AUDITORS REPORT
To the Members of
SCOPE INDUSTRIES (INDIA) LIMITED HYDERABAD.
Report on the Financial Statements
We have audited the accompanying financial statements of the Scope Industries (India)
Limited, which comprises the Balance Sheet as at March 31, 2013, and the Statement of
Profit and Loss and Cash flow statement for the year ended, and summary of significant
accounting policies and other explanatory information.
Management Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give a
true and fair view of the financial position, financial performance and Cash flows of the
Company in accordance with Accounting Standards referred to in sub-section (3C) of section
211 of the Companies Act, 1956 ("the Act"). This responsibility includes the
design, implementation and maintenance of internal controls relevant to the preparation
and presentation of the financial statements that give a true and fair view and are free
from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our
audit. We conducted our audit in accordance with the Standards on Auditing issued by the
Institute of Chartered Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the
auditor’s judgement, including the assessment of the risks of material misstatement
of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the Company’s
preparation and fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the explanations
given to us, the financial statements give the information required by the Act 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 Balance Sheet, of the state affairs of the Company as at March 31,
2013
(b) In the case of the Statement of Profit and Loss, 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
Report on Other Legal and Regulatory Requirements:
1. As required by the Companies (Auditor’s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of sub-section (4A) of
section 227 of the Act, we give in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, 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 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, Statement of Profit and Loss dealt with by this report are in
agreement with the books of account
d. In our opinion, the Balance Sheet, Statement of Profit and Loss, comply with the
Accounting standards referred to in sub-section (3c) of section 211 of the Companies Act,
1956;
e. On the basis of written representations received from the directors as on March 31,
2013, and taken on record by the Board of Directors, none of the Directors is disqualified
as on March 31, 2013, from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
|
For Ramasamy Koteswara Rao & Co; |
|
Chartered Accountants |
|
Firm Regn No:010396S |
|
Sd/- |
|
(C V Koteswara Rao) |
| Place : Hyderabad |
Partner |
| Date : May 30, 2013 |
Membership No. 028353 |
Annexure to the Auditors’ Report to the Members of SCOPE INDUSTRIES (INDIA)
LIMITED, for the year ended March 31, 2013
(Referred to in paragraph 3 of our Report of even date)
(i) (a) The company has maintained proper records showing full particulars, including
quantitative details and situation of fixed assets.
(b) The Fixed assets have been physically verified by the management during the year in
accordance with a phased program of verification which, in our opinion is reasonable
having regard to the size of the company and the nature of its assets, According to the
information furnished to us , no material discrepancies have been noticed on such
verification.
(c) No substantial part of fixed assets have been disposed off by the company during
the year.
(ii) (a) The inventory has been physically verified by the Management during the year.
In our opinion, the frequency of such verification is reasonable.
(a) The procedures for the physical verification of inventories followed by the
Management are reasonable and adequate in relation to the size of the Company and the
nature of its business
(b) The Company has maintained proper records of inventory and there are no
discrepancies noticed on verification between the physical stocks and the book of records.
(iii) (a) The company has not granted any loans to covered in the register maintained
under section 301 of the companies Act, 1956. In view of clause (iii) (a) above, the
clauses (iii) (b), (iii) (c) (iii) (d) are not applicable.
(b) According to the information and explanations given to us, the company has taken
loans from the two parties covered in the register maintained under section 301 of the
Companies Act 1956. The maximum amount outstanding during the year was Rs 16,00,000 and
the year end balance of such loan was Rs 7,21,595.
(c) In our opinion, the rate of interest and other terms and conditions on which the
loan has been taken from parties covered in the register maintained under Section 301 of
the Companies Act, 1956 are not, prima facie, prejudicial to the interest of the Company.
(d) Since, the periods of payment of interest and repayment of principle have not
been stipulated in the agreement, we are unable to comment whether the payment of interest
and repayment of principle are regular or not.
(iv) In our opinion and according to the information and explanations given to us,
there is an adequate internal control system commensurate with the size of the company and
the nature of its business, with regard to purchase of inventory and fixed assets and for
the sale of goods and services. During the course of our audit, no major weakness has been
noticed in the internal controls system.
(v) According to the information and explanations given to us, we are of the opinion
that there are no contracts or arrangements that need to be entered into the register
maintained under section 301 of the Act.
(vi) In our opinion and according to the information and explanations given to us, the
company has not accepted any deposits within the meaning of Sections 58A and 58AA of the
Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard to
the deposits accepted from the public.
(vii) In our opinion the company has an internal audit system commensurate with its
size and the nature of its business.
(viii) According to the information and explanations given to us, maintenance of cost
records has not been prescribed by the central government under the clause (d) of
sub-section (1) of section 209 of the Act.
(ix) (a) According to the information and explanations given to us and on the basis of
our examination of the records of the Company, amounts deducted/ accrued in the books of
account in respect of undisputed statutory dues including income-tax, and other material
statutory dues have generally been regularly deposited during the year by the Company with
the appropriate authorities, except for certain cases of tax deducted at
source(Amounting Rs.93,63,056) and Professional tax ( Amounting Rs 11,180 ) Provident fund
(Amounting Rs 1,19,871) where there have been delays for more than180 days.
(b) According to the information and explanation given to us, there are no dues of
income-tax, wealth- tax, sales-tax, and cess, which have not been deposited on account of
any dispute.
(x) The company has been registered for a period of not less than five years and the
accumulated losses of the company at the end of the financial year is not more than fifty
percent of its Net worth and the Company has not incurred any cash losses during the year
and immediately preceding financial year.
(xi) Based on our audit procedures and on the information and explanation given to us,
we are of the opinion that the company has not defaulted in the payment of any dues.
(xii) According to the information explanation given to us, the company has not granted
any loans and advances on the basis of security by way pledge of shares, debentures and
other securities.
(xiii) The company is not a chit fund or nidhi / mutual benefit fund / society.
Accordingly, the provisions of clause 4 (xiii) of the said order are not applicable to the
company.
(xiv) The Company does not deal or trade in shares, securities, debentures and other
investments.
(xv) According to the information and explanations given to us, the company has not
given guarantees for loans taken by others from banks or financial institutions.
(xvi) The company has not raised any new term loans during the year hence the question
of reporting on these clause is not required.
(xvii) According to the information and explanations given to us, and on overall
examination of the Balance Sheet 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 made preferential allotment of shares to parties and companies
covered in the register maintained under section 301 of the Act. In our opinion, the price
at which such shares have been issued is not prejudicial to the interest of the company.
(xix) The company has not issued any debentures. Accordingly, the question of creating
security or charge for such debentures does not arise.
(xx) The company has not raised any money by public issues during the year.
Accordingly, the question of disclosure of end use of such monies does not arise.
(xxi) According to the information and explanations given to us, no fraud on or by the
company has been noticed or reported during the course of our audit.
|
For Ramasamy Koteswara Rao & Co; |
|
Chartered Accountants |
|
Firm Registration No: 010396S |
|
Sd/- |
|
(C V Koteswara Rao) |
| Place : Hyderabad |
Partner |
| Date : May 30, 2013 |
Membership No. 028353 |
+91-9892691696
