account.
(iii) (a) As per the information and explanations given to us, the
Company has not granted or taken any loans, secured or unsecured,
to/from companies, firms or other parties covered in the register
maintained under Section 301 of the Companies Act, 1956.
(b) As the Company has neither granted nor taken any loans, secured or
unsecured, to/from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956,
sub-clauses (b),(c),(d),(f) and (g) of Clause (iii) of paragraph 4 of
the Order are not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weakness in the internal control
systems.
(v) (a) Based on the audit procedures applied by us and according to
the information and explanations provided by the management, we are of
the opinion that the transactions that need to be entered in the
register maintained under Section 301 of the Companies Act, 1956, have
been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of Rupees Five Lakhs,
in respect of any party during the period, 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 the provisions of Sections 58A, 58AA or any other
relevant provisions of the Companies Act, 1956 and rules framed there
under.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size of the Company and the nature of its
business.
(viii) The Central Government has prescribed maintenance of the cost
records under Section 209(1)(d) of the Companies Act, 1956, in respect
of the CompanyÃs products. We have broadly reviewed the books of
account and records maintained by the Company in this connection and
are of the opinion that, prima facie, the prescribed accounts and
records have been made and maintained. We have however, not made a
detailed examination of the records with a view to determine whether
they are accurate or complete.
(ix) (a) According to the information and explanations given to us and
the records examined by us, the Company is regular in depositing with
appropriate authorities undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employeesà State
Insurance, Income-tax, Sales-tax, Wealth-tax, Service-tax,
Customs-duty, Excise-duty, Cess and other statutory dues wherever
applicable. According to the information and explanations given to us,
no undisputed arrears of statutory dues were outstanding as at 31st
December, 2010 for a period of more than six months from the date they
became payable.
(b) According to the records of the Company examined by us and
information and explanation given to us, the particulars of dues of
Sales Tax, Income Tax, Custom duty, Wealth Tax, Service Tax, Excise
duty, Cess which have not been deposited on account of disputes, are
given below:
Nature of the
Statute Nature of the Dues Rs. Million Forum where
dispute is
pending
1. Customs Act,
1962 Interest and Penalty 4.03 CESTAT
Custom Duty 0.75 Commissioner
3.31 Asst. Commissioner
0.29 High Court,
Aurangabad
2. Central
Excise Act,
1944 Excise Duty 1.27 CESTAT
3 Finance Act,
1994
(Service
Tax Service Tax 6.95 Commissioner
Provisions) 0.93 Dy. Commissioner
0.30 Appellate Tribunal
4. Sales Tax
Act of
various
States Sales Tax 34.31 Dy. Commissioner
(x) There are no accumulated losses as on 31st December 2010. The
Company has not incurred any cash losses during the financial year
covered by our audit and the immediately preceding financial year.
(xi) Based on our audit procedures and the information and explanations
given by the management, we are of the opinion that the Company has not
defaulted in repayment of dues to a financial institutions, banks or
debenture holders.
(xii) Based on our examination of the records and the information and
explanations given to us, the Company has not granted any loans and/or
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 Company or
nidhi/mutual benefit fund/society. Therefore, the Clause (xiii) of the
Order is not applicable to the Company.
(xiv) The Company has maintained proper records of transactions and
contracts in respect of dealing and trading in shares, securities,
debentures and other investments and that timely entries have generally
been made therein. All shares, debentures and other securities have
been held by the Company in its own name except to the extent of the
exemption granted under Section 49 of the Companies Act, 1956.
(xv) According to the information and explanations given to us, the
terms and conditions of guarantees given by the Company for loans taken
by others from banks or financial institutions are, prima facie, not
prejudicial to the interest of the Company.
(xvi) According to the information and explanations given to us, the
term loans raised during the period were applied, on an overall basis,
for the purpose for which the loans were obtained.
(xvii) On the basis of overall examination of the Balance Sheet of the
Company, we observed that, the Company has not used funds raised on
short term basis for long term investments.
(xviii) According to the information and explanation given to us, the
Company has not made any preferential allotment of shares during the
period to parties and companies covered in the register maintained
under Section 301 of the Companies Act,1956.
(xix) The Company has not issued any debentures during the period.
(xx) The Company has not raised any money by public issues during the
period.
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
period.
For KHANDELWAL JAIN & CO. For KADAM & CO.
Chartered Accountants Chartered Accountants
Firm Registration No. 105049W Firm Registration No. 104524W
SHIVRATAN AGARWAL U.S. KADAM
Partner Partner
Membership No. 104180 Membership No. 31055
Place : Mumbai
Date : 26th May, 2011
Sep 30, 2009
1. We have audited the attached Balance Sheet of TREND ELECTRONICS
LIMITED as at 30th September, 2009, Profit and Loss Account and also
the Cash Flow Statement of the Company for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Companys management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government in terms of Section 227(4A) of the Companies
Act, 1956, and on the basis of such checks as considered appropriate
and according to the information and explanations given to us during
the course of the audit, we give in the Annexure hereto a statement on
the matters specified in Paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in above
paragraph, 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, Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by the report comply with the Accounting
Standards referred to in Section 211 (3C) of the Companies Act, 1956;
e) According to the information and explanations given to us and on the
basis of written representations received from the directors of the
Company and taken on record by the Board of Directors, we report that
none of the directors is disqualified as on 30th September, 2009 from
being appointed as a director in terms of Section 274(1) (g) 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 financial statements, read
together with the significant accounting policies and 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 the Balance Sheet, of the state of affairs of the
Company as at 30th September, 2009;
(ii) In the case of the Profit and Loss Account, of the profit 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.
ANNEXURE TO THE AUDITORS REPORT
Statement referred to in paragraph 3 of the Auditors Report of even
date to the Members of TREND ELECTRONICS LIMITED on the accounts for
the year ended 30th September, 2009.
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situations of fixed
assets.
(b) As per the information and explanations given to us, physical
verification of fixed assets has been carried out in terms of the
phased programme of verification adopted by the Company and no material
discrepancies were noticed on such verification. In our opinion, the
frequency of verification is reasonable, having regard to the size of
the Company and nature of its business.
(c) During the year the Company has not disposed off any substantial/
major part of fixed assets.
(ii) (a) As per the information furnished, the inventories have been
physically verified during the year by the management. In our opinion,
having regard to the nature and location of stocks, the frequency of
the physical verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, procedures of physical verification of inventory followed
by the management are reasonable and adequate in relation to the size
of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. As per
information and explanations given to us, discrepancies noticed on
physical verification of stocks were not material in relation to the
operations of the Company and the same have been properly dealt with in
the books of account.
(iii) (a) As per the information and explanation given to us, the
Company has not granted or taken any loans, secured or unsecured,
to/from companies, firms or other parties covered in the register
maintained under Section 301 of the Companies Act, 1956.
(b) As the Company has neither granted nor taken any loans, secured or
unsecured, to/from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956,
Sub-clauses (b),(c),(d),(f) and (g) of Clause (iii) of paragraph 4 of
the Order are not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weakness in the internal control
systems.
(v) (a) Based on the audit procedures applied by us and according to
the information and explanations provided by the management, we are of
the opinion that the transactions that need to be entered in the
register maintained under Section 301 of the Companies Act, 1956 have
been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of Rupees Five Lakhs,
in respect of any party during the year, 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 the provisions of Section 58A, 58AA or any other
relevant provisions of the Companies Act, 1956 and rules framed there
under.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size of the Company and the nature of its
business.
(viii) The Central Government has prescribed maintenance of the cost
records under section 209(1)(d) of the Companies Act, 1956 in respect
of the Companys product. We have broadly reviewed the books of
accounts and records maintained by the Company in this connection and
are of the opinion that, prima facie, the prescribed accounts and
records have been made and maintained. We have however, not made a
detailed examination of the records with a view to determine whether
they are accurate or complete.
(ix) (a) According to the information and explanations given to us and
the records examined by us, the Company is regular in depositing with
appropriate authorities undisputed statutory dues including Provident
Fund, Investor Education and Protection fund, Employees State
Insurance, Income-tax, Sales-tax, Wealth-tax, Service-tax, Custom-duty,
Excise-duty, Cess and other statutory dues wherever applicable.
According to the information and explanations given to us, no
undisputed arrears of statutory dues were outstanding as at 30th
September, 2009 for a period of more than six months from the date they
became payable.
(b) According to the records of the Company examined by us and
information and explanations given to us, the particulars of dues of
Sales-tax, Income-tax, Custom-duty, Wealth-tax, Service-tax,
Excise-duty, Cess which have not been deposited on account of disputes,
are given below.
Nature of the Rupees Forum where
Nature of the Dues
Statute in Million dispute is pending
1. Customs Act Custom Duty Penalty 0.75 CESTAT.
Custom Duty 3.31 Dy. Commissioner
2. Central Excise Duty 9.16 CESTAT
Excise Act 0.29 High Court,
Aurangabad
3. Service Tax Service Tax 5.50 Commissioner
0.10 Dy. Commissioner
4. Sales Tax Act Sales Tax 0.22 Tribunal
34.73 Dy. Commissioner
0.42 Asst. Commissioner
(x) There are no accumulated losses of the Company as on 30th
September, 2009. The Company has not incurred any cash losses during
the financial year covered by our audit and the immediately preceding
financial year.
(xi) Based on our audit procedures and the information and explanations
given by the management, we are of the opinion that the Company has not
defaulted in repayment of dues to a financial institution, banks or
debenture holders.
(xii) Based on our examination of the records and the information and
explanations given to us, the Company has not granted any loans and/or
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 Company or
nidhi/mutual benefit fund/society. Therefore, the Clause (xiii) of the
Order is not applicable to the Company.
(xiv) The Company has maintained proper records of transactions and
contracts in respect of dealing and trading in shares, securities,
debentures and other investments and that timely entries have generally
been made therein. All shares, debentures and other securities have
been held by the Company in its own name except to the extent of the
exemption granted under Section 49 of the Companies Act, 1956.
(xv) According to the information and explanations given to us, the
terms and conditions of gurantees given by the Company for the loans
taken by others from banks or financial institutions are, prima-facie,
not prejudicial to the interest of the Company.
(xvi) According to the information and explanations given to us no term
loans were raised during the year.
(xvii) According to the information and explanation given to us and on
the basis of overall examination of the Balance Sheet of the Company,
we report that, the Company has not used funds raised on short term
basis for long term investments.
(xviii) According to the information and explanation given to us, the
Company has not made any preferential allotment of shares during the
year to parties and companies covered in the register maintained under
Section 301 of the Companies Act, 1956.
(xix) The Company has not issued any debentures during the year.
(xx) The Company has not raised any money by public issues during the
year covered by our report.
(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.
For KHANDELWAL JAIN & CO. For KADAM & CO.
Chartered Accountants Chartered Accountants
SHIVRATAN AGARWAL U. S. KADAM
Partner Partner
Membership No. 104180 Membership No. 31055
Firm Registration No. 105049W Firm Registration No. 104524W
Place: Mumbai
Date: 19th February, 2010
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