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Modern Insulators Ltd.

BSE: 515008 | NSE: MODINSULAT | Series: NA | ISIN: | SECTOR: Electric Equipment

BSE Live

Oct 14, 16:00
69.90 -0.75 (-1.06%)
Volume
AVERAGE VOLUME
5-Day
20,207
10-Day
44,758
30-Day
57,976
11,014
  • Prev. Close

    70.65

  • Open Price

    72.70

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

NSE Live

Dec 27, 11:22
4.15 -0.35 (-7.78%)
Volume
No Data Available
19,578
  • Prev. Close

    4.50

  • Open Price

    -

  • Bid Price (Qty.)

    - (0)

  • Offer Price (Qty.)

    - (0)

Modern Insulators is not listed on NSE

Annual Report

For Year :
2014 2013 2012 2011 2009 2008 2007 2006

Auditor's Report

1. We have audited the attached Balance Sheet of MODERN INSULATORS LIMITED as at 30th September 2009, the Profit & Loss Account and cash flow statement of the Company for the period from 1st April, 2008 to 30th September, 2009 annexed hereto 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 auditing standards generally accepted in India. These 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 the management, as well as evaluating the overall financial statement pre- sentation. We believe that our audit provides a reasonable basis for our opinion. 3. As required by Companies (Auditors Report) Order, 2003 as amended by Companies (Auditors Report) (Amendment) Order, 2004, issued by the Central Government of India in terms of Section 227 (4-A) of the Companies Act, 1956, we give in the annexure a statement on the matters specified in paragraphs 4 and 5 of the said order. 4. Further to our comments in the annexure referred to in paragraph 3 above, we report that: (i) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit. (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 those books. (iii) The Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account. (iv) In our opinion, the Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report, comply with the applicable accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956. (v) (a) Balances of debtors and creditors are subject to reconciliations/confirmations (Note No.4 of Schedule 14). (b) In view of insufficient information from the suppliers regarding their status as SSI units, amount overdue to such undertakings could not be ascertained. (Note No. 10 (i) of Schedule 14). (c) Provision for taxation (including interest etc.) estimated at Rs, 2252.65 lacs (including for previous year Rs.927.28 lacs reversed during the period) has not been made in accounts in view of proposed amalgamation proceedings awaiting approvals; this has resulted in over- statement of Reserves & Surplus /profits and understatement of Current Liabilities & Provisions to this extent. (Note No. 13 of Schedule 14) (vi) Some of the existing directors of the company are not eligible from being re-appointed as directors under the proviso to Section 274(1 )(g) of the Companies Act, 1956. However, the Company has obtained an opinion according to which such directors of the Company can continue to be in office during their tenure and they can also be re-appointed as directors on the expiry of their tenure. We have been further informed that the Company had made representation to the Central Government (Department of Company Affairs) seeking appropriate exemption from the applicability of the said section. (vii) In our opinion and to the best of our information and according to the explanations given to us, the said accounts subject to our comments in para (v) above and read with other 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: (a) In the case of Balance Sheet, of the state of affairs of the Company as at 30th September, 2009. (b) In the case of Profit & Loss Account, of the profit of the Company for the period from 1st April, 2008 to 30th September, 2009. (c) In the case of Cash Flow Statement, of the cash flows for the period from 1st April, 2008 to 30th September, 2009. Referred to in the report of even date of the Auditors to members of MODERN INSULATORS LIMITED. (i) (a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets except furniture & fixtures for which detailed records are not maintained. (b) As per information and explanations given to us, most of the fixed assets have been physically verified during the period by management in accordance with a phased programme of veri- fication at reasonable intervals. According to the information and explanations given to us, no material discrepancies were noticed on such verification. (c) During the period, the company has not disposed off substantial part of the fixed assets. (ii) (a) As explained to us, the inventory has been physically verified during the period by the management. In our opinion, the frequency of verification is reasonable. (b) According to the information and explanations given to us, the procedures of physical verification of inventories 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 our examination of the records of inventory, we are of the opinion that the company is maintaining proper records of inventory. As explained to us, the discrepancies noticed on physical verification between the physical stocks and the book records were not material. (iii) (a) The company during the period has given interest-free loan of Rs.1300 lacs to subsidiary company. The company has also given interest-free advance of Rs.280 lacs to a company covered under section 301 of companies Act, 1956 in view of proposed amalgamation awaiting approvals. Maximum amounts involved during the period and the period end balances of such loans and advances are Rs.1580 lacs and Rs.1580 lacs respectively. (b) The Company has not taken any loans, secured or unsecured from companies, firms or other parties covered in the.register maintained under Section 301 of the Act. Accordingly, the pro- visions of clauses 4(iii)(f) and 4(iii)(g) of the Order are not applicable. (iv) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business for purchases of inventory, fixed assets and for the sale of goods. During the course of our audit, we have not observed any major weakness in internal controls. (v) (a) Based on audit procedures applied by us and according to the information and explanations given to us, the particulars of contracts or arrangements referred to in section 301 of the Act have been entered in the register required to be maintained under that section. (b) In our opinion and according to the information and explanations given to us, there are no transactions made in pursuance of such contracts or arrangements exceeding Rupees Five lacs in respect of any party during the period. (vi) The Company has not accepted any deposits from the public during the period. (vii) In our opinion, the Company has an internal audit system commensurates with the size of the company and the nature of its business. (viii) The Central Government has prescribed the maintenance of cost records u/s 209(l)(d) of the Companies Act, 1956 in respect of the Yarn product only. On the basis of the records produced, we are of the opinion that prima-facie the records and accounts have been maintained as prescribed by the Central Government u/s 209( l)(d) of the Companies Act, 1956. However we have not carried out detailed examination of such records and accounts with a view to ascertain whether they are accurate or complete. Maintenance of such records has not been prescribed for insulators. (ix) (a) According to the records of the company, the company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education and protection fund, employees state insurance, service tax, sales- tax, custom duty, excise duty and other statutory dues applicable to it and no undisputed statutory dues as noted above is outstanding for a period of more than six months from the date they became payable. The company has not paid/provided income tax (refer clause 4(v)(c) of Auditors Report). (b) According to the information and explanations given to us and as per the records examined by us, there are no disputed dues of Income tax/Sales tax/Service tax/Custom duty/Wealth tax/ Excise duty/Cess as at 30th September2009. (x) The Company does not have accumulated losses as at the end of the financial period and it has not incurred any cash losses during the financial period covered by our audit and the immediately preceding financial year. (xi) Based on our audit and as per information and explanations given by the management, there has been no default in repayment of dues to any financial institution or bank or debenture holders during the period. (xii) Based on our examination of books of account and information and explanations given to us, the company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. (xiii) The provisions of any special statutes applicable to chit fund, nidhi or mutual benefit fund/society are not applicable to the company. (xiv) The Company is not dealing or trading in shares, securities,debentures and other investments and hence requirement of para 4 (xiv) is not applicable. (xv) As per information and explanations given to us, the Company has not given any guarantee for loans taken by others from bank or financial institutions, the terms and conditions whereof are prejudicial to the interest of the company. (xvi) On the basis of records examined by us, we have to state that the company has prima facie, applied the term loan for the purpose for which it was obtained. (xvii) According to the information andexplanations given to us and on an overall examination of the balance sheet of the company, we report that no funds raised on short-term basis have been used for long-term investment. (xviii)No allotment of shares has been made by the company during the period. (xix) During the period covered by our audit report, the Company has allotted 200 Zero Coupon Secured Redeemable Debentures of Rs. Ten lacs each aggregating to Rs. 2000 lacs. Debenture certificates are yet to be issued, pending mortgage of immovable properties of yarn division. (xx) During the period the company has not raised any money by way of public issue. (xxi) Based upon the audit procedures performed and information and explanations given by the management, no fraud on or by the company has been noticed or reported during the period. For S.S. KOTHARI & CO. Chartered Accountants (B.L. VERMA) Place: Mumbai Partner Date : 31st December, 2009 (Membership No. 10900)