kei industries ltd Auditors report

INDO GERMA PRODUCTS LIMITED ANNUAL REPORT 2009-2010 AUDITORS REPORT To the Members of M/s. INDO GERMA PRODUCTS LIMITED. 1. We have audited the attached Balance Sheet of M/s. INDO GERMA PRODUCTS LIMITED as at March 31, 2010 which we have signed under reference to this report. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit. 2. We have 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. 3. As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government in pursuance of Sub-section (4A) of section 227 of the of the Companies Act, 1956, we enclose as an annexure a statement on the following matters as specified in paragraph 4 of the said order to the extent applicable to the company. 4. Further to our comments 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 purposes of our audit; 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 books; c) The Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of account; d) In our opinion, these accounts have been prepared in compliance with the applicable accounting standards referred to in sub-section (3C) of Section 211 of the Act; e) On the basis of written representations received from the Directors as on march 31, 2009 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on March 31, 2010 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Act; f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts together with notes thereto give in the prescribed manner the information required by the Act, and also 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, 2010 (b) In the case of the Profit and Loss Account, of the Profit for-the year ended on that date. For KARPAGAM & Co., Place: Chennai Chartered Accountants Date : 09.08.2010 S. SRIKANTH Partner. ANNEXURE TO THE REPORT OF THE AUDITORS TO THE MEMBERS OF INDOGERMA PRODUCTS LIMITED 1.(a) The company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets. (b) The management at reasonable intervals has physically verified these fixed assets; No material discrepancies were noticed on such verification. (c) A substantial part of the fixed assets have not been disposed of during the year. 2.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 no material discrepancies were noticed on physical verification. 3. The company has neither granted nor taken loans, secured or unsecured to or from companies, firms or other parties covered in the register to be maintained under section 301 of the Companies Act, 1956. 4. There is an adequate internal control procedure commensurate with the size of the company and the nature of its business, for the purchase of fixed assets. 5. This item does not arise, as there are no transactions exceeding the value of five lakh rupees in respect of any party covered in the register to be maintained under s.301 of the Companies Act, 1956 during the financial year under consideration. 6. The company has not accepted deposits from the public. 7. The company has an internal audit system commensurate with the nature and size and nature of its business. 8. Maintenance of cost records has not been prescribed in respect of the company. 9. The company is regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income-tax, except Service tax, and VAT as applicable with the appropriate authorities and there are no arrears of outstanding statutory dues as at the last day of the financial year concerned for a period of more than six months from the date they became payable. 10. The accumulated losses of the company at the end of the relevant financial year are less than fifty percent of its net worth. The company has not incurred any cash loss during the relevant financial year and in the immediately preceding financial year. 11. The company has not defaulted in repayment of dues to any. financial institutions or banks or debentures holders. 12. The company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. 13. As the company is not a chit fund this item is not applicable. 14. The company is not dealing or trading in shares, securities, debentures and other investments. 15. The company has not given any guarantee for loans taken by others from banks or financial institutions. 16. Term loans were applied for the purpose forwhich the loans were obtained. 17. An examination of the books, records and vouchers produced before us reveals that the funds raised on short term basis have not been used for long term investment and vice versa. 18. The company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under S.301. 19. As the company has not issued any debentures this item is not applicable. 20. As the company has not made any public issue of shares this item is not applicable. 21. No fraud, on or by the company has been noticed or reported duffng the year. For KARPAGAM & Co., Place: Chennai Chartered Accountants Date : 09.08.2010 S. SRIKANTH Partner.