| We have audited the attached Balance Sheet of Naina Semiconductor
Limited, Haldwani, Distt. Nainital (Uttranchal) as on 31st March,2014
and the Profit & Loss Account and Cash Flow statement for the year
ended on that date and annexed thereto. These Financial statements are
the responsibility of the Company's management. Our responsibility is
to express an opinion on these financial statements based on our audit.
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 statement
pre- sentation. We believe that our audit provides a reasonable basis
for our opinion.
i) We have obtained all the information and explanations which to the
best of our knowl- edge and belief were necessary for the purpose of
our audit.
ii) In our opinion, proper books of accounts as required by the
Companies Act, 1956 have been kept by the company so far as it appears
from our examination of those books.
iii) The Balance Sheet and Profit and Loss Account cash flow dealt with
in this report are in agreement with the books of account and also are
in compliance with the mandatory accounting standards reffered to in
section 211(3C) of the companies Act 1956 to the extent applicable.
iv) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with notes
thereon, give the information required by the Companies Act, 1956 and
also give true and fair view.
a) In the case of Balance Sheet of the state of affairs of the company
as at 31st March, 2014
b) In the case of Profit & Loss Account the profit for the year ended
on that date.
c) On the basis of written representation received from the Directors
as on 31st March, 2014 and taken on record by the Board of Directors,
none of the Directors is disqualified as on the above date from being
appointed as director in terms of Section 274 (1) (g) of the Companies
Act, 1956.
d) The Balance Sheet and Profit & Loss Account dealt with by this
report are in agreement with the books of account.
e) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
V) As required by the companies (Auditor's Report) Order, 2003 issued
by the Company Law Board in terms of section 227 (4A) of the Companies
Act, 1956 and on the basis of such checks as we considered appropriate,
we further report on the matters specifically in paragraph 4 & 5 of the
said order to the extent applicable.
1. The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. As
explained to us the fixed assets have been physically verified by the
management during the year. No serious discrepancies were noticed on
such verification.
2. The management has conducted physical verification at reasonable
intervals in respect of finished goods, store, spare parts and raw
materials.
3. As explained to us, in respect of goods traded in , the company has
reasonable system for the determination of damaged goods and in our
opinion, adequate provisions have been made in the accounts for the
losses arising on the items so determined.
4. The procedure of physical verification of stocks followed by the
management is reason- able and adequate in relation to the size of the
company and the nature of its business.
5. No material discrepancies have been noticed on physical
verification of stocks as compared to book records.
6. In our opinion, the valuation of the stocks is fair and proper and
in accordance with the normally accepted accounting principles. The
basis of valuation of stocks is the same as in the preceding year.
7. The company has not taken any loans, secured or unsecured, from
companies, firms or other parties listed in the registers maintained
under section 311 and 370 (1B) of the Companies Act, 1956.
8. The company has not granted any loans, secured or unsecured, to
companies, firms or other parties listed in the register maintained
under section 311 (1B) of the Companies Act, 1956.
9. In respect of loans and advances given by the company during the
year, there are no stipulations for repayment of principal or any
interest thereon as per verification of records produced before us and
as confirmed by the management.
10. In our opinion, the company has an adequate internal control
procedure commensurate with the size of the company and the nature of
the business for the purchase of stores, raw materials, including
components, plant and machinery, equipment and other assets and for the
sale of goods.
11. In our opinion and according to the information and explanations,
given to us, the com- pany has not entered into any transactions of
purchase of goods and materials and sale of goods, material and
services in excess of Rs. 50,000/- in value, in pursuance of contracts
or arrangement entered in the register (s) maintained under section 311
of the Companies Act,1956. The company has no subsidiary.
12. The company has a system for the determination of unserviceable or
damaged stores, raw materials and finished goods and in our opinion,
provision for loss has been made in accounts.
13. The company has not accepted any deposits from the Public.
14. In our opinion, the company is maintaining reasonable records for
the sale and disposal of realizable scrap. The company has no
by-products.
15. The company is maintaining cost records under section 209 (1) (d)
of the Companies Act,1956 for any of the products of the company as per
cost accounting records (Electronic Products) Rule 2001
16. The company is regular in depositing Provident Fund & ESI dues.
17. There are no undisputed amounts payable in respect of Income Tax,
Wealth Tax, Customs Duty and Excise Duty outstanding as at last day of
financial year concerned for a period of more than 6 months from the
date they become payable.
18. No personal expenses, whether of the Directors or employees, have
been charged to the revenue account other than those payable under
contractual obligations or accepted business practice.
19. According to the information & explanations given to us, no Fraud
in or by the company has been noticed or reported during the year.
20. According to the records of the company its accumulated losses at
the end of the Financial year are less than 50% of its net worth. The
company has not incurred cash losses in the financial year under report
and in the financial year immediately preceding such financial year.
21. In our opinion, the company is not chit-fund or Nidhi muttual
benefit fund / society. Therefore the provision of clause 4(XIII) of
the companies (auditor's report) order 2003 are not applicable to the
company.
22. In our opinion and according to the information and explanations
given to us, the company is not dealing in or trading in shares,
securities, deben- tures and other investment.
23. The company has not made any fresh allotment of shares and
debentures. Therefore the provisions of clause 4(XVIII & XIX) of the
companies act (auditor's report) order 2003 are not applicable to the
company.
24. During this year no depreciation was charged on the fixed assets
lying in Haldawni factory which is closed & not in use since 2001 & due
to this the profit was overstated by Rs 10.12 Lacs.
for D. VEHL&CO.
CHARTERED ACCOUNTANTS
Place : New Delhi DEEPAK VEHAL
Date : 31st May, 2014 CHARTERED ACCOUNTANT |