INDEPENDENT AUDITOR
TO,
THE MEMBERS OF,
VOLGA AIR TECHNICS LIMITED.
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of VOLGA AIR TECHNICS LIMITED
("THE COMPANY") which comprise the balance sheet as at 31st March
2104, and the statement of profit and loss and the cash flow statement for the year then
ended, and a summary of significant accounting policies and other explanatory information.
MANAGEMENTS RESPONSIBILTY 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 Standards referred to in sub section (3C) of the
section 211 of the Companies Act, 1956 ("the Act)read with the General Circular
15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of Section
133 of the Companies Act,2013 .since the production activities are suspended from
22/11/2009. 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 RESPONSILIBITY
Our responsibility is to express an opinion on these financial statements based on our
audit. We conducted our audit in accordance with the Accounting 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 misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditors
judgment, including the assessment of the risks of material misstatement of financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers 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,(since the production activities are suspended from 22.11.2009) 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 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 explanations given to us, the
financial statements give the information required by the Act in the manner required and
to give a true and fair view in conformity with the accounting policies generally accepted
in India:
(i) In the case of the balance sheet, of the state of affairs of the Company as at 31st
March 2014
(ii) In the case of the statement of profit and loss, of the profit for the year ended
on that date; and
(iii) In case of the cash flows 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 (Auditors Report) Order, 2003 (the Order"), as
amended, issued by the Central Government of India in terms of sub section (4A) of the
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 explanation 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, profit and loss and 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 and cash flow
statement comply with the Accounting Standards referred to in the sub section (3c) of the
section 211 of the Companies Act, 1956 read with the General Circular 15/2013 dated 13
September 2013 of the Ministry of Corporate Affairs in Respect of section 133 of the
Companies Act, 2013., and
(e) On the basis of written representations received from the directors as on 31 March
2014, and taken on record by the Board of Directors, none of the directors is disqualified
as on 31 March 2014, from being appointed as a director I terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
(f) Attention is invited to following notes in schedule-l (A) (7). Note No.7.
1. Non provision of interest on term loan & CC limits granted by financial
corporation GHC, IDBI and CENTRAL BANK OF INDIA.
FOR, S.N MEHTA & ASSOCIATES
CHARTERED ACCOUNTANTS
FIRM REG NO 106306W
(S.N. MEHTA)
Proprietor
M.NO 9057
PLACE:-AHMEDABAD
DATE :-20.08.2014
ANNEXURE TO THE AUDITORS REPORT
As required by the Companies (Auditors Report) Order, 2003 and According to the
information and explanations given to us during the course of the audit and on the basis
of such checks as were considered appropriate, we report that:
The nature of Companys activities during the year has been such that clauses (xii),
(xiii) and (xiv) of paragraph 4 of the Companies. (Auditors Report) Order, 2003 are not
applicable to the Company for the year ended.
1) (a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets;
(b) As explained to us, the assets have been physically verified by the management in
accordance with a phased programmed of verification, which in our opinion is reasonable,
considering the size and the nature of its business. The frequency of verification is
reasonable and no material discrepancies have been noticed on such physical verification.
(c) In our opinion and according to the information and explanation given to us, the
Company has not disposed off any fixed assets during the year.
2) There in no inventory during the year hence there is no question of verification
thereof.
3) (a) In our Opinion and according to the information and explanations given to
us, the Company has not granted any loans, secured or unsecured from the companies, firms,
other parties covered in the register maintained under the section 301 of the Act.
(b) In our Opinion and according to the information and explanations given to us, the
Company has not taken any loans, secured or unsecured from the companies, firms, or the
parties covered in the register maintained under the section 301 of the Act.
(c) There is no unsecured loan to the employee and others.
4) The Company has suspended production from 22.11.2009 and hence there are no
transactions, during the year
Company has Interest Income Only.
5) Company has no Purchase/Sales during the year.
6) According to information & explanation given to us, except the loan from
body corporate obtained in earlier years the company does not have any deposit from the
public. There is no stipulation as regards payment of interest & also the time of
re-payment and therefore in our honest belief & opinion provisions of section 58A
& 58aa of the Companies Act, 1956 & the Companies (acceptance of deposit) rules
1975 are not applicable to the company.
7) In our opinions, there is no Business activity during the year. Hence there in
no requirements of internal audit.
8) There are no manufacturing activities carried out by the Company for Air
Conditioners, as such there is no need to review the cost record.
9) (a) According to the record of the company there are no undisputed statutory
dues such as interest, provident fund and sales tax. Since no interest is payable during
the year, there are no employees in the company and there is no business during the year
and hence there are no statutory dues as regards Service tax, Customs duty, Excise duty
cess. There is no statutory dues as regards wealth tax. According to the information and
explanation given to us no undisputed amount are outstanding as at 31 march 2014.
(b) Disputed sales tax not deposited have been disclosed in note 9 under the head
contingent liabilities not provided for the in the notes to the accounts under schedule 1
(B).
10) The Company has accumulated losses & company has incurred loss in the
current financial year and has loss also in the immediately preceding financial year.
11) The Company has defaulted in repayment of its dues to the Bank and financial
Institutions. The unpaid amount is Rs. 10, 13, 80,064 and 42, 25,101.As per Note 5 of the
Balance sheet. The Loans were obtained during the period 1994-1995 and 1995-1996.The
Company has not provided and defaulted in payment of interest.
12) According to the information and explanations given to us, the Company has not
given any guarantee for loans taken by others from banks or financial institutions.
13) In our Opinion and according to the information and explanations given to us,
the Company has not obtained term loans during the year.
14) According to the information and explanations given to us, and an overall
examination of the balance sheet of the Company, we are of the opinion that the funds
raised on the short term basis have not been used for long -term investment.
15) According to the information and explanations given to us, the company is not a
chit fund or a nidhi/mutual benefit fund/society. Accordingly, the provisions of clause 4
(xiii) of the order are not applicable.
16) The Company has not made any preferential allotment of shares to parties and
companies covered in the register maintained under the Section 301 of the Act, 1956 during
the year.
17) No debentures have been issued by the Company and hence, the question of
creating securities in respect thereof does not arise.
18) The Company does not have secretary from 1.3.2010.
19) The company has not raised any money by public issues during the year.
20) According to the information and explanations given to us, no material fraud on
or by the Company has been noticed or reported during the course of our audit.
FOR, S.N MEHTA & ASSOCIATES
CHARTERED ACCOUNTANTS
FIRM REG NO 106306W
(S.N. MEHTA)
Proprietor
M.NO 9057
PLACE:-AHMEDABAD
DATE :-20.08.2014.
+91-9892691696
