1. We have audited the attached Balance Sheet of M/s. IVEE INJECTAA
LIMITED as at 31st March, 2011 and also the Profit & 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 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 amount and
disclosures in the Financial Statement. 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 our opinion.
3. As required by the Companies (Auditors Report) Order, 2003, issued
by the Central Government of India, in terms of Sub- Section(4A) of
section 227 of the Companies Act, 1956, we enclose 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:
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
audit.
b. In our opinion, proper books of accounts as required by Law have
been kept by the Company so far as appears from our examination of such
books.
c. The Balance Sheet and Profit & Loss Account dealt with by this
report are in agreement with the books of account.
d. In our opinion, the Balance Sheet and Profit & Loss Accounts dealt
with this report comply with the Accounting Standards referred to in
Sub-Section (3C) of Section 211 of the Companies Act, 1956 to the
extent applicable.
e. On the basis of written representation received from the Directors
and taken on record by the Board of Directors, we report that none of
the Directors of the company are disqualified as on 31st March 11 from
being appointed as Directors of the company under section 274(1 )(g) of
Companies Act, 1956.
f. In our opinion and to the best of our information and according to
the explanation given to us, the attached accounts subject to the
following qualificatory notes give the information required by the
Companies Act, 1956 in the manner so required.
a) Note No. 7 at Schedule - 16 regarding non-provision of doubtful
debts amounting of Rs. 7,78,154/- and as a result thereof the debit
balance of profit & loss A/c gets understated by the said sum and
correspondingly Sundry debtors doubtful of recovery not provided for is
understated by the said sum.
b) Note No. 10 at Schedule - 16 regarding adjustment of debit balance
of the profit & loss account of the past years against the credit
balance of the revaluation reserve account by Rs. 96,27,661/-. In our
opinion the said adjustment is not in accordance with the Accounting
Standard AS-10 recommended by The Institute of Chartered Accountants of
India. As a result thereof, the credit balance of revaluation reserves
and debit balance of profit & loss account gets understated by the said
sum. In our opinion company shall be required to pass corrective
adjustments so as to implement the recommended accounting practice.
c) The company has in past granted/ renewed loans and advances to other
Companies in excess of the percentage prescribed under section 370(1)
of the Companies Act, 1956 which has been identified as non-performing
asset. Accordingly company has not recognized any income from the same.
In the opinion of the directors, the process of recovery is going on
and the same is not fully doubtful of recovery. However in our opinion
company needs to make provision for such long outstanding
non-performing assets amounting to Rs. 1,53,68,061/-. Due to
non-provision in this regard the debit balance of profit & loss account
is under stated and the balance of loans and advances is over stated by
the said sum.
d) Unclaimed refund order of public issue amounting to Rs. 1,22,000/-
grouped under head Current Liabilities requires to be deposited by
the Company into the investor protection fund account.
Subject to the above qualificatory notes, the attached accounts give
the information referred by the Companies Act, 1956 in the manner so
required and it gives a true and fair view.
i) In the case of Balance Sheet, of the state of affairs of the company
as 31st March, 2011.
ii) In the case of Profit & Loss account, of the loss of the Company
for the year ended on that date.
iii) In the case of Cash Flaw Statement of the cash flow, for
the year ended on that date.
ANNEXURE TO THE AUDITORS'' REPORT
Annexure referred to in paragraph 3 of the Auditor''s report to the
members of M/s. IVEE INJECTAA LIMITED on the accounts for the ended
31st March, 2011.
1. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of Fixed
Assets on the basis of available information.
(b) We are informed that all the fixed assets have been physically
verified by the management during the year and no material
discrepancies were noticed on such verification.
(c) During the year, the company has not disposed off any major part of
fixed assets and the going concern status of the Company is not
affected.
2. (a) As explained to us, the Inventory has been physically verified
during the year by the management at regular intervals.
(b) The procedure of physical verification followed by the management
is reasonable and adequate in relation to the size of the company and
the nature of its business.
(c) The company is not maintaining regular records of inventories.
3. (a) According to the information and explanations given to us, the
Company has granted/taken unsecured loans to/from companies covered in
the Register maintained under Section 301 of the Companies Act, 1956;
(i) The Company has granted interest free loan to 2 parties covered in
the aforesaid Register The amount involved (i.e. the maximum amount
outstanding during the year was Rs. 31.46 lacs). Rs. 31.46 lacs were
receivable from these parties as at the close of the accounting year.
(ii) The Company has taken interest free loans from 4 parties covered
in the aforesaid Register. The amount involved (i.e. the maximum amount
outstanding during the year was Rs. 10.72 lacs). Rs. 10.72 lacs were
payable to these parties as at the close of the accounting year.
(b) According to the information and explanation given to us, terms and
conditions in respect of unsecured loans given/taken by the Company are
not prima-facie prejudicial to the interest of the Company.
(c) In our opinion and according to the information and explanations
given to us, the payment of principal amount is on demand.
(d) In our opinion and according to the information and explanation
given to us, there are no overdue amounts in respect of the
transactions listed in clause (a) above.
4. In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business, with regard to purchase of inventory, fixed assets and for
the sale of goods. During the course of audit, we have not observed any
continuing failure to correct major weaknesses in internal controls.
5. (a) According to the information and explanations given to us, we
are of the opinion that there are no transaction that need to be
entered into a register in pursuance of section 301 of the Companies
Act, 1956.
(b) In our opinion and according to the information and explanation
given to us, there are no transactions for purchase/sale of goods
exceeding rupees five lacs in value, in which directors are interested
as listed in the registers u/s.301 of the Companies act.
6. According to the information and explanation given to us, the
Company has not accepted any fixed deposits from the public during the
year and therefore, the question of compliance with the provisions of
Section 58A and 58AA of the Companies Act, 1956 and the companies
(Acceptance of Deposits) Rules, 1975 is not necessary.
7. The company did not have any formal internal audit system during
the year under review. In the opinion of the Management, the existing
internal control procedures are adequate and hence separate internal
audit is not called for.
8. Maintenance of cost records has not been prescribed by the central
government under provision of Section 209(1 )(d) of the Companies Act,
1956.
9. (a) The company is not regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education and protection fund, employees state insurance,
income-tax, Service tax, sales-tax, wealth tax, custom duty, excise
duty, cess and any other statutory dues applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable except Rs. 50,343/- for Sales Tax, Rs.
1,377/- Purchase Tax, Rs. 6,28,564/- Gratuity. Rs. 36,880/- Leave
Encasement, Rs. 37,617/- ESCI and Rs. 1,080/- Professional Tax in
respect of income-tax, sales-tax, Service tax, wealth tax, custom duty,
excise duty, cess were in arrears, as at 31st March, 2011 for a period
of more than six months from the date they become payable.
10. The Company has accumulated losses Rs. 176.80 lacs at the end of
the financial year. Further, the company has incurred cash losses of
Rs. 0.10 lacs during the financial year covered under audit. However,
the company has also incurred cash losses of Rs. 0.10 lacs during
immediately preceding financial year.
11. In our opinion, and according to the information and explanation
given to us, the company has defaulted in repayment of dues to a bank
at the end of the financial year to the extent of Rs. 48.56 Lacs.
12. In our opinion, the company has not granted any loans and advances
on the basis of security by way of pledge of shares, debentures and
other securities. Hence, maintenance of record is not applicable.
13. In our opinion, the company is not chit fund or nidhi mutual
fund/society.
14. In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments.
15. In our opinion, and according to information and explanations
given to us, the Company has not given guarantee for loans taken by
others from banks or financial institutions.
16. Company has not availed any term loan during the year.
17. According to the information and explanation 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. No long-term funds have been used to finance short-term
assets except permanent working capital.
18. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares during the
year to parties and companies covered in the register maintained under
Section 301 of the Act.
19. According to the information and explanations given to us, the
Company has not issued any debenture.
20. Company has not raised any money by public issue during the year.
21. According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the year
under review.
FOR C. PADAMSHI & CO.,
CHARTERED ACCOUNTANTS
(C. P. CHHEDA)
PROPRIETOR
Place : Baroda
Date : 01.09.2011
