TO THE MEMBERS OF ATV PROJECTS INDIA LIMITED
We have audited the attached Balance Sheet of ATV PROJECTS INDIA LIMITED
Mumbai as at 31st March, 2009 and annexed Profits Loss Account and cash flow
statement of the Company for the period 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.
1. 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 our opinion.
2. As required by the Companies (Auditor's Report) Order, 2003 issued by the Central
Government of India in terms of section 227(4-A) of the Companies Act, 1956, we annex
hereto a statement on the matters specified in paragraph 4 and 5 of the said order.
3. Further to our comments stated in paragraph 2 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 accounts.
d. In our opinion the Balance Sheet and the Profit & Loss account subject to para
herein below complies with the mandatory Accounting standards referred in Section 211 (3c)
of the Companies Act, 1956.
e. On the basis of the written representation received from the Directors and taken on
record by the Board of Directors, we report that none of the Directors is disqualified as
on 31st March, 2009 from being appointed as a Director in terms of clause (g) of sub
-section (I) of section 274 of the Companies Act, 1956.
f. In our opinion and to the best of our information and according to the explanations
given to us, and subject to Note No.B-4 with regards to non provision of doubtful debts
amounting to Rs.2094.85 lacs, Note No.B-9 regarding Non provision of depreciation of
Rs.564.86 lacs, Note No.B-11 regarding non-provision of interest of Rs 37211.62 lacs and
Note No.B-19 regarding the amount due towards ssi units, the accounts, read with other
notes given in schedule 'M' gives the information required by the Companies Act, 1956, in
the manner so required and give a true & fair view in conformity with the accounting
principles generally accepted in India:
(i) In the case of Balance Sheet, of the state of affairs of the Company as at 31st
March, 2009 and
ii) In the case of the Profit & Loss Account, of the Profit for the period ended on
(iii) In the case of the cash flow statement of the cash flows for the period ended on
FOR N. S. BHATT & CO.,
M. No. 10149
Dated : 22.07.2009
Annexure to the Auditor Report (Referred to in paragraph (2) of our report of
I a) The Company has maintained the fixed assets records including quantitative details
and situation of fixed assets and is in the process of updating the same.
b) As explained to us, the fixed assets have been physically verified by the management
at reasonable interval in a phased manner during the year and no material discrepancy has
been noticed on such verification and has been properly dealt with in the Books of
c) As per the information and explanation given to us, no fixed assets has been
disposed of by the Company during the period.
II a) The Stock of finished goods, stores, spare parts and raw material have been
physically verified by the management at reasonable intervals during the year, having
regards to the nature of business and particular circumstances.
b) The procedure of physical verification of stock followed by the management as
explained to us, in our opinion, reasonable and adequate in relation to the size of the
Company and the matter of its business.
c) As per the information and explanation given to us and according to the records
produced to us, no material discrepancies noticed on such physical verification as
compared to book records, have been properly dealt with in the books of account.
III As per the information and explanation given to us, the Company has neither granted
nor taken any loans, secured or unsecured, to any Companies, firms or other parties
covered in the register maintained under section 301 of the Companies Act, 1956.
IV According to the information and explanation given to us, in our opinion there are
adequate internal control procedures commensurate with the size of the Company and nature
of its business, for the purchase of inventory and fixed assets and for sale of goods.
During The course of our audit no major weaknesses has been noticed in the internal
control system of the Company.
V a) According to the information and explanations given to us, we are of the opinion
that the transactions that need to be entered into the register maintained under section
301 of the Companies Act, 1956 have been so entered,
b) In our opinion and according to the information and explanations given to us, the
transaction made in pursuance of contracts or arrangements entered in the register
maintained under section 301 of the Companies Act, 1956 and exceeding the value of rupees
five lacs in respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices of the relevant time.
VI The Company has not accepted any deposits from public.
VII In our opinion, the Company has an internal audit system commensurate with the size
and nature of its business.
VIII The Central Government has not prescribed the maintenance of cost records by the
Company under section 209 (1) (d) of the Companies Act, 1956, therefore the provision of
clause 4 (viii) of the Companies (Auditor's Report) Order, 2003 is not applicable to the
IX a) As per the information and explanation given by the management, and according to
the records of the company with regard to undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, Sales
Tax, Wealth Tax, Custom Duty and Other Statutory dues applicable to it, the company is not
regular in depositing with appropriate authorities. According to the information and
explanation given to us, the Company is a sick industrial Company registered with BIFR and
as such is in financial constraint during the period, the undisputed amounts payable in
respect of such statutory dues, which have remained outstanding as at 31st March,2009 for
a period more than six months with regard to Investor Education and Protection Fund for
Dividend of Rs.1.02 lacs for the year 1993-1994,Sales Tax of Rs. 73.21 lacs for the year
1995 - 1996 to 2005 - 2006, Provident Fund of Rs. 99.34 lacs for the year 1995 - 1996 to
2003 - 2004 and Income Tax TDS of Rs. 2.15 lacs for 2008-2009.
b) According to the records of the Company, the dues of Sales Tax, Income Tax, Custom
Duty, Wealth Tax, Excise Duty, which have not been deposited on account of disputes and
from where the disputes is pending with regard to aggregate Sales Tax of Rs. 8.03 lacs for
the year 1997 - 1998, which is disputed and the Company has filed an appeal before
X As per the information and explanation given to us, the Company is a sick Industrial
Company registered with BIFR and the accumulated losses of the Company are more than 50%
of its net worth. According to the records produced before us, the Company has not
incurred any cash losses for the period ending 31st March, 2009 and in the immediately
preceding year ending 30.06.2008.
XI The company has taken in earlier years secured / unsecured term loans and non
-convertible debentures from Financial Institutions, Non Banking Finance Companies and
banks amounting to Rs. 15305.34 lacs and Interest thereon of Rs. 6735.70 lacs, Working
Capital Loans from Banks (including interest) Rs. 25815.30 lacs, Inter Corporate Deposits
Rs. 869.00 lacs and Sales Tax deferment loan Rs. 182.10 lacs. The said amount is due for
repayment as stated in Note No. B - 2 of Notes on Accounts. Since, the Company is a sick
Industrial undertaking registered with BIFR and as asked for by lenders the Company has
already submitted the OTS proposal which has been accepted by them.
XII According to the information and explanation given 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.
XIII The Company is not a chit fund, nidhi or mutual benefit fund / society. Therefore
the provisions of clause 4 (xiii) of the Companies (Auditor Report) Order 2003 are not
applicable to the Company.
XIV In our opinion, the Company is not dealing in or trading in shares, securities,
debentures and other investments.
XV According to the information and explanation given to us, the company has not given
any guarantee for loan taken by others from Banks and Financial Institutions.
XVI The Company has neither raised any term loan during the year nor any unrealized
amount was left on the account as at the beginning of the year. Therefore, the provisions
of clause 4 (xvi) of the Companies (Auditors Report) Order 2003 are not applicable to the
XVII According to the information and explanations given to us and on an overall
examination of the Balance Sheet of the Company, we report that the funds raised on
short-term basis have not been used for long-term investment and vice - versa.
XVIII The Company has not made any preferential allotment of shares to parties and
companies covered in the register maintained under section 301 during the year.
XIX No debentures has been issued by the Company during the year.
XX The Company has not raised money by public issues during the year.
XXI To the best of our knowledge and beliefs and according to the information and
explanations given to us, no fraud on or by the Company was noticed or reported during the
FOR N. S. BHATT & CO.,
M. No. 10149
Dated : 22.07.2009