INDEPENDENT AUDITOR S
To the Members of
VYBRA AUTOMET LIMITED
BIBINAGAR,NALGONDA DIST.
Report on the Financial Statements
We have audited the accompanying financial statements of M/s.VYBRA AUTOMET LIMITED,
which comprise the Balance Sheet as at March 31,2014, the Statement of Profit and Loss and
Cash Flow Statement for the year then ended, and a summary of significant accounting
policies and other explanatory information.
Management’s 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 the Accounting Standards referred to in sub-section (3C) of
section 211 of the Companies Act, 1956 read with general circular 15/2013 dated 13th
September 2013 of the Ministry of Corporate affairs in respect of Section 133 of Companies
Act, 2013. This responsibility includes the design, implementation and maintenance of
internal control 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 judgment, 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 qualified opinion.
Basis of qualified opinion:
a) The company is in the process of identifying slow moving/ non moving items and the
pending finalization of said process and we are not in a position to quantify the
provision required to be made in the profit & loss account.
b) There are certain dies which are not in use in the regular production and also there
are no present orders for those dies. We are not in a position to comment on correctness
and adequacy/inadequacy of valuation, since it is technical in nature.
c) Debtors/Creditors are subject to confirmation
Qualified Opinion
In our opinion and to the best of our information and according to the explanations
given to us, except for the matters specified in basis for qualified opinion para, 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 the Balance Sheet, of the state of affairs of the Company as at March
31,2014;
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 the cash flow statement, of the cash flows for the year ended on that
date.
Emphasis of matter:
The principle amount of Rs.2750 Lacs and interest of Rs.218.06 lacs is due to M/s.
Edelweiss Asset Reconstruction Company (EARC). No repayment of installment and interest
paid during the year. The account become irregular and lender has initiated action under
SECURITISATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST
ACT (SARFAESIA) Notice. Hence, no interest is provided. The company is under negotiation
with the lender. (Attention is drawn towards note 6 of notes on Secure Loans of note 3 Non
current liabilities in the financial statements for the FY 2013-14.)
REPORTONOTHERLEGALANDREGULATORYREQUIREMENTS:
1. As required by the Companies (Auditor’s Report) Order,2003 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. Subject to:
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 and the cash flow statement 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 and statement of
cash flow statement comply with the Accounting Standards referred to in subsection (3C) of
section 211 of the Companies Act, 1956 except AS -15:Accounting for Employee retirement
benefits (Revised).
e) On the basis of written representations received from the directors as on March 31,
2014, 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.
|
As per our report of even date |
|
For JAWAHAR AND ASSOCIATES |
|
Chartered Accountants |
|
FRN : 0012815 |
|
Sd/- |
| Place : HYDERABAD |
V.UMAPATHI |
| Date : 29-5-2014 |
Partner |
|
M.No. 21887 |
Annexure to the Auditor’s Report
(Referred to in paragraph (3) of our report of even date)
I. (a) The Company is maintaining proper records showing full particulars including
quantitative details and situation of fixed assets.
(b) The fixed assets have been physically verified by the management and no material
discrepancies were noticed all such verifications.
(c) The company has not disposed of the substantial part of the fixed Assets which will
affect the going concern.
II. (a) The physical verification of the inventory has been conducted at reasonable
intervals by the management.
(b) In our opinion the physical verification of inventory followed by the management is
reasonable and adequate in relation to the size of company and the nature of business.
(c) In our opinion the company is maintained proper records of inventory and no
material discrepancies were noticed on physical verification of inventories.
III. (a) The company has neither granted any loans nor advanced any amounts to
companies/ fir ms or other parties covered in the register maintained under section 301 of
the Companies Act,1956. Since the company has not granted any loans to companies/fir ms or
other parties covered under section 301 of the Companies Act,1956, the provisions of sub
clauses (b),(c) and (d) are not applicable to the company.
(b) The company has not obtained Inter corporate Deposits/unsecured loans from the
parties covered under section 301 of the Companies Act, 1956, the provisions of sub
clauses (f) and (g) are not applicable to the company.
iv. In our opinion there is an adequate internal control procedure commensurate with
the size of the company and nature of the business for purchase of inventories and fixed
assets and for sale of goods.
v. (a) According to information and explanation given to us, all the transactions
required to be entered in the register pursuance to the provisions of section 301 of the
Companies Act,1956 have been so entered.
(b) According to information and explanation given to us, the transactions exceeding
Rs.5 lacs covered under the register maintained under section 301 of the Companies Act,
are reasonable having regard to the prevailing market prices at the time of entering the
transaction.
vi. According to information and explanation given to us, the company has not accepted
deposit from the public as per the provisions of Section 58A and Section 58AA of the
Companies Act,1956.
vii. The company has an internal audit system commensurate with the size and nature of
business. viii. According to information and explanation given to us, the Central
Government has prescribed for the maintenance of cost records under section 209 (1) (d) of
the Companies Act,1956 for the products manufactured by the Company and the company has
appointed a cost consultant to design the cost records and the same is under progress.
ix. (a) As per the records of the company, it has been depositing undisputed statutory
dues Sales Tax, Provident Fund/ ESI and Income Tax, even though there were certain delays.
The Statutory dues pending more than six : months which were undisputed as on 31.03.2014
in respect of:
| - Income tax payable |
for the AY 2008-09 Rs.8.09 lacs and |
| - Provident Fund of |
Rs.72.66 Lacs |
| - ESI Payable of |
Rs .5.62 Lacs |
| - SalesTax of |
Rs.7.02 Lacs |
(b) On the basis of examination of the documents and records there are no disputed
Statutory Liabilities.
x. During the Financial Year under consideration, the company has incurred cash loss of
Rs.21.08 Crores (Previous Year Rs.4.12 Crores) and the accumulated Losses are Rs.41.29
Crores as on 31st March,2014 and exceeding 50% of Share Capital and free Reserves of
Rs.45.87 Crores.
xi. On the basis of information available and explanation given to us, the company is
in the process of preparing a package for the defaulted payments / overdue payments with
financial institution in view of the economic slowdown.
xii. According to information and explanation given to us, the company has not granted
any loans or advances on the basis of security by way of pledge of shares, debentures or
securities.
xiii. In our opinion, the company is not a Chit Fund or a Nidhi/Mutual Benefit
Fund/Society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditor’s
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. Accordingly, the provisions of clause 4(xiv) of the
Companies (Auditor’s Report) Order,2003 are not applicable to the company.
xv. According to the information and explanation given to us, the company has not given
any guarantee for the loans taken by others from Bank or Financial Institution.
xvi. According to the information and explanation given to us, the company applied the
Term Loans for the purpose for which the loans were obtained.
xvii. According to the information and explanation given to us and on overall
examination of the Balance Sheet of the company, we report that no funds raised on short
term basis have been utilized for long term investment except for working capital.
xviii. According to information and explanation given to us, the company has not made
any preferential allotment of Share to parties and companies covered under section 301 of
the Companies Act 1956.
xix. According to information and explanation given to us, the company has not raised
any debentures during the year under audit.
xx. According to information and explanation given to us, the company has not raised
any monies from the public by way of issue of shares to the public.
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.
|
As per our report of even date |
|
For JAWAHAR AND ASSOCIATES |
|
Chartered Accountants |
|
FRN : 0012815 |
|
Sd/- |
| Place : HYDERABAD |
V.UMAPATHI |
| Date : 29-05-2013 |
Partner |
|
M.No. 21887 |
+91-9892691696
