1. We have audited the attached Balance Sheet of M/s. VYBRA AUTOMET
LIMITED, as at 31 st March, 2011 ,the Profit and Loss Account and also
the Cash Flow Statement 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 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
3. As required by the Companies (Auditor''s Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
4. Further to our comments in the Annexure referred to above.and
a) Debtors/advances are subject to confirmation
b) The company is in the process of identifying slow moving/ non moving
items and the pending finalization of said process and we are not in a
position to quantify the provision required to be made in the profit &
(I) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
(II) 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
(III) The Balance Sheet, Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
(IV) In our opinion, the Balance Sheet, Profit and Loss Account and
Cash Flow statement dealt with by this report comply with the
accounting standards referred to except AS-15 retirement benefits lo
employees, in sub-section (3c) of the Section 211 of the Companies Act,
(V) On the basis of written representations received from the
Directors, as on 31 st March, 2011 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31 st March,2011 from being appointed as a Director in terms of Clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956.
(VI) In our opinion and to the bestof our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and
given 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,2011;
(b) in the case of the Profit and Loss Account, of the Loss 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.
ANNEXURE TO THE AUDITOR''S REPORT (Referred to in paragraph (3) of our
report of even date)
I. (a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
(b) The fixed assets have been physically verified by the management
and no material discrepancies were noticed all such verifications.
(c) The company has not disposed of the substantial part of the fixed
assets which will affect the going concern.
II. (a)The physical verification of the inventory has been conducted
at reasonable intervals by the management.
(b) In our opinion the physical verification of inventory followed by
the management is reasonable and adequate in relation to the size of
company and the nature of business.
(c) In our opinion the company is maintained proper records of
inventory and no material discrepancies were noticed on physical
verification of inventories.
III. (a) The company has neither granted any loans nor advanced any
amounts to companies/ firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956.Since the
company has not granted any loans to companies/firms or other parties
covered under section 301 of the Companies Act, 1956, the provisions of
subclauses (b),(c) and (d) are not applicable to the company.
(e) The company has not obtained Inter corporate deposits/unsecured
loans from the parties covered under section 301 of the Companies Act,
1956, the provisiohs of sub clauses (f) and (g) are not applicable to
(f) In our opinion, the terms and conditions on which loan has been
taken from company listed in register maintained under section 301 of
the Companies Act, 1956 are not, prima facie, prejudicial to the
interest of the Company.
(g) The company is regular in repaying the principal amounts as
stipulated and has been regular in the payments.
IV. In ouv opinion there is an adequate internal control procedure
commensurate with the size of the company and nature of the businessfor
purchase of inventories and fixed assets and for sale cf goods.
V. (a) According to information and explanation given to us, all the
transactions required to be entered in the register pursuance to the
provisions of section 301 of the Companies Act, 1956 have been so
(b) According to information and explanation given to us, the
transactions exceeding Rs. 5 lacs covered under the register maintained
under section 301 of the Companies Act, are reasonable having regard to
the prevailing market prices at the time of entering the transaction.
VI. According to information and explanation given to us, the company
has not accepted deposit from the public as per the provisions of
Section 58A and Section 58AA of the Companies Act, 1956.
VII. The company has an internal audit system commensurate with the
size and nature of business.
VIII. According to information and explanation given to us, the
Central Government has prescribed for the maintenance of cost records
under section 209 (1) (d) of the Companies Act, 1956 for the products
manufactured by the Company and the company has appointed a cost
consultant to design the cost records and the same is under progress.
IX. (a) As per the records of the company, it has been depositing
undisputed statutory dues Sales Tax, Excise Duty, Service Tax,
Professional Tax, Provident Fund and ESI even though there were certain
delays.The Statutory dues as on 31.03.2011 in respect of
* Gratuity payable Rs.50.96 lacs
Income tax payable for the AY 2008-09 Rs.29.05 lacs and
ESI Payable of Rs.8.13 Lacs
Excise Payable Rs.4.03 Lacs
Service Tax Rs.6.71 Lacs.
Bonus Rs. 7.91 Lacs.
X. The company has regrouped wherever necessary.
XI. The company has incurred a cash loss of Rs. 822.86 lacs in the
financial year 2010-11 (Previous Year Rs. 1386.44 lacs). The
accumulated losses are less than fifty percentage of net worth of the
company at the end of the financial year.
XII. On the basis of information available and explanation given to
us, the company has obtained restructured package for defaulted
payments/over due payments from the banks in view of the economic slow
XIII. According to information and explanation given to us, the
company has not granted any loans or advances on the basis of security
by way of pledge of shares,debentures or securities.
XIV. In our opinion, the company is not a Chit Fund or a Nidhi/Mutual
Benefit Fund/Society.Therefore, the provisions of clause 4(xiii)ofthe
Companies (Auditor''s Report) Order, 2003 are not applicable to the
XV. In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order,
2003 are not applicable to the company.
XVI. According to the information and explanation given to us, the
company has not given any guarantee for the loans taken by others from
Bank or Financial Institution.
XVII. According to the information and explanation given to us, the
company applied theTerm Loans for the purpose for which the loans were
XVIII. According to the information and explanation given to us and on
overall examination of the Balance Sheet of the company, we report that
no funds raised on short term basis have been utilized for long term
investment except for working capital.
XIX. According to information and explanation given to us, the company
has not made any preferential allotment of shares to parties covered
under section 301 of the Companies Act, 1956.
XX. According to information and explanation given to us, the company
has not raised any debentures during the year underaudit.
XXI. According to information and explanation given to us, the company
has not raised any monies from the public byway of issue of shares to
XXII. According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For JAWAHAR AND ASSOCIATES
DATE :31-8-2011 Sd/-