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0.65 (2.08%)
0.6 (1.92%) | Auditor's Report (NCC) | Year End : Mar '12 |
1. We have audited the attached Balance Sheet of NCC Limited (the
Company) as at March 31, 2012, the Statement of Profit and Loss and
the Cash Flow Statement of the Company for the year ended on that date,
both annexed thereto, in which are incorporated the returns from Oman,
and Nepal branches and certain Joint Ventures (the Branches) audited
by other auditors. 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 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)
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.
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 purposes 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 and proper returns adequate for the purposes of our audit have
been received from the Branches not visited by us. The Branch Auditors
Reports have been forwarded to us and appropriately dealt with;
c) the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account and with the audited returns from the Branches;
d) in our opinion, the Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement dealt with by this report are in compliance
with the Accounting Standards referred to in sub-section (3C) of
section 211 of the Companies Act, 1956;
e) 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:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2012;
(ii) in the case of the Statement of Profit and Loss, of the profit 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.
5. On the basis of written representations received from the
directors, as on March 31, 2012 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
March 31, 2012 from being appointed as a director in terms of section
274 (1) (g) of the Companies Act, 1956.
(i) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of its fixed assets.
(b) A major portion of the fixed assets have been physically verified
during the year by the Management in accordance with a programme of
verification, which, in our opinion, provides for physical verification
of all the fixed assets at reasonable intervals having regard to the
size of the Company and the nature of its assets. According to the
information and explanations given to us, the discrepancies noticed on
such verification were not material and have been properly dealt with
in the books of account.
(c) The fixed assets disposed off during the year, in our opinion, do
not constitute substantial part of the fixed assets of the Company and
such disposal has, in our opinion, not affected the going concern
status of the Company.
(ii) In respect of its inventories:
(a) According to the information and explanations given to us, the
Management has physically verified the inventories during the year. In
our opinion, having regard to the nature of business and location of
stocks, 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) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories. The discrepancies noticed on verification between the
physical stocks and the book records were not material and have been
properly dealt in the books of account.
(iii) (a) According to the information and explanations given to us,
the Company has granted secured or unsecured loans repayable as per the
terms, aggregating Rs. 134.14 million to three parties during the year
covered in the Register maintained under Section 301 of the Companies
Act, 1956. The maximum amount involved during the year was Rs. 5,970.81
million (Four parties) and the year end balance of the loans granted to
such parties was Rs. 5,970.81 million (Four parties).
(b) In our opinion and according to the information given to us, the
terms and conditions of such loans are prima facie not prejudicial to
the interests of the Company.
(c) The receipts of principal amounts and interest have been regular
during the year.
(d) There is no overdue amount in respect of the aforesaid loans.
(e) According to the information and explanations given to us, the
Company has not taken loans, secured or unsecured from Companies, firms
or other parties covered in the Register maintained under section 301
of the Companies Act, 1956 and accordingly, paragraphs (iii) (e) (f)
and (g) of CARO are not applicable.
(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 the nature of its business for the
purchase of inventory and fixed assets and sale of goods and services.
During the course of our audit, we have not observed any major weakness
in such internal system.
(v) In respect of contracts or arrangements entered in the Register
maintained in pursuance of section 301 of the Companies Act, 1956 to
the best of our knowledge and belief and according to the information
and explanations given to us:
(a) The particulars of contracts or arrangements referred to in section
301 that needed to be entered in to the register maintained under the
said section have been so entered.
(b) In our opinion, the transactions (excluding loans reported under
paragraph (iii) above) exceeding the value ofRs. 5 lakhs in respect of
any party during the year have been made at prices which are prima
facie reasonable having regard to the prevailing market prices at the
relevant time, where such market prices are available.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public.
Accordingly, the provisions of para 4(vi) of CARO are not applicable to
the Company.
(vii) In our opinion, the internal audit function carried out during
the year by firms of Chartered Accountants appointed by the Ma nagement
have been com mensu rate with the size of the Company and the nature of
its business.
(viii) In our opinion and according to the information and explanations
given to us, the Management is in the process of compiling and
maintaining the cost records of the company pursuant to the rules made
by the Central Government under Section 209(1 )(d) of the Companies
Act, 1956.
(ix) In respect of statutory dues:
(a) According to the information and explanations given to us, the
Company has been generally regular in depositing undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income Tax, Wealth Tax, Sales Tax, Service
Tax, Custom Duty, Excise Duty, Cess and any other material statutory
dues applicable to it with the appropriate authorities during the year.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at March 31, 2012 for a period of more than six months
from the date they became payable.
(c) According to the information and explanations given to us, details
of disputed sales tax, income tax, customs duty, service tax, excise
duty and cess which have not been deposited as on March 31, 2012 on
account of any dispute are given below:
Statute Nature of Forum where
dues dispute is pending
Andhra Pradesh General Sales Tax Hon''ble High Court of Andhra
Pradesh
Sales Tax Act, 1957 Sales Tax Sales Tax Appellate Tribunal
Sales Tax Sales Tax Appellate Tribunal
Sales Tax Sales Tax Appellate Tribunal
Sales Tax Sales Tax Appellate Tribunal
Uttar Pradesh Value Added Sales Tax Appellate Deputy Commissioner
Appeal 1
Tax Act, 2008 Sales Tax Additional Commissioner of
Sales tax (Appeals)
Assam Value added
tax act, Sales Tax Deputy Commissioner of Sales
tax
2003 (Appeals)
Sales tax Deputy Commissioner of Sales
tax (Appeals)
Jharkand Value Added Sales Tax Commissioner of Commercial
taxes
Tax Act, 2005 Sales tax Commissioner of Commercial
taxes
Tamil Nadu General Sales Sales Tax Hon''ble High Court of Tamil
Nadu.
Tax Act, 1959
Haryana Value Added Sales Tax Appellate Deputy Commissioner
Tax Act, 2003
West Bengal Value Added Sales Tax Sr.Joint Commissioner (Appeals)
Tax Act, 2005
Kerala Value Added Tax Sales tax Assessing Officer
Act, 2005
Sales tax Appellate Deputy Commissioner
The Central Excise
Act, 1944 Excise Duty CESTAT, Bangalore
Finance Act, 1994
Service Tax CESTAT, Bangalore
Service Tax CESTAT, Bangalore
Service Tax CESTAT, Bangalore
Customs Act, 1964 Customs CESTAT, Mumbai
Statute Period to which the Amount involved
amount relates (Rs.in Million)
Andhra Pradesh General 1994-95 1.67
Sales Tax Act, 1957
1999-00 1.23
2000-01 5.93
2002-03 1.27
2003-04 14.27
Uttar Pradesh Value Added 2007-08 10.78
Tax Act,2008
2008-09 72.07
Assam Value added tax act 2005-06 144.41
2003
2006-07 39.69
Jharkand Value Added 2007-08 30.54
Tax Act,2005
2008-09 57.02
Tamil Nadu General Sales
Tax Act,195 2006-07 4.36
Haryana Value Added
Tax Act,2003 2007-08 64.35
West Bengal Value Added
Tax Act,2005 2008-09 185.13
Kerala Value Added Tax
Act,2005 2007-08 7.04
2008-09 16.95
The Central Excise Act,
1944 Finance Act,1994 2008-09 1.17
2005-06 24.05
2005-09 161.03
2007-08 207.90
Customs Act,1964 2010-11 10.29
(x) The Company does not have accumulated losses and has not incurred
cash losses during the financial year covered by our audit and the
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
banks, financial institutions and debenture holders.
(xii) In our opinion and 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 and debentures and other
securities. Accordingly, the provisions of para 4(xii) of the CARO are
not applicable to the Company.
(xiii) In our opinion, the Company is not a Chit Fund or a Nidhi or
Mutual Benefit Fund/Society. Accordingly, the provisions of clause
4(xiii) of CARO are not applicable to the Company.
(xiv) In our opinion and according to the information and explanations
given to us, the Company does not deal or trade in shares, securities,
debentures and other investments. Accordingly, the provisions of para
4(xiv) of the CARO are not applicable to the Company.
(xv) In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company for loans taken by others from banks and financial institutions
are not prima facie prejudicial to the interests of the Company.
(xvi) To the best of our knowledge and belief and according to the
information and explanations given to us, in our opinion, term loans
availed by the Company were, prima facie, applied by the Company during
the year for the purposes for which the loans were obtained.
(xvii) According to the information and explanations given to us, and
on an overall examination of the balance sheet of the Company, funds
raised on short-term basis have, prima facie, not been used for
long-term investment.
(xviii) According to the information and explanations given to us, the
Company has not made 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) According to the information and explanations given to us and
records examined by us, securities/charges have been created in respect
of debentures issued.
(xx) During the year covered by our audit report, the company has not
raised any money by public issues.
(xxi) To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the year.
For M. Bhaskara Rao & Co. For Deloitte Haskins & Sells
Chartered Accountants Chartered Accountants
(Registration No. 000459S) (Registration No. 008072S)
M V Ramana Murthy Ganesh Balakrishnan
Partner Partner
Membership No. 206439 Membership No. 201193
Hyderabad, May 29, 2012 |
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