We have audited the attached Balance Sheet of M/S. VIKRAM THERMO
(INDIA) LTD. as at 31st March, 2012 and also the Statement of Profit &
Loss and the Cash Flow Statement of the Company for the year ended on
that date annexed there to. 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 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 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 and we report that:
1 We have obtained all the information and explanations which to best
of our knowledge and belief were necessary for the purpose of our
2 In our opinion, proper books of account as required by law have been
kept by the Company, so far as it appears from our examination of those
3 The Balance Sheet, Statement of Profit & Loss and Cash Flow Statement
dealt with by this report are in agreement with the books of account of
4 In our opinion, the balance sheet, statement of profit & toss and
cash flow statement dealt with by this report are in compliance with
Accounting Standards referred to in section 211 (3C) of the Companies
Act, 1956, in so far as they apply to the Company.
5 As per the representation made to us by all the directors of the
Company and taken on record by the Board of Directors, none of the
director is disqualified from being appointed as director under section
274(l)(g) 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 read together with the
significant accounting policies and other notes thereon, give the
information required by the Companies Act, 1956 in the manner so
required and gives a true and fair view in conformity with the
accounting principles generally accepted in India:
i In the case of Balance Sheet of the state of affairs of the Company
as at 31st March, 2012.
ii In the case of Statement of Profit & Loss, of the profit 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.
7 As required by the Companies (Auditors'' Report) order, 2003, issued
by the Central Government of India in terms of section 227(4A) of the
Companies Act, 1956 and on the basis of such checks as we considered
appropriate and according to the information and explanations given to
us, we further state on the matters specified in paragraph 4 and 5 of
the said order to the extent applicable as folLows :
i) The Company has maintained proper records showing full particulars
including quantitative details and situation of its Fixed Assets.
We have been informed that the fixed assets were physically verified
during the year by the Management in accordance with a program of
verification, which in our opinion, provides for physical verification
of all the fixed assets at reasonable intervals. No material
discrepancy were noticed on such verification.
During the year Company has not disposed off any substantial part of
ii) The inventory of the Company has been physically verified by the
Management during the year. In our opinion, the frequency of
verification is reasonable.
In our opinion, the procedure of physically verification of inventory
followed by the Management is reasonable and adequate in relation to
the size of the Company and nature of its business.
The Company has maintained proper records of inventory and no material
discrepancy between the physical stock and the book stock is noticed on
iii) The Company has not granted or taken any loans, secured or
unsecured to or from companies, firms or other parties listed in the
register maintained under section 301 of the Companies Act 1956.
Accordingly the provisions of clauses 4(iii)(b), 4(iii)(c), 4(iii)(d),
4(iii)(f) and 4(iii)(g) of the order are not applicable to the Company.
iv) In our opinion and according to the information and explanation
given to us, there is adequate internal control procedures commensurate
with the size of the Company and nature of its business with regard to
the purchases of inventories and fixed assets and with regard to sales
of goods and services.
During the course of our audit no major weakness has been noticed in
the internal control procedures.
v) According to the information & explanation provided to us, the
particular of contracts or arrangements referred to in Section 301 of
the Companies Act, 1956 have been so entered in the register required
to be maintained under that section.
According to information and explanation provided to us, transaction
made in pursuance of such contract or arrangements have been made at
prices which are reasonable having regarding to the prevailing market
prices at the relevant time where such market prices are available with
the Company or the prices at which transactions for similar goods or
services have been made with other parties.
vi) The Company has not accepted any deposits under the provisions of
Section 58A, 58AA or any other relevant provisions of the Act and the
rules framed there under.
Accordingly, the provision of clause 4(vi) of the order are not
vii) In our opinion the Company has adequate 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 pursuant to the rules made by the Central Government for the
maintenance of cost record under section 209(l)(d) of the Companies
Act,1956 and are of the opinion that prima facie the prescribed
accounts and records have been maintained. We have, however, not made a
detailed examination of the records with a view to determining whether
they are accurate or complete.
ix) According to information and explanation given to us and the
records of the Company examined by us, the Company has been generally
regular in depositing 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 with the appropriate
authorities during the year.
The dues outstanding in respect of Sales Tax, Income Tax, Customs Duty,
Wealth Tax, Service Tax, Excise Duty and Cess on account of any dispute
are as follows:
Name of the
statute Nature of dues Amount
Rs. Period to which
relates Forum where
Act, 1961 Income Tax 3,38,980/- A.Y 2009-10 Commissioner
x) The Company does not have accumulated losses at the end of the year
and the Company has not incurred cash losses during the current and
immediately preceding financial year.
xi) According to the records of the Company, the Company does not have
any outstanding dues payable to any financial institution or debenture
holders. It has not defaulted in repayment of its dues to bank during
xii) The Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii) In our opinion and according to the information and explanation
given to us, the Company is not a chit fund/nidhi/mutual benefit
fund/society. Accordingly paragraph 4(xiii) of the order is not
xiv) The Company has not dealt or traded in shares, securities,
debentures or other investments during the year. Accordingly paragraph
4(xiv) of the order is not applicable.
xv) According to the records of the Company, the Company has not given
any guarantee for loans taken by others from bank or financial
institutions. Accordingly paragraph 4(xv) of the order is not
xvi) In our opinion and according to the information and explanation
given to us, during the year Company has not raised any term loan.
xvii) On the basis of review of utilization of funds which is based on
overall examination of the balance sheet of the Company, related
information as made available to us and as represented by the
Management, Funds raised on short term basis have, prima facie, not
been used during the year for long term investments.
xviii) The Company has not made any preferential allotment to parties
and companies covered in the register maintained under section 301 of
the Act during the year.
xix) The Company has not issued any debentures.
xx) The Company has not raised any money by public issue during the
xxi) To the best of our knowledge and belief and as per the information
and explanation given to us, no fraud on or by the Company was noticed
or reported during the year.
For, B.A.Rajpara & Co.
Dated : 06.08.2012 M. No. 34451
Place : Ahmedabad. FRN No. 108472W