We have audited the attached Balance Sheet of Revathi Equipment Limited
(''the Company'') as at 31st March 2012 and the Profit and Loss Account
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
We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. 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.
1. As required by the Companies (Auditor''s Report) Order, 2003(as
amended), by the Companies (Auditor''s Report) (Amendment) Order, 2004
(the order) issued by the Central Government in exercise of the
powers conferred by section 227(4A) of the Companies Act, 1956(the
Act) and according to the information and explanations given to us and
on the basis of such checks as we considered appropriate, we enclose in
the annexure a statement on the matters specified in paragraphs 4 and 5
of the said order.
2. Further to the 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 accounts, as required by law have
been kept by the Company so far as appears from our examination of
c. The Balance Sheet, Profit and Loss Account and cash flow statement
referred to in this report are in agreement with the books of accounts;
d. In our opinion, the Profit and Loss account, the attached Balance
Sheet and Cash Flow Statement of the Company as at 31st March, 2012,
comply with the Accounting Standards referred to in Section 211(3C) of
e. On the basis of written representations received from the
directors, as on 31 March, 2012 and taken on record by the Board of
Directors, we report that none of the directors are disqualified as on
31 March, 2012 from being appointed as a director of the Company in
terms of Sec. 274 (1) (g) of the Act.
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
accounting policies and notes thereon give the information required by
the Act, in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India:
i) in case of the Balance Sheet, the state of affairs of the Company as
at 31st March, 2012;
ii) in case of the Profit and Loss Account, the loss of the Company for
the year ended on that date; and
iii) in the case of cash flow statement, of the cash flows for the year
ended on that date.
ANNEXURE (referred to in paragraph 1 of our report of even date).
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
(b) We are informed that the Company has carried out physical
verification of its fixed assets during the year by the Company and no
material discrepancies were noted on such verification.
(c) During the year, the Company has not disposed off substantial part
of its fixed assets, which could affect the going concern status of the
(ii) (a) As explained to us, the stocks of finished goods, spare parts
and raw materials (including components) have been physically verified
by the management;
(b) In our opinion and according to information and explanation given
to us the procedures of physical verification of inventory followed by
the management are generally reasonable and adequate considering the
items of the inventory, volume thereof, size of the Company and the
nature of its business;
(c) In our opinion, the Company has maintained proper records of its
inventory and the discrepancies between the physical stock and book
records were not material.
(iii) (a) According to information and explanations given to us the
company had not granted any loans, secured and unsecured, from/to
companies, firms or other parties covered in the register maintained
under Section 301 of the Act. Accordingly, Para 4(iii) (b), 4(iii) (c)
and 4(iii)(d) of the Order are not applicable.
(b) The Company has taken unsecured loans from a company in earlier
years covered in the register maintained under section 301 of the Act.
The maximum amount of such loans during the year and the year end
balance was Rs.9, 000 thousand.
(c) The above loan is interest free and hence is prima facie not
prejudicial to the interest of the company.
(d) The above loans have not been recalled.
(iv) Having regard to the explanation given that comparative quotations
are not available in respect of items of branded/special nature
purchased during the year, 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 the
nature of its business with regard to the purchase of inventory and
fixed assets and for the sale of goods and services. Further during the
course of our audit we have neither come across nor have we been
informed of any instances of major weaknesses in the aforesaid internal
control procedures and continuing failure on the part of the management
to take corrective course of action in this regard.
(v) (a) To the best of our knowledge and belief and according to
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
(b) Transactions of purchase of services etc. made in pursuance of such
contracts or arrangements exceeding value in rupees five lacs, namely
consultancy and taking premises on rent are proprietary/technical and
of special nature and therefore comparable quotations thereof are not
available and as such reasonableness with respect to prevailing market
price as such is not ascertainable.
(vi) The Company has not accepted any deposits from the public during
(vii) In our opinion, the internal audit carried out during the year by
a firm of Chartered Accountants appointed by the management is adequate
in respect of the area covered during the year.
(viii) On the basis of the records produced, we are of the opinion that
prima facie the cost records and accounts prescribed by the Central
Government under section 209 (1) (d) of the Companies Act, 1956 have
been maintained. However, we have not carried out any detailed
examination of such records with a view to determine whether they are
accurate or complete.
(ix) (a) According to information and explanations given to us and as
per the records of the Company examined by us, in our opinion the
Company is regular in depositing with the appropriate authorities
undisputed material statutory dues including Provident Fund, Employees''
State Insurance, Income-tax, Sales-tax, Wealth Tax, Service Tax, Custom
Duty, Excise Duty, cess as applicable to it; and
(b) According to information and explanations given to us and as per
the records of the Company examined by us as at 31st March, 2012, there
are no amount outstanding in respect of sales tax, wealth tax, service
tax, custom duty, excise duty and cess which have not been deposited on
account of any dispute other than income tax dues, in respect of which
amount involved and forum at which dispute is pending are as follows:
Statute Nature of
Tax Forum where Amount Period to
pending (Rs. in
''000) which amount
Income Tax Income
Tax CIT (Appeals) 28,754 Assessment year
Act, 1961 2004-05
(x) The Company has no accumulated losses as on 31st March 2012 and it
has not incurred cash losses in the current and immediately preceding
(xi) In our opinion and according to information and explanations given
to us, the Company has not defaulted in repayment of dues to banks.
(xii) According to information and explanations given to us, the
Company has not granted 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 4(xiii) of
the said order are not applicable to the company.
(xiv) The Company is not dealing / trading in securities.
(xv) According to information and explanations given to us, the Company
had given guarantees for loan taken by a subsidiary company from banks.
Considering the long term involvement in the said company, such
guarantee is not prima facie prejudicial to the interest of the Company
(xvi) According to information and explanations given to us, no fresh
term loan has been taken during the year.
(xvii) According to information and explanations given to us and on
overall examination of the balance sheet of the Company, we report that
the company has not used the funds raised on short-term basis for
(xviii) The Company has not made any preferential allotment of shares
to parties and companies covered in the Register maintained under
Section 301 of the Companies Act, 1956, during the year.
(xix) The Company did not have any outstanding debentures during the
year. Accordingly, the provision of clause 4(xix) of the order is not
applicable to the Company.
(xx) The Company has not raised any money through a public issue during
the year. Accordingly, provision of clause 4(xx) of the Order is not
applicable to the company.
(xxi) During the course of our examination of the books of accounts
carried out in accordance with generally accepted auditing practices in
India, we have neither come across any incidence of fraud on or by the
Company nor have we been informed of any such case by the management.
For LODHA & CO
Firm ICAI Registration No.:301051E
Place : Kolkata Partner
Date : May 30, 2012 Membership No.: 055854