To The Members of
NE Cables Limited |
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| We have audited the attached
Balance Sheet of NE Cables Ltd as at 31st March 2010 and
the Profit & Loss Account and Cash Flows for the year
ended 31.03.2010. 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. |
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| We have conducted our audit
in accordance with auditing standards generally accepted
in India. These standards require that we plan and perform
the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatements
.An audit includes examining on a test basis, evidence
supporting the amount and disclosures in the financial
statements. An audit also includes assessing the accounting
principles used and significant estimates made by the
management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides
a reasonable basis for our opinion. |
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| We report that : |
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| (I) (i) As required by the
Companies (Auditors' Report) Order 2003, as amended, issued
by Central Government in terms of Section 227(4A) of the
Companies Act,1956, and on the basis of such checks of
the books and records of the company as we considered
appropriate and according to the information and explanations
given to us, we enclose herewith in the annexure a Statement
of the matter specified therein. |
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| (ii) (i) We have obtained all
the information and explanations which to the best of
our knowledge and belief were necessary for the purpose
of audit. |
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| (iii)In our opinion, proper
books of accounts , as required by law have been kept
by the Company so far as appears from our examination
of books of accounts |
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| (iv) The Balance Sheet and
Profit & Loss Account dealt with by this report are in
agreement with the books of accounts. |
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| (v) Balance Sheet and Profit
& Loss Account have been prepared in due compliance of
Accounting Standards referred to in sub section(3C) of
Section 211 of Companies’ Act 1956. |
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| (vi)On the basis of written
representations received from the directors as on 31.03.10
and taken on record by the Board of Directors, we report
that none of the directors of the company is disqualified
for the office of director within the meaning of Section
274(1)(g) of the Companies Act 1956. |
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| vii) In our opinion and according
to information and explanations given to us the said accounts
give the information required by the Companies’ Act 1956
in the manner so required and give a true and fair view
in conformity with the accounting principles generally
accepted in India. |
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| a). In the case of Balance
Sheet of the State of Affairs of the Company as at 31st
March, 2010 and |
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| b).In the case of Profit &
Loss Account, the Loss for the year ended 31st March,
2010. |
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| c). In the case of Profit &
Loss Account, the Loss for the year ended 31st March,
2010 and |
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For G Basu & Co.
Chartered Accountants
R. No :- 301174E
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(MANOJ KUMAR DAS)
PARTNER
M. NO. 013783
BASU HOUSE
3, Chowringhee Approach,
KOLKATA - 700 072
Dated: 23rd day of April’2010 |
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Annexure to the auditors’ report
as referred to in para I of the said report of even
date
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| 1). The Company has maintained
proper records showing full particulars including quantitative
details and situation of fixed assets in respect of all
its locations. |
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| 2). The fixed assets have been
physically verified by the Management as applicable at
all locations at reasonable intervals. No material discrepancies
between book records and the physical inventories have
been noticed on such verification. |
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| 3). Fixed Assets disposed of
during the year has not been substantial enough to affect
the going concern of the company. |
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| 4). The inventories have been
physically verified at reasonable intervals by the management
as applicable. |
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| 5). 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. |
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| 6). On the basis of our examination
of the records of inventory, we are of the opinion that
the Company is maintaining proper records of inventory.
The discrepancies noticed on verification between the
physical stocks and book records were not material and
have been properly dealt with in the books of account. |
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| 7).The Company has not granted
any Loans secured or unsecured to any Company, Firm and
Other party covered in the register maintained in pursuance
to section 301 of the Act 1956. |
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| 8). The company has not obtained
any loan, secured or unsecured , from any company ,firm
other party covered in the register maintained under section
301of the Act. |
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| 9). 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 purchase of inventory and fixed assets and on the
sale of goods and services. During the course of our audit
no major weakness has been noticed in the internal control
system. We have not observed any failure on the part of
the Company to correct major weakness in internal control
system. |
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| 10. a). Based on audit procedures
applied by us and according to the information and explanations
provided by the management, we are of the opinion that
the transactions that need to be entered into the register
maintained under section 301 of Companies Act, 1956 have
been so entered. |
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| b). According to information
and explanations given to us, the transactions made in
pursuance of contracts or arrangements entered in the
registers maintained under section 301 of the Act during
the year have been made at prices which are reasonable
having regard to prevailing market prices at the relevant
time. |
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| 11) This Clause is not applicable
to the Company as the Company has not accepted any deposits. |
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| 12) In our opinion the Company
has an internal audit system commensurate with the size
of the company and nature of its business. |
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| 13) This Clause is not applicable
to the Company, as the Company has not Yet started production.
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| 14. a) According to information
and explanations given to us the Company is depositing
with appropriate authorities undisputed statutory dues
including provident fund, investor education and protection
fund, employees state insurance, income tax, sales tax,
service tax, wealth tax, custom duty, excise duty, cess
and other statutory dues to the extent applicable to it.
There has been no arrear of outstanding statutory dues
on these accounts which have been outstanding for more
than six months on the date of balance sheet from the
date they became payable. |
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| b). Contingent dues on account
of Sales Tax / Income Tax / Excise Duty / Entry Tax disputed
by the Company and not being paid, vis-a-vis forums where
such disputes are pending are mentioned below: |
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Nature of
the Statute
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Nature of
Due
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Amount (Rs/Lacs)
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Forum where
dispute is pending
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Sales Tax
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Sales Tax
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NIL
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N.A
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Central Excise
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Central Excise
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NIL
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N.A
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Income Tax
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Income Tax
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NIL
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N.A
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| There has been no contingent
dues on account of wealth tax, custom duty, service tax,
cess or other statutory dues which have not been paid
on account of dispute. |
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| 15). Accumulated loss of the
Company is less than fifty percent of its net worth. The
Company has sustained cash loss during the year and sustained
cash loss in the preceding year. |
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| 16). The Company has not taken
any loans from Banks or Financial Institutions. |
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| 17). The Company has not granted
any loans and advances on the basis of security by way
of pledge of shares ,debentures or other securities. However
loans granted to employees are generally secured by mortgage/
hypothecation of assets for which adequate records / documents
are maintained. |
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| 18). The Company has maintained
proper records of transaction of Shares, Debentures and
other investments dealt in by it and timely entries have
been made therein .Investments are held in Company’s own
name . |
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| 19). This Clause is not applicable
to the Company ,as the Company has not given any guarantee
on behalf of any other Company |
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| 20). The Company has not taken
any Term Loan. |
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| 21). This Clause is not applicable
to the Company, as the Company has not taken any Short
Term Loan during the year . However the company has repaid
the interest free loan earlier taken from the ultimate
Holding Company during the year. |
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| 22). This Clause is not applicable
to the Company, as the Company has not allotted any shares
during the year. |
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| 23). This Clause is not applicable
to the Company, as the Company has not created any charge
of its assets for issue of debentures. |
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| 24). Based upon the audit procedures
performed and information and explanations given by the
management, we report that no fraud on or by the Company
has been noticed or reported during the course of our
audit. |
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| 25). Other clauses of the order
are not applicable to the Company. |
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For G Basu & Co.
Chartered Accountants
R. No :- 301174E
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BASU HOUSE
3, Chowringhee Approach,
KOLKATA - 700 072
Dated, the 23rd day of April, 2010 |
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Manoj Kumar Das
(Partner)
Membership No – 013783
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