Golkonda Engineering Enterprises Ltd.की ऑडीटर रिपोर्ट

Mar 31, 2015

We have audited the accompanying financial statements of GOLKONDA ENGINEERING ENTERPRISES LIMITED ("the Company"), which comprise the Balance Sheet as at 31** March, 2015, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

The Company''s Board of Directors is responsible for the matters stated in section 134(5) ofthe Companies Act, 2013 ("the Act") with respect to 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 principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, 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 have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under. We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. 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 mis-statement

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 auditor''s judgment, 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 financial control relevant to the Company s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company''s Directors, 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 on the financial statements.

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, of the state of affairs of the Company as at 31" March, 2015 and its profit and its 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, 2015, (''the Order"), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act 2013 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 explanation given to us, we give in the Annexure a statement on the matters specified in paragraphs 3 & 4 of the Order, to the extent applicable.

2 As required by section 143(3) of the Act, we report that:

a) We have sought and 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 aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act. read with Rule 7 of the Companies (Accounts) Rules, 2014.

e) On the basis of the written representations received from the directors as on 31st March, 2015, taker on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2015, from being appointed as a director in terms of Section 164(2) of the Act.

f) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules. 2014, in our opinion and to the best of our information and according to the explanations given to us:

i. The Company does not have any pending litigations which would impact its financial position,

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

Annexure to the Independent Auditors'' Report

(Referred to in paragraph 1 under ''Report on Other Legal and Regulatory Requirements'' section of our report of even date)

(i) In respect of its fixed assets:

(a) The company has maintained proper records showing full particulars, including quantitative details and situation ofthe fixed assets.

(b) As explained to us, all the fixed assets have been physically verified by the management in a phased periodical manner, which in our opinion is reasonable having regard to the size of the Company and nature of its assets. No material discrepancies were noticed on such physical verification.

(ii) 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.

(iii) The company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act.

(iv) 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.

(v) The company has not accepted any deposits from the public of the nature which attracts the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules made there under. Therefore, the provisions of clause (v) of paragraph 3 of the Order are not applicable to the Company

(vi) 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 sub-section (1) of section 148 of the Companies Act, 2013. Therefore, the provisions of clause (vi) of paragraph 3 of the Order are not applicable to the Company

(vii) In respect of statutory dues:

(a) The company is regular in depositing with appropriate authority undisputed statutory dues including provident fund, employees'' state insurance, income tax, sales tax, wealth tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues applicable to it with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of above dues were in arrears, as at 31st March, . 015 for a period or more than six months from the date they became payable.

(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.

(c) In our opinion and according to the information and explanations given to us, there are no amounts which are required to be transferred to investor education and protection fund in according with the relevant provisions of the Companies Act, 1956 and rules made there under.

(viii) The company is registered for a period of more than 5 years and there are no accmulated losses at the end of the financial year. The company has not incurred cash losses during the financial year and in the immediately preceding of dues to bank/financial institutions.

(ix) in our opinion and accordingto the information and explanation given to us, the company has not defaulted in repayment of dues to bank/financial institutions.

(x) In our opinion and according to the information and explanation 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 (x) paragraph 3 of the Order are not applicable to the Company.

(xi) According to the information & explanation given to us, the term loan taken by the company have been applied for the purpose for which they have been obtained.

(xii) To the best of our knowledge and according to the information and explanation given to us, no fraud on or by the company has been noticed or reported during the year.

FOR N.K. JALAN 6 CO. CHARTERED ACCOUNTANTS firm no. 104019w

Place:Mumbai (N.K, JALAN) Dated: 20/05/2015 PROPRIETOR Membership No.0ll878

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Mar 31, 2014

We have audited the accompanying financial statements of M/s GOLKONDA ENGINEERING ENTERPRISES LIMITED ("the Company"), which comprise the Balance sheet as at 31st March, 2013, the statement of Profit and Loss for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

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 of India (the "Act"). These responsibilities includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of financial statements that gives a true and fair view and are free from material misstatements, whether due to fraud or error.

Auditor''s 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 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 disclosures in the financial statements. The procedure selected depends 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. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Management, as well as evaluating the overall presentation of the financial statements.

We believe that, the audit evidence that we have obtained is sufficient and appropriate to provide a basis for our opinion

Opinion

In our opinion, and to the best of our information and according to the explanations given to us, the accompanying financial statements give the information required by the Act in the manner so required and give true and fair view in conformity with the accounting principles generally accepted in India:

(a) In the case of Balance Sheet, of the state of affairs of the Company as at 31st March, 2013;

(b) In the case of the statement of Profit and Loss, 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.

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 of India in terms of sub-section (4A) of section 227 of the Act, 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 appears from our examination of those books;

(c) the Balance Sheet, Statement of Profit and Loss dealt with by this report are in agreement with the books of account;

(d) in our opinion, the Balance Sheet, Statement of Profit and Loss 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, 2013 and taken on record by the Board of Directors, none of the director is disqualified as on 31st March 2013, from being appointed as a director in terms of clause (g) of Sub-section (1) of section 274 of the Act.

ANNEXTURE TO AUDITORS'' REPORT

Referred to in paragraph 5 of the Auditors'' Reports of Even date to the Members of M/s GOLKONDA ENGINEERING & ENTERPRISES LIMITED on the financial statements for the year ended 31st March, 2013.

1. (a) The Company is maintaining proper records showing full particular including quantitative details and situation, of fixed assets.

(b) The fixed assets are physically verified by the management according to a phased program design 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 has been physically verified by the Management during the year and no material discrepancies have been noticed on such verification.

(c) In our opinion, and according to the information and explanation given to us any substantial part of fixed assets have not been disposed off by the Company during the year.

2. (a) The inventory has been physical verified 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 (a) As informed to us, the company has not granted loan to any party covered in the register maintained under section 301 of the Companies Act, 1956

(b) The Company had taken loan from one party covered in the register maintained under section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs.112, 351,629/- and the year-end balance of loan taken from such parties was Rs.109, 448,380/-.

(e) In our opinion, the rate of interest and other terms and conditions of loans taken by the company are not, prima facie, prejudicial to the interest of the company.

(f) In our opinion, company is regular in payment of principal amount and interest

4. According to the information and explanation given to us, there is adequate internal control procedure commensurate with the size of Company and nature of business, for the purchase of inventory and fixed assets and for sale of goods and services

5. (a) According to the information and explanation given to us, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the Companies act, 1956 have been so entered. 6. (b) In our opinion and according to the information and explanations given to us, transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the companies Act, 1956 exceeding the value of rupees five lakhs in respect of any party during the year have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

7. According to the information and explanation given to us the Company has not accepted any public deposits. Hence Provision of this clause is not applicable.

8. There is no internal audit done by external auditor. However the company does have a formal internal audit system commensurate with its size & nature of its business.

9. The Company is not required to maintain cost records u/s. 209(1) (d) of the Companies Act, 1956. Hence provision of this clause is not applicable.

10. (a) The company is regular in depositing with appropriate authority undisputed statutory dues including provident fund, employees'' state insurance, income tax, sales tax, wealth tax, custom duty, excise duty and other statutory dues as applicable to it. According to the information and explanations given to us, no undisputed amounts payable in respect of income tax, wealth tax, sales tax, customs duty, excise duty were in arrears, as at 31st March, 2013 for a period of more than six months from the date they became payable .

(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 and cess, which have not been deposited on account of any dispute.

11. The company has not accumulated losses as at 31st March, 2013 and has not incurred any cash losses in the current and in the immediately preceding financial year.

12. In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to bank

13. 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.

14. In our opinion, the company is not a chit fund or a nidhi/mutual benefit fund/society. Hence a provision of this clause is not applicable.

14. As per information & explanations given to us, proper records have been maintained of the transaction & contracts and other investments. All shares instruments and other investments have been held by the company in its own name.

15. As per information & explanations given to us, the company has not given any guarantees for loans taken by others from banks or financial institutions. Hence, a provision of this clause is not applicable.

16. According to the information & explanation given to us, the term loan taken by the company have been applied for the purpose for which they have been obtained.

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 any preferential allotment of shares during the year. Hence a provision of this clause is not applicable.

19. During the period covered by our audit, the company has not issued any debentures. Hence a provision of this clause is not applicable.

20. The Company has not raised any money by public issue during the period covered by our audit. Hence a provision of this clause is not applicable.

21. According to the information and explanations given to us, no fraud on or by the company has been noticed during the course of our audit.

For G.RAM MOHAN & CO CHARTERED ACCOUNTANTS

Sd/- (G.Ram Mohan Rao) Proprietor Membership No.013959

Place: Hyderabad

Date : 29/05/2013

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Mar 31, 2013

We have audited the accompanying.financial Statements of M/S GOLKONDA ENGINEERING ENTERPRISES LIMITED ("the Company") Which Comprise the Balance Sheet as 31stMarch 2013 the Statement of Profit and Loss for he Year then ended and A Summary of Signficant Account Polies Policies and Other Explantory information.

Mangement ''s Rceponsiliy for the Finaceal taements

Management is responsible for the perpartion of the loss financeal Perfomance and cash flows of the Company in accordnce with Accounting standars referread to in sub-section (3C) of 211 of the of the Company ACT. 1956 of the india (the Act ) these resopsibilition incudes the design if finaceal staatents that gives a true and fair view and are free material mistaement wthither due to fraud or error.

Auditor'' Responsility

Our responsibilty is to expres an opition on financial based on our audit We Conducted our audit in accordance with the Accounting standras refeersd to in Sub-setion(3C) of Section that we Company with ethical Requiremnt and plan and perform the audit reasonble assural assurance about wther the finaceal statements are free material misstanment.

we belive that audit the evidance that we hjave oditened suffciant and appropriate to provide a basis for our opiinon.

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 of India in terms of sub-section (4A) of section 227 of the Act, 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 appears from our examination of those books;

(c) the Balance Sheet, Statement of Profit and Loss dealt with by this report are in agreement with the books of account;

(d) in our opinion, the Balance Sheet, Statement of Profit and Loss 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 31 March, 2013 and taken on record by the Board of Directors, none of the director is disqualified as on 31st March 2013. from being appointed as a director in terms of clause (g) of Sub-section (1) of section 274 of the Act.

Referred to in paragraph 5 of the Auditors'' Reports of Even date to the Members of M/s GOLKONDA ENGINEERING & ENTERPRISES LIMITED on the financial statements for the year ended 31st March, 2013.

1. (a) The Company is maintaining proper records showing full particular including quantitative details and situation, of fixed assets.

(b) The fixed assets are physically verified by the management according to a phased program design 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 has been physically verified by the Management during the year and no material discrepancies have been noticed on such verification.

(c) In our opinion, and according to the information and explanation given to us, any substantial part of fixed assets have not been disposed off by the Company during the year.

2. (a) The inventory has been physical verified 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 (a) As informed to us, the company has not granted loan to any party covered in the register maintained under section 301 of the Companies Act, 1956

(b) The Company had taken loan from one party covered in the register maintained under section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs.112, 351,629/- and the year-end balance of loan taken from such parties was Rs. 109,448,380/-.

(e) In our opinion, the rate of interest and other terms and conditions of loans taken by the company are not, prima facie, prejudicial to the interest of the company.

(f) In our opinion, company is regular in payment of principal amount and interest

4 According to the information and explanation given to us, there is adequate interna! control procedure commensurate with the size of Company and nature of business, for the purchase of inventory and fixed assets and for sale of goods and services

5 (a) According to the information and explanation given to us, we are of the opinion that the transactions that need to be entered into the register matntained 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, transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the companies Act. 1956 exceeding the value of rupees five lakhs in respect of any party during the year have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

6 According to the information and explanation given to us, the Company has not accepted any public deposits. Hence Provision of this clause is not applicable

7. There is no internal audit done by external auditor However the company does have a formal internal audit system commensurate with its size & nature of its business.

8 The Company is not required to maintain cost records u/s. 209(1) (d) of the Companies Act, 1956. Hence provision of this clause is not applicable.

9 (a) The company is regular in depositing with appropriate authority undisputed statutory dues including provident fund, employees'' state insurance, income tax, sales tax, wealth tax. custom duty, excise duty and other statutory dues as applicable to it. According to the information and explanations given to us, no undisputed amounts payable in respect of income tax. wealth tax. sales tax customs duty, excise duty were in arrears, as at 31 * March, 2013 for a period of more than six months from the date they became payable .

(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 and cess, which have not been deposited on account of any dispute.

10 The company has not accumulated losses as at 31st March, 2013 and has not incurred any cash losses in the current and 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

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.

13 In our opinion, the company is not a chit fund or a nidhi/mutual benefit fund/society. Hence a provision of this clause is not applicable. name.

14. As Per information & Explantions given to u Proper records have been maintaned of the transaction Company has not made any preferential allotment of shares during the year.

15. As per inforation & Explantions given to us the Company has by the Company in its ownappiction

16. According to the information given to us the loan taken by Hence a provision of this clause is not applicable.

17. Accouting to the inforation and explantion given to us and an overali examination of the sheet of the Company We report that the no funds raied on short-team basis have been usead for long*team investment.

18. The Company has not made any not many preferential allotment of shares during the year Hence a provision of this clause not Applicable.

19. During the period covered by our audit the company has not issued any debentures. Heence a Provision of this Clause is not applicable.

20. The Company has not raised any money by public issue during the Period Covered by our audit. Hence a Provision of this Clause is not applicable.

21.According to the information and explanation given to us fraud on by the Company has been noticed during the course of our audit.

For G.RAM MOHAN & CO

Charted Accountants

Sd/-

(G.Ram Mohan Rao)

Proprietor

Membership No.013959

Place: Hyderabad

Date: 29/05/2013