AUDITORS
To
The Members of
M/s. ERGON POWER CORPORATION LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of M/s. ERGON POWER CORPORATION
LIMITED ("the Company"), which comprise the Balance Sheet as at 31 st March,
2014, the Statement of Profit and Loss and the Cash Flow Statement for the year then
ended, and a summary of the significant accounting policies and other explanatory
information.
Managements Responsibility for the Financial Statements
The Companys Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position and 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"), read
with the General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate
Affairs in respect of Section 133 of the Companies Act, 2013. This responsibility include
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.
Auditors 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 the 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
the disclosures in the financial statements. The procedures selected depend on the
auditors 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 the internal control relevant to the Companys preparation and fair
presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entitys internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of the accounting
estimates made by the 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 the Balance Sheet, of the state of affairs of the Company as at 31st
March, 2014,
(b) in the case of the Statement of Profit and Loss, of the Loss of the Company for the
year ended on that date and
(c) in the case of the Cash Flow Statement, of the Cash Flows of the Company for the
year ended on that date
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors 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 report that in the annexure on the matters specified in paragraphs 4 and 5 of
the said 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 purposes of our audit;
(b) In our opinion, proper books of account as required by law have been kept by the
Company so far as it appears from our examination of those books;
(c) The Balance Sheet, Statement of Profit and Loss & 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 & Cash Flow
Statement comply with the Accounting Standards referred to in sub-section (3C) of section
211 of the Act, read with the General Circular 15/2013 dated 13th September, 2013 of the
Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013; and
(e) On the basis of the written representations received from the directors as on 31 st
March, 2014 taken on record by the Board of Directors, none of the directors is
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 Act.
|
For RAMANA REDDY & ASSOCIATES |
|
Chartered Accountants. |
|
Firm Regn. No. 003246S |
|
Sd/- |
| PLACE : HYDERABAD |
(CA A.V. RAMANA REDDY) |
| DATE : 18TH AUG. 2014 |
Partner. |
|
Membership No.024329 |
ANNEXURE TO THE AUDITORS REPORT
(Referred to in paragraph (3) of our report of even date)
1. The company does not have any fixed assets thereby the maintenance of proper
records, physical verification and revaluation thereof does not arise.
2. The company has not carried any manufacturing activity thereby the physical
verification of stocks, procedures, discrepancies and maintenance of records does not
arise.
3. (a) The company has not granted any loans, secured or unsecured to companies, firms
or other parties covered in the Register maintained under Section 301 of the Companies
Act. 1956.
(b) The company has taken unsecured loans from companies, firms or other parties
covered in the Register maintained under Section 301 of the Companies Act. 1956. The
closing balance of such loan is Rs.9.14 lakhs and the opening balance is Rs.8.70 lakhs.
(c) According to the information and explanation given to us, the terms and conditions
of such loans are not prima facie prejudicial to the interest of the company.
(d) Since the loans taken are repayable on demand, the provisions of clause 4(iii)(g)
of the Companies (Auditors Report) Order, 2003, as amended, is not applicable to the
company.
4. The company has not carried any business activity during the year under report,
therefore the adequacy of internal control system commensurate with the size of the
company and nature of its business does not arise.
5. (a) According to the information and explanations given to us, the particulars of
contracts or arrangements that need to be entered in the Register maintained in pursuance
of Sec. 301 of the Companies Act, 1956 have been so entered.
(b) In our opinion, and according to the information and explanations given to us, the
company has not made any contracts or arrangements that need to be entered in the register
maintained under section 301 of the Act, and exceeding the value of five lakh rupees in
respect of any party during the year.
6. In our opinion and according to the information and explanations given to us, the
company has not accepted any deposits from the public to which the provisions of section
58A, 58AA or any other relevant provisions of the Companies Act, 1956 and the rules framed
thereunder are applicable.
7. The company has no internal audit system.
8. The maintenance of cost records has not been prescribed by the Central Government
under clause (d) of sub-section (1) of section 209 of the Companies Act, 1956.
9. (a) We were informed that the provisions of Provident Fund Act and Employees State
Insurance Act are not applicable to this company. However, the company is regular in
depositing with appropriate authorities undisputed statutory dues including income tax,
sales tax, wealth tax, service tax, customs duty, excise duty, cess and other material
statutory dues as applicable to it except remittance ofTDS.
(b) According to the information and explanations given to us, no undisputed amounts
payable in respect of income tax, wealth tax, service tax, sales tax, customs duty, excise
duty and cess were in arrears, as at 31 st March, 2014 for a period of more than six
months from the date they became payable except remittance of TDS of Rs. 1,66,040/-.
(c) According to the information and explanations given to us, there are no dues of
sales tax, income tax, customs duty, wealth tax, service tax, excise duty and cess, which
have not been deposited on account of any dispute.
10. The company has accumulated losses as on 31.03.2014 of Rs. 1030.44 lakhs and has
incurred cash losses of Rs.2.40 lakhs during the financial year ended on that date and
Rs.3.26 lakhs in the immediately preceding financial year.
11. The company has not defaulted in repayment of dues to any bank or financial
institutions.
12. The company has not granted any loans and advances on the basis of security by way
of pledge of shares, debentures and other securities.
13. 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 (Auditors Report)
Order, 2003 are not applicable to this company.
14. 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 (Auditors Report) Order, 2003 are not applicable to this company.
15. The company has not given any guarantees for loans taken by others, from banks or
financial institutions, the terms and conditions, whereof, in our opinion, are prima facie
prejudicial to the interest of the company..
16. During the year under report, the company has not availed any term loan from banks
or financial institutions.
17. According to the information and explanations given to us, during the year under
report, the company has not availed any long-term funds or short term funds.
18. According to the information and explanations given to us, the company has not made
any preferential allotment of shares to parties and companies covered in the register
maintained under section 301 of the Act, 1956.
19. According to the information and explanations given to us, during the period
covered by our audit report, the company has not issued any debentures.
20. The company has not raised any money by public issue, during the year.
21. 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 RAMANA REDDY & ASSOCIATES |
|
CHARTERED ACCOUNTANTS. |
|
FIRM REGN. NO. 003246S |
|
Sd/- |
|
(CA A.V. RAMANA REDDY) |
|
Partner. |
|
Membership No. 024329 |
| PLACE: HYDERABAD |
|
| DATE : 18TH AUG. 2014 |
|
+91-9892691696
