Independent Auditor
To The Members of Accurate Transformers Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Accurate Transformers
Limited (‘the company’) as at 31st March, 2014 and the Statement
of Profit & Loss and the Cash Flow Statement for the year 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 of the Company in
accordance with the 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 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 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:
(i) In the case of the Balance Sheet, of the state of affairs of the Company as at
31st March, 2014
(ii)In the case of the Statement of Profit and Loss, of the profit for the year
ended on that date; and
(iii)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’), as amended, 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 explanation which to the best of our
knowledge and belief were necessary for the purpose of our audit;
b) in our opinion, subject to Paragraph (3) below, and notes given in Schedule
26, 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 Cash Flow Statement dealt
with by this Report are in agreement with the books of account;
d) in our opinion, subject to Paragraph (3), Balance Sheet, Statement of Profit
& Loss and Cash Flow Statement dealt with by this Report comply with the Accounting
Standards referred to in sub-section (3C) of Section 211 of the companies Act, 1956; and
e) On the basis of the written representation received from the directors as on
31st March 2014, and taken on the record by the Board of Directors, none of the
Directors are disqualified as on 31st March, 2014 from being appointed as a
Director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act,
1956.
Others:
3) a) Income Tax Authorities has conducted search proceedings under section 132 of
the Income Tax Act, 1961 on 26th July 2006. The Assessment proceeding has been
completed. The Company has gone in appeal in all cases. The appeal proceeding has also
been completed. Now the matter is pending before I.T.A.T.
b) During the Search Proceedings, the Company has offered Rs. 175 lacs as
additional income, and the same has been taken into consideration in assessment of the
F.Y. 2006-07. The company has taken the same under the head Other Income (in F.Y. 2006-07)
and corresponding amount has been shown as other Assets in Long Term Loans and Advances.
The exact effect of the same would be taken into the Accounts when the appeal is decided
by I.T.A.T.
c) The liability towards the retirement benefits i.e. gratuity and leave encashment
was provided by the Company as per the AS-15, issued by ICAI.
d) That the company not follows the Accounting Standard (AS-17), "Segment
Reporting" as company deals in Manufacturing of the Transformers, Trading and
Electrification Projects (Erection).
|
FOR OM PRAKASH YADAV & CO. |
|
(Chartered Accountants) |
|
Sd/- |
|
OM PRAKASH YADAV |
| DATE:- 01/09/2014 |
F.C.A. |
| PLACE: - Noida |
PROP. |
|
M. No. 510791 |
Annexure to the Auditor’s Report
The annexure referred to in our report to the members of Accurate Transformers Limited
(‘the Company’) for the year ended 31st March, 2014. We report that:
(i) (a) The Company has maintained proper records showing full particulars,
including quantitative detail and situation of fixed assets.
(b) The management has carried out a physical verification of most of its fixed
assets during the year. In our opinion, the frequency of verification is reasonable having
regard to the size of the Company and the nature of its fixed assets. The discrepancies
noticed on such verification were not material and have been properly dealt with in the
book of account.
(c) There was no disposal of a substantial part of fixed assets during the year.
(ii) (a) During the year, the inventories have been physically verified by the
management except for inventory lying with third parties.
(b) In our opinion and according to the information and explanation given to us,
the procedures of physical verification of stocks followed by the management are
reasonable and adequate in relation to the size of the Company and the nature of its
business.
(c) On the basis of explanation given by the Management of the Company, the Company
is maintaining the proper records of inventories.
(iii) (a)According to the information and explanations given to us, the Company has
granted unsecured loans during the year to companies, firms or other parties covered in
the Register maintained under section 301 of the Act during the year which are prima
facie prejudicial to the interest of the company. The company has maintained running
accounts with the parties covered in the register maintained under section 301 of the
Companies Act, 1956.
(b) In our opinion and according to the information and explanations given to
us, the transactions made in pursuance of such contracts or arrangements exceeding value
of Rupees five lakh have been entered into during the financial year at prices which are
reasonable having regard to prevailing market price at the relevant time.
(vi) In our opinion and according to the information and explanations given to us,
the Company has not invited deposits from the public.
(vii) In our opinion, the internal audit system of the Company is commensurate with
the size and nature of its business.
(viii) The company has informed to us to maintain the cost records, in 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. We have not examined the records with a view to
determine whether they are accurate or complete.
(ix) According to the information and explanations given to us and records of the
Company examined by us, the Company is generally regular in depositing with the
appropriate authorities undisputed statutory dues i.e. employees’ provident fund,
ESI, income tax, TDS, service tax, VAT/sales tax, excise duty, cess, Investor education
and protection fund and other material statutory dues applicable to it. (Refer to Note No.
26.5(v) of the Schedule 26).
(x) (a) According to the information and explanations given to us and the records
of the Company, the following are the particulars of disputed dues on account of excise
duty, Income Tax, and Sales tax/VAT, Cess matters that have not been deposited and also
not made the provisions in the Books of Accounts by the company as at March 31, 2014.
| S. No. |
Name of the Statute |
Nature of the dues |
Amount (Rs. In Lacs) * |
Period to which the amount related |
From where dispute is pending |
| 1. |
Central |
Excise duty |
0.51 |
2003-04 |
High court of Allahabad |
|
Excise Tax |
|
161.00 |
2002-06 |
Customs, Excise & |
|
|
|
36.00 |
2002-06 |
Services Tax Appellate |
|
|
|
8.38 |
2008-09 |
Tribunal |
| 2. |
Sales Tax / VAT |
Sales Tax / Vat |
1.92 |
2008-09 |
Joint Commissioner |
|
|
|
0.68 |
2009-10 |
(Appeals) |
|
|
|
1.77 |
2009-10 |
-Do- |
|
|
|
0.04 |
2009-10 |
-Do- |
*Amount as per demand orders including interest and penalty wherever indicated in the
demand.
(b) Rs. 6.51 Lacs pertaining to Unclaimed Dividend and Unclaimed Share Application
Money due, not deposited with the Investor Education and Protection Fund till date.
(xi) The Company does not have any accumulated losses at the end of the financial
year and has not incurred cash losses during the financial year and in the immediately
preceding financial year.
(xii) According to the records of the company examined by us and the information
and explanations given to us, the Company during the year has not defaulted in repayment
of dues to financial institution, banks.
(xiii) As the Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities, paragraph 4 (xii) of
the Order is not applicable.
(xiv) The provisions of any special statue as specified under paragraph 4 (xiii) of
the Order are not applicable to the Company.
(xv) As the Company is not dealing or trading in shares, securities, debentures and
other investments, paragraph 4 (xiv) of the Order is not applicable.
(xvi) In our opinion and according to the information and explanations given to us,
the Company has not given any guarantee for loans taken by others from bank or financial
institution.
(xvii) In our opinion and according to the information and explanations given to
us, term loans were utilised for the purpose for which loans were obtained.
(xviii) In our opinion and according to the information and explanations given to
us, funds raised on short term basis have, prima facie, not been used during the year for
long-term investments.
(xix) According to the information and explanation given to us, the company has not
allotted any shares on preferential basis to parties and companies covered in the Register
maintained under section 301 of the Act.
(xx) As the Company has not issued any debentures, paragraph 4 (xix) of the Order
is not applicable.
(xxi) As the Company has not raised any money by way of public issue, paragraph 4
(xx) of the Order is not applicable.
(xxii) 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 the year ended March 31, 2014.
|
FOR OM PRAKASH YADAV & CO. |
|
(Chartered Accountants) |
|
Sd/- |
| DATE:- 01/09/2014 |
Om Prakash Yadav F.C.A. |
| PLACE: - Noida |
PROP. |
|
M. No. 51079 |
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