Krisons Electronic Systems Ltd.की ऑडीटर रिपोर्ट

Mar 31, 2010

We have audited the attached balance Sheet of Mis. Krisons Electronic Systems Limited as at 31.03.2010 and the Profit & Loss Account for the year ended on that date, annexed thereto and Cash Flow Statement for the period ended on 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.

1. 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 misstatements. An audit includes examining, on a test basis evidence supporting the amounts and discloses in financial statements. An audit also includes assessing the accounting principles used and 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.

2 As required by the Companies (Auditor's Report) Order, 2003 (CARO)issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act,1956. and on the basis of such checks as we considered appropriate and according to the information and explanations given to us, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said order.

3. Further to our comments paragraph 2 above, we state that:

a) 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.

b) 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 the audit.

c) The Balance Sheet and the Profit and Loss Account referred to in this report are in agreement with the books of account.

d) In our opinion, the Balance Sheet and the Profit & Loss Account complies with the mandatory accounting standards except Accounting Standard 15 on accounting for retirement benefits as referred to in Section 211 (3C) of the Companies Act, 1956.

e) In our opinion, and based on information and explanations given to us, none of the directors are disqualified as at 31st March, 2010 from being appointed as Directors in terms of Section 274(1) (g) of the Companies Act, 1956.

f) We draw attention to Note No. 1 in schedule 11 regarding the net worth of the company.

g) No provision for doubtful debts and bans & advances amounting to Rs.99,25,565.53 have been made (Refer Note No.

h) We draw attention to Para 1 of annexure to our report of even date regarding going concern status of the Company.

i) In view of the significance of our observations in Para (f), (g) & {h) above, we are of the opinion that the said accounts DO NOT GIVE a true and fair view:-

(a) In the case of the Balance Sheet of the state of affairs of the company as at 31st March, 2010.

(b) In the case of Profit & Loss Account of the loss for the year ended on 31st March, 2010.

(c) In so far as it relates to the Cash Flow Statement of the cash flow of the Company for the year ended on that date.

ANNEXURE TO AUDITORS' REPORT

1 The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets. As explained to us, the fixed assets have been physically verified by the management at all locations at reasonable intervals. According to the information and explanation given to us no material discrepancies were noticed on such verification. The fixed assets disposed off during the year construe a substantial part of the fixed assets of the Company and such disposal may affect the going concern status of the Company.

2 According to the information and explanation given to us no inventories were held during the year, therefore, the provisions of paragraph 4(H) of CARO are not applicable to the Company.

3 According to the information and explanation given to us, the company has not granted any loans, secured or unsecured to companies, firms or other parties listed in the register maintained under section 301 of the companies Act, 1956.

4 According to the information and explanation given to us, the company has taken unsecured loan from one party covered in the register maintained u/s 301 of the companies Act 1956. The maximum amount involved is Rs.2,51,00,495k The year end balance of loan taken is Rs. 1,98,65,495/-. The terms an. conditions on which loan was obtained are not prime facie, prejudicial to the interest of the company. No interest is being paid on such loan taken by the company. There is no stipulation regarding repayment of such loan by the company.

5 In our opinion and according to the information and explanations given to us, there is adequate internal control system commensurate with the size of the company and nature of its business with regard to purchases of inventory and sale of goods, and purchases of fixed assets during the year.

6 According to the information and explanations given to us, we are of the opinion that there are no transactions that need to be entered into the register maintained under section 301 of the companies Act, 1956 exceeding the value of five lakhs rupees in the financial year.

7. In our opinion and according to the information and explanation given to us, the company has not accepted deposits from the public during the year.

8. As explained to us, the company is not having any internal audit systems due to lack of business activities.

9. The Central Government has not prescribed the maintenance of cost records by the company under section 209(1) (d) of the Companies Act, 1956.

10 According to the information and explanations given to us, there is no undisputed amounts payable in respect of income tax, wealth tax, sales tax, customs duty, service tax and excise duty is outstanding as at 31.3.2010 for a period of more than six months from the date they became payable.

According to the information and explanations given to us, disputed Sales Tax that have not been deposited are as follows:

Name of Statute Nature of Dues Amount (Rs.) Period to Forum where Which Amt dispute is Relates Pending

KESL Vs Dy.. Comm. Disputed Trade Tax Rs. 1,33,46,653/- 1990-91 Joint Comm. Trade of Trade Tax, Noida. Tax (Appeal) Noida

KESL Vs Dy. Comm. Disputed Trade Tax Rs. 99,697/- 1996-97 Member of Trade Tax of Trade Tax, (Appeals) Tribunal, Noida (U.P)

11. The accumulated losses of the Company, are more than fifty percent of its net worth. The company has incurred cash losses during the financial year covered by our audit and immediately preceding financial year.

12. According to the information and explanations given to us, there were no dues payable to any financial institutions, banks or debenture holders during the year.

13. According to information and explanation given to us, the company has not granted Loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

14. The company is not a chit fund, nidhi or mutual benefit fund/Society.

15. The company is not dealing or trading in shares, securities debentures and other investments.

16. According to the information and explanations given to us, the company has not given any guarantee for loans taken by others from bank or financial institutions.

17. According to the information and explanations given to us, the company has not raised any term loans during the year.

18. According to the information and explanations given to us, the funds raised by the company on the short term basis have not been used for long term investment and vice versa,

19. The company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under section 301 of the Companies Act, 1956.

20. The company has not issued any debentures during the year.

21. The company has not made any public issue during the year.

22. According to the information and explanations given to us, any fraud on or by the company has not been notice or reported during the year.

For GUPTA & JHUNJHUNWALA Chartered Accountants

(Registration No.003849N)

(MUKESH OUA)

Partner

Membership No.85323

Date : September 28, 2010

Place: New Delhi

---

Mar 31, 2009

We have audited the attached Balance Sheet of M/s Krisons Electronic Limited as at 31.03.2009 and the profit & loss Account for the year ended on that date. annexed thereto and cash flow statement for the period ended on that date. These financial statements ate the responsibility of the company management Our responsibility is to express an opinion on theses financial statements based on a our audit.

1. We conducted our audit in accordance with auditing Standards generally accepted in India. Those standards require float 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 amounts and discloses in financial statements. An audit also includes assessing the accounting principles used and 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.

2.As required by the companies (Auditor's Report) order 2003 issued by the central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, and on the basis of such checks as we considered appropriate and according to the information and explanations given to us. We enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

3. Further to our comments in paragraph 2 above, we state that

a) We have obtained all the information's and explanations which to the best 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, appears from our examination of the audit company, so tar

C) The Balance Sheet and the profit and Loss Account referred to in this report in agreement with the books of account.

d) in our opinion, the Balance Sheet and the Profit & Loss Account complies with the mandatory accounting standards except Accounting standard 15 on accounting for retirement benefits as referred to in section (3C) of the companies Act, 1956.

e) In our opinions and based on information's and explanations given to us, of the Director are disqualified as at 31st March, 2009 being appointed as Director of sections 274(i) (g) of the companies Act, 1956.

f) We draw attention to Note No. 1 in schedule 11 regarding the net worth of the company.

g) No provision for doubtful debts and loans & advances amounting to Rs.3.65,80,201A have been made (Refer Note No.4).

h) In view of the significance of our observations in Para (0 & (g) above, we are of the opinion that the said accounts DO NOT GIVE a true and fair view:-

(a) In the case of the Balance Sheet of the state of affairs of the company as at 31st March. 2009 -

(b) In the case of Profit & Loss Account of the loss for the year ended on 31st March, 2009.

(c) In so far as it relates to the Cash Flow Statement of the cash flow of the Company for the year ended on that date.

ANNEXURE TO AUDITORS' REPORT

1, The company has reconstructed the Fixed Assets Register as per the records and information available with them and the same has been placed before us for our verification. The Plant & Machinery were not used for long and have become obsolete and have therefore been written off in the books. The other fixed assets have been physically verified by the management and no discrepancies were noticed on such verification. There was no substantial disposal of fixed assets during the year.

2. The company has started tad activities during Ws financial years. The goods' purchased for resale have been sold during the year. There was no opening and closing stocks during the year.

3, As informed, the company has not granted any loans, secured or unsecured to companies, firms or other parties listed in the register maintained under section 301 of the companies Act, 1956

4. The company has taken an unsecured loan from one Party covered in the register maintained u/s 301 of the companies Act 1956. The maximum amount involved is Rs.2,48,20,495/-. The year end balance of loan taken is Rs.2,48,20,495/-. The terms and conditions on which loan was obtained are not prima facie, prejudicial to the interest of the company. No interest is being paid on such loan taken by the company. There is no stipulation regarding repayment of such loan by the company.

5. In our opinion and according to the information and explanations given to us, there is adequate internal control systems commensurate with the size of the company and nature of its business with regard to purchase of inventory and sale of goods. There were no purchase of fixed assets during the year.

6.According to the information and explanations given to us we are of the opinion that are no transactions that need to be entered into the register maintained under section 301 of the companies Act, 1956 exceeding the value of five lakhs rupees in the financial year.

7.In our opinion and according to the information and explanations give, to us, the company has not accepted deposited from the public during the year.

8.As explained to us, the company is not having any internal audit systems due to lack of activity

9.The central Government has not prescribed the maintenance of cost records by the company under section 209(1) (d) of the companies Act, 1956

10.According to the information and explanations given to us, except for Rs.1,30,933,12 regarding sales payable by the company, no undisputed payable in respect of income tax, wealth tax sales tax, customs duty and excise duty is outstanding as at 31.03.2009 for a period of more than six months from the date they become payable.

According to the information and explanations given to us, disputed sales Tax that have not been deposited are as follows:

Name of statute Nature of dues Amount Period to Forum Where which amt dispute is Relates Pending

KESL Vs Dy Comm Disputed Trade Tax Rs 1,33,46,653 1990-91 Joint Comm Trades Of trade Tax Noida Tax (Approval) Noids

KESL Vs Dy. Comm Disputed Trade Tax Rs. 99.697 1996-97 Member of trade Tax

of trade Tax (Appeals) Tribunal Noida(U.P)

11. The Accumulated losses of the company are more than fifty percent of its net worth. The company has incurred cash losses during the financial year covered by our audit and immediately preceding financial year.

12. As informed there were no dues payable to any financial institutions banks or debentures holders during the year

13.According to information and explanation given to us, the company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

14. The company is not a chit fund, radhi or mutual benefit fund/Society.

15. The company is not dealing or trading in shares, securities debentures and other investments.

16 According to the information and explanations given to us. the company has not given any guarantee for loans taken by others from bank or financial institutions.

17. According to the information and explanations given to us. the company has not raised any term loans during the year.

18 According to the information and explanations given to us/the funds raised by the company on the short term basis have not been used for long term investment and vice versa.

19 The company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under section 301 of the Companies Act, 1956.

20. The company has not issued any debentures during the year.

21 The company has not made any public issue during the year.

22. According to the information and explanations given to us, any fraud on or by the company has not been noticed or reported during the year.

for GUPTA & JHUNJHUNWALA

Chartered Accountants

(MUKESHDUA)

Partner

Membership No.85323

Date: August25,2009

Place: Mew Delhi

---

Mar 31, 2008

We have audited, the attached Balance sheet of M/S krisons electronic system limited as at 31.03.2008 and the Profit S Loss Account for the year ended or that date. annexed thereto and cash flow statement for the period ended on that date ,these financial statements or the responsibility of the Company's management. period ended on that data. These financial statements cased on our audit, Out responsibility is to express an opinion on these financial statement based on our audit .

1.We conducted our Audit, in accordance with Auditing standards generally accepted in India those standard require that we plan and perform the audit reasonable assurance to about whether the finical statements are free of material misstatements an audit includes examining on a test basis evidence supporting the amounts and discloses in financial statements an audit also includes assessing the accounting principles used and estimates made by the managements as well as evaluation the overall financial statements presentation we believe that our audit provides a reasonable basis for our opinion.

2.As required by the companies (auditor's report) order 2003 issued by that central movement of India in terms of sub-section (4a) of section 277 of the complains act 1956 on the basis of such checks as we considered appropriate and according to the information and explanations given to us we enclose in the annexure a statements on the matters specified in paragraphs 4 and 5 of the said order,

3 Further to our comments in paragraph 2 above, we state that:

a) we have obtained all the information and explanation, which to the best of our knowledge and belief were necessary for the purposes of our audit.

b)in our opinion, proper book of account as repaired by law have been Kept by the company, so far as appears from our examination of the audit.

c) The Balance Sheet and the Profit and Loss Account referred to in this report are in agreement with the books of account.

d)in our opinion. the balance sheet and the profit and loss account complies with mandatory accounting standards except accounting standard 15 on accounting for retirement benefits as referred to in Section 211 (3C) of the Companies Act, 1956.

e)in our opinion, and based on information and explanations given to us. none of the directors are disqualified as at 31st march, 2008 from being appointed as directors in terms of section 274(1) (g) of the Companies act 1956.

f) We draw attention to Note No.1 in scheduled 8 regarding the net worth of the company

g)No provision for doubtful debts and loans & advances amounting to rs.3,65,80, 201/- have been made(refer note no.4)

h) In view of the Significance of our observation in Para (f) & (g) above, we are of the opinion that the said Accounts DO NOT GIVE a true and faire view:-

a) In the case of to Balance Sheet of the state of affairs of the company as at 31st March, 2008

b) In the case of profit & loss Account of the loss for the year ended on 31st March , 2008

c) In so far as it relates to the cash flow statement of the cash flow of the company for the year ended on that date.

ANNEXURE

1.the premises of company b-98 and d-57 sector-11 naiad (up) were soiled by sales tax authorities in earlier years. Due to sealing of premises the plant & machinery situated at these premises were not used and became obsolete and have therefore been written off in the books accordingly the fixed Assets Register it so untraceable as informed by the management.

2.The company is not carrying, at present an, stock of materials components & spares.

3. The company has not granted any loans to companies firms and other parties listed in the register maintained under section 301 of the companies Act, 1956

4. The company has taken an unsecured loan from parties covered in the register maintained u/s 301 of the companies Act, 1956 The Maximum amount involved Rs.2,44,17,495/- The year end balance of loans taken is Rs.2,44,17,495/- The terms and conditions on which loans was obtained are not prima facie, prejudicial to the interest of the company. No interest is being paid on such loan taken by the company. There is no stipulation regarding repayment of such loans by the company.

5.During the year there were no purchases of fixed assets and inventory.

6. According to the information and explanations given to us we are of the opinion that there are no transactions that reed to be entered into the register maintained under section 301 of the companies Act, 1956 exceeding the value of five lakhs rupees in the financial year.

7. In our opinion and according to the information and explanation given to us, the company has not accepted deposits from the public during the year.

8. As explained to us, the company is not having any internal audit systems due to lack of activity.

9. The Central Government has not prescribed the maintenance of cost records by the company under section 209(1) (d) of the Companies Act, 1956.

10. According to the information and explanations given to us, except for Rs.1,60,933.12 regarding sales tax payable by the company, no undisputed amounts payable in respect of income tax, wealth tax, sales tax, customs duty and excise duty is outstanding as at 31.03.2008 for a period of more than six months from the date they became payable.

According to the information and explanations given to us, disputed Sales Tax that have not been deposited are as follows:

Name of Statute Nature of Dues Amount(Rs) Period to Forum where Which amt dispute is Relates Pending

KESL Vs Dy disputed trade tax Rs.1,33.46,653/- 1990-91 Joint Comm. Trade comm Tax. Nokia. Tax (Appeal Noxta

Kelsey Comm. Disputed Trade Tax Rs 99.697/- 1996-97 Member of Trade Tax

Tnbunal. noida(UP)

11 The accumulated losses of the Company, are more than fifty percent of its net worth. The incurred cash losses during the financial year covered by our audit and immediately preceding financial year.

12.REcording to information and explanation given to us. the company has not ranted loans and advance on the basis of security by way of pledge of shares, debentures another security.

13. The company is not a chit fund, nidhi or mutual benefit fund/Society.

14. The company is not dealing or trading in shares, securities debentures and other investments.

15. According to the information and explanations given to us. the company has not given any quarantine for loans taken by others from bank or financial institutions: given any guarantee

16. According to the information and explanations given to us, the company has not raised any terms loans during the year.

17.according to the information and explanations given to us, the funds raised by the company on the short term basis have not been used for long term investment and vice versa.

18. The company has not made any preferential allotment of shares to parties and companies covered in , the Register maintained under section 301 of the Companies Act, 1%. '

19. The company has not issued any debentures during the year.

20. The company has not made any public issue during the year.

21. According to the information and explanations given to us, any fraud on or by the company has not been noticed or reported during the year.

for GUPTA & JHUNJHUNWALA

Chartered Accountants

(MUKESHDUA)

Partner

Membership No.85323 Date : September 05, 2008 Place: New Delhi