We have audited the attached Balance Sheet of TECHNCRAFT INDUSTRIES
(INDIA) LIMITED as at 31st March, 2012 and also the Statement of Profit
& Loss 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 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. Further we report that:
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 and 5 of the said Order.
Further to our comments in the Annexure referred to above, we report
1. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
2. In our opinion, proper books of account as required by the
Companies Act, 1956(as amended) have been kept by the Company so far as
appears from our examination of those Books.
3. The Balance Sheet, the Statement of Profit & Loss and Cash Flow
Statement dealt with by the report are in agreement with the Books of
Account of the Company.
4. In our opinion, the Balance Sheet, the Statement of Profit & Loss
and Cash Flow Statement complies with the Mandatory Accounting
standards referred in section 211(3c) of the Companies Act, 1956 except
as otherwise stated in this report.
5. On the basis of the written representation received from the
Directors, as on 31st March, 2012 and taken on record by the Board of
Directors, we report that 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.
6. In our opinion and to the best of our information, and according to
the explanations given to us, the said accounts Subject to Note
no.27(2)(B) Regarding finished goods, and Note no.27(2)(E) Regarding
Leave encashment Benefits, read together with Significant Accounting
Policies and other notes 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 : -
a) In the case of the Balance Sheet of the state of affairs of the
Company as at 31st March, 2012;
b) In the case of the Statement of Profit & Loss of the PROFIT for the
year ended on that date; and
c) In the case of Cash Flow statement, of the Cash Flows for the year
ended on that date.
Annexure referred to in Paragraph of our Auditors'' Report on even date
on the Financial Statements for the year ended 31s'' March, 2012 of
TECHNOCRAFT INDUSTRIES (INDIA) LIMITED) on the basis of such checks as
we considered appropriate and in terms of the information and
explanations given to us, we state that:-
1 a The Company has generally maintained proper records showing
particulars including quantitative details and situation of fixed
1 b As explained to us, the said fixed assets have been physically
verified by the Management during the year which is reasonable and no
material discrepancies have been noticed on such verification.
2 a The stock of Finished Goods, Goods-in-Process, Raw Materials and
Stores & Spares parts have been physically verified during the year by
the Management and is reasonable in view of the nature of products of
2 b As explained to us, the procedure of physical verification of the
above stocks followed by the Management is, in our opinion reasonable
and adequate in relation to the size of the Company and nature of its
2 c The Company has maintained proper records of the inventories and
the discrepancies noticed between the physical stock and book stock
were not significant and the same have been properly dealt with in the
Books of Account.
3 a In our opinion and according to the information and explanations
given to us, the company has granted unsecured loans to 4 parties
covered in the Register maintained under section 301 of the Companies
Act, 1956. The maximum amount of Loan granted during the year was Rs.
8601.41 Lakhs and the year ended balance of Loan granted to such
parties was Rs. 8480.12 lakhs.
b In our opinion, the rate of interest and other terms and conditions
on which Loans have been granted to parties listed in the register
maintained under section 301 of the Companies Act, 1956 are not prima
facies, prejudicial to the interest of the company.
c Payment of Principal amount and interest are regular wherever
d There is no overdue amount of loans granted to Companies, Firms or
other parties listed in the register maintained under section 301 of
the Companies Act, 1956.
e The Company has not taken any loan, Secured or Unsecured from
Companies, firms or other parties covered in the register maintained
under section 301 of Companies Act, 1956 and as such provision of sub
clause 3(f) & 3 (g) are not applicable.
4 On the basis of such checks carried out during the course of Audit
and according to the information and explanations given to us, we are
of the opinion that there is an adequate internal control system
commensurate with the size of the company and nature of its business
with regard to purchase of stores, raw materials including components,
plant & machinery, equipments and other assets and for sale of goods
5 a According to the information and explanation given to us,
particulars of contracts or arrangement referred to in Under section
301 of the Companies Act, 1956 have been properly entered in the
register required to be maintained under that section;
b The transaction made in pursuance of such contract or arrangements
have been made at prices which are reasonable having regard to
prevailing market prices for such goods, materials or services or the
prices at which transaction for similar goods, materials or services
have been made with other parties.
6 The company has not accepted any deposits from the public to which
the provisions of section 58A, 58AA and any other relevant provisions
of the Companies Act, 1956 and the rules framed there under apply.
7 In our opinion, the Company has an Internal Audit System commensurate
with the size and nature of its Business.
8 We have broadly reviewed the books of account and records maintained
by the company pursuant to the Rules made by the Central Government for
the maintenance of cost records under section 209 (1) (d) of the
Companies Act 1956 and are of opinion that prima facie the prescribed
accounts and records have been made and maintained. We have however not
made detailed Examination of the records with view to determining
whether they are accurate or complete.
9 a As per the records of the company & as explained to us, the Company
have generally been regular in depositing provident fund dues, state
insurance, income tax, sales tax, wealth tax, service tax, custom duty,
excise duty, cess and any other statutory dues with the appropriate
authorities and there are no undisputed amounts payable for the same
were outstanding as at 31st March, 2012, for a year exceeding six
months from the date they became payable.
b On the basis of our Examination of the documents and records. the
amounts of disputed statutory dues which have not been deposited with
the appropriate authorities are as under:-
Name of the Nature of dues Amount Forum where
Statute (in lacs) dispute is pending
Income Tax Act, Income Tax &
For A.Y. 2002-2003 75.44 Effect of ITAT & High
Court order to be given
by the Assessing officer
For A.Y. 2007-2008 63.80 ITAT
For A.Y. 2008-2009 15.50 CIT (Appeals)
The Central Excise Duty &
Excise Act 1944 Penalty
For F.Y 1999-2002 1115.66 CESTAT, West Zonal
to Sep 2008. Branch, Mumbai. (Stay
Granted by CESTAT from
Pre-Deposit of the dues
adjudged during the
pendency of these
For Period before 195.60 CESTAT, West Zonal
29-9-2008 Branch, Mumbai
(Stay Granted by CESTAT
from Pre-Deposit of the
dues adjudged during the
pendency of these
For period before 266.77 CESTAT, West Zonal
29-1-2009 Branch, Mumbai
(Stay Granted by CESTAT
from Pre-Deposit of the
dues adjudged during
the pendency of these
For Period before 3.04 CESTAT, West Zonal
29-01-2009 Branch, Mumbai
(Stay Granted by
from the pre-Deposit
of the dues adjudged
during the pendency
of these Appeals)
Service Tax &
For F.Y 2006-07 3.03 CESTAT, West Zonal
& 2007-08 Branch, Mumbai
10. The company has no accumulated losses and has not incurred any
cash losses during the financial Year covered by our audit or in the
immediately preceding financial year.
11 According to information & explanations given to us and the books
and records examined by us, the Company has not defaulted in repayment
of dues to Banks.
12 The company has not granted any loans and advances to any parties on
the basis of security by way of pledge of shares, debentures and other
13 a In respect of investment dealt or traded by the company, proper
records are maintained in respect of transaction and contracts and
timely entries have been made therein.
b According to the information and explanations given to us, the shares
and units of mutual fund have been held by the company in its own name.
14 In our opinion and according to the information and explanations
given to us, the terms and conditions on which the company has given
guarantee for cash credit taken by others from banks are not prima
facial prejudicial to the interest of the company.
15 In our opinion and according to the information and explanations
given to us, the term loans taken by the company have been applied for
the purpose for which the term loans were obtained.
16 According to information & explanations given to us, the company has
used its funds properly according to the nature and purposes of the
17 The company has not made any preferential allotment of shares to
parties and Companies covered in the register maintained u/s. 301 of
the Companies Act, 1956.
18 The Company has not issued any Debentures during the year.
19 According to information and explanations given to us, the company
has not raised any money by public issue during the year.
20 According to information and explanation given to us, no fraud on or
by the Company has been noticed or reported during the period.
21 Other provisions of the said order are either Nil or Not Applicable
to the Company.
For M.L.SHARMA & CO.
Place: Mumbai Partner
Dated: 28th May, 2012 Membership No.5385