1) We have audited the attached Balance Sheet of M/S Atlas Cycles
(Haryana) Limited as at 31st March 2011 and also the profit and loss
account of the company for the year ended on that date, annexed thereto
and the cash flow statement for the year ended on that date. These
Financial statements are the responsibility of the company''s
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2) We have conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes, examining on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
3) As required by the Companies (Auditors'' Report) Order, 2003 issued
by the Central Government of India in terms of Section 227 (4A) of the
Companies Act, 1956, we annex here to 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
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
c) The balance sheet profit and loss account and 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 this report comply with the mandatory
accounting standards referred to in sub-section (3C) of section (211)
of the Companies Act, 1956;
e) On the basis of written presentations received from the directors
and taken on record by the Board of Directors of the Company, none of
the directors is disqualified as on 31st March, 2011 from being
appointed as a director in terms of clause (g) of sub- section (1) of
section 274 of the Companies Act, 1956;
f) In our opinion and to the best of our information and according to
the explanations given to us, the said account together with the notes
thereon and attached thereto give in the prescribed manner the
information required by the Act 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 March 2011;
(ii) In the case of profit and loss account, of the profit of the
company for the year ended on that date; and
(iii) In the case of the cash flow statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITOR''S REPORT
Annexure referred to in paragraph 3 of Auditor''s Report to the Members
of ATLAS CYCLES (HARYANA) LIMITED on the accounts for the year ended
31st March 2011.
(i) (a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
(b) The management has carried out a physical verification of most of
its fixed assets during the year. In our opinion, the frequency of
verification is reasonable having regard to the size of the company and
the nature of its fixed assets. The discrepancies noticed on such
verification were not material and have been properly dealt with in the
books of account.
(c) In our opinion and according to the information and explanations
given to us,a substantial part of fixed assets has not been disposed
off by the company during the year.
(ii) (a) During the year, the inventories have been physically verified
by the management except for inventory lying with third parties which
have been confirmed by the parties. In our opinion, the frequency of
verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedure of Physical verification of stock followed
by the management is reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) On the basis of our examination of the record of inventories, we
are of the opinion that, the Company is maintaining proper records of
inventories. The discrepancies noticed on physical verification of
inventories as compared to books of records were not material and have
been properly dealt with in the books of account.
(iii) According to the information and explanations given to us, 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. Accordingly,
paragraphs 4 (iii) (b), (c) & (d) 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 procedures
commensurate with the size of the Company and nature of its business
with regard to the purchase of inventories and fixed assets and with
regard to sale of goods. Further, on the basis of our examination and
according to the information and explanations given to us, we have
neither come across nor have informed of any instance of major
weaknesses in the aforesaid internal control procedures.
(v) According to the information and explanations given to us, during
the year, there was no transaction that needed to be entered into the
register maintained under section 301 of the companies Act, 1956 .
(vi) In our opinion and according to the information and explanations
given to us, the company has complied with the provision of section 58A
and provision of section 58AA of the companies Act, 1956 and the
companies (Acceptance of Deposits) rules, 1975, with regard to the
deposits accepted from the public. As per information and explanations
given to us, no order under the aforesaid section has been passed by
the company law board on the company.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
company in respect of products where pursuant to the rule made by the
central government the maintenance of the cost records has been
prescribed under section 209(1) (d) of the companies Act, 1956 and are
of the opinion that, prima facie, the prescribed accounts and records
have been made and maintained. We have not however, made a determining
whether they are accurate or complete.
(ix) (a) According to the information and explanations given to us and
the records of the company examined by us, the company has been regular
in deposited undisputing statutory dues including provident fund,
investor education protection fund, employees state insurance,
income-tax, sales tax, wealth tax, custom duty, excise duty, cess and
other material statutory dues applicable to it, we are informed that
there are no undisputed statutory dues as at the year end outstanding
for a period of more than six months from the date they become payable.
(b) Accordingly to the information and explanations given to us and the
records of the company examined by us, there are no disputed dues of
income tax, wealth-tax, custom duty and cess matters. The detail of
disputed sale-tax and excise duty dues are as follows:-
Nature of the Nature of the Forum where which Amount Period to
Statue dues pending (in lac.)
Sales tax laws Entry tax Asst. Commissioner 1.88 1998-1999
Asst. Commissioner 0.91 1999-2000
Sales tax CST Appleate Board,
Bhopal 3.68 1999-2000
Gwl 14.68 2002-2003
Bhopal 81.56 2003-2004
Gwl 300.81 2004-2005
Bhopal 66.41 2005-2006
Board, Bhopal 4.14 1998-1999
Bhopal 3.80 1999-2000
Bhopal 23.17 2003-2004
Bhopal 82.91 2004-2005
Bhopal 20.34 2005-2006
LST Jt. Commissioner
Appeal 4.30 2002-2003
Appeal 4.24 2006-2007
Appeal 3.35 2006-2007
Appeal 3.46 2008-2009
Appeal 1.52 2009-2010
(x) The Company does not have accumulated losses at the end of the
financial year march 31, 2011. Further, the company has not incurred
any cash losses during the financial year ended march 31, 2011 and in
the preceding financial year ended March 31, 2010.
(xi) According to the records of the company examined by us and the
information and explanations given to us, the company during the year
has not defaulted in repayment of dues to financial institutions, banks
or debenture holders.
(xii) As the company has not granted any loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities, paragraph 4 (xii) of the order is not applicable.
(xiii) The provision of any special statute as specified under paragrph
4 (xiii) of the Order are not applicable to the company.
(xiv) The company has maintained proper records of transactions and
contracts in respect of trading in mutual funds and timely entries have
been made there in. All investments have been held in the name of the
(xv) In our opinion and according to the information and explanations
given to us the company has not given guarantees during the year for
loans taken by others from banks and financial institutions.
(xvi) In our opinion and according to the information and explanations
given to us, the terms loans taken during the year have been applied
for the purpose for which they were obtained.
(xvii) According to the information and explanations given to us on an
overall Examination of the balance sheet of the company, we report that
short term funds have not been used to finance long term investments
and vice versa.
(xviii)As the company has not been made any preferential allotment of
shares during the year, paragraph 4 (xix) of the order not applicable.
(xix) During the year, since the company has not issued any debentures
paragraph, 4 (xix) of the order not applicable.
(xx) During the year, since the company has not raised any money by way
of public issue, paragraph 4 (xx) of the order is not applicable.
(xxi) Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the company has been noticed or reported during the course of our audit
for the year ended 31st March, 2011.
For Mehra Khanna & Co.
Place: Delhi CA. RAJIV BHASIN
Date: 25th August, 2011 (Partner)