We have audited the attached Balance Sheet of Wheels India Limited as
at 31st March, 2007, the Profit and Loss Account and the Cash Flow
Statement for the year ended on that date annexed thereto. 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.
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 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
As required by the Companies (Auditor's Report) Order, 2003 and on the
basis of such checks of the books and records of the Company as we
considered appropriate and the information and explanations given to us
during the course of our audit, we enclose in the annexure a statement
on the matters specified in the said order.
Further to our comments in the Annexure referred to above, we report
i. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
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
iii. The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account,
iv. In our opinion, the Balance Sheet and Profit and Loss Account dealt
with by this report comply with the accounting standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956.
v. As per information furnished to us, no Director of the Company is
disqualified as on 31st March, 2007 from being appointed as Director
under Clause (g) of Sub-Section (1) of Section 274 of the Companies
vi. 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.:-
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2007;
b) In the case of the Profit and Loss Account, of the profit for the
year ended on that date and
c) In the case of cash flow statement, of the cash flows for the year
ended on that date.
for SUNDARAM AND SRINIVASAN
21st June, 2007
Annexure to the Report of Auditors
I.(a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
(b) These fixed assets have been physically verified by the Management
at reasonable intervals. We are informed that no material
discrepancies were noticed on such verification.
(c) The company has not disposed of substantial part of fixed assets
during the year.
II. (a) Physical verification of inventory has been conducted at
reasonable intervals by the Management
(b) 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) The company is maintaining proper records of inventory and the
discrepancies noticed on physical verification which were not material,
have been properly dealt with in the books of account.
III. The company has neither granted nor taken any loans secured or
unsecured to/from companies, firms or other parties covered in the
register maintained under Section 301 of the Act. Hence, the clauses
(iii) (b) to (g) of the order are not applicable.
IV. There is an adequate internal control system commensurate with the
size of the company and the nature of its business for the purchase of
inventory, fixed assets and for the sale of goods and services. There
is no continuous failure to correct major weaknesses in internal
V. (a) 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 the section.
(b) The transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
VI. The company has complied with the provisions of Section 58 A and
58 AA or any other relevant provisions of the Act and the Rules framed
thereunder with regard to the deposits accepted from the public.
VII. The company has an adequate internal audit system commensurate
with its size and nature of its business.
VIII. The company has made and maintained the accounts and records
prescribed by the Central Government under Section 209 (1) (d) of the
Companies Act, 1956 and we have broadly reviewed the same.
IX (a) The company is regular in depositing undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income Tax, Sales Tax, Value Added Tax,
Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and any other
statutory dues with the appropriate authorities.
(b) The disputed Sales Tax amounting to Rs.10.19 Lakhs has not been
deposited on account of disputes which are contested in appeals and are
pending before the Sales Tax Appellate Tribunal.
X. The Company has no accumulated losses and has not incurred cash
losses during this financial year or in the immediately preceding
XI. The company has not defaulted in repayment of dues to a financial
institution or bank.
XII. 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 company is not a chit fund or a nidhi/mutual benefit
fund/society. Therefore, clause 4 (xiii) of the order is not applicable
to the company.
XIV. The company is not dealing or trading in shares, securities,
debentures and other investments.
XV. The company has not given any guarantee for loans taken by others
from banks or financial institutions.
XVI. The term loans were applied for the purpose for which the loans
XVII. Based on the balance sheet and fund flow statement of the company
in our opinion the funds raised on short term basis have not been used
for long term investments.
XVIII. The company has not made any preferential allotment of shares
during the year.
XIX. The company has not issued any debentures during the year.
XX. The company has not raised any money by way of public issues during
XXI. No fraud on or by the company has been noticed or reported during
for SUNDARAM AND SRINIVASAN
Chennai K. Srinivasan
21st June, 2007 Partner