| We have audited the accompanying financial statements of Starvox
Electronics Limited(`the Company"), which comprise the Balance Sheet
as at March 31, 2014, and 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
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 section 211
of the Companies Act, 1956 ("the Act") read with the 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
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.
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, but not for the
purpose of expressing an opinion on the effectiveness of the entity's
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 according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required; Subject to.
Claims against the Company not acknowledged as debt:: a) Custom Duty on
Capital Goods Rs. 89,606 b) Custom Duty on Raw Material Rs. 42,411 c)
Royalty Claims by NRDC Rs. 85,000 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 Profit and Loss Account, of the loss 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.
Report on Other Legal and Regulatory Requirements
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.
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, 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; except AS-2
and AS-22.
e) on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub- section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITOR'S REPORT
Referred to in paragraph 3 of our Report of even date to the members of
STARVOX ELECTRONICS LIMITED for the year ended 31st March, 2014
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that.
1 (a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets on the basis of available information.
(b) We are informed that fixed assets are physically verified by the
management during the year and there were no major discrepancies
noticed.
(c) In our opinion, there was no substantial disposal of fixed assets
during the year, which would affect the going concern of the company.
2 (a) As informed to us, the management has conducted physical
verification of inventory during the year. In our opinion, the
frequency of verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures for physical verification of inventory
followed by the management is reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and on the basis of examinations of inventory
records, the company is maintaining proper records of inventory. As
informed to us, no material discrepancies were noticed by the
management on such physical verification.
3 (a) The company has not granted unsecured loan to parties as covered
in the register maintained under section 301 of the Companies Act,
1956. The Maximum amount involved during the year was ' NIL and
outstanding from such parties was' NIL.
(b) In our opinion, the rate of interest and other terms and
conditions, wherever specified, of unsecured loans granted by the
company, are not prima facie prejudicial to the interest of the company
as explained in the notes to accounts.
(c) The company has not taken loans from parties as listed in the
register maintained under section 301 of the Companies Act, 1956, the
rate of interest and other terms and conditions, wherever specified, of
unsecured loans taken by the company, are not prima facie prejudicial
to the interest of the company.
(d) According to the information and explanation given to us, there is
no specific stipulation as to the repayment of the principal amount and
is regular in the payment of interest of such loans if any;
(e) According to the information and explanations given to us, there is
no overdue amount in respect of such loans.
4 In our opinion, the Company has reasonable internal control procedure
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. There is no continuing failure to correct major
weaknesses in internal control.
5 (a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements, that needed to be entered into in the register maintained
under section 301 of the Companies Act, 1956 have been entered.
(b) According to the information and explanation given to us, in
respect of transactions exceeding the value of the five lacks rupees
made with such parties during the year, each of these transactions have
been made at the price which are reasonable having regard the
prevailing market prices at the relevant time.
6 According to the information and explanations given to us, the
company has not accepted deposits from the public within the meaning of
the provisions of sections 58A and 58AA of the Companies Act, 1956 and
the rules framed there under.
7 In our opinion, the Company has an internal audit system commensurate
with the size and the nature of its business. Internal audit is carried
out by an Independent firm of Chartered Accountants.
8 The Company has not maintained cost records and not obtained Cost
Compliance certificate.
9 (a) As informed to us, applicable undisputed statutory dues including
Income-tax, Sales-tax, have been regularly deposited by the company
with the appropriate authority in all cases during the year.
(b) Following dues payable to various Government Authorities are
disputed and hence not paid or provided for by the Company:
Sr. No. Particulars Amount Level at which the
dispute is pending.
1. Custom duty on Capital goods. 89606 CEGAT has remanded
the matter and
hearing is comp-
leted at
department.
2. Custom duty on Raw material. 42411 Hon. Supreme Court
3. Royalty claims by NRDC. 85000 Arbitrator.
In the Current year the Dispute with SBI has been Compromised.
10 In our opinion, the accumulated losses at the end of the finnacial
year are more than fifty percent of its net worth. However the company
has incurred any cash losses both in current year as well as in the
immediately preceding financial year.
11 According to information & explanations given to us, the company has
no defaulted in repayment of dues to financial institution / bank or
debenture holders.
12 In our opinion and as per 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 In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of this clause are not
applicable to the company.
14 According to the information and explanation given to us, the
company is not dealing or trading in shares, securities, debenture and
other securities. Company has not made investments in equity shares of
the other companies during the year.
15 According to the information & explanation given to us, the company
has not given any guarantee for loans taken by others from bank or
financial institutions.
16 The Company has not taken any term loans during the year.
17 According to the Cash Flow statement and other records examined by
us and the information & explanation given to us, on the overall
examination of the balance sheet of the company, we report that the
company has not used funds raised on long-term basis for short-term
investment and vice versa.
18 The company has not made any preferential allotment of share to
parties or companies covered in the register maintained under section
301 of the companies act, 1956.
19 The company has not created securities by way of issue of
debentures.
20 The company has not raised any money through public issue during the
year.
21 Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management.
Place: Ahmedabad For, BPA & Company
Date : 30th May,2014 (Chartered Accountants)
Firm Reg. No. 109685W
CA. Bharat Vashi
Partner
Membership No. 31122 | 