We have audited the attached Balance Sheet of M''s. Artech Power
Products Limited (The company) as at 31st March, 2011 and the Profit
& Loss Account of the company for the year ended that date annexed
thereto. These financial statements are the responsibility of the
Company''s management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We have conducted our audit in accordance with auditing standards
generally accepted in India. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement. An audit
includes examining, on a test basis. evidence supporting the amounts
and disclosures in the financial statements and also includes assessing
the accounting principles used and significant estimates made by
management, as well as evaluating the overall presentation of financial
statements. We believe that our audit provides a reasonable basis for
As required by the Statement on the Companies (Auditor''s Report) Order
2003, as amended by the Companies (Auditors Report) (Ameiidment) Order.
2004 (together the Order), issued by the Central Government of India
in terms of sub-section (4A) of section 227 of the Companies Act, 1956.
and on the basis of such checks of the books and records of the Company
as we considered appropriate and according to the information and
explanations given to us. we give in the Admixture a statement on the
matters specified in paragraphs 4 and 5 of the Order
Further we report :-
i. We have obtained all the information and explanations, which to the
best of our knowledge and belief
were necessary far the purpose of the audit
ii. In our opinion, proper books of accounts as required by law have
been kept by the company so far as appears from our examination of
in The Balance Sheet. Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts.
iv. In our opinion. The Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956.
v On the basis of written representation received from directors and
taken on record by the Board of Directors, we report that none of the
Directors is disqualified as ou31sr 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.
vi. In our opinion and to the best of our information, and according to
the explanation 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 i1st March. 2011:
b) in the case of the Profit & Loss
Account of the Profit for the year ended on that date: and
c)in the case of the Cash Flow Statement, of the cash flows
for the year ended on Thai date.
ANNEXURE TO THE AUDITORS REPORT
Statement referred to in our report of even dale to the members of
Artech Power Products Limited on the accounts for the
(i) The company does not have fixed assets. Therefore, the provisions
of clause (i)(a) to (i)(c) of paragraph 4 of the said Order are not
applicable to the company.
(ii) The company does not have any inventories. Therefore, the
provisions of clauses (ii)(a) to (ii)(c) of paragraph 4 of the said
Order are not applicable to the company.
(iii) 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 Act. Clauses (iu)(b) to (m)(d) of paragraph 4
of the said Order are not applicable to the company.
e) The company has taken unsecured loans from 2 parties. At the year
end. the outstanding balance of such loans taken aggregated to
Rs.630,521 and the maximum amount involved during the year was
f) The rate of interest and other terms and conditions of such loans
are. in our opinion, prima facie not prejudicial to die interest of the
g) The terms of repayment for the above loans have not been stipulated,
but the same are stated to be repayable on demand. Since the company
is stated to have received no demand for repayment of the above loans,
there has been no default on the part of the company.
(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 nature of its business for the
purchase of inventory and fixed assets and for sale of goods and
services. During the course of our audit, no major weaknesses have been
noticed in the internal controls.
(v) In our opinion and according to the information and explanations
given to us, there are no contracts and arrangements referred to in
section 301 of the Companies Act. 1956 during the year that need to be
entered in the register maintained under that section. Accordingly.
Clause (v) (b) of the paragraph 4 of the Order is not applicable to the
company for the current year.
(vi) The company has not accepted any deposit from public within the
meaning of section 58 A and 58 AA or any other relevant provisions of
the Act and the Companies (Acceptance of Deposits) Rules. 1975 framed
there under. The appeal filed by the Registrar of Companies. Kerala
against the company with the Honljle Kerala High Court, as specified in
point no.4 of Notes to Accounts forming part of Schedule 11 to
financials statements, is yet to be disposed off.
(vii) In our opinion, the company''s internal audit system is
commensurate with its size and its nature of activities. yni) The
provisions regarding maintenance of cost records under section 209(1
(d) of the Companies Act. 1956 are not applicable to the company.
(ix) a) According to the information and explanations provided to us.
the company is generally regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education and protection fund. employees'' state insurance,
income tax wealth tax. service tax. customs duty, excise duty7, cess
and other material statutory dues, applicable to it. The following were
outstanding for a period of more than six months on the last day of the
b) There is no amount payable in respect of the aforesaid statutory
dues that have not been deposited on account of any disputes.
(x) The accumulated losses of the company at the end of tire financial
Year is more than fifty percent of the net worth; but the company has not
incurred cash losses during the current financial year and in the
immediately proceeding financial year.
(xi i As per the information and explanations given to us. die company
has not availed any loans from banks or financial institutions or through debentures.
(xii) The company has not granted any loans and advances on die
basis of security by way of pledge of shares, debentures and other
xiii) The provisions of any special statute applicable to Chit Fund
or Xydis or Mutual Fund Society are not applicable
to the company.
(xiv) In our opinion and according to the explanations
given to us, the company is not a dealer or trader in securities.
(xv) As explained to us, the company leas not given any guarantee for
loans taken by others from bank or financial
institutions, the terms and conditions whereof, are prejudicial to the
interest of the company.
(xvi) According to tile information and explanations given to us, the
term loans taken by the company have been applied
for the purpose for which they were obtained.
(Xvii) According to file 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 investments''.
(Xviii) Tile company has not made
any preferential allotment of shares to parties covered in the register
maintained under section 301 of the Companies Act. 1956 during the
(xix) In our opinion. the company has not issued any debentures during
(xx) The company has not raised any money by way of public issue
during the year. [xxi) According to tile information and explanations
given to us. during the year, no fraud on or by the company has
been noticed or reported.
For G Joseph & Associates
Place : Cochin Umesh L Bhat
Date : 21/11/2011 Partner
Membership No .211364