| We have audited the accompanying financial statements of IYKOT HITECH
TOOLROOM LIMITED (the Company) which comprises of Balance sheet as at
31st March 2014, the Statement of Profit and Loss and the Cash flow
Statement for the year then ended and a summary of the significant
accounting policies and other explanatory notes.
Management's Responsibility for the financial statements
The Company's 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 subsection (3C)
of section 211 of the Companies Act, 1956 (the Act) read with the
General Circular 15/2013dated 13th September 2013 of the Ministry of
Corporate affairs in respect of section 133 of the Companies Act 2013
and General Circular 08/2014 dated 4th April 2014 with respect to the
financial statements and in accordance with the accounting principles
generally accepted in India. 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 misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditors' judgement 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 company's internal control. An audit also includes
evaluating the appropriateness of the 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 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 as at 31st
March 2014
b) in the case of the Statement of Profit and loss of the Loss for the
year ended on that date and
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
1. 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 Companies Act,2013, we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of Order
2. 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 purposes of our
audit
b) In our opinion , proper books of account as required by law have
been kept by the Company so far as it 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 the Profit and
Loss and the Cash Flow Statement dealt with by this report comply with
the Accounting Standards referred to in subsection (3C) of section 211
of the Companies Act, 1956 read with General Circular15/2013 dated 13th
September 2013 of the Ministry of Corporate affairs in respect of
section 133 of the Companies Act 2013 except non provision of gratuity
and leave encashment to employees.
e) On the basis of written representations received from the Directors
as at 31st March 2014 taken on record by the Board of Directors , none
of the Directors is disqualified as at 31st March 2014 from being
appointed as a Director in terms of Section 274 (1) (g) of the Act on
the said Date.
Annexure to the Independent Auditor's Report Referred to in paragraph I
under other Legal and Regulatory requirements of our report of even
dated
i) In respect of its fixed assets,
a) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets
b) The fixed assets were physically verified by the management once in
a year, which in our opinion, provides for physical verification of all
the fixed assets. According to the information and explanation given
to us, no materials discrepancies were noticed on such verification.
c) The fixed assets disposed during the year, in our opinion, do not
constitute a substantial part of the fixed assets of the company and
such disposal has, in our opinion not affected the going concern status
of the company.
ii) In respect of inventory,
a) As explained to us, the inventories of finished goods and semi
finished goods and raw materials and factory and depot were physically
verified during the year by the management. In our opinion, having
regard to the nature and location of the stocks, 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 were reasonable and adequate in relation to
the size of the company and the nature of the business.
c) In our opinion and according to the information and explanations
given to us, the company has maintained proper records of inventories
and no material discrepancies were noticed on physical verification.
iii) The Company has not granted any loan, secured or unsecured, to
companies / firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
iv) In respect of loans secured or unsecured taken by the companies/
firms /parties covered in the register maintained under section 301 of
the Companies Act, 1956, according to the information and explanations
given to us,
a) No. of Parties 2
Amount outstanding as
at 31.03.2014 Rs 4485000/-
Maximum outstanding
involved during the year Rs 4485874/-
b) the rate of interest and other terms and conditions of loans, in our
opinion, prima facie not prejudicial to the interests of the company.
c) The payments of principal and interests amount have been regular and
as per stipulations.
d) There are no overdue amounts outstanding at the Balance Sheet date.
v) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the company and the nature of its business for the
purchase of inventory, and fixed assets and for sale of goods and
services. During the course of our audit, we have not observed any
major weakness in such internal control system.
vi) In respect of the contracts of arrangements referred to in Section
301 of the Companies Act, 1956:
a. In our opinion and according to the information and explanations
given to us, there are transactions made in pursuance of contracts or
arrangements that need to be entered in the register maintained under
Section 301 of the Companies Act, 1956 have been so entered.
b. In our opinion and according to the information and explanations
given to us, there are transactions made in pursuance of
contracts/arrangements entered in the Register maintained under section
301 of the Companies Act, 1956 and exceeding the value of Rs.5,00,000
in respect of each party during the year is NIL.
vii) According to the information and explanations given to us, the
Company has not accepted any deposit from the public. Therefore, the
provisions of Clause (vi) of paragraph 4 of the Order are not
applicable to the Company.
viii) In our opinion, the Company has no internal audit system though
the paid up capital and free reserves of the company has exceeded Rs 50
lakh and the average annual turnover has exceeded Rs 5 crores for a
period of three consecutive financial years immediately preceding the
financial year concerned under paragraph 4(vii) of the order.
commensurate with the size and nature of its business.
ix) We have been informed by the company that the Central Government
has not prescribed the maintenance of cost records under Section 209
(1)(d) of the Companies Act, 1956 and the rules made there under.
x) In respect of statutory dues:
a. According to the records of the Company, undisputed statutory dues
including Provident Fund, Employees' State Insurance, Income-Tax, Sales
Tax, Service Tax, Customs Duty, Excise Duty, Cess, and other statutory
dues have been generally regularly deposited with the appropriate
authorities.
b. According to the information and explanations given to us, no
undisputed amounts payable in respect o the aforesaid dues were
outstanding as at March 31,2014 for a period of more than six months
form the date of becoming payable is NIL.
xi) The Company does have accumulated losses at the end of the
financial year of Rs. 4327748.44/-. The Company has not incurred cash
loss during the financial year covered by the audit and also has not
incurred cash loss in the immediate preceding financial year.
xii) Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to banks.
xiii) In our opinion and according to the explanations given to us and
based on the information available, no loans and advances have been
granted by the Company on the basis of security by way of pledge of
shares, debentures and other securities.
xiv) In our opinion, the company is not a chit fund / nidhi / mutual
benefit fund/society. Therefore, the provisions of clause (xiii) of
paragraph 4 of the Order are not applicable to the Company.
xv) The Company has not dealing or trading in shares, securities,
debentures and other investments and hence paragraph 4(xiii) of the
other is not applicable. Therefore, the provisions of clause (xiv) of
paragraph 4 of the Order are not applicable to the Company.
xvi) The Company has not given guarantees for loans taken by others
from banks and financial institutions. Therefore, the provisions of
clause (XV) of paragraph 4 of the Order are not applicable to the
Company.
xvii) The Company has raised new terms loan of Rs 699000/- during the
year. The term loans outstanding at the beginning of the year and those
raised during the year have been applied for the purposes for which
they are raised.
xviii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that there are no funds raised on short term basis that
have been used for long term investment.
xix) The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Companies Act, 1956.
xx) The Company has not raised any debentures. Therefore, the
provisions of clause (XiX) of paragraph 4 of the Order are not
applicable to the Company.
xxi) The Company has not raised any monies by way of public issues
during the year and hence paragraph 4(XX) of the order is not
applicable to this company.
xxii) In our opinion and according to the information and explanations
given to us, no material fraud on or by the Company has been noticed or
reported during the year.
For Ramadoss & Co.
Chartered Accountants
Firm Regn No. 002879S
Place : Chennai K. Ramadoss
Partner
Date : 30.05.2014 Membership No.019176 |