willard india ltd Auditors report

WILLARD INDIA LIMITED ANNUAL REPORT 2010-2011 AUDITORS REPORT The Members, Willard India Ltd New Delhi. 1. We have audited the attached Balance Sheet of Willard India Ltd. as at 31st March, 2011, the Profit & Loss Account and also the Cash Flow Statement of the Company for the period 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 misstatement. 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, 2004, issued by the Central Govt. of India in terms of section 227(4A) of the Companies Act 1956, we enclose in the annexure hereto a statement on the matters specified in paragraphs 4 & 5 of the said Order. Further to our comments in the Annexure referred to above, we report that : 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; 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 the books; The Balance Sheet, Profit & Loss Account & Cash Flow Statement dealt with by this report are in agreement with the books of accounts; In our opinion, the attached Balance Sheet, Profit & Loss Account & Cash Flow Statement dealt with by this report are in compliance with the accounting standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956. v. On the basis of written representations received from the directors, as on 31st March 2011 and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31 st March 2011 from being appointed as a director under clause (g) of vi. Attention is invited to the following: a. Regarding contingent liabilities considered as per note 2(a) of 14(B) based on management estimation as stated in the said notes; b. Regarding non provision for diminution in the value of investments as per note 11 of 14(B), as stated in the said; c. Note no. 9 of schedule 14(B) regarding non provision for penalty payable on delay in filling of TDS returns; Subject to (vi) above In our opinion and to the best of our information and according to explanations given to us, 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 : a) in the case of Balance Sheet, of the state of affairs of the Company as at 31st March, 2011; b) in the case of Profit & Loss Account, of the profit for the year ended on that date; c) in the case of the cash flow statement, of the cash flows for the year ended on that date. For Sushil Jeetpuria & Co Chartered Accountants FRN:- 500062 N Place: New Delhi Mayank Mohanka Date: 11-08-2011 Partner M.No. 509020 Annexure referred to in paragraph 3 of our report of even date, 1) Based on management representation given to us, the Company has neither granted nor taken any loans, secured or unsecured from/to companies, firms or other parties covered in the register maintained u/s 301 of the companies Act, 1956. However there are advance (interest free) from one company covered u/s 301 of the Act, of which year-end balance is Rs. 182.81 lacs payable maximum balance outstanding at any time during the year was Rs.182.81 lacs payable.; and advances (interest free) to one company covered u/s 301 of the Act, of which year-end balance is Rs.2.80 lacs receivable and maximum balance outstanding at any time during the year was Rs.2.81 lacs receivable. 2) In our opinion and according to the information and explanations given to us, there are no purchase of inventory, fixed assets and sale of goods and services during the year other than rental income; in which case there is adequate internal control system commensurate with the size of the company and nature of its business. 3) According to the information and explanations given to us & based on management representation, there are no such transactions exceeding the value of Rs. 5.00 Lacs in respect of each party listed in the register maintained under section 301 of the companies Act, 1956. 4) In our opinion and according to the information and explanations given to us the company has not accepted any deposits from the public, hence the provisions of section 58A, 58AA or any other relevant provision of the Companies Act, 1956 are not applicable to the company. 5) According to the information and explanations made available to us, the Company does not have formal internal audit system. 6) According to the records of the company, the company was not regular in depositing undisputed statutory dues including Tax Deducted at source, Service tax, Fringe Benefit Tax, Provident Fund & Cess. The undisputed outstanding statutory dues as at the year end for a period of more than six months from the date they become payable were Tax Deducted at source Rs.99,564/-, Service Tax Rs.11,86,365/-, Fringe Benefit Tax Rs.7,99,855/- & Provident Fund Rs.30,954/-. The company has not ascertained and provided for penalty payable on delay in filing of TDS Return, hence the same has not been included in above. 7) There are accumulated losses in the company during the financial year under consideration. The accounting treatment of written back of the interest liability due to PICUP and IFCI as per note mentioned in schedule 8 and 13 respectively, has resulted in profit. However, during immediately preceeding financial year the company has incurred cash losses. 8) The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debenture and other securities. 9) The Company is not a Chit Fund Company or a Nidhi Company or a Mutual Benefit Company so the relevant provisions under this clause are not applicable to the Company. 10) The Company does not deal or trade in shares, securities, debentures and other investments and hence the relevant provisions under this clause are not applicable to the Company. 11) According to the information and explanation given to us, company has given corporate guarantee for loans taken by M/s Willard Storage Battery Limited (WSBL) From Banks or Financial institutions as stated in note no. 2 (b) of schedule 14B. The company was demerged in to Agauta Sugar & Chemicals Limited (ASCL), Chitavalsah Jute Mills Private Limited (CJMPL) {now Chitavalsah Jute Mills Limited (CJML)} and Perfect Career Consultants Private Limited ( PCCPL ) as sanctioned by the Honble High court of judicature at Allahabad vide its order dated 22 nd September, 2008 approving the scheme of arrangement. Consequently the corporate guarantee is payable jointly/severally by all the demerged companies. The same has been settled and paid by other guarantors. 12) The Company has not raised any short-term loan, which were applied for long term investment or vice versa. 13) 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. 14) The company has not issued any secured debentures during the year. 15) The company has not raised any money by way of Public issue. 16) No fraud has been noticed or reported during the year. For Sushil Jeetpuria & Co Chartered Accountants FRN:- 500062 N Place: New Delhi Mayank Mohanka Date: 11-08-2011 Partner M.No. 509020