| We have audited the accompanying financial statements of Kusam
Electricals industries Limited ("the Company"), 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 the
significant accounting policies and other explanatory information.
Management's responsibility 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 and
financial performance of the Company in accordance with the accounting
principles generally accepted in India including Accounting Standards
referred to in Section 211(3C) of the Companies Act, 1956 ("the Act").
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' 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 misstatements.
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 entire
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 aforesaid 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.
(b) in the case, of the Statement of Profit and Loss, 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
i. Attention is drawn to note no 28 wherein the various conditions as
stipulated in the listing agreement have not been complied with and
liabilities / cost arising in respect thereof are un ascertainable.
ii. As required by the Companies (Auditor's Report) Order, 2003 ("the
Order") issued by the Central Government in terms of Section 227(4A) of
the Act, we give in the Annexure a statement on the matters specified
in paragraphs 4 and 5 of the Order.
iii. 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 the Cash
Flow Statement, dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement, comply with the Accounting Standards
referred to in sub section (3C) of section 211 of Act.
(e) On the basis of the written representations received from the
directors as on March 31, 2014, 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 Section 274(1) (g) of
the Act.
Annexure to Independent Auditors' Report
(Referred to in paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirement" of our report of even date)
i, a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
Assets.
b) The Company has a regular programme of physical verification of its
fixed assets and no material discrepancies were noticed on such
verification during the year.
c) In our opinion and according to the information and explanation
given to us, the Company has hot disposed off a substantial part of
fixed assets during the year.
ii. a) The inventory has been physically verified during the year by
the management at periodica! intervals. In our opinion, the frequency
of verification is reasonable.
b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
c) In our opinion and according to the information and explanations
given to us and on the basis of our examination of records of
inventory, the Company is maintaining proper records of inventory.
iii. As informed to us, the Company has neither granted nor taken any
loans, secured or unsecured, to/from companies, firms or other parties
covered in the Register maintained under Section 301 of the Companies
Act, 1956. Consequently, reporting under clause (iii) of paragraph 4 of
the Order is not applicable.
iv. in our opinion and according to the information and explanations
given to us, there are adequate interna! control procedures'
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and sale of
goods and services.
v. Based on the audit procedures applied by us and according to the
information, provided to us by the management, we are of the opinion
that the transactions that need to be entered into the register
maintained under Section 301 have been entered and the transactions are
made at the prices which are reasonable with regard to the prevailing
market prices at the relevant time
vi. The Company has not accepted any deposits from the public within
the meaning of Section 58A of the Companies Act, 1956 and the rules
framed there under. Therefore, the provisions of section 58AA or any
other relevant provision of the Act are not applicable to the Company.
vii. We have been informed by the management that day to day operations
of the company are supervised by Directors and looking the size and
nature of its business the company at present does not have formal
internal audit systems.
viii. Since the company is not a manufacturing company, hence
provisions for maintenance of cost records under section 209(1 )(d) of
the Companies Act, 1956 are not applicable to the company.
ix, a) According to the information and explanations given to us and on
the basis of the books and records as produced and examined by us, in
our opinion, the Company is generally regular in depositing undisputed
statutory dues including Sales tax, income tax, wealth tax, service
tax, custom duty, cess, excise duty, provident fund, employee's state
insurance, investor education & fund and other material statutory dues
as applicable with appropriate authorities.
b) According to the information and explanation given to us and the
records of the company, there have been no dues in respect of Sales
Tax, income Tax, Custom Duty, Wealth Tax, Excise Duty, Cess and Service
Tax etc. which have not been deposited on account of any dispute.
x. The Company has not incurred any cash losses during the financial
year under report and during the immediately preceding financial year.
xi. Based on our procedures and on the basis of information and
explanations given by the management, in our opinion the Company has
not defaulted in repayment of dues to a financial institution and bank.
xii. The company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures, stock and other
securities.
xiii. In our opinion, considering the nature of activities carried on
by the Company during the year, the provisions of any special statute
applicable to chit fund, nidhi or mutual benefit fund/ societies are
not applicable to the Company.
xiv. In our opinion and according to the information and explanation
gives to us, the company is not dealing in or trading in shares,
securities, debentures and other investments.
xv. According to the information and explanations provided to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
xvi. The term loan obtained by the company during the year has been
applied for the purpose for which it has been obtained.
xvii. On the basis of our examinations of the books of account and the
explanations and information's provided to us, in our opinion, the
funds raised on short term basis have not been used for long term
investment.
xviii. The Company has not made any preferential allotment of shares
during the year to parties and companies covered in the register
maintained under Section 301 of the Act.
xix. The Company has not issued any debentures and hence clause 4(xix)
of the Companies (Auditor's Report) Order, 2003 is not applicable to
the Company.
xx. During the year covered by our report the Company has not raised
any money by way of public issue.
xxi. During the course of our examination of the books of account
carried out in accordance with the generally accepted auditing
practices in India, and according to the information and explanation
given to us, we have neither come across any instances of fraud on or
by the Company nor have we been informed of such cases by the
management.
For CHHAJED & DOSHI,
CHARTERED ACCOUNTANTS
FRN 101794W1
Arima. D. Dhanesha
Place: Mumbai Partner
Date : 24th May 2014 (Membership No. 107863) |