Satellite Engineering Ltd Auditor Reports

TO THE MEMBERS OF SATELLITE ENGINEERING LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of Satellite Engineering Limited (‘the Company’), which comprise the Balance Sheet as at March 31, 2013, 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 principles generally accepted in India including 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.

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 ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements.

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 judgement, 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 aforesaid 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, 2013;

(b) In the case of the Statement of Profit and Loss, of the profit for the year ended on that date; and

(c) In the case of the 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") 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 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, the 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, the Statement of Profit and Loss, and the Cash Flow Statement comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956.

(e) On the basis of the written representations received from the directors as on March 31, 2013, 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.

	For M/s.Apaji Amin & Co
	Chartered Accountants
	Firm Registration No.: 100513W
	Tehmul Sethna
Place : Ahmedabad	(Partner)
Date : 30/05/2013	M. No. 35476

Annexure referred to in Paragraph 1 under the heading of "Report on Other Legal and Regulatory Requirements" of our report of even date

Re: Satellite Engineering Limited (‘the Company’)

1. In respect of its fixed assets:

i) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets on the basis of available information.

ii) As explained to us, all the fixed assets have been physically verified by the management in a phased periodical manner set out by the Company, which in our opinion is reasonable, having regard to the size of the Company and nature of its assets. According to the information and explanations given to us, no material discrepancies were noticed on such physical verification.

iii) There was no substantial disposal of fixed assets during the year; hence the going concern concept has not been affected.

2. In respect of its inventories:

i) Inventories have been physically verified by the management at regular intervals during the year. In our opinion, the frequency of such verification is reasonable.

ii) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

iii) The Company has maintained proper records of inventories. As explained to us, no material discrepancies were noticed on physical verification of inventories.

3. In respect of loans, secured or unsecured, granted or taken by the Company to/from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956:

i) The Company has not granted loans to parties, firms or companies covered in the register maintained under Section 301 of the Companies Act, 1956.

ii) During the year, the Company has taken loans from parties, firms or companies covered in the register maintained under section 301 of the Companies Act, 1956, maximum outstanding balance at any time during the year from such parties is Rs. 51.03 lacs and the year end balances from such parties is Rs. 50.63 lacs.

iii) In our opinion and according to the information and explanations given to us, the rate of interest and other terms and conditions, are not prima facie prejudicial to the interest of the Company.

iv) The loans taken/granted are re-payable on demand and the Company has received/repaid the loan fully during the year.

4. In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business, for the purchases of inventories, fixed assets and for the sales of goods. During the course of our audit, we have not observed any major weakness or continuing failure to correct major weakness in internal control system of the Company in respect of these areas.

5. In respect of transactions covered under Section 301 of the Companies Act, 1956:

i) According to the information and explanations provided by the management, we are of the opinion that the particulars of contracts or arrangements referred to in Section 301 of the Companies Act, 1956 that need to be entered into the register maintained under Section 301 have been so entered.

ii) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of such contracts or arrangements and exceeding the value of Rs. five lacs have been entered into during the financial year at prices which are reasonable having regard to the prevailing market prices at the relevant time.

6. The Company has not accepted any deposit from the public as per the provisions of sections 58A, 58AA or other relevant provisions of the Companies Act, 1956 and the rules framed there under.

7. The Company has an internal audit system, which in our opinion is commensurate with the size and nature of its business.

8. To the best of our knowledge and as explained, the Central Government has not prescribed maintenance of cost records under clause (d) of sub-section (1) of Section 209 of the Companies Act, 1956 for the products of the Company.

9. According to the information and explanation given to us, in respect of statutory dues:

i) The Company is regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Employees State Insurance, Service Tax, Income Tax, Sales Tax, Custom Duty, Cess and other material statutory dues applicable to it.

ii) According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding at the year end, for a period of more than six months from the date they become payable.

iii) According to the information and explanations given to us, there are no dues outstanding for Income Tax, Service Tax, Customs Duty and Cess on account of any dispute.

10. The Company does has accumulated losses of Rs. 411.27 lacs at the end of the financial year. It has incurred cash losses of Rs. 35.21 lacs during the financial year covered by the audit and cash losses of Rs. 38.26 lacs in the immediately preceding financial year.

11. Based on our audit procedures and according to the information and explanations given to us, the Company did not have any outstanding dues to any financial institution, banks or debenture holders during the year. Accordingly, the provisions of clause 4(xi) of the Companies (Auditor’s Report) Order, 2003 (as amended) are not applicable to the Company.

12. In our opinion and according to the information and explanations given to us, the Company has not granted any loans and advances on the basis of security by way of pledge of Shares, debentures and other securities. Therefore, the provisions of clause 4(xii) of the Companies (Auditor’s Report) Order, 2003 (as amended) are not applicable to the Company.

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 (Auditor’s Report) Order, 2003 (as amended) are not applicable to the Company.

14. In our opinion and according to the information and explanations given to us, the Company is not dealing or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Companies (Auditor’s Report) Order, 2003 (as amended) are not applicable to the Company.

15. The Company has not given any guarantee for loans taken by others from banks or financial institutions during the year.

16. The Company has not obtained any term loan.

17. According to the information and explanations 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.

18. The Company has not made any preferential allotment of shares to parties covered in the register under Section 301 of the Companies Act, 1956.

19. The Company has not issued any debentures during the year. Therefore, clause 4(xix) of the Companies (Auditor’s Report) Order, 2003 (as amended) is not applicable to the Company.

20. The Company has not raised any money by way of public issue during the year.

21. Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the information and explanations given by the management, which have been relied upon by us, we report that no fraud on or by the Company has been noticed or reported during the course of our audit.

	For M/s.Apaji Amin & Co
	Chartered Accountants
	Firm Registration No.: 100513W
	Tehmul Sethna
Place : Ahmedabad	(Partner)
Date : 30/05/2013	M. No. 35476