Volga Air Technics Ltd.की ऑडीटर रिपोर्ट

Mar 31, 2012

(1) We have audited the attached Balance Sheet of VOLGA AIR TECHNICS LIMITED as at 31st March, 2012 and also Profit and Loss Account for the year ended on that date annexed thereto and Cash Flow Statement for the period 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.

(2) 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 statement. "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.

(3)The Companies and the Companies (Auditor's Report) (amended)Order, 2003 issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act , 1956, we give in the annexure a statement on the matters specified in the paragraphs 4 and 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 explanation 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 appear from our examination of the such books.

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

( 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 in Section 211 (3C)of the Companies Act, 1956 except for Accounting Standard 6 on "Depreciation Accounting : read with Note No. 5. of Schedule 13(A).

( e ) On the basis of written representation received from directors as on 31st March ,2011 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st 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.

(5) In our opinion and to the best of our information and according to the explanation given to us the said accounts are subject to the notes no.9(a),9(b) &9(c) in Schedule 13(A) stated below:

Attention is invited to following notes in Schedule - 13(A) . Note No. 9(a)

1. non provision of interest on term loans & CC limits granted by financial corporation GIICJDBI and CENTRAL BANK OF INDIA comes to approx Rs.243.83 lacs Rs.169.78 lacs & 260.32 lacs respectively, total amounting to Rs.613.3 lacs Note No.

Subject to the foregoing in our opinion and to the best of our information and according to the explanation given to us, the said accounts together with the other notes give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view.

(i) in the case of Balance Sheet of the State of affairs of the Company as at 31 stMarch,2012

(ii) in case of the Profit and Loss Account of the Loss for the year ended on that date.

(iii) in 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 of our Report of even date)

As required by the Companies (Auditor's Report) Order,2003 and according to the information and explanations given to us during the course of the audit and on the basis of such checks as were considered appropriate, we report that:

The nature of Company's activities during the year has been such that clauses (xii),(xiii) and (xiv) of paragraph 4 of the Companies'.(Auditor's Report) Order,2003 are not applicable to the Company for the year ended.

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

(b)As explained to us, the assets have been physically verified by the management in accordance with a phased programme of verification, which in our opinion, is reasonable, considering the size and the nature of its business. The frequency of verification is reasonable and no material discrepancies have been noticed on such physical verification.

(c)In our opinion and according to the information and explanation given to us, the Company has not made any substantial disposals during the year.

(2)(a) There is no inventory during the year hence there is no question of verification thereof. - '

(3) (a) According to the information and explanations given to us, the Company has not granted any loan, secured or unsecured to company, firm or other parties listed in the register maintained under Section 301 of the Companies Act, 1956;

(b) The Company has not taken any loan during the year from companies, firms or other parties covered .in the Register maintained under Section 301 of the Companies Act, 1956. (The Intercorporate deposit is of the earlier year) (c) There is no unsecured loan to the employee and others.

(4) The company has suspended production from 22.11.2009 and has interest income and administrative expenses.

(5) Company has no purchases / sales during the year

(6) According to information & explanation given to us, except the loan from body corporate obtained in earlier years the Company does not have any deposit from the public. There is no stipulation as regards payment of interest & also the time of re payment and therefore in our honest belief & opinion provisions of Section 58A & 58AA of the Companies Act, 1956 & the Companies (Acceptance of Deposit) Rules 1975 are not applicable to the Company.

(7) There is no business activities during the year. Hence there is no requirement of internal audit

(8) There are no manufacturing activities carried out by the Company for Air Conditioners, as such there is no need to review the cost record.

(9) (a) According to the record of the company undisputed statutory dues such as Provident Fund and Sales Tax are not paid regularly. However there are no statutory dues as regards Wealth Tax, Service Tax, Customs Duty, Excise Duty Cess According to the information and explanation given to us no undisputed amount except Income Tax ,Provident Fund and Sales Tax are outstanding as at 31st March, 2012.

(b) Disputed sales tax not deposited have been disclosed in Note 12 under the head 'Contingent Liabilities not provided for in the Notes to the accounts under Schedule 13(B).

(10) The Company has accumulated losses & Company has not earned cash profit in the current financial year and had profit in the immediately preceding financial year.

(11) The Company has defaulted in repayment of its dues to the Bank and Financial Institutions .The unpaid amount is Rs.l0,13,80,064 & 42,25,101 as per of Balance Sheet The Loans were obtained during the period 1994-95 & 1995-96. The Company has not provided & defaulted in payment of interest.

(12) According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from bank and financial institutions.

(13) Company has not obtained term loans during the year.

(14) The Company has not raised fund on short term or long term basis and investments in fixed assets have been financed out of internal accruals.

(15) 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 during the year.

(16) No debentures have been issued by the Company and hence, the question of creating securities in respect thereof does not arise.

(17) The Company has not raised any money by way of public issues during the year.

(18) The Company does not have secretary from 1.3.2010.

(19 On the basis of our examination and according to the information and explanations given to us, no fraud, on or by the Company, has been noticed or reported during the year. _



FOR S. N. MEHTA & ASSOCIATES

CHARTERED ACCOUNTANT

PLACE : AHMEDABAD (S.N.MEHTA)

DATE : 31.07.2012 Proprietor

Membership No. 9057

FIRM REG. NO. 106306W

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Mar 31, 2010

(1) We have audited the attached Balance Sheet of VOLGA AIR TECHNICS LIMITED as at 31st March, 2010 and also Profit and Loss Account for the year ended on that date annexed thereto and Cash Flow Statement for the period on that date. These financial statements are the responsibility of the Companys Management. Our responsibility is to express an opinion on these financial statements based on our audit.

(2) 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 statement. 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.

(3)The Companies and the Companies (Auditors Report) (amended)Order, 2003 issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act , 1956, we give in the annexure a statement on the matters specified in the paragraphs 4 and 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 explanation 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 appear from our examination of the such books.

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

(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 in Section 211 (3C)of the Companies Act. 1956 except for Accounting Standard 6 on "Depreciation Accounting : read with Note No. 5. of Schedule 13(A).

(e) On the basis of written representation received from directors as on 31st March ,2010 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March,2009 from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956.

(5) In our opinion and to the best of our information and according to the explanation given to us the said accounts are subject to the notes no.9(a),9(b) & 9(c) in Schedule 13(A) stated below:

Attention is invited to following notes in Schedule - 13(A)

Note No. 9(a)

1. non provision of interest on term loans & CC limits granted by financial corporation GIIC, IDBI and CENTRAL BANK OF INDIA comes to approx Rs.194.39 lacs Rs.135.35 lacs & 207.53 lacs respectively, total amounting to Rs.537.27 lacs

Note No. 9(b)

Non provision of encasement of leave of Rs. 234568

Note No 9(C).

Non provision of Retrenchment compensation & Notice period Pay of

Rs.37.21 lacs & Rs. 4.96 lacs respy.

Subject to the foregoing in our opinion and to the best of our information and according to the explanation given to us, the said accounts together with the other notes give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view.

(i) in the case of Balance Sheet of the State of affairs of the Company as at 31st March,2010

(ii) in case of the Profit and Loss-Account of the Loss for the year ended on that date.

(iii) in 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 of our Report of even date)

As required by the Companies (Auditors Report) Order,2003 and according to the information and explanations given to us during the course of the audit and on the basis of such checks as were considered appropriate, we report that:

The nature of Companys activities during the year has been such that clauses (xii),(xiii) and (xiv) of paragraph 4 of the Companies.(Auditors Report ) Order,2003 are not applicable to the Company for the year ended. (1) (a)The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets ;

(b)As explained to us, the assets have been physically verified by the management in accordance with a phased programme of verification, which in our opinion, is reasonable, considering the size and the nature of its business. The frequency of verification is reasonable and no material discrepancies have been noticed on such physical verification.

(c)In our opinion and according to the information and explanation given to us, the Company has not made any substantial disposals during the year. (2)(a) The inventories have been physically verified by the management during the year at reasonable intervals. In our opinion, frequency of verification is reasonable.

(b) The procedures of physical verification of the 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 is maintaining proper records of inventory the discrepancies noticed on verification of inventories as compared to book records were not material.

(3) (a) According to the information and explanations given to us, the Company has not Granted any loan, secured or unsecured to company, firm or other parties listed in the register maintained under Section 301 of the Companies Act, 1956 ;

(b) The Company has not. taken any loan during the year from companies, firms or other parties covered in the Register maintained under Section 301 of the Companies Act, 1956.

(c) The terms and conditions in respect of Unsecured loans given by the Company to its employees and others, are in our opinion prima facie not prejudicial to the interest of the Company;

(4) There are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchase of inventories, fixed assets and for the sale of goods and Services. There is no failure as regards the continuity of the same.

(5)(a) Company has made purchases / sales from / to the parties and received advance from such parties covered u/s 297. However the said parties regularly trades or does business of such items and Company has entered the particulars in the Register maintained u/s 301 of the Companies Act,1956.

(b)The transactions made in pursuance of such contracts or arrangements have been made at prices which are reasonable having regard to the prevailing market price at the relevant time.

(6) According to information & explanation given to us, except the loan from body corporate the Company does not have any deposit from the public. There is no stipulation as regards payment of interest & also the time of re payment and therefore provisions of Section 58A & 58AA of the Companies Act, 1956 & the Companies (Acceptance of Deposit) Rules 1975 are not applicable to the Company.

(7) In our opinion, the Company has an internal audit system. However it needs improvement to commensurate with the size & nature of its business.

(8) There are no manufacturing activities carried out by the Company for Air Conditioners, as such there is no need to review the cost record.

(9) (a) According to the record of the company undisputed statutory dues such as Provident Fund and Sales Tax are not paid regularly. However statutory dues as regards Income Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty Cess and other statutory dues have been generally regularly deposited with the appropriate authorities. According to the information and explanation given to us no undisputed amount except Provident Fund and Sales Tax are outstanding as at 31st March, 2010.

(b) Disputed sales tax not deposited have been disclosed in Note 12 under the head Contingent Liabilities not provided for in the Notes to the accounts under Schedule 13(B).

(10) The Company has accumulated losses & Company has incurred cash losses in the current financial year but had profit in the immediately preceding financial year.

(11) The Company has defaulted in repayment of its dues to the Bank and Financial Institutions .The unpaid amount is Rs.l0,13,80,027 & 42,25,101 as per Schedule 2 & 3 of Balance Sheet The Loans were obtained during the period 1994-95 & 1995-96. The Company has not provided & defaulted in payment of interest.

(12) According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from bank and financial institutions.

(13) Company has not obtained term loans during the year.

(14) The Company has not raised fund on short term or long term basis and investments in fixed assets have been financed out of internal accruals.

(15) 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 during the year.

(16) No debentures have been issued by the Company and hence, the question of creating securities in respect thereof does not arise.

(17) The Company has not raised any money by way of public issues during the year.

(18) The Company does not have secretary from 1.3.2010.we are informed that the Company is in process of making suitable arrangements for the same.

(19 On the basis of our examination and according to the information and explanations given to us, no fraud, on or by the Company, has been noticed or reported during the year.

FOR S.N.MEHTA & ASSOCIATES CHARTERED ACCOUNTANTS



(S.N. MEHTA) Proprietor Membership No. 9057

PLACE : Ahmedabad DATE : 30.5.2010