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-1.65 (-1.14%)
-0.05 (-0.04%) | Auditor's Report (Techno Electric and Engineering Company) | Year End : Mar '12 |
We have audited the Balance Sheet of Techno Electric & Engineering
Company Limited as at March 31, 2012, the Statement of Profit and Loss
and the Cash Flow Statement of the said Company for the year ended on
that date, annexes hereto. 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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
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 have been kept by the
Company as required by law so far as appears from our examination of
those books.
c) The Balance Sheet, the Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) According to the information and explanations given to us and on the
basis of written representations received from the Directors of the
Company, taken on record by the Board of Directors, none of the
Directors is disqualified as on March 31, 2012 from being appointed as
a Director under Section 274(l)(g) of the Companies Act, 1956.
e) Subject to Note no. 1(b) regarding accounting of certain
income and expenditure on cash basis, amount indeterminate, in our
opinion and to the best of our information and according to
explanations given to us, the Statement of Profit and Loss and the
Balance Sheet comply with the Accounting Standards referred to in
Sub-Section (3C) of Section 211 of the Companies Act, 1956 and the said
accounts, read together with the Accounting Policies and Notes, give
the information required by the Companies Act, 1956 in the manner so
required and the Balance Sheet gives a true and fair view of the state
of the Company''s affairs as at 31st March, 2012 and the Statement of
Profit and Loss gives a true and fair view of the profit for the year
ended on that date and the Cash Flow Statement gives a true and fair
view of the cash flow for the year ended on that date in conformity
with the accounting principles generally accepted in India.
As required by the Companies (Auditor''s Report) Order, 2003 (as
amended) issued by the Central Government of India in terms of
Sub-Section (4A) of Section 227 of the Companies Act, 1956 and on the
basis of such checks as we considered appropriate and the information
and explanations given to us, we further report that :
1. a) The Company has maintained proper records of fixed assets
showing full particulars including quantitative details and situation
of fixed assets.
b) The Company has a phased programme of physical verification of its
fixed assets which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its business. In accordance with
such programme, the management has physically verified fixed assets
during the year and no material discrepancies were noticed on such
verification.
c) Substantial part of fixed assets have not been disposed off during
the year.
2. a) The Inventories included under work-in-progress have 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 Inventories
followed by management are reasonable and adequate in relation to the
size of the Company and nature of its business.
c) In our opinion and according to the information anc explanations
given to us, the Company has maintained proper records of Inventories
and the discrepancies noticed on the physical verification of
Inventories as compared to book records were not material and have been
properly dealt with in the books of account.
3. a) The Company has granted interest free unsecured loan of Rs
9,828.15 Lakhs to its subsidiary company from time to time during the
year (balance as on 31st March, 2012 Rs 870 Lakhs) and the terms and
conditions of such loan are not prima facie prejudicial to the interest
of the Company.
The Company has not granted any other loans, secured or unsecured, to
companies, firms or other parties covered in the Register maintained
under section 301 of the Companies Act, 1956.
b) The Company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the Register maintained
under section 301 of the Companies Act, 1956. Hence, clauses 4(iii)(f)
and 4(iii)(g) of the Order are not applicable.
4. 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 purchases of inventories and fixed assets and
for the sale of goods and services. During the course of our audit, we
have not observed any major weaknesses in internal control system.
5. In our opinion, and according to the information and explanations
given to us, there are no contracts or arrangements that need to be
entered in the register required to be maintained under Section 301 of
the companies Act, 1956. Accordingly, clause 4(v)(b) of the Order is
not applicable to the Company.
6. The Company has not accepted any deposits from the public and
consequently, the directives issued by the Reserve Bank of India and
the provisions of Section 58A, 58AA or any other relevant provisions of
the Companies Act, 1956 and the rules framed there under are not
applicable.
7. In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
8. We have broadly reviewed the books of account 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 in respect of Energy (Power) division of the Company and are
of the opinion that, prima-facie, the prescribed accounts and records
have been made and maintained. However, we have not made any detailed
examination of cost records, to ascertain the accuracy and completeness
thereof.
9. a ) 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
undisputed statutory dues including provident fund, income-tax,
sales-tax, custom duty, investor education and protection fund, wealth
tax, service tax and any other material statutory dues applicable to it
and there is no outstanding as on March 31, 2012 for a period of more
than six months from the date they became payable.
b) According to the information and explanations given to us, there are
no dues in respect of Income-tax, sales-tax, wealth-tax, service-tax,
custom duty, excise duty, and cess that have not been deposited with
the appropriate authorities on account of any dispute.
10. The Company has neither accumulated losses as at March 31, 2012
nor incurred any cash losses during the financial year ended on that
date or in the immediately preceding financial year.
11. The Company has not defaulted in repayment of dues to financial
institution or bank or debenture holders as may be ascertained from the
examination of the books of account and other records of the Company.
12. According to 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, debentures and other securities.
13. The Company is not a chit fund, nidhi, mutual benefit fund or
society. Accordingly, clause 4(xiii) of the Order is not applicable.
14. We have broadly reviewed the books of account and records
maintained by the Company and state that prima -facie, proper records
have been maintained of the transactions and contracts relating to
purchase and sale of shares, securities, debentures and other
investments and timely entries have been made therein. All the
investments have been held by the Company in its own name.
15. In respect of Corporate Guarantee given by the Company to banks as
holders of debentures issued by the subsidiary company, the terms and
conditions of the same are not prima-facie prejudicial to the interest
of the Company. The Company has not given any other guarantee to banks
and financial institutions for loans taken by others.
16. To the best of our knowledge and belief and according to the
information and explanations given to us, term loans availed by the
Company were applied for the purpose for which the loans were obtained.
17. On the basis of an overall examination of the Balance Sheet of the
Company, in our opinion and according to the information and
explanations given to us, no funds raised on a short-term basis have
been used for long- term investment.
18. 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.
19. Adequate securities have been created in respect of debentures
issued by the Company.
20. The Company has not raised any money by public issues during the
year.
21. 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 S. S. Kothari & Co.
Chartered Accountants
Firm''s Registration No.302034E
Centre Point
21, Old Court House Street R. N. Bardhan
Kolkata -700 001 Partner
The 30th day of June, 2012 Membership No.17270 |
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