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The Shareholders of
The Thana Electric Supply Company Limited
1. We have audited the attached Balance Sheet of The Thana Electric Supply Company Limited as at 31st March, 2012 and also the Profit and Loss Account of the Company for year ended on that date annexed thereto and also the cash flow statement for the period of year 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.
2. We have 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 misstatement. An audit includes examining on test basis, evidence supporting the amounts and disclosers 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 statement preparation. We believe that our audit provides a reasonable basis for our opinion.
3 As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government in terms of sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose in Annexure, a statement on the matter specified in paragraphs 4 and 5 of the said order.
4 Further to our comments in the Annexure, referred to above, 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 accounts as required by law have been kept by the Company so far as appears from our examination of such books
(c) The Balance-sheet and Profit and Loss Account and Cash Flow Statements referred to in this report are in agreement with the books of account.
(d) In our opinion the Balance sheet, 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, except ,AS -4 on contingencies and events occurring after balance sheet date, AS-6 on depreciation accounting,AS-10 Accounting for fixed assets,AS-22 accounting for taxes on income.AS-24 on Discontinuing operations,AS-28 on impairment of assets,AS-29 on provisions, contingent liabilities and contingent assets, AS-18 on Related party disclosures,
(e) As written representations have not been received from all the Directors, we are unable to opine whether they are disqualified under section 274(i)(g) of the Companies Act 1956 as the correct legal position is not ascertained by the Company.
(f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts subject to the following observations :
(i) The Company is ciosed and is not in operation and as per the circumstances prevailing, there is no probability of restarting the operations as a result of which the status of the company as a going concern is in jeopardy and as such the assets and liabilities have been adjusted to bring them to their realizable value. Further any provisions on account of contingent losses due to the shutting down of operations of the company are not provided for.
(ii) The benefits due to 23 employees have not been reviewed nor restated,the employees were settled out of court on 9.4.2012.
(iii) Accounting adjustments on account of accounting for taxes on income in accordance with AS-22 if any, have not been made in the accounts of the company.
(iv) Due to the permanent shutting down of operations of the Company the exercise of recognition and provisioning for impairment loss of assets has not been made in the accounts.
(v) Non-confirmation of balances in Sundry creditors accounts
(v) The Company has entered into Agreement of Sale with Possession for sale of property at Hyderabad with Bhanu Auto Agencies, Hyderabad.The final sale deed was signed on 25.4.2012 so advance received upto March 31st 2012 has been grouped under current liabilities.
And read in conjuction with the other notes there on, give the information required by the Companies Act, 1956 in the manner so required and in conformity with the accounting principles generally accepted in India.
However in view of the qualifications referred to above and non-quantification thereof we are unable to express any opinion whether the accounts show a true and fair view:
(i) in-so-far as it relates to the Balance-sheet of the state of affairs of the Company as at 31st March, 2012 and
(ii) in-so-far as it relates to the Profit and Loss account, the Loss of the Company for the year ended on that date.
(iii) In-so-far as it relates to the Cash Flow Statements, the Cash Flows for the year ended on that date.
|For Sorab S. Engineer & Co.,|
|Mumbai,||MEM NO 7825|
|Reg no 110417 W|
ANNEXURE: REFERRED TO IN PARAGRAPH (3) OF OUR REPORT OF EVEN DATE
(i) (a) The Company has not maintained proper records showing full particulars including quantitative details and situation of fixed assets. For the year under report the fixed assets register was not available for our verification.
(b) We have no proof whether any physical verification of fixed assets is carried out by the management during the year. As such we are unable to comment whether there are any discrepancies between the physical count and the book records.
(ii) (a) There were no inventories at the year end.
(iii) (a) The company has not granted any loans, secured or unsecured to any companies, firms or other parties. Therefore clauses (b)(c) and (d) are not applicable.
(b) The Company has taken a Temporary Advance of 2.55 lacs during the year.
(c) The information regarding the rate of interest and other terms and conditions of Advance taken by the company is not available for our comment
(iv) The company is shut down as there was no business activity during the year. Therefore the question of adequacy of internal control systems and their being 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 does not arise.
(v) As the company has shut down, no transaction took place during the year
(vi) The Company has not accepted any deposits from the public
(vii) The Company had no internal audit system during the year.
(viii) Maintenance of cost records has not been prescribed by the Central Government for the Company under section 209 (1 )(d) of the Act.
(ix) (a) Based on the examination of available records, the company has not paid undisputed statutory dues including Provident Fund, Employees State Insurance, Sales tax, Customs Duty and Excise duty, Cess and other statutory dues with appropriate authorities during the year The extent of arrears of outstanding statutory dues as at the last day of the financial year concerned for a period of more than six months from the date they become payable to the extent they are outstanding in the books of accounts are as follows :
|(i) Central Sales tax||
|(ii) PF/ESI Employees contribution||
|(iii) Professional Tax - M C H||
|(v) Employees Professional and employment tax||
|(vi) Income tax - others||
|(vii) Gujarat Sales tax||
The Company has cleared Sales Tax Liability on April 21, 2012._
(b) Based on an examination of the available records and according to the information and explanations given to us, the extent of statutory dues not deposited on account of any dispute are as follows
|a) Customs, Excise and gold (control) Appellate Tribunal, Delhi||
|b) - do -||
(x) The accumulated losses of the company are more than fifty percent of its net worth. The company has incurred cash losses during the financial year and but cash profit in the immediately preceding financial year.
(xi) The company has repaid the Bank dues.
(xii) The company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities
(xiii) The provisions of any special statute applicable to chit fund are not applicable to this company
(xiv) The company has not traded in shares, securities, debentures and other investments during the year
(xv) The company has not given any guarantee for loans taken by others from bank or financial institutions.
(xvi) The company has not taken any term loans during the year
(xvii) The company has not raised funds from Directors on short term basis during the year
(xviii) The company has not issued any debentures during the year
(xix) The company has not raised any money by way of public issues during the year
(xx) No fraud on or by the company has been noticed or reported during the year
|For Sorab S. Engineer & Co.,|
|Mumbai,||MEM. NO 7825|
|Date .-24/8/2012||Firm Reg. no 110417 w|