Pervasive Commodities Ltd.की ऑडीटर रिपोर्ट

Mar 31, 2014

We have audited the accompanying financial statements of Starvox Electronics Limited(‘the Company"), which comprise the Balance Sheet as at March 31, 2014, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility

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 ("the Act") read with the General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013. This responsibility includes the design, implementation and maintenance of internal control 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.

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 the 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 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 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, but not for the purpose of expressing an opinion on the effectiveness of the entity''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, 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.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required; Subject to.

Claims against the Company not acknowledged as debt:: a) Custom Duty on Capital Goods Rs. 89,606 b) Custom Duty on Raw Material Rs. 42,411 c) Royalty Claims by NRDC Rs. 85,000 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 March 31, 2014; and

b) in the case of the Profit and Loss Account, of the loss 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

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 and 5 of the Order. As required by 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 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 and Cash Flow Statement 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 and Cash Flow Statement comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956; except AS-2 and AS-22.

e) on the basis of written representations received from the directors as on March 31, 2014, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2014, from being appointed as a director in terms of clause (g) of sub- section (1) of section 274 of the Companies Act, 1956.

ANNEXURE TO THE AUDITOR''S REPORT

Referred to in paragraph 3 of our Report of even date to the members of STARVOX ELECTRONICS LIMITED for the year ended 31st March, 2014

On the basis of such checks as we considered appropriate and according to the information and explanation given to us during the course of our audit, we report that.

1 (a) The Company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets on the basis of available information.

(b) We are informed that fixed assets are physically verified by the management during the year and there were no major discrepancies noticed.

(c) In our opinion, there was no substantial disposal of fixed assets during the year, which would affect the going concern of the company.

2 (a) As informed to us, the management has conducted physical verification of inventory during the year. In our opinion, the frequency of verification is reasonable.

(b) In our opinion and according to the information and explanations given to us, the procedures for physical verification of inventory followed by the management is reasonable and adequate in relation to the size of the company and the nature of its business.

(c) In our opinion and on the basis of examinations of inventory records, the company is maintaining proper records of inventory. As informed to us, no material discrepancies were noticed by the management on such physical verification.

3 (a) The company has not granted unsecured loan to parties as covered in the register maintained under section 301 of the Companies Act, 1956. The Maximum amount involved during the year was '' NIL and outstanding from such parties was'' NIL.

(b) In our opinion, the rate of interest and other terms and conditions, wherever specified, of unsecured loans granted by the company, are not prima facie prejudicial to the interest of the company as explained in the notes to accounts.

(c) The company has not taken loans from parties as listed in the register maintained under section 301 of the Companies Act, 1956, the rate of interest and other terms and conditions, wherever specified, of unsecured loans taken by the company, are not prima facie prejudicial to the interest of the company.

(d) According to the information and explanation given to us, there is no specific stipulation as to the repayment of the principal amount and is regular in the payment of interest of such loans if any;

(e) According to the information and explanations given to us, there is no overdue amount in respect of such loans.

4 In our opinion, the Company has reasonable internal control procedure 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. There is no continuing failure to correct major weaknesses in internal control.

5 (a) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements, that needed to be entered into in the register maintained under section 301 of the Companies Act, 1956 have been entered.

(b) According to the information and explanation given to us, in respect of transactions exceeding the value of the five lacks rupees made with such parties during the year, each of these transactions have been made at the price which are reasonable having regard the prevailing market prices at the relevant time.

6 According to the information and explanations given to us, the company has not accepted deposits from the public within the meaning of the provisions of sections 58A and 58AA of the Companies Act, 1956 and the rules framed there under.

7 In our opinion, the Company has an internal audit system commensurate with the size and the nature of its business. Internal audit is carried out by an Independent firm of Chartered Accountants.

8 The Company has not maintained cost records and not obtained Cost Compliance certificate.

9 (a) As informed to us, applicable undisputed statutory dues including Income-tax, Sales-tax, have been regularly deposited by the company with the appropriate authority in all cases during the year.

(b) Following dues payable to various Government Authorities are disputed and hence not paid or provided for by the Company:

Sr. No. Particulars Amount Level at which the dispute is pending.

1. Custom duty on Capital goods. 89606 CEGAT has remanded the matter and hearing is comp- leted at department.

2. Custom duty on Raw material. 42411 Hon. Supreme Court

3. Royalty claims by NRDC. 85000 Arbitrator.

In the Current year the Dispute with SBI has been Compromised.

10 In our opinion, the accumulated losses at the end of the finnacial year are more than fifty percent of its net worth. However the company has incurred any cash losses both in current year as well as in the immediately preceding financial year.

11 According to information & explanations given to us, the company has no defaulted in repayment of dues to financial institution / bank or debenture holders.

12 In our opinion and as per information & 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.

13 In our opinion, the company is not a chit fund or a nidhi/mutual benefit fund/society. Therefore, the provisions of this clause are not applicable to the company.

14 According to the information and explanation given to us, the company is not dealing or trading in shares, securities, debenture and other securities. Company has not made investments in equity shares of the other companies during the year.

15 According to the information & explanation given to us, the company has not given any guarantee for loans taken by others from bank or financial institutions.

16 The Company has not taken any term loans during the year.

17 According to the Cash Flow statement and other records examined by us and the information & explanation given to us, on the overall examination of the balance sheet of the company, we report that the company has not used funds raised on long-term basis for short-term investment and vice versa.

18 The company has not made any preferential allotment of share to parties or companies covered in the register maintained under section 301 of the companies act, 1956.

19 The company has not created securities by way of issue of debentures.

20 The company has not raised any money through public issue during the year.

21 Based on the audit procedures performed and the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the year, nor have we been informed of such case by the management.



Place: Ahmedabad For, BPA & Company Date : 30th May,2014 (Chartered Accountants) Firm Reg. No. 109685W

CA. Bharat Vashi Partner Membership No. 31122

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Mar 31, 2012

1. We have audited the attached Balance Sheet of STARVOX ELECTRONICS LIMITED as at 31st March 2012 the Profit & Loss Account and also the Cash Flow Statement for the Year ended on that date annexed thereto. These financial statements are the responsibility of the Companies Management, Our responsibility is to express an opinion on these financial statements based on our audit,

2. 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 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 evaluation the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditor''s Report) Order, 2003 issued by the Central Govt. Of India in terms of Section 227 (4A) of the Companies Act, 1956, we enclose in the annexure a statement on the matters specified in paragraph 4 & 5 of the said order.

4. Further to our comments in the Annexure referred to above 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 accounts as required by law have been kept by the company, so far as appears from our examination of these books.

c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with this report is in agreement with the books of account,

d) In our opinion, the Balance Sheet, Profit Loss Account and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to Section 211 (3C) of the Companies Act, 1956. Except AS-2 Valuation of Inventories wherein Stock-in-Trade is valued at cost. As informed to us, there is no material difference in between the market price & cost and hence, Company has decided to continue to follow the consistent Accounting Policy and AS-22 Taxes on Income).

e) On the basis of written representation received from the Directors, as on 31st March 2012 and taken on record by the Board of Directors, we report that none of the Director is disqualified as on 31" March 2012 from being appointed as a Director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956.

f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts subject to :

Note No.20 (I) Claims against the Company not acknowledged as debt :

a) Custom Duty on Capital Goods Rs. 89,606

b) Custom Duty on Raw Material Rs. 42,411

c) Royalty Claims by NRDC Rs. 85,000

d) Claims From SBI for loan Unascertainable 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.

I. In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March 2012

II. In the case of the Profit and Loss Account, of the profit for the Year ended on that date.

III. In the case of the Cash Flow Statement of the Cash Flow for the Year ended on that date.

Annexure to the Auditor''s Report

(Referred to in Paragraph (3) of our report of even date) 1. (a) The Company has maintained proper records showing full particulars including Quantitative details and situation of fixed assets.

(b) All the assets have been physically verified by the management during the year. No material discrepancies were noticed on such verification. The frequency of such verification was in our opinion, reasonable.

(c) In our opinion, and according to the information and explanations given to us, a substantially part of Fixed Assets has not been disposed off by the company during the year 2. a) The inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

b) The procedure of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the company and nature of its business.

c) The company noticed discrepancies on verification between the physical stock and the book records and they were not material.

3 The Company has neither granted nor taken any loans, secured or unsecured from the companies, firms or other parties maintained in register under section 301.

4 In our opinion and according to the information and explanations given to us during the course of the audit, there are adequate internal control procedures commensurate with size of the company and the nature of its business with regard to purchase of inventory, fixed assets and with regard to 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 controls.

5. a) According to the information and explanations given to us the particulars of contracts or arrangements referred to in Sec. 301 of The Act. have been entered in the register required to be maintained under that section. b) These transactions pursuant to such contracts are made at price which are reasonable having regard to prevailing market prices at relevant time.

6. The Company has not accepted any Deposits from the public during the period and hence question of compliance of RBI directives and provisions of Section 58A and 58AA or other provisions does not arise.

7. In our opinion, the company has an internal audit system commensurate with the size and the nature of its business. Internal Audit is carried out by an independent firm of Chartered Accountants

8. The Government has not prescribed maintenance of cost records under Section 209 (1) (d) of the Companies Act, 1956, for any of the product of the Company.

9 a) The Company is regular in depositing undisputed statutory dues such as PF, ESI, IT, ST, Central Excise Duty, Custom Duty, Wealth Tax, Service Tax, Investor Education & Protection Fund etc., with appropriate authorities and no undisputed amounts payable as on 31s; March 2012 were pending for payments. b) Following dues payable to various Government Authorities are disputed and hence not paid or provided for by the Company : Sr. Particulars Amount Rs, Level at which the dispute is pending

01 Custom Duty on Capital Goods 89606 CEGAT has remanded the matter and hearing is completed at Department.

02 Custom Duty on Raw Material 42411 Hon. Supreme Court ,

03 Royalty cairns by NRDC 85000 Arbitrator

04 Claims of interest from SBI unascertainable DRTAHMEDABAD

10 In our opinion the accumulated losses of the Company are more than 50% of M net worth.

11 In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to financial institutions or bank or debenture r,u,uurs subject to Note No. 20(1) of Notes on Accounts.

12. The Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures & other securities and hence maintenance of records does not arises.

13. In our opinion the Company is not chit fund or a nidhi / mutual benefit funds / society, therefore the provisions of clause 4 (xiii) are not applicable to the company,

14. The Company is not dealing or trading in shares, securities. Debentures and other investments. Therefore the provision of clause 4 (xiv) are not applicable to the company.

15. The Company has not given any guarantee for the loans taken by others.

16. The Company has not taken any term loans during the year.

17. The Company has not used funds raised on short term basis for long term investments.

18. The Company has not made any preferential allotment of shares during the year.

19. The Company has not issued debentures during the year.

20. The Company has not raised money from public issue during the year.

21. According to the information and explanations given to us no fraud against the Company or by the Company has been noticed or reported during the course of our audit.

For BPA& COMPANY

CHARTERED ACCOUNTANTS

(FR NO: - 109685-W)

Place ; Ahmedabad B. M. VASHI

Date : 30* MAY 2012 PARTNER

M. No. 31122

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Mar 31, 2010

1. We have audited the attached Balance Sheet of STARVOX ELECTRONICS LIMITED as at 31st March 2010 the Profit & Loss Account and also the Cash Flow Statement for the Year ended on that date annexed thereto. These financial statements are the responsibility of the Companies Management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. 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 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 evaluation the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors Report) Order, 2003 issued by the Central Govt. Of India in terms of Section 227 (4A) of the Companies Act, 1956, we enclose in the annexure a statement on the matters specified in paragraph 4 & 5 of the said order.

4. Further to our comments in the Annexure referred to above 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 accounts as required by law have been kept by the company, so far as appears from our examination of these books.

c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with this report is in agreement with the books of account.

d) In our opinion, the Balance Sheet, Profit Loss Account and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to Section 211 (3C) of the Companies Act, 1956. Except AS-2 Valuation of Inventories wherein Stock-in-Trade is valued at cost. As informed to us, there is no material difference in between the market price & cost and hence, Company has decided to continue to follow the consistent Accounting Policy and AS-22 Taxes on Income (Refer Note No. 12).

e) On the basis of written representation received from the Directors, as on 31st March 2010 and taken on record by the Board of Directors, we report that none of the Director 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.

f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts subject to :

/. Note No. 7 (a) to (e) relating to non provision of:

a) Custom Duty on Capital Goods Rs. 89,606

b) Custom Duty on Raw Material Rs. 42,411

c) Royalty Claims by NRDC Rs. 85,000

d) Claims From SBI for loan Unascertainable

give the information required by the Companies Act, 1956, in the manner so required and givea true and fair view in conformity with the accounting principles generally accepted in India.

I. In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March 2010.

II. In the case of the Profit and Loss Account, of the profit for the Year ended on that date.

III. In the case of the Cash Flow Statement of the Cash Flow for the Year ended on that date.



Annexure to the Auditors Report (Referred to in Paragraph (3) of our report of even date)

1. (a) The Company has maintained proper records showing full particulars including Quantitative details and situation of fixed assets.

(b) All the assets have been physically verified by the management during the year. No material discrepancies were noticed on such verification. The frequency of such verification was in our opinion, reasonable.

(c) In our opinion, and according to the information and explanations given to us, a substantially part of Fixed Assets has not been disposed off by the company during the year.

2. a) The inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

b) The procedure of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the company and nature of its business.

c) The company noticed discrepancies on verification between the physical stock and the book records and they were not material.

3. The Company has neither granted nor taken any loans, secured or unsecured from the companies, firms or other parties maintained in register under section 301.

4. In our opinion and according to the information and explanations given to us during the course of the audit, there are adequate internal control procedures commensurate with size of the . company and the nature of its business with regard to purchase of inventory, fixed assets and with regard to 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 controls.

5. a) According to the information and explanations given to us the particulars of contracts or arrangements referred to in-Sec. 301 of The Act have been entered in the register required to be maintained under that section.

b) These transactions pursuant to such contracts are made at pice which are reasonable having regard to prevailing market prices at relevant time.

6. The Company has not accepted any deposits from the public during the period and hence question of compliance of RBI directives and provisions of Section 58A and 58M or other provisions does not arise.

7. In our opinion, the company has an internal audit system commensurate with the size and the nature of its business. Internal Audit is carried out by an independent firm of Chartered Accountants.

8. The Government has not prescribed maintenance of cost records under Section 209 (1) (d) of the Companies Act, 1956, for any of the product of the Company.

9. a) The Company is regular in depositing undisputed statutory dues such as PF, ESI, IT, ST, Central Excise Duty, Custom Duty, Wealth Tax, Service Tax, Investor Education & Protection Fund etc., with appropriate authorities and no undisputed amounts payable as on 31st March 2010 were pending for payments b) Following dues payable to various Government Authorities are disputed and hence not paid or provided for by the Company :

Sr. Particulars Amount Rs. Level at which the dispute is pending 01 Custom Duty on Capital Goods 89606 CEGAT has remanded the matter and hearing is completed at Department.

02 Custom Duty on Raw Material 42411 Hon. Supreme. Court

03 Royalty claims by NRDC 85000 Arbitrator

04 Claims of SBI for loan unascertai- nable DRT AHMEDABAD

10. The accumulated losses of the Company are more than 50% of its net worth. The Company has incurred cash losses during the financial year covered by our audit.

11. In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to financial institutions or bank or debenture holders subject to Note No. 7 of Notes on Accounts.

12. The Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures & other securities and hence maintenance of records does not arises.

13. In our opinion the Company is not chit fund or a nidhi / mutual benefit funds / society, therefore the provisions of clause 4 (xiii) are not applicable to the company.

14. The Company is not dealing or trading in shares, securities. Debentures and other investments. Therefore the provision of clause 4 (xiv) are not applicable to the company.

15. The Company has not given any guarantee for the loans taken by others.

16. The Company has taken term loan for car.

17. The Company has not used funds raised on short term basis for long term investments.

18. The Company has not made any preferential allotment of shares during the year.

19. The Company has not issued debentures during the year.

20. The Company has not raised money from public issue during the year.

21. According to the information and explanations given to us no fraud against the Company or by the Company has been noticed or reported during the course of our audit.



For BPA & COMPANY

CHARTERED ACCOUNTANTS

Place : Ahmedabad B. M. VASHI

Date : 30th May 2010 PARTNER

M. No. 31122