| We have audited the attached Balance Sheet of Neycer India Limited as
at 31st March 2012, the Statement of Profit & Loss for the year ended
on that date, annexed thereto and the Cash Flow Statement for the year
ended that date. 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 the 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 the 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 (Auditors' Report) order, 2003, as amended
by Companies (Auditors' Report) (Amendment) order, 2004 issued by the
Central Government in terms of subsection (4A) of section 227 of the
Companies Act 1956, we enclose in the annexure a statement on the
matters specified in paragraph 4 and 5 of the said Order.
Further to the comments referred to above, we report that:
(i) 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.
(ii) 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.
(iii) The company's Balance Sheet and Statement of Profit & Loss dealt
with by this report are in agreement with the books of account.
(iv) In our opinion, the Balance Sheet and Statement of Profit and Loss
dealt with by this report comply with the Accounting Standards referred
to in Section 211(3C) of the Companies Act, 1956.
(v) On the basis of written representations received from the
Directors, as on 31st March, 2012 and taken on record by Board of
Directors, we report that none of the Directors are disqualified as on
31st March, 2012 from being appointed as director in terms of clause
(g) of sub- section (1) of section 274 of the Companies Act, 1956.
(vi) In our opinion and to the best of our information and according to
the explanations given to us, subject to non provision of interest on
the Term Loan and Funded Interest Term Loan from bank amounting to
Rs.7.27 Crores and interest of Rs. 1.89 Crores on Loan from Body
Corporate referred to in Note No.29 of Notes to Financial Statements
the said accounts, read together with the notes thereon, 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:
a) In the case of the Balance sheet, of the state of affairs of the
company as at 31st March, 2012;
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 for the
year ended on that date.
ANNEXURE TO AUDITORS' REPORT
I) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of Fixed
Assets.
b) Physical verification of major items of these assets has been
conducted by the management during the financial year and as explained
to us, no material discrepancies were noticed on such verification.
c) The Company has not disposed of substantial part of fixed assets.
II) a) Physical verification of Inventory has been conducted by the
management at reasonable intervals. In our opinion, the frequency of
verification is reasonable.
b) 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) The company is maintaining proper records of inventory. No material
discrepancies were noticed on physical verification as compared to the
book records.
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.
b) The Company has not taken any loans, secured or unsecured from
companies, firms or other parties, covered in the Register maintained
under Section 301 of the Companies Act, 1956.
IV) The Company has 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.
V) a) The transactions that need to be entered in the register
maintained under section 301 of the Act have been so entered.
b) According to the information and explanations furnished to us these
transactions have been made at, prices which are reasonable having
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, 58AA or any other relevant provisions of
the Act and the Rules framed there under.
VII) The Company has an internal audit system commensurate with the
size and the nature of its business.
VIII) The Central Government has not prescribed the maintenance of cost
records under section 209 (1) (d) of the Companies Act, 1956.
IX) a) The Company is depositing undisputed statutory dues including
Provident Fund, Employees' State Insurance, Investors' Education and
Protection Fund, Income Tax, Sales Tax, Wealth Tax, Service Tax, Excise
Duty, Customs Duty, Cess and other statutory dues with the appropriate
authorities belatedly and there are outstanding statutory dues as at
the last day of the financial year concerned for a period of more than
six months from the date they became payable. The extent of the
outstanding are as under:
Nature of the dues Amount Due (Rs.)
Sales Tax 1,39,65,185
Excise Duty 22,05,103
Provident Fund 14,88,318
Tax Collected at Source 2,375
b) There are disputed dues of tax which have not been deposited and the
amount involved and the forum where disputes are pending are as under:
Name of the Nature of Amount
Disputed Amount
paid Forum where
Statute Dues (Rs.) (Rs.) dispute is pending
Sales Tax Act Sales Tax 1,04,10,808 Nil Assessing authorities
and Appellate
Authorities
X) The Company has accumulated losses exceeding fifty per cent of its
net worth and has not incurred cash loss in the current financial year
or in the immediately preceding financial year.
XI) In our opinion and according to the information and explanations
given to us, the company has defaulted repayment of dues to banks. Tne
default in respect of principal amount of loan was Rs. 10,22,116 and
that of interest was Rs. 1,01,33,499 as detailed in Note No.4 of the
Notes to financial statements.
XII) The Company has not granted loans and advances on the basis of
security byway of pledge of shares, debentures and other securities.
XIII) The Company is not engaged in the business of nidhi / mutual
benefit fund/society and hence the question regarding application of
special statute does not arise.
XIV) The Company is not dealing or trading in shares, securities,
debentures and other investments.
XV) The Company has not given any guarantee for loans taken by others
from banks or financial institutions.
XVI) The Company has applied the term loan for the purpose for which
the same was obtained.
XVII) 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 company has not used funds raised on short-term basis for long
term investment.
XVIII) The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act during the year.
XIX) The Company has not issued any debentures.
XX) The Company has not raised any money by public issues during the
year.
XXI) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
year.
Place: Chennai For Suri & Co
Date: 27-08-2012 Chartered Accountants
Firm Regn No: 004283S
Sd/-
R. Mahesh
Partner
Membership No 024775 |