JYOTI LIMITED
ANNUAL REPORT 2011-2012
AUDITORS` REPORT
To
The Members of
JYOTI LIMITED
1. We have audited the attached Balance Sheet of Jyoti Limited, as at 31st
March, 2012, the Statement of Profit and Loss of the Company for the year
ended on that date and also the Cash Flow Statement for the year ended on
that date annexed thereto. 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 misstatements. 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 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 (Auditor`s Report) (Amendment) Order, 2004 (together the
`Order`), issued by the Central Government of India in terms of Section
227(4A) of the Companies Act, 1956, we give in the annexure a statement on
the matters specified in 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 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 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 accounts.
d) In our opinion, the Balance Sheet, Statement of Profit and Loss 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, to
the extent applicable.
e) On the basis of written representations received from the directors of
the Company as at 31st March, 2012 and taken on record by the Board of
Directors of the Company, we report that none of the directors is
disqualified as at 31st March, 2012 from being appointed as 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
explanation given to us, the said accounts, read together with the 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 31st March, 2012;
ii) in the case of the Statement of Profit and Loss, of the profit of 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.
For V.H. Gandhi & Co.
Chartered Accountants
Firm Reg. No.: 103047W
Vijay H. Gandhi
Proprietor
M.No. 35581
Place: Vadodara
Date : 24th May, 2012
Annexure referred to in Paragraph 3 of our Auditors` Report of even date on
the Financial Statements for the year ended on 31st March, 2012 of Jyoti
Limited.
On the basis of such checks as we considered appropriate and in terms of
the information and explanations given to us, we state that:-
(i) (a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of Fixed Assets.
(b) Fixed Assets have been physically verified by the management during the
year as per the phased programme of physical verification of fixed assets.
As informed to us, the programme is such that all the fixed assets will get
physically verified in three years time. In our opinion the same is
reasonable having regard to the size of the Company and the nature of its
fixed assets. No material discrepancies were noticed on such verification.
(c) No substantial part of fixed assets has been disposed off during the
year.
(ii) (a) The inventory (except those lying with contractor and at Site) has
been physically verified during the year by the management at reasonable
intervals.
(b) The procedures of physical verification of inventory 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. No material
discrepancies have been noticed on physical verification of stocks.
(iii) (a) According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured to companies, firms
or other parties covered in the register maintained under Section 301 of
the Companies Act, 1956. Hence, provisions of sub clauses 4 (iii) (b), (c)
& (d) are not applicable to the Company.
(b) According to the information and explanations given to us, the Company
has not taken any loans, secured or unsecured from companies, firms or
other parties covered in the register maintained under Section 301 of the
Companies Act, 1956. Hence, provision of sub clauses 4 (iii) (f) & (g) are
not applicable to the Company.
(iv) In our opinion and according to the information and explanations given
to us, there is an adequate internal control system commensurate with the
size of the Company and the nature of its business, for the purchase of
inventory, fixed assets and for the sale of goods and services and there is
no continuing failure to correct major weaknesses in internal control
system.
(v) (a) The particulars of contracts or arrangements referred to in Section
301 of the Companies Act, 1956 have been so entered in the register
required to be maintained under that section.
(b) In our opinion and according to the information and explanations given
to us, the transactions made in pursuance of such contracts or arrangements
exceeding the value of Rs. 5,00,000 have been made at prices which are
reasonable having regard to the prevailing market prices at the relevant
time.
(vi) In our opinion and as per information and explanations given to us,
the directives issued by the Reserve Bank of India and the provisions of
Sections 58A and 58AA or any other relevant provisions of the Companies
Act, 1956 and the rules framed there under, where applicable, have been
duly complied by the Company. We are informed by the Management that No
order has been passed by the Company Law Board, National Company Law
Tribunal or Reserve Bank of India or any Court or any Other Tribunal.
(vii) In our opinion the Company has an internal audit system. However,
there is a scope for increasing the coverage so as to be commensurate with
its size and nature of its business.
(viii) We have broadly reviewed the books of account and records maintained
by the Company relating to manufacture of Electric Motors & Generators and
Power Driven Pumps, Generating Sets, Switchgears and Relays pursuant to the
order made by the Central Government for the maintenance of cost records
under clause (d) of sub-section (1) of Section 209 of the Companies Act,
1956 and are of the opinion that prima facie the prescribed accounts and
records have been made and maintained. We have, however, not made a detail
examination of the records with a view of determining whether they are
accurate or complete. To the best of our knowledge and according to
information and explanations given to us, the Central Government has not
prescribed the maintenance of cost records for any other product of the
Company.
(ix) (a) According to the records of the Company, it is generally regular
in depositing with appropriate authorities, undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees` State Insurance, Income tax, Sales tax, Service tax, Wealth tax,
Custom Duty, Excise Duty, Cess and any other statutory dues applicable to
it. We are informed that there are no undisputed statutory dues as at the
year end, outstanding for a period of more than six months from the date
they became payable.
(b) According to the records of the Company the following dues of Sales
tax, Income tax, Custom Duty, Wealth tax, Service tax, Excise Duty, Cess
have been deposited as under.
(Rs. lakhs)
Name of the Total Period Forum where dispute
Statute Demand is pending no
& Nature (Rs.
of Dues lakhs)
1 Income Tax * 12.53 1995-96 Income Tax Appellate
Act, 1961 Tribunal
(Income Tax)
2 Income Tax * 20.00 1996-97 Income Tax Appellate
Act, 1961 Tribunal
(Income Tax)
3. Income Tax * 22.18 2000-01 Income Tax Appellate
Act, 1961 Tribunal
(Income Tax)
4 Income Tax * 10.13 2001-02 Commissioner of Income
Act, 1961 Tax (Appeals)
(Income Tax)
5 Income Tax * 4.50 2002-03 Commissioner of Income
Act, 1961 Tax (Appeals)
(Income Tax)
6 Income Tax * 0.60 2003-04 Commissioner of Income
Act, 1961 Tax (Appeals)
(Income Tax)
7 Income Tax * 0.70 2004-05 Commissioner of Income
Act, 1961 Tax (Appeals)
(Income Tax)
8 Income Tax * 1.32 2005-06 Commissioner of Income
Act, 1961 Tax (Appeals)
(Income Tax)
9 Income Tax * 0.95 2006-07 Commissioner of Income
Act, 1961 Tax (Appeals)
(Income Tax)
10 Income Tax * 16.60 2005-06 Commissioner of Income
Act, 1961 Tax (Appeals)
(Income Tax)
11 Income Tax * 20.96 2006-07 Commissioner of Income
Act, 1961 Tax (Appeals)
(Income Tax)
12 Income Tax * 31.21 2008-09 Commissioner of Income
Act, 1961 Tax (Appeals)
(Income Tax)
13 The Finance 0.58 May, 10 To Commissioner of Central
Act, 1994 Feb, 11 Excise &
(Service Tax) Customs (Appeals)
1.60 Dec, 04 To Commissioner of Central
Nov, 09 Excise & Customs
(Appeals) Baroda
3.09 Apr, 05 To Commissioner of Central
Mar, 10 Excise & Customs
(Appeals) Baroda
5.74 2006 To Commissioner of Central
Jan, 11 Excise & Customs
(Appeals) Baroda
3.02 Feb, 11 To Assistant Commissioner
Dec,11 of Central Excise &
Customs.
0.67 Mar, 11 To Assistant Commissioner
Jan, 12 of Central Excise &
Customs.
* Note:- Amount deposited.
(x) The Company does not have any accumulated losses as per The Financial
Statement as at the end of the financial year. The Company has not incurred
cash losses during the financial year covered by our audit and in the
immediately preceding financial year.
(xi) The Company has not defaulted in repayment of dues to any financial
institution, bank or debenture holders (Refer Note no-17(19) of financial
statement).
(xii) 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 Company is not a Chit Fund or a Nidhi/Mutual Benefit
Fund/Society. Therefore, the provision of Clauses 4(xiii) of the Companies
(Auditor`s Report) Order, 2003 (as amended) are not applicable to the
Company.
(xiv) In our opinion, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the provisions
of clause 4 (xiv) of the Companies (Auditor`s Report) Order, 2003 (as
amended) are not applicable to the Company.
(xv) The Company has not given any guarantee for loans taken by others from
bank or financial institutions.
(xvi) In our opinion and based on information and explanations given to us
by the management the term loans have been applied for the purpose of which
they were raised.
(xvii) According to the information and explanations given to us, and on an
overall examination of The Financial Statement of the Company, we report
that funds raised on short-term basis have not been used for long-term
investment.
(xviii) 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.
(xix) The Company has not issued debentures during the year.
(xx) The Company has not raised any funds through Public issue during the
year.
(xxi) As per information and explanations given to us, no fraud on or by
the Company has been noticed or reported during the course of our audit.
For V.H. Gandhi & Co.
Chartered Accountants
Firm Reg. No.: 103047W
Vijay H. Gandhi
Proprietor
M.No. 35581
Place: Vadodara
Date : 24th May, 2012 |