| We have audited the accompanying financial statements of P.M.TELELINKS
LIMITED ("the Company ), which comprise the 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 information.
Management 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 sub-section
(3C) of section 211 of the Companies Act, 1956 ("the Act") and in
accordance with the accounting principles generally accepted in India.
These responsibilities inclua. s the design, implementation and
maintenance of internal control relevant to the preparation and
presentation of 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 - 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 nhtoin
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 risk 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 the accounting policies used and the reasonableness of accounting
estimates made by the Management, as well as evaluating the overall
presentation of the financial statements.
believe that the audit evidence that we have obtained is sufficient and
appropriate to provide a basis for our qualified audit opinion.
Basis of Qualified opinion
The company has not charged depreciation on Factory building in the
current year considering the fact that the same was not used during
the year. This constitutes a departure from the Accounting Standard
6 Depreciation Accounting referred to in sub section (3C) of section
211 of the Act. The Company s records
ANNEXTURE TO AUDITORS' REPORT
(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory
Requirements' section of our report of even date)
1. In respect of its fixed assets:
(a) The Company is maintaining proper records showing full particulars
including quantitative details and situation of the fixed assets.
However, no separate fixed asset register is maintained.
(b) The fixed assets are physically verified by the management
according to a phased program designed to cover all the items over a
period, which in our opinion is reasonable having regard to the size of
the company and the nature of its assets. Pursuant to the program, a
portion of the fixed assets have been physically verified by the
management during the year and no material discrepancies were noticed
on such physical verification. However no written report is available.
(c) The Company has not disposed off any fixed asset during the year.
2. In respect of its inventories:
(a) The inventory has been physically verified by management during the
year, in our opinion, the frequency of verification is reasonable.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to size of company and nature of business.
(c) On the basis of our examination of the inventory records, in our
opinion, the company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
3. In respect of the loans, secured or unsecured, granted ordaken 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 granted loan to one party covered in the register
maintained under section 301 of the Companies Act, 1956. The maximum
amount involved during the year was ' 67,48,016/- and the year-end
balance of loan taken from such parties was ' 62,80,029/-.
(b) In our opinion, the rate of interest and other terms and conditions
of loans given by the company are prima facie, not prejudicial to the
interest of the company.
(c) In our opinion, the company is regular in receipt of principal
amount and interest.
(d) There is no overdue amount
(e) The Company has not taken loan from any party covered in the
register maintained under section 301 of the Companies Act, 1956.
Therefore, the provisions of sub clause (f) St (g) of clause (iii) of
paragraph 4 of the Order are not applicable to the Company.
4. 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 the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system indicate that had the management charged depreciation'on
Factory buildingtt would have been 7,04,362.
Accordingly, net profit and shareholders' funds would have been reduced
by Rs. 7,04,362.
Opinion
In our opinion and to the best of our information and according to the
explanations givers to us, except for the effects of the matter
described in the Basis for Qualified Opinion 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 of the
Company as at 31st March, 2014;
(b) In the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company 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, as
amended by the Companies (Auditor's Report) (Amended) Order, 2004
issued by the Central Government of India in terms of sub-section (4A)
of section 227 of the Companies Act, 1956 (hereinafter referred as to
the "order"), and on the basis of such checks of the books and record
of the Company as we considered appropriate and according to the
information and explanation given to us, we give in the Annexure a
statement on the matters specified in paragraphs 4 & 5 of the order.
2. As required by the 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 the 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) Except for the effects of the matter described in the Basis for
Qualified Opinion paragraph. In our opinion, the Balance Sheet, the
Statement of Profit and Loss and the Cash Flow Statement dealt with by
this report comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Act;
(e) On the basis of written representations 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 31st March
2014 from being appointed as a director in terms of clause (g) of
Sub-section (1) of section 274 of the Act.
5.'In'oar-optaton 'arwhacconttig'to thednfamwrtton and'explanations
given to us, tto transactions'have been made in pursuance to contracts
or arrangements to which Section 297 or Section 2.99 of the Companies
Act, 1956 applies. Therefore, provisions of sub clause (a) & (b) of
Clause (v) of paragraph 4 of the Order are not applicable to the
Company.
6. The company has not accepted any deposits from the public of the
nature which attracts the provisions of sections 5SA and 5SAA of the
Companies Act, 1956 and the rules made there under. Therefore, the
provisions of clause (vi) of paragraph 4 of the Order are not
applicable to the Company.
7. There is no internal audit, done by external auditor. However the
company is maintaining internal control system commensurate with its
size & nature of its business.
8. As per the information and explanations given to us, in respect of
the class of industry in which the Company falls, the maintenance of
cost records has not been prescribed by the Central Government under
section 209 (1) (d) of the Companies Act, 1956. Therefore, the
provisions of clause (viii) of paragraph 4 of the Order are not
applicable to the Company.
9. In respect of statutory dues:
(a) The company is regular in depositing with appropriate authority
undisputed statutory dues including provident fund, income tax, sales
tax, service tax, and other statutory dues applicable to it except i)
in certain cases where there were minor delays in payment ofTDS.
Further, since the Central Government has till date not prescribed the
amount of cess payable under section 441A of the companies Act, 1956,
we are not in a position to comment upon the regularity or otherwise of
the company in depositing the same.
(b) According to the information and explanations given to us, there
are no dues of sales, tax, custom duty, income tax, wealth tax,
excise duty or cess, which have not been deposited on account of any
dispute.
10. The company is registered for a period of more than 5 years and its
accumulated losses at the end of the financial year are not more than
fifty percent of its net worth. The company has incurred cash losses
during the financial year under review but not in the immediately
preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to bank
/ financial institutions.
12. The company has not granted any advances in the nature of loans on
the basis of Security by way of pledge of shares or other securities.
Therefore, the provisions of clause (xii) of paragraph 4 of the Order
are not applicable to the Company.
13. The Company is not a chit fund or a nidhi mutual benefit
fund/society. Therefore, provisions of sub clause
(a), (b), (c) and (d) of clause (xiii) of paragraph 4 of the order are
not applicable to the Company.
14. According to the.information and explanations given to us, the
company has not done dealing in shares, securities and other
investments during the year under review. Therefore provisions of
clause (xiv) of paragraph 4 of the order are not applicable to the
company.
15. In our opinion and according to the information and explanations
given to us, the company has not given any guarantees for loans taken
by others from banks or financial institutions. Therefore, the
provisions of clause (xv) paragraph 4 of the Order are not applicable
to the Company.
16. According to the information & explanation given to us, the company
has not taken any term loan there. Therefore, the provisions of clause
(xvl) paragraph 4 of the Order are not applicable to the Company.
17. According to the information and explanations given to us and on an
overall examination of the balance sheet of the company, we report that
the no funds raised on short-term basis have been used for long- term investment.
18. The company has not made preferential allotment of shares to
parties and companies covered in the registered maintained under
section 301 of the companies Act, 1956. Therefore, the provisions of
clause (xviii) of paragraph 4 of the order are not applicable to
Company.
19. The company has not issued any debentures during the year.
Therefore, the provisions of clause (xix) of paragraph 4 of the order
are not applicable to the Company
20. The company has not raised any money through a public issue during
the year. Therefore, the provisions of clause (xx) of paragraph 4 of
the order are not applicable to the company.
21. To the best of our knowledge and according to the information and
explanations given to us, no fraud on or by the company has been
noticed or reported during the course of our audit.
FOR N.K. JALAN & CO.
CHARTERED ACCOUNTANTS
FIRM NO. 104019W
Sd/-
PLACE: MUMBAI
DATED: 31st May, 2014 (N.K. JALAN) PROPRIETOR
Membership No.O 11878 |