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YOKOGAWA INDIA LIMITED
ANNUAL REPORT 2010-2011
AUDITORS' REPORT
TO
THE MEMBERS OF
YOKOGAWA INDIA LIMITED
1. We have audited the attached Balance Sheet of YOKOGAWA INDIA LIMITED
('the Company') as at March 31, 2011, the Profit and Loss Account and the
Cash Flow Statement of the Company for the year ended on that date, both
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.
2. We conducted our audit in accordance with the 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 the
disclosures in the financial statements. An audit also includes assessing
the accounting principles used and the significant estimates made by the
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 (Auditor's Report) Order, 2003 (CARO)
issued by the Central Government in terms of Section 227(4A) 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 purposes of our audit;
(ii) in our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books;
(iii) the Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(iv) in our opinion, the Balance Sheet, the Profit and Loss Account and the
Cash Flow Statement dealt with by this report are in compliance with the
Accounting Standards referred to in Section 211(3C) of the Companies Act,
1956;
(v) 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 March 31, 2011;
(b) in the case of the Profit and Loss Account, of the profit of the
Company for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
5. On the basis of the written representations received from the Directors
as on March 31, 2011 taken on record by the Board of Directors, we report
that none of the Directors is disqualified as on March 31, 2011 from being
appointed as a director in terms of Section 274(l)(g) of the Companies Act,
1956.
For and on behalf of Deloitte Haskins & Sells
Chartered Accountants
Registration No. 008072S
S. Ganesh
Partner
M. No. 204108
Place: Bangalore
Date : May 16, 2011
ANNEXURE TO AUDITORS' REPORT
(Referred to in paragraph 3 of our report of even date)
(i) Having regard to the nature of the Company's business/ activities/
results, clauses i(c), iii (b) to (d), (f) & (g), v, vi, xii, xiii, xiv,
xvi, xix and xx of CARO are not applicable to the Company during the year.
(ii) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of the fixed assets.
(b) The fixed assets were physically verified during the year by the
Management in accordance with a regular programme of verification which, in
our opinion, provides for physical verification of all the fixed assets at
reasonable intervals. According to the information and explanation given to
us, no material discrepancies were noticed on such verification.
(iii) In respect of its inventory:
(a) As explained to us, the inventories were physically verified during the
year by the Management at reasonable intervals.
(b) In our opinion and according to the information and explanation given
to us, the procedures of physical verification of inventories followed by
the Management were reasonable and adequate in relation to the size of the
Company and the nature of its business.
(c) In our opinion and according to the information and explanations given
to us, the Company has maintained proper records of its inventories and no
material discrepancies were noticed on physical verification.
(iv) The Company has neither granted nor taken any loans, secured or
unsecured, to/from companies, firms or other parties listed in the Register
maintained under Section 301 of the Companies Act, 1956.
(v) In our opinion and according to the information and explanations given
to us, having regard to the explanations that some of the items purchased
are of special nature and suitable alternative sources are not readily
available for obtaining comparable quotations, there is an adequate
internal control system commensurate with the size of the Company and the
nature of its business with regard to purchases of inventory and fixed
assets and the sale of goods and services. During the course of our audit,
we have not observed any major weakness in such internal control system.
(vi) In our opinion, the internal audit functions carried out during the
year by firm of Chartered Accountants appointed by the Management have been
commensurate with the size of the Company and the nature of its business.
(vii) We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under Section 209(1) (d) of the Companies Act,
1956 in respect of Electronic Products and are of the opinion that prima
facie the prescribed accounts and records have been made and maintained. We
have, however, not made a detailed examination of the records with a view
to determining whether they are accurate or complete.
(viii) In our opinion and according to the information and explanations
given to us in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed 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 and other material statutory dues applicable
to it with the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident Fund,
Investor Education and Protection Fund, Employees' State Insurance, Income-
tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and
other material statutory dues in arrears as at March 31, 2011 for a period
of more than six months from the date they became payable.
(c) Details of dues of Income-tax, Sales Tax, Wealth Tax, Service Tax,
Custom Duty, Excise Duty and Cess which have not been deposited as on March
31, 2011 on account of disputes are given below:
Statue Nature of A B C
Dues
Income Tax Income Tax 6.03 2005-06 Commissioner of Income Tax
Act, 1961 Appeals
Income Tax Income Tax 75.33 2006-07 Income Tax Appellate
Act, 1961 Tribunal
Income Tax Income Tax 301.86 2007-08 Dispute Resolution Panel
Act, 1961
Finance Act, Service Tax 337.53 2008-09 Customs, Excise and
1994 Service Tax Appellate
Tribunal
The Orissa Sales Tax 3.65 1996-97 Assistant Commissioner of
Sales Tax Sales Tax, Orissa
Act, 1947
The Karnataka Sales Tax 1.00 1990-91 Deputy Commissioner of
Sales Tax Commercial Tax
Act, 1957
The Karnataka Sales Tax 0.95 1988-89 Joint Commissioner of
Sales Commercial Tax
Tax Act, 1957
A = Amount involved (Rs. in lakhs)
B = Period to which the amount relates
C = Forum where Dispute is pending
(ix) The Company does not have accumulated losses at the end of the
financial year and has not incurred cash loss during the financial year and
the immediately preceding financial year.
(x) In our opinion and according to the information and explanations given
to us, the Company has not defaulted in the repayment of dues to banks and
financial institutions.
(xi) The Company has not given any guarantee for loans taken by others from
banks and financial institutions.
(xii) In our opinion and according to the information and explanations
given to us and on an overall examination of the Balance Sheet, we report
that funds raised on short-term basis have not been used during the year
for long- term investment.
(xiii) The Company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under section 301
of the Act.
(xiv) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no fraud on the
Company has been noticed or reported during the year.
for Deloitte Haskins & Sells
Chartered Accountants
Registration No. 008072S
S. Ganesh
Partner
M.No. 204108
Place: Bangalore
Date : May 16, 2011
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