1) We have audited the attached Balance sheet of Triton Valves Limited
(''the Company'') as at 31 March, 2012, the Statement of Profit and
Loss and the Cash flow statement of the Company for the year ended on
that date, annexed thereto. 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 have 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 base, 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
3) As required by the Companies (Auditor''s Report) Order, 2003 (as
amended) (''the Order'') issued by the Central Government of India in
terms of Sub-section (4A) of Section 227 of the Companies Act, 1956
(''the Act''), 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 as follows:
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 account as required by law have been
kept by the Company so far as appears from our examination of those
c) the Balance Sheet, the Statement of Profit and Loss and the Cash
flow statement dealt with by this report are in agreement with the
books of account;
d) in our opinion, the Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in Sub-section (3C), of Section 211 of
e) on the basis of written representations received from the Directors,
as at 31 March, 2012 and taken on record by the Board of Directors, we
report that none of the Directors is disqualified as at 31 March, 2012
from being appointed as a Director in terms of section 274(1 )(g) of
f) in our opinion and to the best of our information and according to
the explanations given to us, the accounts read with the 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 the case of the Balance Sheet, of the State of Affairs of the
Company as at 31 March, 2012;
ii) in the case of the Statement of Profit and Loss, of the Profit of
the Company for the year ended on that date; and
iii) in the case of Cash Flow statement, of the Cash Flows of the
Company for the year ended on the date.
ANNEXURE TO THE AUDITORS'' REPORT
Referred to in paragraph 3 of our report of even date to the Members of
Triton Valves Limited (''the Company'') for the year ended 31 March,
i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
(b) All the fixed assets have been physically verified by the
Management during the year as per the programme of verification which,
in our opinion, is reasonable having regard to the size of the Company
and the nature of its assets. As informed, no material discrepancies
were noticed on such verification.
(c) There was no substantial disposal of fixed assets during the year.
ii) (a) The inventory has been physically verified by the management.
In our opinion, the frequency of verification is reasonable.
(b) 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) On the basis of our examination of the records of inventory, we are
of the opinion that the Company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and the book records were not material and have been
properly dealt within the books of accounts.
iii) (a) The Company has not given any loans, secured or unsecured, to
any company, firm or other parties listed in the Register maintained
under Section 301 of the Act. Accordingly, clauses (iii) (b), (iii)
(c) and (iii) (d) of paragraph 4 of the Order are not applicable for
(b) The Company has taken loans from companies, firms or other parties
listed in the Register maintained under section 301 of the Companies
Act, 1956. The total amount outstanding as at year end was
Rs.2,00,00,000. The rate of interest and the terms and conditions on
which the said loans are taken is not prima facie prejudicial to the
interests of the Company. No stipulations for repayment have been
prescribed and as such no comments regarding regularity of payments are
iv) In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchases of inventory and fixed assets and for the sale of goods and
services. Further During the course of our audit, we have not observed
any major weakness or continuing failure to correct any major weakness
in the aforesaid internal control system.
v) (a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the transactions that need to be entered into the register
maintained under Section 301 of the Companies Act 1956, have been so
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the Register maintained under section 301 of
the Companies Act, 1956 exceeding the value of rupees five lakh in
respect of each party during the year have been made at prices which
are reasonable having regard to prevailing market prices at the
vi) The Company has not accepted any deposits from the public; as such
the provisions of sections 58A and 58AAof the Companies Act, 1956 and
the Companies (Acceptance of Deposits) Rules, 1975, do not apply.
vii) In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of its business.
viii) We have broadly reviewed the books of accounts maintained by the
Company in respect of products where, pursuant to the rules made by the
Central Government of India, the maintenance of Cost records has been
prescribed under clause (d) of sub section (1), of section 209 of the
Companies Act, 1956, and are of the opinion that prima facie, the
prescribed accounts and records have been made and maintained. However
we have not made a detailed examination of records with a view to
determine whether they are accurate or complete.
ix) (a) According to the information and explanations given to us and
according to the records as produced and examined by us, in our
opinion, the Company is regular in depositing with appropriate
authorities the undisputed statutory dues including Provident Fund,
Investor Education and Protection Fund, Employees'' State Insurance,
Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise
Duty, Cess and other statutory dues to the extent applicable to it.
There are no arrears of outstanding statutory dues as at 31 March, 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 of Income-tax, Sales- tax, Service Tax, Customs duty,
Wealth-tax, Excise duty, Cess which have not been deposited on account
of any dispute.
x) The Company does not have accumulated losses as at 31st March, 2012
and has not incurred any cash losses during the financial year covered
by our Audit or in the immediately preceding financial year.
xi) Based on our audit procedures and as per the information and
explanations given by the Management, we are of the opinion that the
Company has not defaulted in repayment of dues to a financial
institution or banks. The Company did not have any outstanding dues to
any Debenture holders during the year.
xii) According to the information and explanations given to us and
based on the documents and records produced 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. Accordingly
paragraph 4 (xii) of the order is not applicable.
xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Accordingly, paragraph 4(xiii)(a) to
4(xiii)(d) of the Order are not applicable to the Company.
xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly,
paragraph 4(xiv) of the Order is not applicable.
xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or other financial institution. Accordingly, paragraph 4 (xv) of
the order is not applicable.
xvi) According to the information and explanations given to us, the
term loans have been applied for the purpose for which they were
xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
xviii) The Company has not made any preferential allotment of shares to
parties or companies covered in the Register maintained under Section
301 of the Companies Act, 1956. Accordingly, paragraph 4 (xviii) of the
order is not applicable.
xix) The Company did not have any outstanding debentures during the
year. Accordingly, paragraph 4 (xix) of the Order is not applicable.
xx) The Company has not raised any money by public issues during the
year. Accordingly, paragraph 4 (xix) of the Order is not applicable.
xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the Management, we report
that no fraud on or by the Company has been noticed or reported during
For Brahmayya & Co.,
Firm Registration No.000515S
Place : Bangalore Partner
Date : 18th May, 2012 Membership No. 086761