Report on the Financial Statements
We have audited the accompanying financial statements of Morgan
Ventures Limited, (the Company) which comprise the Balance Sheet as
at June 30, 2013, and the Statement of Profit and Loss and Cash Flow
Statement for the year then 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 and cash flows 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.
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 qualified audit
Basis for Qualified Opinion
1. The company has provided for depreciation on old windmills at rates
as per technical report and not as per rates prescribed in schedule XIV
to the Companies Act, 1956. Consequent impact of such provision has
not been determined.
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matter
described in the basis for qualified opinion paragraph, financial
statements give the information required by the Act in the manner so
required and give a true and fair View ih conformity with the
accounting principles generally accepted in India:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at June 30, 2013;
b) In the case of the Statement of Profit and Lots, of the loss for the
year ended on that date1; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date. Report on Other Legal and Regulatory
1. As required by the Companies (Auditor''s Report) Order, 2003 (the
Order) 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 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 those
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
d) Except for the possible effects of the matter described in the basis
for qualified opinion paragraph, In our opinion, the Balance Sheet,
Statement of Profit and Loss, and Cash Flow Statement comply with the
Accounting Standards referred to in subsection (3C) of section 211 of
the Companies Act, 1956;
e) On the basis of written representations received from the directors
as on June 30, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on June 30, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act,
f) Since the Central Government has not issued any notification as'' to
the rate at which the cess is to be paid under section .441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
Annexure referred to in paragraph 2 of our Report of even date to the
Members of Morgan Ventures Limited on the accounts for the year ended
30th June 2013.
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
(b) As explained to us, the fixed assets have been physically verified
by the management during the year in a phased periodical manner, which
in our opinion is reasonable having regard to the size of the company
and nature of its assets. No material discrepancies between the book
records and the physical inventory were noticed in respect of the
assets physically verified.
(c) In our opinion, the company has not disposed of substantial part of
fixed assets during the year and the going concern status of the
company is not affected.
2. (a) Inventories have been physically verified by the management at
reasonable intervals during the year.
(b) In our opinion, the procedures of physical verification of
inventory 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 records of inventory produced to
us, in our opinion, the company has maintained proper records of
inventories. There were no material discrepancies noticed on physical
verification of inventory as compared to the book record.
3. (a) The company has not granted any loan, secured or unsecured, to
companies, firms or other parties listed in the register maintained u/s
301 of the Companies Act, 1956.
(b) The company has not taken any loan, secured or unsecured, from
companies, firms or other parties listed in the register maintained u/s
301 of the Companies Act, 1956.
4. 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 inventory and fixed assets and for the sale of goods.
During the course of our audit, no major weakness has been noticed in
the internal control in respect of these areas.
5. (a) According to the information and explanations given to us, all
the transactions that need to be entered in the register required to be
maintained under section 301 has been entered.
(b) In our opinion and according to the information and explanation
given to us the transactions with patties with, whom transactions
exceeding the value of Rupees five lacs have been entered into during
the financial year, are at prices, which are reasonable, having regard
to the prevailing market prices at the relevant time.
6. The company has not accepted any deposit from the public.
Therefore, the provisions of Section 58A and 58AA of the Companies Act,
1956, and the Rules framed there under do not apply.
7. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. The Central Government has prescribed for maintenance of cost
records under section 209 (l)(d) of the Companies Act, 1956 in respect
of power generation. These accounts and records have been made and
maintained by the company.
9. (i) Undisputed statutory dues including Provident Fund, Investor
Education and Protection Fund, Employees State Insurance, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty Cess have
been regularly deposited with the appropriate authorities.
(ii) According to the information and explanations given to us, no
undisputed amounts payable in respect of Income-Tax, Sales-Tax, Wealth
Tax, Service Tax, Custom Duty, Excise Duty, Cess were outstanding at
the year end for a period of more than six months from the date they
(iii) According to the record of the company and information and
explanation given to us, there were no disputed dues as on 30th June,
2013 in respect of Sales Tax, Income Tax, custom Duty, Wealth Tax,
Service Tax, Excise Duty and Cess.
10. The company has no accumulated losses as at 30th June, 2013 nor
has it incurred any cash losses in the current and immediately
preceding financial year.
11. Based on our audit procures and as per the, information and
explanation given by the management we are of the opinion that the
company has not default in repayment of dues to financial institutions,
banks or debenture holders.
12. According to the information and explanations given to us and
based on the documents and records produced to us the company has not
granted any loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
13 The provisions of clause 4(xiii) of the Companies (Auditor''s Report)
Order, 2003 are not applicable to the company.
14. In our opinion, the company has maintained proper records and made
timely entries therein, in respect of the transactions of dealing or
trading in shares, securities, debentures and other investment made by
15. According to the information and explanation given to us, the
company has not given any guarantee for loan taken by others from bank
or financial institution.
16. The company has not taken any term Joan during the year.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet and Cash Flow Statement of
the company, we report that no funds raised on short-term basis have
been used for long-term.
18. The company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the Companies Act, 1956, during the year.
19. No secured debentures were issued by the company. Therefore, no
securities have been created.
20. The company has not raised any money by a public issue during the
21. Based upon the audit procedures performed for the purpose of
reporting true and fair view of the financial statements and as per the
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 K.K. Jain & Co.
FRN No. 002465N
Place: New Delhi C.A. Simmi Jain
Date: 02/09/2013 Partner
M. No. 86496