We have audited the accompanying financial statements of Accurate
Transformers Limited (''the company'') as at 31st March, 2014 and the
Statement of Profit & Loss and the Cash Flow Statement for the year
ended and a summary of significant accounting policies and other
explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance of the Company in accordance with the Accounting
Standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956 (''the Act''). 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.
Auditor''s Responsibility
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.
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.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
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:
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014
(ii) In the case of the Statement of Profit and 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.
Report on Other Legal and Regulatory Requirements
1) As required by the Companies (Auditor''s Report) Order, 2003 (''the
Order''), as amended, 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 the
Order.
2) As required by Section 227(3) of the Act, 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
audit;
b) in our opinion, subject to Paragraph (3) below, and notes given in
Schedule 26, proper books of account as required by law have been kept
by the Company so far as appears from our examination of those books;
c) the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) in our opinion, subject to Paragraph (3), Balance Sheet, Statement
of Profit & Loss and Cash Flow Statement dealt with by this Report
comply with the Accounting Standards referred to in sub-section (3C) of
Section 211 of the companies Act, 1956; and
e) On the basis of the written representation received from the
directors as on 31st March 2014, and taken on the record by the Board
of Directors, none of the Directors are disqualified as on 31st March,
2014 from being appointed as a Director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
Others:
3) a) Income Tax Authorities has conducted search proceedings under
section 132 of the
Income Tax Act, 1961 on 26th July 2006. The Assessment proceeding has
been completed. The Company has gone in appeal in all cases. The
appeal proceeding has also been completed. Now the matter is pending
before I.T.A.T.
b) During the Search Proceedings, the Company has offered Rs. 175 lacs
as additional income, and the same has been taken into consideration in
assessment of the F.Y. 2006-07. The company has taken the same under
the head Other Income (in F.Y. 2006-07) and corresponding amount has
been shown as other Assets in Long Term Loans and Advances. The exact
effect of the same would be taken into the Accounts when the appeal is
decided by I.T.A.T.
c) The liability towards the retirement benefits i.e. gratuity and
leave encashment was provided by the Company as per the AS-15, issued
by ICAI.
d) That the company not follows the Accounting Standard (AS-17),
Segment Reporting as company deals in Manufacturing of the
Transformers, Trading and Electrification Projects (Erection).
Annexure to the Auditor''s Report
The annexure referred to in our report to the members of Accurate
Transformers Limited (''the Company'') for the year ended 31st March,
2014. We report that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative detail and situation of fixed
assets.
(b) The management has carried out a physical verification of most of
its fixed assets during the year. In our opinion, the frequency of
verification is reasonable having regard to the size of the Company and
the nature of its fixed assets. The discrepancies noticed on such
verification were not material and have been properly dealt with in the
book of account.
(c) There was no disposal of a substantial part of fixed assets during
the year.
(ii) (a) During the year, the inventories have been physically verified
by the management except for inventory lying with third parties.
(b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of stocks 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 explanation given by the Management of the Company,
the Company is maintaining the proper records of inventories.
(iii) (a)According to the information and explanations given to us, the
Company has granted unsecured loans during the year to companies, firms
or other parties covered in the Register maintained under section 301
of the Act during the year which are prima facie prejudicial to the
interest of the company. The company has maintained running accounts
with the parties covered in the register maintained under section 301
of the Companies Act, 1956.
(b) In our opinion, in case of unsecured loans granted or taken to/from
companies, firms or other parties covered in the Register maintained
under section 301 of the Companies Act, 1956 in the previous years, we
are not making any comments because the terms of repayment and/or
interest have not been specified.
(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 the purchase of inventories and fixed assets and with regard to sale
of goods and services. Further on the basis of our examination and
according to the information and explanations given to us, we have
neither come across nor have been informed of any instances of major
weaknesses in the aforesaid internal control procedures.
(v) (a) According to the information and explanations provided by the
management, we are of the opinion that the particulars or arrangement
referred to in section 301 of the Act transactions that need to be
entered into the register maintained under 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 exceeding value of Rupees five lakh have been entered into
during the financial year at prices which are reasonable having regard
to prevailing market price at the relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not invited deposits from the public.
(vii) In our opinion, the internal audit system of the Company is
commensurate with the size and nature of its business.
(viii) The company has informed to us to maintain the cost records, in
pursuant to the rules made by the Central Government for the
maintenance of cost records under section 209(1)(d) of the Companies
Act, 1956. We have not examined the records with a view to determine
whether they are accurate or complete.
(ix) According to the information and explanations given to us and
records of the Company examined by us, the Company is generally regular
in depositing with the appropriate authorities undisputed statutory
dues i.e. employees'' provident fund, ESI, income tax, TDS, service tax,
VAT/sales tax, excise duty, cess, Investor education and protection
fund and other material statutory dues applicable to it. (Refer to Note
No. 26.5(v) of the Schedule 26).
(x) (a) According to the information and explanations given to us and
the records of the Company, the following are the particulars of
disputed dues on account of excise duty, Income Tax, and Sales tax/VAT,
Cess matters that have not been deposited and also not made the
provisions in the Books of Accounts by the company as at March 31,
2014.
S. Name of Nature of Amount(Rs. Period to From where dispute is
No. the Sta the dues In Lacs)* which the pending
tute amount
related
1. Central Excise 0.51 2003-04 High court of Allahabad
Excise duty 161.00 2002-06 Customs, Excise &
tax 36.00 2002-06 Services Tax Appellate
8.38 2008-09 Tribunal
2. Sales Tax Sales Tax 1.92 2008-09 Joint Commissioner
/ VAT / Vat 0.68 2009-10 (Appeals)
1.77 2009-10 -Do-
0.04 2009-10 -Do-
*Amount as per demand orders including interest and penalty wherever
indicated in the demand.
(b) Rs. 6.51 Lacs pertaining to Unclaimed Dividend and Unclaimed Share
Application Money due, not deposited with the Investor Education and
Protection Fund till date.
(xi) The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses during the financial
year and in the immediately preceding financial year.
(xii) According to the records of the company examined by us and the
information and explanations given to us, the Company during the year
has not defaulted in repayment of dues to financial institution, banks.
(xiii) As the Company has not granted any loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities, paragraph 4 (xii) of the Order is not applicable.
(xiv) The provisions of any special statue as specified under paragraph
4 (xiii) of the Order are not applicable to the Company.
(xv) As the Company is not dealing or trading in shares, securities,
debentures and other investments, paragraph 4 (xiv) of the Order is not
applicable.
(xvi) In our opinion and 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 institution.
(xvii) In our opinion and according to the information and explanations
given to us, term loans were utilised for the purpose for which loans
were obtained.
(xviii) In our opinion and according to the information and
explanations given to us, funds raised on short term basis have, prima
facie, not been used during the year for long-term investments.
(xix) According to the information and explanation given to us, the
company has not allotted any shares on preferential basis to parties
and companies covered in the Register maintained under section 301 of
the Act.
(xx) As the Company has not issued any debentures, paragraph 4 (xix) of
the Order is not applicable.
(xxi) As the Company has not raised any money by way of public issue,
paragraph 4 (xx) of the Order is not applicable.
(xxii) Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the course of our audit
for the year ended March 31, 2014.
FOR OM PRAKASH YADAV & CO.
(Chartered Accountants)
Sd/-
DATE:- 01/09/2014 Om Prakash Yadav F.C.A.
PLACE: - Noida PROP.
M. No. 51079
