Elgi Industrial Products Ltd Merged Auditor Reports

ELGI INDUSTRIAL PRODUCTS LIMITED (FORMERLY ELGI FINANCE LIMITED) ANNUAL REPORT 2008-2009 AUDITORS REPORT TO THE MEMBERS OF ELGI INDUSTRIAL PRODUCTS LIMITED, COIMBATORE We have audited the attached Balance Sheet of Elgi Industrial products Limited ,Coimbatore, as at 31st March, 2009 and also the Profit and Loss Account for the year ended on that date annexed thereto and the cash flow statement for the period ended on that date. 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. These 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 the management, as well as evaluating the over all 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 subsection (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraph 4 and 5 of the said Order. Further to our comments in the Annexure referred to above, we report that: 1) We have obtained all the information and explanation, which to the best of our knowledge and belief were necessary for the purposes of our audit. 2) 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. 3) The Balance Sheet and the Profit and Loss Account dealt with by this report are in agreement with the books of account. 4) In our opinion the Balance Sheet And Profit and Loss Account dealt with by this report comply with the Accounting Standards referred to in sub- section (3C) of Section 211 of the Companies Act, 1956. 5) On the basis of the written representation received from the Directors, as on 31st March, 2009 and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31st March, 2009 from being appointed as a Director in terms of Clause (g) of Sub-section (1) of Sec ion 274 of the Companies Act, 1956. 6) In our opinion and to the best of our information, and according to the explanation given to us, the said financial statements, give the information required by the Companies Act, 1956, in the manner so required and present 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 31st March 2009; b) In the case of the Profit and Loss Account, of the Loss 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. For SURI & Co., Chartered Accountants Coimbatore C.S. Sathyanarayanan 30/06/2009 Partner Membership No. 28328 ANNEXURE TO AUDITORS REPORT TO THE MEMBERS OF ELGI INDUSTRIAL PRODUCTS LIMITED, COIMBATORE: 1. a) The company is in the process of updating its fixed asset register. b. The assets have been physically verified by the management. The frequency of verification, in our opinion is reasonable, considering the size and the nature of business. c. There were no sale of fixed assets during the year. 2. The company has neither taken nor granted any loans, secured or unsecured to or from companies, firms or other parties covered in the register maintained under section 301 of the companies Act, 1956. 3. There are adequate internal control procedures commensurate with the size of the company and the nature of its business, for the purchase of fixed assets and for the services rendered. During the course of our audit, we have not observed any major weaknesses in internal control. 4. We are of the opinion that the transactions that need to be entered in the register maintained u/s 301 of the Companies Act, 1956, have been so entered. 5. The company has not accepted any deposits from public during the year. 6. The company has an internal audit system commensurate with its size and the nature of its business. 7. According to the information and explanation given to us, no undisputed arrears of statutory dues were outstanding as at 31st March, 2009 for a period of more than six months from the date they became payable. 8. The accumulated losses of the Company as at 31st March 2009 are more than fifty per cent of its net worth and the company has incurred cash loss during the financial year covered by our audit and had not incurred cash loss in the immediately preceding financial year. 9. There are no dues to banks and financial institutions. 10. According to the information and the explanation given to us and on an overall examination of the balance Sheet of the company, we report that no funds raised on short-term basis have been used for long-term investment and vice versa. 11. During the year the company has not made preferential allotment of shares to parties covered in the Register maintained under section 301 of the companies Act. 12. During the year the company has not raised money by public issue. 13. According to the information and the explanation given to us and the books and records examined by us, no fraud on or by the company has been noticed or reported during the year. 14. The other clauses of the order are not applicable to the Company. For SURI & Co., Chartered Accountants Coimbatore C.S. Sathyanarayanan 30/06/2009 Partner Membership No. 28328