| 1. We have audited the accompanying financial statements of KOHINOOR
TECHNO ENGINEERS LIMITED, which comprise the Balance Sheet as at March
31, 2014, 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
2. The Company's management is responsible for the preparation of
these financial statements that give a true and fair view of the
financial position and financial performance and Cash Flow of the
Company in accordance with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956 (the Act)
read with General Circular 15/2013 dated 13th September 2013 of the
Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013. 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.
Auditor's Responsibility
3. 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 misstatement.
4. 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 judgment, 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.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
6. In our opinion and to the best of our knowledge and according to
the information and explanations given to us, the 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 31,2014; and
b) In the case of the Statement of Profit and Loss Account, of the
profit for the year ended on that date. And
c) In the case of Cash flow statement, of the cash flows of the Company
for the year ended on that date.
Report on Other Legal and Regulatory Requirements
7. As required by the Companies (Auditor's Report) Order, 2003 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.
8. 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 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
subsection (3C) of section 211 of the Companies Act, 1956.
e. On the basis of written representations received from the directors
as on March 31, 2013, and 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.
f. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
Annexure "A" referred to in our main Audit report
(1) In respect of Fixed Assets :
(a) The company has maintained proper records to show full particulars,
including quantitative details and situation of fixed assets on the
basis of available information.
(b) As explained to us, all the fixed assets of the Company have been
physically verified by the management in a phased periodical manner
which is in our opinion is reasonable having regard to size of the
Company and nature of its assets. No material discrepancies were
noticed on such physical verification.
(c) In our opinion, the Company has not disposed off a substantial part
of its fixed assets during the year, hence the going concern status of
the company is not affected.
(2) In respect of Inventories :
(a) The inventories have been physically verified by the management
during the year. In our Opinion the frequency of Verification is
reasonable.
(b) In our opinion and according to information and explanation given
to us, the procedure of physical verification of inventories followed
by the management is reasonable and adequate in relation to size of the
company and nature of its business.
(c) The company has maintained proper records of inventories. As
informed to us that the discrepancies noticed on physical verification
of raw material, stores spares, components other than finished goods
and work in progress, on comparison to book records, were not material
and would be dealt with the books of account after enquiry and
reconciliation. As regards finished goods we are informed that there
were no discrepancies as compared to available records.
(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
(a) The Company has given interest free unsecured advances to associate
company covered in the register maintained under section 301 of the
Companies Act, 1956 ('the Act'). The maximum amount outstanding during
the year was Rs 4.26 lacs and the year-end balance of such loan
amounted to Rs 4.26 lacs. Other than the above, the Company has not
granted any loans, secured or unsecured, to companies, firms or parties
covered in the register maintained under section 301 of the Act.
(b) In our opinion, the rate of interest and other terms and conditions
on which the loans have been granted to the bodies corporate listed in
the register maintained under Section 301 of the Act are not, prima
facie, prejudicial to the interest of the Company.
(c) In the case of the loans granted to the bodies corporate listed in
the register maintained under section 301 of the Act, the borrowers
have been regular in the payment. The terms of arrangement do not
stipulate any repayment schedule and the loans are repayable on demand.
Accordingly, paragraph 4(iii)(c) of the Order is not applicable to the
Company in respect of repayment of the principal amount.
(d) There are no overdue amounts of more than rupees one lakh in
respect of the loans granted to the bodies corporate listed in the
register maintained under section 301 of the Act.
(e) According to information and explanation given to us, the Company
has during the year, not taken any loans, secured or unsecured from
Companies, Firms or other parties covered in the register maintained
u/s 301 of the Companies Act 1956, Accordingly, paragraphs
(4(iii)(e)(f) and (g) of Order, are not applicable.
(4) In our opinion and according to information & explanation 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 with regards to sale of goods and
services. During the year of audit we have not observed any continuing
failure to correct major weaknesses in internal controls system.
(5) In our opinion and according to information & explanation given to
us, the company has not entered into any transaction exceeding Rs. 5
lacs in respect of any party during the financial year that need to be
entered in the register pursuant to section 301 of the Companies act
1956. Consequently, the provision of Clause (v) (b) of Paragraph 4 of
Order are not applicable to the Company
(6) The company has not accepted any deposits under the provisions of
section 58A and 58AA of the Companies Act 1956 and the Companies
(Acceptance of deposits) Rules 1975, consequently, the provision of
Clause (vi) of Paragraph 4 of Order are not applicable to the Company.
(7) In our opinion and explained to us, the internal audit functions
are carried out by the employees of the company and have been
commensurate with its size of the company and nature of its business.
(8) We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1)(d) of the
Companies Act, 1956. We are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
(9) In respect of Statutory Dues :
(a) According to the books and records as produced and examined by us
in accordance with the generally accepted auditing practices in India
and also based on management representation, undisputed statutory dues
including provident fund, investor education protection fund, employees
state insurance , income tax, Service tax, sales tax, wealth taxes,
custom duty, cess and other material statutory dues have generally been
regularly deposited by the company during the year with the appropriate
authority in India. According to information & explanation given to us,
there are no undisputed amounts payable in respect of Sales Tax, Income
Tax, Custom Duty, Wealth Tax, Excise Duty and Cess were in arrears as
at 31st March 2014 for a period of more than six months from the date
they became payable.
(b) According to information and explanations given to us and records
of the Company examined by us, the dues of Income Tax of Rs. 1.00 lacs
have not deposited on account of any dispute and the forum where the
disputes are pending are as under.
Name of Statute Nature of Dues Amount
Rs.in lacs
Income Tax Act 1961 Income Tax 1.00
Name of Statute Period to which Forum Where
the amount Pending
relates
Income Tax Act 1961 AY 2012-13 Tribunal
(10) In our opinion, the company has accumulated losses of Rs. 143.08
lacs at the end of the financial year which is not more than fifty
percent of its net worth. The company has not incurred cash losses
during the financial year covered by our audit and has not incurred
cash losses during the immediately preceding financial year
(11) Based on our audit procedure and according to information &
explanation given to us, the company has not defaulted in repayment of
dues to a financial institution, Banks, or debenture holders.
(12) In our opinion and according to information & explanation given to
us, the company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(13) Clause (Xiii) is not applicable to the company as the company is
not a chit fund, nidhi, mutual benefit fund or a society.
(14) In our opinion and according to information & explanation 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 (Auditors Report) Order 2003 are not applicable
to the Company.
(15) According to information & explanation given to us, the company
has not given any guarantee for loan taken by others from bank or
financial institution.
(16) In our opinion and according to information & explanation given to
us, the company has not availed any term loans during the year.
(17) According to information & explanation given to us and on an
overall examination of balance sheet of the company, we report that
there is no funds raised on short term basis that have been used for
long term investment.
(18) 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.
(19) The clause is not applicable to the company as it has not issued
any debentures.
(20) The clause is not applicable to the company as the Company has not
raised the monies by public issue during the year.
(21) According to information & explanation given to us, no material
fraud on or by the company has been noticed or reported during the
year.
For, BHARAT & COMPANY
hartered Accountants
Firm Registration No 127777W
Sd/-
CA. Bharat H. Gandhi
( Proprietor)
M. No. 125227
Surat 30th May 2014 | 