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-0.5 (-2.11%) | Auditor's Report (Lanco Industries) | Year End : Mar '12 |
1. We have audited the attached Balance Sheet of LANCO INDUSTRIES
LIMITED (the Company) as at 31st March, 2012 and also the Statement
of Profit and Loss and the Cash Flow Statement for the year ended on
that date and Summary of significant accounting policies and other
explanatory information 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 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 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 the 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 (CARO)
(as amended) 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 examination of the books and records of the Company as we
considered appropriate and the information and explanations given to us
during the course of the audit, we enclose in the Annexure a statement
on the matters specified in the 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 it 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 in sub-section (3C) of Section 211 of the
Companies Act, 1956;
e) on the basis of written representations received from the Directors
of the company as on 31st March, 2012 taken on record by the Board of
Directors, none of the Directors is disqualified as on 31st March, 2012
from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956;
f) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
Significant Accounting Policies and Other Notes (Note No. 1 to 43) 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 March, 2012;
ii) in the case of the Statement of Profit and Loss, of the loss of the
Company for the year ended on that date; and
iii) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
i) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) As explained to us, the fixed assets have been physically verified
by the management during the year as per a detailed program drawn for
the said purpose, which in our opinion is reasonable having regard to
the size of the Company and nature of its assets. No material
discrepancies were noticed on such physical verification.
c) The fixed assets disposed off during the year do not constitute a
substantial part of the fixed assets, and therefore, there is no affect
on the going concern status of the Company.
ii) a) As explained to us, the management has conducted physical
verification of inventories during the year, except the materials in
transit and the materials lying with third parties. In our opinion, the
frequency of the said verification is reasonable.
b) The procedures of physical verification of inventories followed by
the management were reasonable and adequate in relation to the size of
the Company and nature of its business.
c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
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,
clauses (iii)(a) to (iii)(g) of paragraph 4 of CARO are not applicable.
iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and nature of its business, for the
purchase of inventory, 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 system in respect of the said areas.
v) a) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements referred to
in Section 301 of the Companies Act, 1956 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, there were no transactions made in pursuance of contracts
or arrangements referred to in v(a) above and exceeding the value of
Rupees five Lakhs with any such party.
vi) The company has not accepted any deposits from public covered under
Sections 58A, 58AA or any other relevant provisions of the Companies
Act, 1956 and Rules framed there under.
vii) In our opinion, the Company''s internal audit system is
commensurate with its size and nature of its business.
viii) We have broadly reviewed the books of account maintained by the
Company relating to its products, where, pursuant to the Rules made by
the Central Government of India, the maintenance of 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
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 of the Company examined by us, the Company is generally
regular in depositing the 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 material statutory dues as applicable
with the appropriate authorities and there were no undisputed dues
outstanding as at 31st March, 2012 for a period exceeding six months
from the date they became payable.
b) According to the information and explanations given to us, the
disputed dues of sales tax, income-tax, customs duty, wealth-tax,
excise duty, service-tax and cess, if any, that have not been deposited
on account of disputed matters pending before appropriate authorities
as at 31st March, 2012 are as follows:
Name of the Amount Period to which Forum where the
Nature of
dues the amount
statute (Rs. In
Lakhs) dispute is
pending
relates
APGST Act,
1957 Sales tax 67.52* 2002-03 Sales Tax
Appellate
Tribunal, A.P.
40.51* 1999-00 -do-
259.59* 1999-00 -do-
Central
Sales Tax Sales tax 158.70* 2000-01 Sales Tax
Appellate
Tribunal, A.P.
Act, 1956
Income tax
Act, Income tax 10.87 2003-04 A.P. High Court
1961 1.85 2004-05 -do-
Central
Excise Central
Excise & 8.26 2007-08 CESTAT, Bangalore.
Act,1944 Interest
* Stay of collection granted for the demands.
x) The Company has no accumulated losses as at the end of the financial
year and it has not incurred cash losses in the current and immediately
preceding financial year.
xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institutions and banks. The Company did not have outstanding
dues to debenture holders.
xii) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause (xiii) of
paragraph 4 of CARO are not applicable.
xiv) In our opinion and according to the information and explanations
given to us, the Company is not a dealer or trader in shares,
securities, debentures and other investments. Therefore, the provisions
of clause (xiv) of paragraph 4 of CARO are not applicable.
xv) According to the information and explanations given to us, the
Company has not given guarantees for loans taken by others from Banks
or Financial Institutions.
xvi) In our opinion and according to the information and explanations
given to us, on overall basis, the term loans have been applied for the
purposes for which they were obtained.
xvii) Based on the information and explanations given to us and on an
overall examination of the cash flow statement and the Balance Sheet of
the Company, in our opinion, the funds raised by the Company on short
term basis have prima facie not been used for long term investment.
xviii) The Company has not made any preferential allotment of shares
during the year.
xix) During the year, the Company has not made any issue of debentures.
Accordingly, clause (xix) of paragraph 4 of CARO is not applicable.
xx) The Company has not raised any money through a public issue during
the year. Accordingly, the provisions of clause (xx) of paragraph 4 of
CARO are not applicable.
xxi) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no fraud on the
Company has been noticed or reported during the year.
For K.R. Bapuji & Co.
Chartered Accountants
Firm Registration No. 000395S
K.R. Bapuji
Place: Chennai Partner
Date: 27th April, 2012 Membership No. 021169 |
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