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We have audited the attached Balance
Sheet of NICCO ENGINEERING SERVICES LIMITED as at 31st
March, 2010 and also the Profit and Loss Account and
Cash Flow Statement for the year ended on that date
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 presentation.
We believe that our audit provides a reasonable basis
for our opinion.
As required by the Companies (Auditor’s report) (Amendment)
Order, 2004 issued by the Central Government of India
in terms of sub-section (4A) of section 227 of the Companies
Act, 1956, we enclose in the Annexure, a statement on
the matters specified in the paragraphs 4 and 5 of the
said order.
Further to our comments in the Annexure referred above,
we report that:
1) 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;
2) 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.
3) The Balance Sheet and the Profit & Loss Account dealt
with by this report are in agreement with the books
of account;
4) In our opinion, the Balance Sheet and the Profit
and Loss Account dealt with by this report comply with
the accounting standards referred to in sub-section
(3C) of Section 211 of the Companies Act, 1956;
5) On the basis of the written representations received
from the directors and taken on record by the Board
of Directors, we report that none of the Directors is
disqualified as on 31st March, 2010 from being appointed
as a Director in terms of clause (g) of sub-section
(1) of section 274 of the Companies Act, 1956;
6) In our opinion and to the best of our information
and according to the explanations given to us, the said
accounts read with the notes in Schedule 19, and in
particular to Note No B.1 regarding reduction in value
of the shares and Note No. B 14 relating to Scheme of
arrangement for recovery of debt, give the information
required by the Companies Act, 1956 (as amended) 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, 2010 and
(b) In the case of the Profit & Loss Account, of the
Profit 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.
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| Dated : The 24th day of April,
2010 |
For SINGHI & CO.
Chartered Accountants
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1-B, Old Post Office Street,
Kolkata-700 001 |
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Sankar Banerjee
Partner
Regn. No. 8230
FRN : 302049E
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ANNEXURE TO THE AUDITORS’ REPORT
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| I (a) |
The Company has maintained, proper records
showing full particulars including quantitative details
and situation of Fixed Assets.
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| (b) |
Fixed Assets have been physically verified
by the Management during the year and short/excess noticed
on physical verification has been duly adjusted in the
accounts as mentioned at Schedule 3 of the accounts. |
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| (c) |
No substantial part of Fixed Assets has
been disposed off during the year, which has bearing on
the going concern assumption. |
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| II(a) |
Physical verification of Inventory have
been conducted at reasonable intervals during the year
by the management. |
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| (b) |
In our opinion, the procedures of physical
verification of Inventory followed by the management are
reasonable and adequate in relation to the size of the
Company and nature of its business. |
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| (c) |
The Company has maintained proper records
of inventory. No material discrepancies were noticed on
physical verification. |
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| III.(a) |
The Company has not granted any loans, secured
or unsecured to Companies, Firms or other parties covered
in the register maintained under Section 301 of the Companies
Act, 1956. Accordingly, clause 4(iii)(b) to (d) of the
Order are not applicable. |
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| (b) |
The Company has neither granted nor taken
any loans, secured or unsecured to and from companies,
Firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956. Accordingly,
clause 4(iii)(f) to (g) of the Order are not applicable. |
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| IV. |
On the basis of checks carried out during
the course of audit and as per explanations given to us,
we are of the opinion that there are adequate internal
control procedures 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. During the
course of our audit, no major weakness has been noticed
in the internal controls. |
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| V. (a) |
In our opinion and according to the information
and explanations given to us, all the transactions that
need to be entered into a register maintained under Section
301 of the Companies Act, 1956, have been so entered. |
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| (b) |
In our opinion and according to the information
and explanations given to us , each of these transaction,
exceeding five lakh rupees in respect of any party in
the financial year have been made at prices which are
reasonable having regard to the prevailing market prices
at the relevant time. |
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| VI. |
The Company has not accepted any deposits
from the public and therefore the Directives issued by
the Reserve Bank of India and the provisions of sections
58A and 58AA of the Companies Act, 1956 and the rules
framed thereunder as well as Clause (vi)(b) of the Order
are not applicable. |
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| VII. |
The Company has an Internal Audit System,
which in our opinion is commensurate with the size and
nature of the business of the Company. |
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| VIII. |
The Central Government has not prescribed
maintenance of the cost records under section 209 (1)
(d) of the Companies Act, 1956 in regard to the activities
of the Company. |
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| IX (a) |
According to the information and explanations
given to us and on the basis of our examination of the
books of accounts, the Company is regular in depositing
undisputed statutory dues including Provident Fund, Investor
Education and Protection Fund, Employees’ State Insurance,
Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise
Duty, Cess and other statutory dues with the appropriate
authorities. |
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| (b) |
According to the information and explanations
given to us, there exists no dues of Sales Tax, Income
Tax, Customs Duty, Wealth Tax, Excise Duty and Cess which
have not been deposited on account of any dispute . |
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| X. |
The Company does not have any accumulated
losses and has not incurred cash losses in the current
financial year and in the immediately preceding financial
year. |
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| XI. |
The Company has not defaulted in repayment
of dues to Financial Institutions or Banks or Debenture
holders. |
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| XII. |
According to the information and explanations
given to us, the Company has not granted any loans or
advances on the basis of security by way of pledge of
Shares, Debentures and other securities. |
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| XIII. |
The Company is not a chit fund or a nidhi/mutual
benefit fund/ society. |
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| XIV. |
The Company is not in the business of dealing
or trading in shares. The Shares, Securities, Debentures
and other Securities have been held by the Company, in
its own name except to the extent of exemption, granted
under section 49 of the companies Act, 1956. |
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| XV. |
In our opinion and according to the information
and explanations given to us, the Company has not given
any guarantee for loans taken by others from banks or
financial institutions . |
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| XVI. |
The Company has not obtained any term loan
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| XVII. |
On the basis of our examination of the
Balance Sheet , the funds raised on short-term basis have
not been used for long term investment and vice-versa. |
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| XVIII. |
During the year under Audit, the Company
has not made any preferential allotment of shares to parties
or companies covered in the register maintained under
section 301 of the Companies Act, 1956. |
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| XIX. |
The Company has not issued any debentures
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| XX. |
The Company has not raised any money by
way of Public Issue during the year. |
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| XXI. |
Based upon the audit procedures performed
and on the basis of information and explanations provided
by the Management, we report that no fraud, on or by the
company has been noticed or reported during the year.
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Dated : The 24th day of April, 2010 |
For SINGHI & CO.
Chartered Accountants
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1-B, Old Post Office Street,
Kolkata-700 001 |
Sankar Banerjee
Partner
Regn. No. 8230
FRN : 302049E
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