We have audited the attached Balance Sheet of M/s. W.S. Industries
(India) Limited as at 31st March 2012 and also the Statement of Profit
and Loss of the Company for the year ended on that date annexed thereto
and Cash Flow Statement for the year ended on that date. 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 have 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 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
As required by the Companies (Auditors Report) Order, 2003, as amended
by the Companies (Auditors'' Report) (Amendment) Order 2004 issued by
the Government of India in terms of Section 227(4A) of the Companies
Act, 1956, we enclose in the annexure a statement of the matters
specified in paragraphs 4 and 5 of the said Order.
Further to our comments in Annexure referred to above, we report that;
a) We have obtained all the information and explanation which, to the
best of our knowledge and belief, were necessary for the purpose of our
b) In our opinion, proper books of accounts as required by law have
been kept by the company, so far as appears from our examination of the
c) The balance sheet and profit and loss account dealt with by this
report are in agreement with the books of accounts.
d) In our opinion, the Balance Sheet and Profit and Loss Account read
with Schedules and Notes thereon dealt with by this Report comply with
the Accounting Standards referred to in Sub-Section (3C) of Section 211
of the Companies Act 1956, so far as applicable.
e) On the basis of the written representation received from the
directors as on 31st March 2012 we report that none of the directors is
disqualified as on 31st March 2012 from being appointed as a director
in terms of clause (g) of subsection (1) of Section 274 of the
Companies Act 1956
f) Subject to the above, in our opinion and to the best of our
information and explanation given to us, they said accounts read with
notes thereon give the information required by the Companies Act 1956
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 Balance Sheet, of the state of affairs of the
Company as at 31st March 2012 and
ii. In the case of Statement of Profit and Loss of the LOSS for the
year ended on that date.
iii. In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO THE AUDITORS'' REPORT
(Referred to in Paragraph (3) of our report of even date)
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details
and situation of fixed assets.
(b) The fixed assets of the company have been physically verified
during the year by the management and no material discrepancies between
the book records and the physical inventory have been noticed.
(c ) During the year, the Company has not disposed off any substantial
part of its fixed assets, affecting the going concern.
(ii) (a) Physical verification of stocks of Finished Goods, Stores,
Spare Parts and Raw materials was conducted by the management during
the period, except materials lying with third parties from whom
confirmation certificates have been obtained. Materials in Bond have
been verified with the respective Bills of Entry. In our opinion, the
frequency of verification was reasonable.
(b) The procedures of physical verification of stocks followed by the
management are reasonable and adequate, commensurate 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 with in 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.
(b) The Company has taken a loan from a party covered in the register
maintained under Section 301 of the Companies Act 1956. The maximum
amount involved during the year and the year end balance was Rs 16.30
(iv) In our opinion the terms and conditions are not prejudicial to the
interest of the Company, (iv) In our opinion and according to the
information and explanations given to us, there are adequate internal
control systems, commensurate with the size of the company and the
nature of its business with regard to purchase of stores, raw materials
including components, plant and machinery, equipment and other assets
and with regard to sale of goods.
(v) (a) According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in section 301 of the Companies Act, 1956 have
been so entered.
(b) In our opinion, and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements entered in the Register maintained under Section 301 of
the Companies Act 1956, have been made at prices, which are reasonable
having regard to the prevailing market prices at the relevant time.
(vi) As explained to us, the company has complied with the Provisions
of Section 58A of the Companies Act, 1956.
(vii) A firm of Chartered Accountants is appointed as Internal Auditors
of the company for the period under review. !n our opinion, the company
has internal audit system commensurate with its size and nature of its
(viii) (a) The Company is regular in depositing its 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 any other
statutory dues with the appropriate authorities.
(b) At the end of the financial year there were no dues of sales Tax,
Income Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess
which have not been deposited on account of any dispute except as
Amount Forum where
Name of the statute Nature of dues ( Rs in Lakhs ) dispute is
Income Tax Income Tax 4.00 High Court
Income Tax Income Tax 33.18 CIT, Appeals
(ix) The Company has not defaulted in repayment of dues to Financial
Institutions or Banks, except the following:-
(a) an amount ofRs 245.30 Lakhs has fallen due on 31st March 2012 and
since been paid.
(b) an amount of Rs 77.80 Lakhs has fallen due on 20th March 2012.
(x) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xi) According to the information and explanations give to us, the
company has not given any guarantee for loans taken by others from
Banks and Financial Institutions.
(xii) The term loans availed during the year have been utilized for the
purpose for which they have been raised.
(xiii) The Company has incurred cash losses in the financial year under
report, however, no cash loss has been incurred in the immediately
preceding financial year.
(xiv) The funds raised by the Company on short term basis have not been
used for long term investments.
(xv) 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.
(xvi) No fraud on or by the Company has been noticed or reported during
the course of our audit.
(xvii) Other provisions of Companies (Auditors Report) Order, 2003 as
amended by the Companies (Auditors Report) (Amendment) Order, 2004
are not applicable.
For M/S. S. VISWANATHAN
Firm Regn. No. 004770S
CHELLA K SRINIVASAN
31st May 2012 Membership No.: 023305