ALPHAGEO (INDIA) LIMITED
ANNUAL REPORT 2011-2012
AUDITORS` REPORT
To
The Members of
Alphageo (India) Limited
1. We have audited the attached Balance Sheet of ALPHAGEO (INDIA) LIMITED
("the Company") as at 31st March, 2012, the Statement of Profit and Loss
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 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 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 (" the
Order") issued by the Central Government of India in terms of Section
227(4A) of the Companies Act, 1956 (` the Act `), 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 the Annexure referred to 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, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
(iv) 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 in Section 211 (3C) of the Act, to the extent
applicable.
(v) On the basis of the written representations received from the
directors, as on 31.03.2012, and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31 st March,
2012 from being appointed as director in terms of clause (g) of sub-section
(1) of section 274 of the Act.
(vi) In our opinion and to the best of our information and according to the
explanations given to us, the said accounts read in conjunction with the
notes and accounting policies thereon give the information required by the
Act, in the manner so required and give a 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 affairs of the Company as
at 31st March, 2012;
(b) in the case of Statement of Profit and Loss of the Loss 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 P.V.R.K. Nageswara Rao & Co.,
Chartered Accountants
Firm`s Registration Number: 002283S
P.V.R.K. Nageswara Rao
Hyderabad Partner
28.05.2012 Membership No. 18840
Annexure to the Auditors` Report
Annexure referred to in paragraph 3 of Auditors` report of even date on the
accounts of Alphageo (India) Limited ("the Company") for the Year ended
31st March 2012
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 fixed assets have been physically verified by
the management according to the phased programme designed to cover all the
fixed assets on rotation basis. In respect of fixed assets verified
according to this programme, which is considered reasonable, no material
discrepancies were noticed on such verification.
(c) The fixed assets disposed off during the year did not represent
substantial part of the fixed assets of the Company, which affect going
concern status of the Company.
2.(a) As explained to us, the inventories, representing machinery spares
and survey consumables, of the Company have been physically verified at
reasonable intervals during the year by the Management.
(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 has maintained proper records of inventories and the
discrepancies noticed on physical verification of stocks as compared to
book records, which in our opinion were not material, have been properly
dealt with in the books of account.
3.(a) 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. Consequently the provisions of
Clause 4(iii)(b), 4(iii)(c) and 4(iii)(d) of the Order are not applicable
to the Company.
(b) The Company has taken unsecured loans from two parties covered under
section 301 of the Act during the previous year. The balance as on 31st
March, 2012 and the maximum amount involved during the year were
Rs.25,00,000/- and Rs.60,00,000/- respectively.
(c) In our opinion the rate of interest and other terms and conditions of
loans taken from the parties covered in the register maintained under
section 301 of the Act are not prima facie prejudicial to the interests of
the Company.
(d) The Company is regular in repayment, where applicable, of principal
amount and interest on unsecured loans taken from the parties covered in
the register maintained under section 301 of the Act.
4. 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 with regard to purchase
of inventory representing machinery spares and survey consumables, fixed
assets and for the sale of seismic survey and other related services.
During the course of our audit, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
5.(a) According to the information and explanations given to us and as
confirmed by the Managing Director of the Company, we are of the opinion
that the particulars of contracts or arrangements that need to be entered
in the register maintained under section 301 of the Act 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 the Act and
exceeding the value of Rs.5,00,000/- in respect of any party during the
year have been made at prices which are reasonable having regard to
prevailing market prices at the relevant time.
6. According to the records of the Company and as per the information and
explanations given to us, the Company has not accepted any deposits from
public during the year covered by the directives issued by the Reserve Bank
of India and the provisions of Section 58A and 58AA or other relevant
provisions of the Act and the rules framed there under. Consequently, the
provisions of Clause 4(vi) of the Order are not applicable to the Company.
7. As per the information and explanations given to us, the Company has an
internal audit system commensurate with the size and nature of its
business.
8. In respect of this company, maintenance of cost records has not been
prescribed by the Central Government under Section 209(1)(d) of the
Companies Act, 1956.
9.(a) According to the records of the Company and as per the information
and explanations given to us, the Company is generally regular in
depositing the undisputed statutory dues including Provident Fund, Investor
Education and Protection Fund, Employees State Insurance, Sales Tax, Income
Tax, Wealth Tax, Service Tax, Customs duty, Excise duty, Cess and other
material statutory dues applicable to it with the appropriate authorities.
In respect of these statutory dues, there are no outstanding dues as on
31.3.2012 which are outstanding for a period of more than six months from
the date they became payable.
(b) According to the records of the Company and as per the information and
explanations given to us, there are no dues of Income Tax, Sales Tax,
Wealth Tax, Service Tax, Customs Duty, Excise Duty and Cess, which have not
been deposited on account of any dispute as on 31.3.2012.
10. As per the information and explanations given to us and on an overall
examination of the financial statements of the Company for the current and
immediately preceding financial 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 and immediately preceding financial
year.
11. During the year the Company has not defaulted in repayment of dues to
financial institutions, bank and debenture holders.
12. As per the information and explanations given to us, as 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 anybody during the
year, the provisions of Clause 4 (xii) of the Order are not applicable to
the Company.
13. In our opinion, as the Company is not a chit fund or a Nidhi or mutual
benefit fund or society, the provisions of Clause 4 (xiii) of the Order are
not applicable to the Company.
14. In our opinion, as the Company is not dealing in or trading in shares,
securities, debentures and other investments, the provisions of Clause
4(xiv) of the Order are not applicable to the Company.
15. In our opinion, the terms and conditions on which the Company has given
guarantees for the loans taken by others from banks are not prejudicial to
the interests of the Company.
16. According to the records of the Company, during the year the Company
has not raised any term loans and the term loans raised in earlier years
have been applied for the purposes for which they were raised in the
relevant years.
17. As per the information and explanations given to us and on an overall
examination of the Balance Sheet of the Company, the funds raised on short
term basis during the year have not been used for long term investment
purposes.
18. The Company has not made preferential allotment of shares to parties
covered in the Register maintained under section 301 of the Act during the
year.
19. As the Company has not issued any debentures during the year, which
requires the creation of security or charge, the provisions of Clause
4(xix) are not applicable to the Company.
20. As the Company has not raised any money by public issues during the
year, the provisions of Clause 4(xx) are not applicable to the Company.
21. 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 as per the representation given by the Company and
relied on by us, we have neither come across any instance of material fraud
on or by the Company, noticed or reported during the year, nor have we been
informed of such cases by the management.
For P.V.R.K. Nageswara Rao & Co.,
Chartered Accountants
Firm`s Registration Number: 002283S
P.V.R.K. Nageswara Rao
Hyderabad Partner
28.05.2012 Membership No. 18840 |