etl infrastructure finance ltd Auditors report
ESSKAY TELECOM LIMITED
ANNUAL REPORT 2006-2007
AUDITORS REPORT
TO
The Members,
1. We have audited the attached Balance Sheet of ESSKAY TELECOM LIMITED as
at 31st March, 2007 and also the Profit & Loss Account and the 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.
2. 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 misstatements. 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 management. as well as evaluating the
overall financial statements presentation. We believe that our audit
provides a reasonable basis for our opinion.
3. As required by the Companies (Auditors Report) Order. 2003. as amended,
by the Companies (Auditors Report) (Amendment) Order, 2005 issued by he
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 on 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:
a) 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;
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 and Profit and Loss account dealt with by this report
are in agreement with the books of account;
d) In our opinion, the balance sheet. profit and loss account and cash flow
statement dealt with by this report comply with the accounting standards
referree to in sub-section (3C) of section 211 of the Companies Act, 1956;
e) On the basis of written representations received from the directors. as
on March 31, 2007. and taken on record by the Board of Directors. we report
that none of the directors of the Company is disqualified as on March 31,
2007 from being appointed as director in terms of clause (g) of sub-section
(1) of section 274 of the Companies Act, 1956;
f) In our opinion and to the best of our information and according to the
explanations given to us. the said accounts read together with notes
thereon, 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 generally accepted in India:
i) In the case of the balance sheet. of tie state of affairs of the Company
as at March 31, 2007;
ii) In the case of the profit and loss account, of the profit of the
Company for the year ended on that date; and
iii) In case of the Cash Flow Statement, of the Cash Flows for the year
ended on that date.
For A.K. BASU & CO.
Chartered Accountants
(A.K. BASU)
Place: Kolkata Proprietor
Dated: 30th June, 2007 Membership No.: 5887
ANNEXURE TO THE AUDITORS REPORT
Annexure referred to in paragraph 3 of the Auditors Report to the
Members of Esskay Telecom Ltd. on the accounts for the year ended March 31,
2007.
(i)(a) The company has maintained proper records to show full particulars,
including quantitative details and situation of its fixed assets.
(b) We have been informed that the fixed assets of the company are
physically verified by the management at reasonable intervals and the
procedure of such verification, m our opinion. is reasonable having regard
to the size of the company and the nature of its assets. Discrepancies
noticed on such verification. which were not material, have been properly
dealt with in the books of account.
(c) No Substantial part of Fixed Assets has been disposed off by the
company during the year under review.
(ii) (a) Physical verification of inventory (Shares & Securities) has been
conducted at reasonable intervals by the management during the year;
(b) In our opinion the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to the
size of the company and the nature of its business.
(c) The company has maintained proper records of inventory and
discrepancies noticed on physical verification, which were not material,
have been properly dealt with in the books of account:
(iii) (a) The company has not granted unsecured/secured loans to companies.
firms parties parties covered in the register maintained under section 301
of the Act and accordingly paragraphs iii (b),(c)and (d) are not
applicable.
(b) The company has not taken any secured; unsecured loan from companies.
firms parties covered in the register maintained under section 301 of the
Act and accordingly, paragraphs iii (f) and (g) of the Order are not
applicable.
(iv) 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 and for the sale of goods and services. During the course of
our audit, no major weakness has been noticed in the underlying internal
controls.
(v)(a) According to the information and explanations given to us, the
particulars of contracts are arrangements that need to be entered into a
register in pursuance of section 301 of the Act have been duly entered.
(b) Aforesaid transactions have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
(vi) The company has not accepted any deposits under the provisions of
section 58A and 58AA or any other relevant provisions of the Act and the
rules framed there under.
(vii) The company has an internal audit system commensurate with its size
and nature of its business.
(viii) Maintenance of cost records has not been prescribed by the Central
Government under clause (d) of sub-section (1) of section 209 of the Act.
(ix) (a) According to the books and records as produced and examined by us
in accordance with generally accepted auditing practices in India and also
based on Management representations, undisputed statutory dues in respect
of Provident Fund, Employee State Insurance dues. Investor Education and
Protection Fund, Income Tax, Wealth-Tax, Service Tax, Sales Tax, Custom
Duty, Excise duty, Cess and other material statutory dues have generally
been regularly deposited by the company during the year appropriate
authorities. There are no undisputed statutory dues as referred to above as
at 31st March, 2007 outstanding for a period of more than six months from
the date they became payable.
(b) According to the records of the company and information and
explanations given to is there are no dues of Sales Tax, Income Tax, Wealth
Tax, Service Tax, Custom Duty, Excise Duty and Cess, which have not been
deposited on account of any dispute
(x) The company has no accumulated losses as at 31st March. 2007. and it
has not incurred and cash loss during the financial year ended on that date
or in the immediately preceding financial year.
(xi) According to the records of the company. it has not defaulted in
repayment of its dues to any financial institution or bank or to debenture
holders as at the balance sheet date.
(xii) According to the information and explanations given to us. the
company has not granted any loans or advances on the basis of security by
way of pledge of shares, debentures and other investments.
(xiii) In our opinion considering the nature of activities carried on by
the company during the year, the provisions of any special statute
applicable to chit fund/nidhi/mutual benefit fund societies are not
applicable to it.
(xiv) The Company is maintaining proper records for purchases of shares.
securities. debentures and other investments and timely entries have been
made therein. The Shares. securities, debentures and other investments have
been held by the company in its own name except to the extent, exemption
has been granted under section 49 of the Companies Act, 1956.
(xv) According to the information and explanations given to us, the company
has not given any guarantee for loans taken by others from banks of
Financial institutions.
(xvi) We have been informed by the management that no term loans have been
raised during the year.
(xvii) According to information and explanations given to us by the
management the funds raised on short-term basis have not been used for
long-term investment.
(xviii) The company has not made any preferential allotment of shares to
parties companies covered in the register maintained under section 301 of
the Act.
(xix) The company has not issued any debentures.
(xx) The company has not raised any money through a public issue during the
year.
(xxi) Based upon the audit procedure 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 31st March, 2007.
For A.K. BASU & CO.
Chartered Accountants
(A.K. BASU)
Place: Kolkata Proprietor
Dated: 30th June, 2007 Membership No.: 5887
To.
The Board of Directors,
M/s. Esskay Telecom Ltd,
1-B. Black Burn Lane,
4th Floor. Kolkata - 700 012
Dear Sirs,
Ref: Auditors Report under Non-Banking Financial Companies Auditors Report
(Reserve Bank) Direction, 1998 on the accounts for the financial year ended
31st March. 2007
We have examined the accounts of your company for the financial year ended
31st March 2007. As required under Para 3 of Non-Banking Financial
Companies Auditor s Report (Reserve Bank Direction. 1998. we state as under
1. The Company has applied for registration as provided in Section 45 - A.
of the Reserve Bank of India Act. 1956 and the same has been rejected. The
Company has preferred an appeal against that with the respective
authorities.
2. The Board of Directors of the Company has passed a resolution in the
Board meeting for non-acceptance of any public deposit.
3. The Company has not accepted any public deposits during the financial
year ended 31st March,2007.
4. The Company has complied with prudential norms relating to income
recognition. accounting standards. asset classification and provisioning
for bad & doubtful debts as applicable for it.
Thanking you.
Yours faithfully.
For A.K. BASU & CO.
Chartered Accountants
(A.K. BASU)
Proprietor
Membership No. 5887
Place: Kolkata
Dated: 30th June, 2007