Real-time Stock quotes, portfolio, LIVE TV and more.
-1.35 (-5.78%)
-1.4 (-6%) | Auditor's Report (Orbit Corporation) | Year End : Mar '11 |
We have audited the attached Balance Sheet of Orbit Corporation Limited
as at 31st March, 2011, the Profit and Loss account and the Cash Flow
Statement for the year ended on that date, annexed thereto. These
financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We 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
our opinion.
In accordance with the provisions of Section 227 of the Companies Act
1956, we report that:
1. As required by the Companies (Auditors Report) Order, 2003, and as
amended by the Companies (Auditors report) (Amendment) Order, 2004
(the Order) issued by the Central Government of India under 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.
2. Further to our comments in the Annexure referred to above, we
report that:
(a) we have obtained all 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 appears from our examination of
those books;
(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 Profit and Loss account, the Balance Sheet and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in section 211(3C) of the Companies
Act, 1956;
(e) on the basis of the written representations received from Directors
of the Company as at 31st March, 2011 and taken on record by the Board
of Directors, we report that none of the Director is disqualified as on
31st March, 2011 from being appointed as a Director in terms of Section
274 (1)(g) of the Companies Act, 1956; and
(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 in Schedule - ‘O and note 16 and other
notes in Schedule - ‘P appearing thereon, 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, 2011; (ii) in the case of the Profit and Loss
account, 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.
Annexure to the Auditors Report
(Referred to in paragraph (1) of our report of even date)
1. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) We are informed that the Company has formulated a programme of
physical verification of all the fixed assets over a period of three
years which, in our opinion, is reasonable having regard to the size of
the Company and nature of its assets. Physical verification has been
conducted during the year and no material discrepancies have been
found.
(c) The Company has not disposed of any substantial part of its fixed
assets during the year so as to affect its going concern status.
2. (a) As explained to us, inventories have been physically verified
by technically qualified independent agencies during the year, which in
our opinion is reasonable.
(b) As per the information, the procedures of physical verification of
inventory followed by management are, in our opinion, reasonable and
adequate in relation to the size of the Company and the nature of its
business.
(c) The Company is maintaining proper records of inventory. No material
discrepancies were noticed on such verification.
3. (a) According to the information and explanations given to us, the
Company has granted, unsecured, interest-free loans to companies, firms
or other parties covered in the register maintained under section 301
of the Companies Act, 1956. The number of parties involved were three
and the maximum amount involved during the year was Rs 1,414.44 million
and the year-end balance of such parties was Rs 1,315.55 million.
(b) According to the information and explanations given to us, the
Company has not taken unsecured, interest free loans from companies,
firms or other parties covered in the register maintained under section
301 of the Companies Act, 1956.
(c) The terms and conditions of loans given by the Company are
prima-facie not prejudicial to the interests of the Company.
(d) The above loans are repayable on demand and hence there are no
amounts overdue for recovery.
4. 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 the nature of its business for the
purchase of inventory, fixed assets. We have neither come across nor
have been informed of any continuing failure to correct major
weaknesses in internal control system.
5. (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
that need to be entered in to the register maintained under section 301
of Companies Act, 1956, have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding rupees five lakhs in respect of
any party during the year, have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
6. The Company has not accepted any deposits during the year from the
public to which the directives issued by the Reserve Bank of India and
the provisions of Section 58A, 58AA and any other relevant provisions
of the Companies Act, 1956 and the rules framed there under apply.
7. The Company is having an internal audit system commensurate with
the size of the Company and the nature of its business.
8. According to the information and explanations given to us, the
Central Government has not prescribed the maintenance of cost records
under Section 209 (1) (d) of the Companies Act, 1956.
9. (a) According to the information and explanations given to us,
there have been delays in depositing undisputed statutory dues
including Provident Fund, Income Tax, VAT, Wealth Tax, Service Tax,
Custom Duty, Cess as applicable with the appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts were in arrears as at 31st March 2011 for a period
of more than six months from the date they become payable.
(b) According to the information and explanations given to us, there
are no dues in respect of, Income Tax, VAT, Wealth Tax, Service Tax,
Custom Duty and Cess as at 31st March 2011, which have not been
deposited on account of any dispute.
10. The Company has no accumulated losses as at 31st March 2011 and it
has not incurred cash loss in the financial year and also in the
immediately preceding financial year.
11. The Company has not defaulted in repayment of dues to financial
institutions, banks and debenture holders.
12. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Accordingly, reporting on paragraph 4 (xii) of the Order is not
applicable.
13. The provisions of any special statute applicable to chit fund/
nidhi /mutual benefit fund/societies are not applicable to the Company.
Accordingly, reporting under paragraph 4 (xiii) of the Order is not
applicable.
14. In our opinion and according to the information and explanations
given to us, the Company is not dealing or trading in securities. The
Company has invested surplus funds in mutual funds. According to the
information and explanations given to us proper records have been
maintained thereof. The investments in mutual funds have been held by
the Company in its own name.
15. In our opinion and according to the information and explanation
given to us, the terms and conditions of guarantees given by the
Company for loans taken by others from banks or financial institutions
are not prima facie prejudicial to the interests of the Company.
16. In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which they were obtained.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that there are no funds raised on short-term basis, which are used for
long-term investments.
18. The Company has made a preferential allotment of shares during the
year. The price at which the shares have been allotted is not
prejudicial to the interests of the Company.
19. The Company has not issued any debentures during the year.
20. The Company has not made any public issue of shares during the
year.
21. During the course of our examination of the books and records of
the Company, carried out in accordance with generally accepted auditing
practices in India, and according to information and explanations given
to us, we have neither come across any fraud on or by the Company
noticed or reported during the year, nor have we been informed of such
case by management.
SHARP & TANNAN
Chartered Accountants
Firms Registration Number 109982W
by the hand of
Milind P. Phadke
Partner
Membership No. 033013
Place: Mumbai
Date: 24th May, 2011
|
|
![]() | |
| Source : Dion Global Solutions Limited | |
![]() | |