trillenium technologies ltd Auditors report

TRILLENIUM TECHNOLOGIES LIMITED ANNUAL REPORT 2003-2004 AUDITORS REPORT To the Members of M/s Trillenium Technologies Limited We have audited the attached Balance Sheet M/s Trillenium Technologies Limited, as at 31st March 2004 and also the Profit and Loss Account and Cash Flow Statement for the year ended on that date annexed thereto. 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. 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 statement. 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. As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure a statement of the matters specified in paragraphs 4 and 5 of the said Order, Further to our comments in the Annexure referred to 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 purpose of our audit; 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 those books. iii) The Balance Sheet and Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of accounts 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 subsection (3C) of section 211 of the Companies Act, 1956. v) On the basis of written representations received from the directors, as on 3111 March 2004 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 315` March 2004 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956. 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 accepted in India; a) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2004; and b) in the case of the Profit and Loss Account, of the loss for the year ended on that date. c) In the case of Cash Flow Statement, of the cash flows for the year ended on that date. For MORE DATTA & COMPANY CHARTERED ACCOUNTANTS Place : New Delhi (K. RAJINDER SINGH) Dated : 19.7.2004 F.C.A ANNEXURE TO THE AUDITORS REPORT REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE 1. The Company has maintained proper records showing full particulars including quantitative details and situation of Fixed Assets. The Greenhouse has been dismantled and the galvanized iron pipes and fittings are stored at a leased land at Rohtak. The total realizable value of the dismantled greenhouse is about Rs.3,00,000.00 only, at scrap rates, though in the books it appears at Rs.91,11,151.47. The company has disposed off its residual items, the written down value of which was Rs.258,537.55 on 01.4.2003, for Rs.2,45,000.00. These machine!y items have been sold on "as it is and where it is" basis as a going concern. 2. The Company has no inventories and, therefore, the question of physical verification and maintaining of proper records does not arise. 3. As informed to us, the Company has neither granted nor taken any loans from companies, firms or other parties covered under section 301 of the Companies Act, 1956.. However in the previous year, the company has received Rs.26,10,000/- as sale proceeds of the land which was sold to M/s IH Greenhouses Ltd. in the previous years on Power of Attorney. As the land was not transferred in the name of the purchaser company in the revenue records, the land was sold by- Trillenium Technologies Limited on behalf of IH Greenhouses Ltd. This amount is refundable to the said company. No interest has been paid or provided in the books on this amount. The payment of entire amount of Rs.26,10,000/- is over due. In our opinion company is not in a position to repay this amount. No steps have been taken by the company for payment of this amount. 4. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business, for the purchase of inventory and fixed assets. During the year no such items have been purchased. 5. Based on the audit procedures applied by us and according to the information and explanations provided by the management, we are of the opinion that there are no transactions that need to be entered into a register maintained under section 301 .of the Companies Act, 1956. 6. The Company has not accepted any deposits from the public. The Company has not accepted the deposits from the public attracting the provisions of Section 58A and 58AA of the Companies Act, 1956, and the rules framed there under. 7. The Company is maintaining reasonable records of the sales and disposal off realizable scraps. Company has no by-products. 8. In our opinion the companys present internal audit system is commensurate with the size and the nature of its business. 9. The Central Government has not prescribed maintenance of cost records under Section 209(1) (d) of the Companies Act, 1956. 10. The accumulated losses of the company at the end of the financial year have not exceeded fifty percent of its net worth. The Company has not incurred cash losses in this financial year and in the financial year immediately preceding such financial year, also. 11. According to the information and explanations given to us, no undisputed amounts payable in respect of Income-tax, Wealth tax, Sales Tax, Customs-duty and Excise-duty were outstanding as at 31st March, 2004 for a period of more than six months from the due date they became payable. However, the Company has undertaken an obligation to export goods worth Rs.394 lakhs within 5 years from 6.12.1993, failing which additional customs duty with interest of about Rs.183.50 lakhs shall be payable. This has not been provided. We were told that the custom department has not raised any demand or claim till date. 12. The Company has no dues to a financial institution or bank and has not issued any debentures. Therefore, the default in repayment of dues does not arise. 13. According to the information and explanations given to us and based on the documents and records produced to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. 14. In our opinion and according the information and explanations given to us, the nature of activities of the Company does not attract any special statute applicable to chit fund and nidhi/mutual benefit fund/ societies. 15. The Company does not deal or trade in shares, securities, debentures and other investments. 16. According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions. 17. The Company has no term loan. All the loans from Banks have already been cleared. 18. We have been informed by the management that no funds have been raised on short term basis during the year. 19. The Company has not made any preferential allotment of shares to parties or companies covered in the register maintained under Section 301 of the Companies Act, 1956. 20. The Company did not have any outstanding debentures during the year. 21. The Company has not raised any money through public issue during the year. 22. Based upon the audit procedures performed and information and explanations given by the management, we report that no fraud on or by the Company has been noticed or reported during the course of our audit. For MORE DATTA & COMPANY CHARTERED ACCOUNTANTS Place : New Delhi (K.RAJINDER SINGH) Dated : 19.7.2004 F. C. A.