1. We have audited the attached Balance Sheet of THE AMALGAMATED
ELECTRICITY COMPANY LIMITED as at 31st March, 2008, Profit and Loss
Account and Cash Flow Statement for the year ended on that date. These
financial statements are the responsibility of the companys
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 Indian auditing
standards issued by the Institute of Chartered Accountants of India.
Our audit includes an examination, on a test basis, of evidence
relevant to the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates and
judgements made by the management in the preparation of financial
statements and evaluating the overall financial statement presentation.
We planned and performed our audit, so as to obtain all the
informations and explanations which we considered necessary in order to
provide us the sufficient evidence to give reasonable assurance that
the financial statements are free from material misstatements and to
provide a reasonable basis for our opinion.
3. 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, we give in the Annexure a Statement on the matters
specified in the paragraph 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to in Paragraph
(3) above, 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 the
c) the Balance Sheet, Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the Books of
d) in our opinion, the Balance Sheet, Profit and Loss Account and the
Cash Flow Statement dealt with by this report are in compliance with
the Accounting Standards referred to in Section 211(3C) of the Company,
1956, in so far as they apply to Company;
e) in our opinion and based on information and explanations given to
us, none of the directors are disqualified as on 31st March, 2008 from
being appointed as directors in terms of clause (g) of subsection (1)
of section 274 of Companies Act 1956;
f) in our opinion and to the best of 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 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, 2008;
ii) in the case of the Profit and Loss Account, of the loss for year
ended on that date; and
iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO 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 the fixed
(b) All the assets have been physically verified by the management
during the year. No material discrepancies were noticed on such
(c) The Company has not disposed off substantial part of the fixed
assets during the year,
(ii) Considering the activity carried out during the year, in our
opinion the provision of clause 4(ii) of the Companies (Auditors
Report) Order, 2003 are not applicable.
(iii) The Company has not granted or taken any loans, secured or
unsecured to/from companies, firms or other parties covered in the
registered maintained u/s 301 of the Act. Hence the provision of clause
4 (iii) (a), (b), (c), (d), (e) & (f) of the Companies (Auditors
Report) Order 2003 are not applicable.
(iv) In our opinion and according to the information and explanations
given to us and in view of the activities carried on by the Company,
the provision of clause 4(iv) of the Companies (Auditors Report) Order,
2003 are not applicable to the Company.
(v) According to the information and explanations given to us, we are
of the opinion that there were no contracts or arrangements that need
to be entered into the register maintained under section 301 of the
Companies Act, 1956. Hence the provision of clause 4(v) (a) & (b) of
the Companies (Auditors Report) Order, 2003 are not applicable to the
(vi) The Company has not accepted any deposits from the public during
the year, therefore, in our opinion the question of applicability of
directives issued by the Reserve Bank of India and the provisions of
sections 58A and 58AA of the Act and the rules framed there under does
(vii) As informed to us, the Company did not have formal internal audit
system during the year.
(viii) As informed to us, the maintenance of cost records has not been
prescribed by the Central Government U/s. 209(1 )(d) of the Companies
Act, 1956, in respect of the activities carried on by the company.
(ix) (a) The Company did not have to pay any undisputed statutory dues
except Income Tax and Tax Deducted at source Income Tax Act, 1961 as
Nature of Dues Assessment
Income Tax 2001-02
Amount Due Date
(b) According to the information and explanation given to us, there are
no dues of sales tax, income tax, customs duty, wealth tax, excise duty
and cess which have not been deposited on account of any dispute.
(x) In our opinion, the accumulated losses of the Company are not more
than fifty percent of its net worth. The Company has not incurred cash
loss during the current financial year. However Company has incurred
cash loss of Rs. 32,794/- during the year and Rs. 2,098/- during
immediate preceeding year.
(xi) The Company has no dues payable to financial institutions, banks
or debenture holders during the year.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other securities
(xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause 4
(xiii) of the companies (Auditors Report) Order, 2003 are not
applicable to the Company.
(xi v) The Company has maintained proper records of the transactions
and contracts in respect of shares and debentures and other securities
and timely entries have been made therein. The shares, securities,
debentures and other investments have been held by the Company in its
own name except in case of investments in Preference Shares of Rs.
66,11,200/- and we have been informed that the transfer is still in
(xv) As per the information and explanations given to us, the Company
has not given any guarantee for loans taken by others from banks or
(xvi) The Company has not taken term loans during the year.
(xvii) The Company has not raised any fund either short term or long
term during the year. Accordingly the clause 4(xvii) of the Companies
(Auditors Report) Order, 2003 is not applicable to the company.
(xviii) The Company has not made any preferential allotment of shares
to parties and companies covered in the register maintained U/s. 301 of
the Act during the year.
(xix) The Company has not issued any debentures and hence the question
of creating securities thereof does not arise.
(xx) The Company has not raised money by public issue during the year.
(xxi) According to the information and explanation given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For GANESH & RAJENDRA ASSOCIATES
(Membership No. 32939)
MUMBAI, DATED : 29th July, 2008