KLG Systel Ltd Share Price Auditors Report
KLG SYSTEL LIMITED
ANNUAL REPORT 2010-2011
AUDITORS REPORT
To
The members of
KLG Systel Limited
1. We have audited the attached Balance Sheet of KLG Systel Limited (the
Company) as at March 31, 2011, the related Profit and Loss Account and Cash
Flow Statement for the year ended on that date annexed thereto. 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 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 management, as well as evaluating 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, as amended
by the Companies (Auditors Report) (Amendment) Order, 2004 [Order] issued
by the Central Government of India in terms of sub-section (4A) of section
227 of the Companies Act, 1956, we enclose in the Annexure a statement on
the matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in 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 purposes of our audit.
(b) In our opinion, proper books of account as required by law have been
maintained by the Company so far as appears from our examination of those
books and proper returns adequate for the purposes of our audit have been
received from branches not visited by us.
(c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account
maintained by the Company.
(d) In our opinion Balance Sheet, Profit and Loss Account and Cash Flow
Statement referred to in this report comply with the accounting standards
referred to in sub-section (3C) of section 211 of the Companies Act, 1956.
(e) On the basis of written representations received from the directors and
taken on record by the Board of Directors, none of the directors is
disqualified as on March 31,2011 from being appointed as a director in the
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 read together with accounting
policies and notes thereon, give the information required by the Companies
Act, 1956, in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India:
i) In the case of the Balance Sheet, of the state of affairs of the Company
as at March 31, 2011;
ii) In the case of the Profit and Loss Account, of the loss incurred by the
Company for the year ended on that date; and
iii) In the case of the Cash Flow Statement, of the cash flows for the year
ended on that date.
117, New Delhi House B. Bhushan & Co.
27, Barakhamba Road Chartered Accountant
New Delhi-110 001.
By the hand of
May 21, 2011 Kamal Ahluwalia
Partner
Membership no. 093812
Firm Regn. No. 001596N
ANNEXURE TO AUDITORS REPORT
[Referred to in paragraph 3 of the Auditors Report of even date to the
members of KLG Systel Limited on the financial statements for the year
ended March 31, 2011].
i) In respect of its fixed assets:
a) The Company is maintaining proper records showing full particulars
including quantitative details and situation of fixed assets.
b) The fixed assets are physically verified by the management during the
year. In our opinion, the frequency of verification of the fixed assets is
reasonable having regard to the size of the Company and nature of its
business. No material discrepancies were noticed on such verification as
compared to book records
c) In our opinion, the Company has not disposed off a substantial part of
its fixed assets during the year.
ii) In respect of its inventories:
a) The inventories have been physically verified by the management during
the year. In our opinion, the frequency of such verification is reasonable.
b) The procedures of physical verification of inventories followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
c) The Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared to
book records were not material. The valuation of stock has been done on the
basis of physically verified quantities, therefore the shortage/excess gets
automatically adjusted and the same have been properly dealt with in the
books of account.
iii) The Company has neither granted nor taken any loans, secured or
unsecured, to or from Companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
iv) In our opinion and according to the information and explanations given
to us, there are adequate internal control systems commensurate with the
size of the Company and the nature of its business for the purchase of
inventory, fixed assets and also for the sale of goods and services.
Further, on the basis of our examination of the books and records of the
Company, and according to the information and explanations given to us, we
have neither come across nor have been informed of any continuing failure
to correct major weaknesses in the internal control systems.
v) In respect of contracts or arrangements referred to in section 301 of
the Companies Act, 1956:
a) According to the information and explanations given to us, the
transactions made in pursuance of contracts or arrangements that need to be
entered in the register maintained under section 301 of the Companies Act,
1956 have so been entered.
b) Transactions made in pursuance of such contracts or arrangements and
exceeding the value of rupees five lacs 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.
vi) The Company has not accepted any deposits from the public within the
meaning of sections 58A, 58AA or any other relevant provisions of the
Companies Act, 1956 and the rules framed there under.
vii) In our opinion, the Company has an internal audit system commensurate
with its size and nature of its business.
viii) According to the information and explanations given to us, the
Central Government has not prescribed the maintenance of cost records under
clause (d) of sub-section (1) of section 209 of the Companies Act, 1956 in
respect of activities carried out by the Company.
ix) a) According to the information and explanations given to us and the
records of the Company examined by us, in our opinion, the Company is
generally regular in depositing the undisputed statutory dues including
provident fund, investor education protection fund, employees state
insurance, income tax, sales tax, wealth tax, service tax, custom duty,
excise duty, cess and other statutory dues as applicable with the
appropriate authorities, except for delayed deposits on few occasions
during the year. No undisputed amounts payable in respect thereof were
outstanding at the year end 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 income tax, wealth tax, custom duty, excise duty, service tax and
cess that have not been deposited with appropriate authorities on account
of any dispute, other than the following:
Nature of the Nature of Amount Period to Forum where dispute
Statute dues Rs.* amount is pending
relates
Haryana Value Value Added 1,302,092 A.Y Excise & Taxation
Added Tax Act, Tax 2003-04 Officer, Gurgaon
2003 Haryana
Income tax Income Tax 601,827 FY 2007-08 Deputy Commissioner
of Income Tax,
New Delhi
Employees State ESI 180,216 January, Employees Insurance
Insurance Act, 1999 to Court, Gurgaon,
1948 December, Haryana
1999
* Amounts are net of payments made and without considering interest for the
overdue period, if any, as may be levied if demand raised is upheld.
x) The Company does not have accumulated losses as at March 31, 2011 but
has incurred cash losses in the financial year ended on that date. There
was no cash loss in the immediately preceding financial year.
xi) According to the records of the Company examined by us and the
information and explanation given to us, the Company has defaulted in
repayment of term installment of Rs.150.00 Lac to State Bank of India,
which was due for repayment as on the Balance Sheet date. Other than the
above, the Company has not defaulted in repayment of dues to any
bank/financial institution.
xii) According to the information and explanations given to us, the Company
has not granted any loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
xiii) The provisions of any special statute applicable to chit fund/nidhi
/mutual benefit fund/societies are not applicable to the Company.
xiv) The Company has maintained proper records in respect of it investments
and timely entries have been made in the records maintained for the
purposes. The investments were/are being held by the Company in its own
name.
xv) 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.
xvi) In our opinion and according to the information and explanations given
to us, term loans were applied for the purpose for which the loans were
obtained.
xvii) On the basis of an overall examination of the Balance Sheet of the
Company, in our opinion and according to the information, explanations and
representation given to us by the management, we report that no short term
funds have been used for long term applications.
xviii) The Company has not made preferential allotment of equity shares
during the year to companies and parties covered in the register maintained
under section 301 of the Companies Act, 1956.
xix) The Company has not issued any debentures during the year.
xx) The Company has not raised any money by way of public issue during the
year.
xxi) During the course of our examination of the books and records of the
Company, carried out in accordance with the generally accepted auditing
practices in India, and according to the information and explanations given
to us, we have neither come across any instance of fraud on or by the
Company, noticed or reported during the year, nor have we been informed of
such case by the management.
117, New Delhi House B. Bhushan & Co.
27, Barakhamba Road Chartered Accountant
New Delhi-110 001.
By the hand of
May 21, 2011 Kamal Ahluwalia
Partner
Membership no. 093812
Firm Regn. No. 001596N