SRHHL Industries Ltd Merged Auditor Reports

SRHHL INDUSTRIES LIMITED ANNUAL REPORT 2010-2011 AUDITORS REPORT To The Members of SRHHL INDUSTRIES LIMITED 1. We have audited the attached Balance Sheet of SRHHL INDUSTRIES LIMITED, as at 31st March 2011, the Profit and 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 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 the 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, issued by the Central Government of India in terms of subsection (4A) of Section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in the paragraphs 4 and 5 of the said order to the extent applicable. 4. Further to our comments in Annexure referred above, we report that: i) 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. ii) 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 these books. iii) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account. iv) In our opinion, the Balance sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred in Section 211 (3C) of the Companies Act, 1956 to the extent applicable. v) On the basis of the written representations received from the Directors, as on 31.03.2011, and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31st March, 2011 from being appointed as Director in terms of Clause (g) of sub-section (1) of section 274 of the Companies Act, 1956. vi) In our opinion, and to the best of our information and according to the explanations given to us, the said accounts with the notes and accounting policies thereon give the information required by the Companies Act,1956 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 the affairs of the Company as at 31st March, 2011. b) In the case of Profit and Loss Account, of the Profit for the year ended on that date; and c) In the case of Cash Flow Statement, of the cash flows for the year ended on that date. For T. Adinarayana & Co., Chartered Accountants Regn. No. 000041S Sd/- Place: Kurnool Y. Pulla Rao Date : 30.05.2011 Partner Membership No.25266 ANNEXURE TO AUDITORS REPORT Annexure referred to in paragraph 3 of Auditors Report of even date on the Accounts of SRHHL INDUSTRIES LIMITED for the year ended 31st March, 2011. 1. (a) The Company has maintained proper records showing particulars, including quantitative details and situation of Fixed Assets. (b) Some of the fixed assets have been physically verified by the management during the year in accordance with a phased programme and verification of fixed assets. According to the information and explanation given to us, no material discrepancies were noticed on such verification. As informed that the programme is such that all the fixed assets will get physically verified once in 3 years time. In our opinion, the verification programme fs reasonable having regard to the size of the company and the nature of the fixed assets. (c) During the year under review the Company has not disposed off any fixed assets. As such the going concern status of the Company is not effected. 2. The Company has no inventory during the year under review. As such physical verification of inventory and its reasonableness does not arise and clause (ii) of CARO-2003 is not applicable for this year. 3. (a) According to the information and explanations given to us, the company has not granted/taken any loans, secured or unsecured, to companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956. (b) The Company has neither granted nor taken any loans, secured or unsecured, to companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956, paragraph (ii) (b) (c) and (d) of the order, are not applicable. 4. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business with regard to purchase of Inventory, fixed assets and for the sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal controls with regard to purchase of inventory, fixed assets and for the sale of goods. 5. (a) According to the information and explanations given to us and as confirmed by the management of the company, 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. (b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of Companies Act, 1956 and exceeding the value of Rs.5,00,000/- in respect of any party during the year have been at prices which are reasonable having regard to prevailing market prices at the relevant time. 6. The Company has not accepted any deposits during the year under review from the public which needs to comply with the provisions of Section 58A and 58AA of the Companies Act, 1956. 7. In our opinion, the Company has an internal audit system commensurate with the size and nature of its business and it was informed that no material irregularities were noticed by the internal auditors during the period of audit. 8. In our opinion, Maintenance of cost records under section 209(1)(d) of the Companies Act, 1956 is not applicable to the company. 9. a) According to the information and explanation given to us, the Company is regular in depositing with appropriate undisputed statutory dues including Provident Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs duty, Excise duty, Cess and other material statutory dues applicable to it, and (b) No undisputed amounts payable in respect of income tax, wealth tax, sales tax, customs duty, service tax and cess are in arrears as at 31.03.2011 for a period of more than six months from the date they became payable. (c) According to the information and explanations given to us, there are no dues of sales tax, income tax, custom duty, wealth tax, service tax, excise duty and cess which have not been deposited on account of any dispute. 10. As per the information and explanations given to us and an overall examination of the financial statements of the company for the current year we report that the company does not have any accumulated losses at the end of the current financial year nor incurred cash losses in the current year and immediately preceding financial year. 11. According to records of the company, during the year the company has not defaulted in the repayment of dues to financial institution or banks. 12. As per the information and explanation 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 to any body during the year. 13. In our opinion, as the Company is not a chit fund or a nidhi or mutual benefit or society, the provisions of Clause 4(xiii) of the Companies (Auditors Report) Order 2003 are not applicable to the Company for this year. 14. According to the records of the company, the investments made by amalgamated Companies before amalgamation are held in the name of those Companies and the process of transfer of name is going on. 15. According to the information the company has pledged some of the investments towards security for the Bank Guarantee obtained by M/s. Kurnool Power Projects Ltd and M/s. Vasistha Power Projects Ltd and the company has not given any guarantees for loans taken by others from banks or financial institutions. 16. According to the records of the company, the company has not raised term loans during the year. 17. As per the information and explanations given to us and on an overall examination of the balance sheet and the cash flow statement of the company, we are of the opinion that no funds raised on short-term basis have been used for long term investment. 18. As per the information and explanations given to us, during the year 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. 19. The Company has not issued any debentures during the year, which requires the creation of security or charge. 20. During the year the Company has not made any public issue for which the management has to disclose the end use of money raised through that public issue. 21. As per the representation given by the Company and relied on by us, no fraud on or by the Company has been noticed or reported during the year. For T. Adinarayana & Co., Chartered Accountants Regn. No. 000041S Sd/- Place: Kurnool Y. Pulla Rao Date : 30.05.2011 Partner Membership No.25266.