1. We have audited the attached Balance Sheet of MOIL LIMITED, NAGPUR
as at March 31, 2012 and also the Profit and Loss Account 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 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 (Auditor''s Report) Order, 2003, issued
by the Central Government of India in terms of Section 227 (4A) of the
Companies Act, 1956, we annex hereto a statement on the matters
specified in paragraphs 4 & 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 appears from our examination of those books;
c) The Balance sheet, the Profit & 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 & Loss Account and Cash
Flow Statement dealt with by this report are in compliance with the
applicable Accounting Standards referred to in Section 211 (3C) of the
Companies Act, 1956
e) The Company has informed that, in terms of Notification No. GSR 829
(E) dated 21/10/2003 issued by the Department of Company Affairs, the
provisions of Section 274(1)(g) of Companies Act, 1956 are not
applicable to Government Companies.
f) In our opinion and to the best of our information and according to
the explanation given to us, the said accounts together with Notes
thereto and Statement on Significant Accounting Policies give in the
prescribed manner the information required by the Act and also give, a
true and fair view in conformity with the accounting principles
generally accepted in India.
(i) in the case of Balance Sheet, of the state of affairs of the
Company as at March 31, 2012; and
(ii) in the case of the Profit and Loss Account, of the Profit for the
year ended on that date.
(iii) in the case of the Cash Flow Statement, of the Cash Flows for the
year ended on that date.
ANNEXURE-A TO THE AUDITOR''S REPORT
i) a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
b) The Management has physically verified fixed assets at the year end
and no material discrepancies were noticed on such verification. In our
opinion, verification of fixed assets at the year end is reasonable
having regard to the size of the Company and the nature of Assets.
c) In our opinion, the disposal of fixed assets made during the year
does not affect going concern status of the Company.
ii) a) The inventory of the Company has been physically verified by the
management during the year at reasonable intervals.
b) In our opinion and according to the information and explanations
given to us, the 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) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and the discrepancies noticed on such physical verification
between physical stock and book records were not material and have been
adequately dealt with in the books of account.
iii) a) According to the information and explanations given to us, the
Company has neither granted nor taken any loans, secured or unsecured
to or from Companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956
iv) In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory, fixed assets and with regard to
the sale of goods. During the course of our audit, no major weakness
has been noticed in the internal controls.
v) 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 no transactions have been entered that needs to be entered
into the register maintained under section 301.
vi) According to the information and explanation given to us the
Company has not accepted any deposit from public and hence, the
provisions of Sections 58A and 58AA of the Companies Act, 1956 and the
Companies (Acceptance of Deposits) Rules, 1975 with regard to the
deposits accepted from the public are not applicable to the Company.
vii) The Company is having Internal Audit system. However, in our
opinion Company''s Internal Audit system needs to be strengthened to
make it commensurate with its size and nature of its business.
viii) The Central Government has not prescribed maintenance of cost
records under Section 209 (1)(d) of the Companies Act, 1956 except for
its Windmill operation for which prima facie the prescribed cost
records have been maintained, which are broadly reviewed by us. We have
however not made a detailed examination of the cost records with a view
to determine whether they are accurate or complete.
ix) According to the information and explanations given to us, and on
the basis of our examination of the books of account, the company has
generally been regular in depositing with appropriate authorities the
undisputed statutory dues including Provident Fund, Income-tax,
Sales-Tax, Excise duty, Cess and other statutory dues applicable to it
during the year.
Further, since Central Government has till date not prescribed the
amount of cess payable under section 441A of the Companies Act, 1956,
we are not in a position to comment upon the regularity or otherwise of
the company in depositing the same.
There are no dues outstanding of Income Tax, Sales Tax, Wealth Tax,
Service Tax, Customs Duty, Excise duty and cess on account of any
x) The Company does not have accumulated losses at the year end and has
not incurred cash losses during the financial year ended on that date
or in the immediately preceding financial year.
xi) The Company has neither taken any loans from a financial
institution and a bank nor issued any debentures.
xii) 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) The Company is not a chit fund, nidhi, mutual benefit fund or a
society. Accordingly clause 4(xiii) of the order is not applicable.
xiv) According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments. Accordingly, clause 4(xiv) of the order is not
xv) According to the information and explanation given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
xvi) According to the information and explanation given to us, the
Company has not taken any term loans during the year.
xvii) According to the information and explanations given to us, the
Company has not raised any funds on short-terms basis.
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 financial
xx) The Company has not raised any money by public issues during the
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
For V.K. Surana & Co.
CA. Sudhir Surana
Date : 25th May, 2012 M.No. 43414