Mar 31, 2014
We have audited the accompanying financial statements of YKM Industries
Limited ("the Company"), which comprise the Balance Sheet as at 31st
March 2014, the Statement of Profit and Loss and Cash Flow Statement
for the year then ended and a summary of significant accounting
policies and other explanatory information.
Managements'' Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India including
Accounting Standards referred to in Section 211(3C) of the Companies
Act, 1956 ("the Act") read with the General Circular 15/2013 dated 13
September 2013 of the 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
a true and fair view and are free from material misstatements, whether
due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement.
An audit involves performing procedures to obtain audit evidence about
amounts and disclosures in the financial statements. The procedures
selected depend on 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.
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 March 2014;
b) In the case of Statement of Profit and Loss , of the loss for the
year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of Section
227(4A) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the Order to the extent applicable.
2. As required by Section 227(3) of the Act, We report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief, were necessary for the purpose of our
audit;
b) In our opinion, proper books of account as required by law have been
kept by the company so far as appears from our examination of those
books;
c) The Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this report are in agreement with the
books of account;
d) In our opinion, the Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in section 211 (3C) of the Act read
with the General Circular 15/2013 dated 13 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 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 section 274(1)(g) of the Act.
ANNEXURE TO INDEPENDENT AUDITORS'' REPORT
Referred to in paragraph 1 under the heading of " Report on Other Legal
and Regulatory Requirements" of our report of even date
1. The Company does not have any fixed assets, consequently the
requirements of clause (i) paragraph 4 of the Order are not applicable.
2. The Company does not have any inventory, consequently the
requirements of clause (ii) of paragraph 4 of the Order are not
applicable.
3. The Company has neither granted nor taken any loans, secured or
unsecured to/ from companies, firms or other parties listed in the
register maintained under section 301 of the Act. Consequently the
requirements of clause (iii) of paragraph 4 of the Order are not
applicable.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory, fixed assets and for
the sale of goods and services. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in the
internal controls.
5. a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements that need to be entered in the register maintained under
section 301 of the Act 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 Act and exceeding the value of Rs.5,00,000 in respect of each party
during the year have been made at prices which appear reasonable as per
information available with the Company.
6. The Company has not accepted any deposits from the public.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the cost records maintained by the company
pursuant to the rules prescribed by the Central Government for
maintenance of cost records under Section 209(1)(d) of the Act and are
of the opinion that, prima facie, the prescribed cost records have been
maintained. We have, however, not made detailed examination of the
records.
9. a) According to the records of the Company, undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service
Tax, Customs Duty, Excise Duty, Cess and other statutory dues have been
generally regularly deposited with the appropriate authorities.
According to the information and explanation given to us, no undisputed
amounts payable in respect of aforesaid statutory dues were outstanding
as at 31st March 2014 for a period of more than six months from the
date of becoming payable.
b) According to the information and explanation given to us, there are
no disputed statutory dues which have not been deposited on account of
any dispute.
10. The Company has accumulated losses at the end of the financial
year. The Company has incurred cash losses during the financial year
covered by our audit and in the immediately preceding financial year.
11. Based on our audit procedure and according to the information and
explanations given to us, we are of the opinion that, the company has
not defaulted in repayment of dues to financial institutions, banks or
debenture holders.
12. According to the information and explanation given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. In our opinion, the Company is not a chit fund or a nidhi, mutual
benefit fund / society. Therefore, the provisions of clause (xiii) of
paragraph 4 of the Order are not applicable to the Company.
14. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Therefore, the
provisions of clause (xiv) of paragraph 4 of the Order are not
applicable to the Company.
15. According to the information and explanation given to us, the
Company has not given guarantees for loans taken by others from banks
or financial institutions.
16. No term loans were raised during the year.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we are of
the opinion that there are no funds raised on short-term basis that
have been used for long-term investment.
18. According to the information and explanations given to us, the
Company has not made preferential allotment of shares to parties and
Companies covered in the register maintained under section 301 of the
Act.
19. The Company has no outstanding debentures during the period under
audit.
20. The Company has not raised any money by way of public issues
during the year.
21. In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year, nor we have been informed of such case by the
management.
For Ganesh Venkat & Co.,
Chartered Accountants,
Firm Registration No. 005293S
L. S. Venkataramanan
Place: Chennai. Partner
Date : May 28, 2014 Membership No. 024965
Mar 31, 2012
1. We have audited the attached Balance Sheet of YKM INDUSTRIES
LIMITED as at 31st March 2012 and the Statement of Profit and Loss and
also the Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis
for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order to the extent applicable.
4. Further to our comments in the Annexure referred to above, we
report that:
i) We have obtained all the information and explanations, which to the
best of our knowledge and belief, were necessary for the purpose of our
audit;
ii) In our opinion proper books of account as required by law have been
kept by the company so far as appears from our examination of those
books;
iii) The Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this report are in agreement with the
books of account;
iv) In our opinion, the Balance Sheet, 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 [3-C] of Section 211 of
the Companies Act, 1956;
v) On the basis of written representations received from the directors,
as on 31 st March 2012 and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March
2012 from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956;
vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India;
a) in the case of the Balance Sheet, "of the state of affairs" of the
Company as at 31st March 2012;
b) in the case of Statement of Profit and Loss, of the loss for the
year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flow for the
year ended on that date.
ANNEXURE TO AUDITORS' REPORT
RE : YKM INDUSTRIES LIMITED (Referred to in paragraph 3 of our report
of even date)
1. (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, which in our opinion is reasonable, having regard to
the size of the Company and the nature of its assets. No material
discrepancies were noticed on such verification.
(c) During the year, the Company has disposed off many of its old fixed
assets. However this does not affect the going concern status of the
Company.
2. As the Company does not have any inventory, paragraph 4(ii) of
Companies (Auditor's Report) Order, 2003 are not applicable for year
under audit.
3. The Company has neither granted nor taken any loans, secured or
unsecured to/ from companies, firms or other parties listed in the
register maintained under section 301 of the Companies Act, 1956.
Accordingly clause 4(iii) of the Companies (Auditors' Report) order,
2003 are not applicable to the Company.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory, fixed assets and for
the sale of goods and services. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in the
internal controls.
5. (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered into
the register maintained under section 301 of the Companies Act, 1956
have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding Rs.5,00,000 in respect of each
party during the year have been made at prices which are reasonable
having regard to the prevailing market price at the relevant time.
6. The Company has not accepted any deposits from the public.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the cost records maintained by the company
pursuant to the rules prescribed by the Central Government for
maintenance of cost records under Section 209(1 )(d) of the Companies
Act, 1956 in relation to products manufactured, and are of the opinion
that, prima facie, the prescribed cost records have been maintained. We
have, however, not made detailed examination of the records.
9. (a). The Company is regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Investor Educational Protection Fund, Employees State Insurance,
Income-tax, Sales-tax, Wealth Tax, Sales Tax, Service Tax, Customs
Duty, Excise Duty, Cess and other statutory dues applicable to it.
(b). According to the information and explanation given to us, no
undisputed amounts payable in respect of aforesaid statutory dues were
in arrears, as at 31 st March 2012 for a period of more than six months
from the date they became payable.
(c). According to the information and explanation given to us, there
are no disputed statutory dues which have not been deposited on account
of any dispute.
10. The Company has accumulated losses at the end of the financial
year. The Company has incurred cash losses in the financial year
covered by our audit report and has also incurred cash losses in the
immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution, bank or debenture holders.
12. According to the information and explanation given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. 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.
14. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor's Report) Order
2003 are not applicable to the Company.
15. According to the information and explanation given to us, the
Company has not given guarantees for loans taken by others from banks
or financial institutions.
16. No term loans were raised during the year.
17. 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.
18. According to the information and explanations given to us, the
Company has not made preferential allotment of shares to parties and
Companies covered in the register maintained under section 301 of the
Act.
19. There were no issues of debentures during the period covered by
our audit report.
20. There were no public issues during the period under review.
21. According to the information given to us, no fraud on or by the
Company has been noticed or reported during the course of our audit.
For Ganesh Venkat & Co.,
Chartered Accountants,
Firm Registration No. 005293S
L. S. Venkataramanan
Place: Chennai. Partner
Date : August 31, 2012 Membership No. 024965
Mar 31, 2009
1. We have audited the attached Balance Sheet of YKM INDUSTRIES
LIMITED as at 31st March 2009 and the Profit and Loss Account and also
the cash flow statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis
for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order to the extent applicable.
4. Further to our comments in the Annexure referred to above, we
report that:
i) We have obtained all the information and explanations, which to the
best of our knowledge and belief, were necessary for the purpose of our
audit;
ii) In our opinion proper books of account as required by law have been
kept by the company so far as appears from our examination of those
books;
iii) The Balance Sheet, Profit and Loss Account and cash flow statement
dealt with by this report are in agreement with the books of account;
iv) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section [3-C] of Section 211 of the
Companies Act, 1956;
v) On the basis of written representations received from the directors,
as on 31st March 2009 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 31st March 2009
from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956;
vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India;
a) in the case of the Balance Sheet, " of the state of affairs" of the
Company as at 31st March 2009;
b) in the case of Profit and Loss Account, of the loss for the year
ended on that date; and
c) in the case of the cash flow statement, of the cash flow for the
year ended on that date.
ANNEXURE TO AUDITORS REPORT RE : YKM INDUSTRIES LIMITED
(Referred to in paragraph 3 of our report of even date)
1. 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, which in our opinion is reasonable, having regard to
the size of the Company and the nature of its assets. No material
discrepancies were noticed on such verification.
c) During the year, the Company has disposed off many of its old fixed
assets However this does not affect the going concern status of the
Company.
2. a) As explained to us, inventories have been physically verified
during the year by the management. In our opinion, the frequency of
verification is reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company has maintained proper records of inventories. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
3. The Company has neither granted nor taken any loans, secured or
unsecured to/from companies, firms or other parties listed in the
register maintained under section 301 of the Companies Act, 1956.
Accordingly clause 4(iii) of the Companies (Auditors Report) order,
2003(as amended) are not applicable to the Company.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory, fixed assets and for
the sale of goods and services. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in the
internal controls.
5. a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered into
the register maintained under section 301 of the Companies Act, 1956
have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding Rs.5,00,000 in respect of each
party during the year have been made at prices which are reasonable
having regard to the prevailing market price at the relevant time.
6. The Company has not accepted any deposits from the public.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. We are informed that Central Government has not prescribed
maintenance of cost records under section 209(1 )(d) of the Companies
Act, 1956.
9. a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Investor Educational Protection Fund, Employees State Insurance,
Income-tax, Sales-tax, Wealth Tax, Sales Tax, Service Tax, Customs
Duty, Excise Duty, Cess and other statutory dues applicable to it.
b) According to the information and explanation given to us, no
undisputed amounts payable in respect of aforesaid statutory dues were
in arrears, as at 31st March 2009 for a period of more than six months
from the date they became payable.
c) According to the information and explanations given to us, and as
per the verification of the records of the Company, the following
disputed amounts of tax have not been deposited with appropriate
authorities as at 31st March 2009:
Name of the Nature of Amount Period to Which Forum where
Statute Dues (Rs.) Dispute Relates Dispute is
Pending
Income-tax Income- 735,190 1996-1997 Income-tax
Act, 1961 Tax Appellate
Authority
10. The Company has no accumulated losses at the end of the financial
year. The Company has incurred cash losses in the financial year
covered by our audit report and has also incurred cash losses in the
immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution, bank or debenture holders.
12. According to the information and explanation given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. 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.
14. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors Report) Order
2003 are not applicable to the Company.
15. According to the information and explanation given to us, the
Company has not given guarantees for loans taken by others from banks
or financial institutions.
16. No term loans were raised during the year.
17. 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.
18. According to the information and explanations given to us, the
Company has not made preferential allotment of shares to parties and
Companies covered in the register maintained under section 301 of the
Act.
19. There were no issues of debentures during the period covered by
our audit report.
20. There were no public issues during the period under review.
21. According to the information given to us, no fraud on or by the
Company has been noticed or reported during the course of our audit.
For Ganesh Venkat & Co.,
Chartered Accountants,
Place : Chennai. L.S.Venkataramanan
Date : June 24, 2009. Partner.
Membership No.24965.