1. We have audited the accompanying financial statements of Triton
Valves Limited (the company) which comprise the Balance Sheet as at
31st March 2013, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
2. Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
3. Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
4. An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company's preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in
the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by management, as well as evaluating the
overall presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
6. In our opinion and to the best of our information and according to
the explanations given to us, the financial statements 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:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
(b) in the case of the statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
7. 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 Act, we give in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of
8. As required by section 227(3) of theAct, 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 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 the Profit and
Loss and the Cash Flow Statement comply with the Accounting Standards
referred to in sub-section (3C) of Section 211 of the Companies Act,
(e) on the basis of written representations received from the Directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the Directors is disqualified as on March 31, 2013, from being
appointed as a Director in terms of clause (g) of sub-section (1) of
Section 274 of the CompaniesAct, 1956.
Annexure to Independent Auditors' Report
Referred to in paragraph 7 of our report of even date to the
Shareholders of Triton Valves Limited ('the Company') for the year
ended 31st March, 2013.
i) (a) As per the information and explanation provided to us the
Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) The fixed assets are physically verified by the management
according to a phased programme designed to cover all the items over a
period of three years, which in our opinion, is reasonable having
regard to the size of the company and the nature of its assets.
Pursuant to the programme, portion of the fixed assets has been
physically verified by the management during the year and no material
discrepancies between the book records and the physical inventory have
(c) During the Year the Company has not disposed off its substantial
part of fixed assets.
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 granted any loans, secured or unsecured to
companies, firms or other parties covered in the Register maintained
under Section 301 of the Companies Act, 1956. Accordingly, clauses
(iii)(b) to (iii)(d) of paragraph 4 of the order are not applicable to
(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 and the terms at which the loans were taken are prima facie
not prejudicial to the interest of the Company. No stipulations for
repayment havebeen prescribed and as such no comments regarding
regularity of payments are being made:
Details of Unsecured Loans taken from Parties Listed in the Register
Maintained U/s 301:
No. Name of the
Party Loan Accepted
amount Balance As At
the year outstanding
year 31st March, 2013
1 Aditya M. Gokarn - 60,00,000 -
2 Anuradha M. Gokarn 1,10,00,000 2,50,00,000 2,50,00,000
iv) 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 inventory, fixed assets and with
regard to the sale of goods. Further, on the basis of our examination,
and according to the information and explanations given to us, we have
neither come across nor have we been informed of any instance of major
weakness in the aforesaid internal control systems.
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 theCompaniesAct 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 CompaniesAct, 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) According to the information and explanations given to us, the
Company has not accepted any deposits from the public; as such the
provisions of sections 58A and 58AA of 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 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 subsection (1) of Section 209 of the
CompaniesAct, 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
records of the Company examined by us, in our opinion, the Company is
generally 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, custom duty, excise duty, cess and other
statutory dues to the extent applicable to it. There are no arrears of
outstanding statutory dues as at 31st March 2013 for a period of more
than six months from the date they become payable.
(b) According to the records of the Company and information and
explanations given to us, there are no dues in respect of Sales Tax,
Income Tax, Customs Duty, Wealth Tax, Service Tax, Excise Duty/Cess
which have not been deposited on account of dispute except the
Name of the
Statue Nature of
the dues Amount
in (Rs.) Period to
which Forum where
relates is pending
Act, 1961 Income-tax 23,27,115/- 2010-11 Commissioner of
Income Tax -
x) The Company does not have accumulated losses as at 31st March 2013
and has not incurred any cash losses during the financial year covered
by ourAudit or in the immediately preceding financial year.
xi) According to the information and explanations given to us, the
Company has not defaulted in repayment of dues to banks. The Company
has no dues to Financial Institutions at the balance sheet date and the
Company has not issued any Debentures.
xii) According to the 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. Accordingly
clause (xii) of Paragraph 4 of the Order is not applicable to the
xiii) In our opinion, the Company is not a Chit Fund / Nidhi / Mutual
Benefit Fund / Society. Accordingly Clause (xiii) of Paragraph 4 of the
Order is not applicable to the Company.
xiv) In our opinion and according to explanations given to us, the
Company is not a dealer or a trader in Securities. Accordingly Clause
(xiv) of the Paragraph 4 of the Order is not applicable to the Company.
xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions. Accordingly Clause (xv) of Paragraph 4 of
the Order is not applicable to the Company.
xvi) According to the information and explanations given to us, the
term loans have been applied for the purpose for which they were
xvii) Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, we report that
funds amounting to Rs.77,42,240 /- raised on short term basis have been
used for long-term investment representing acquisition of fixed assets
and repayment of long-term loan.
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. Accordingly clause
(xviii) of the paragraph 4 of the order is not applicable.
xix) The Company has not issued debentures during the year. Accordingly
Clause (xix) of Paragraph 4 of the Order is not applicable to the
xx) During the year the Company has not raised any money by Public
issue during the period. Accordingly clause (xx) of the paragraph 4 of
the order is not applicable
xxi) Based on our examination of the books and records of the Company,
carried out in accordance with the generally accepted auditing
practices in India, and according to the information and explanations
given to us, no material fraud on or by the Company has been noticed or
reported during course of our audit.
For Brahmayya & Co.,
Firm Registration No. 000515S
Place : Bangalore Partner
Date: 29th May 2013 Membership No. 086761