1. We have audited the attached Balance Sheet of THE AMALGAMATED
ELECTRICITY COMPANY LIMITED as at 31st March 2012, Profit and Loss
Account 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.
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 Section 227 (4A) of the
Companies Act, 1956, we enclose 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 dealt with by this report
are in agreement with the Books of Account;
d) i n our opinion, the Balance Sheet, Profit and Loss Account 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, 2012 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 2012;
ii) in the case of the Profit and Loss Account, of the profit for year
ended on that date.
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 die 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 (Auditors7
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) Considering the size of business and number of transactions as
carried out, the management is of the opinion that the company did not
require internal audit svstem.
(viii) As informed to us, the maintenance of cost records has not been
prescribed by the Central Government U/s. 209(l)(d) of the Companies
Act, 1956, in respect of the activities carried on by the company.
(ix) (a) The Company did not have any undisputed statutory dues except
Income Tax and Tax Deducted at source under Income Tax Act, 1961 as
Nature of Dues Assessment Year Amount Due Date
Income Tax 2001 - 02 3,80,360/- 27/10/2009
2002 - 03 4,12,659/- 27/10/2009
However, the company has made a claim for waiver interest on delayed
income tax refund to the extent of Rs. 3,65,056/- and Rs.7,16,342 have
remained unadjusted against above demand.
(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 incurred cash loss
during the current financial year but not in the immediate preceding
(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 (Auditor's Report) Order, 2003 are not
applicable to the Company.
(xiv) 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.
(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
(Auditor's 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 arid 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.
Ganesh & Rajendra Associates
Firm Reg no. 103055W
Dated: 30 JUN 2012