AVANCE TECHNOLOGIES LIMITED
ANNUAL REPORT 2010-2011
AUDITORS` REPORT
To
The Shareholders of
Avance Technologies Limited
1. We have audited the attached Balance Sheet of Avance Technologies
Limited as at 31st March 2011 and also the Profit and Loss Account for the
year ended on that date annexed thereto and the Cash Flow Statement for the
year ended 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 test
basis, evidence supporting the amount and disclosures in the financial
statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluation the
overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
3. As required by the Companies (Audit Report) order, 2003 issued by the
Central Government of India in terms of sub-section (4A) of section 227 of
the Companies Act, 1956, and on the basis of such checks of books and
records of the Company as were considered appropriate and the information
and explanations given to us during the course of our audit, we enclosed 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 necessary for the purposes 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 those books.
iii. The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of accounts.
iv. In our opinion, the Balance Sheet and Profit and Loss Account dealt
with by this report comply with the accounting standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956;
v. On the basis of written representations received from the 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 2011 from being
appointed as a 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 read with notes give the
information required by the Companies Act, 1956, in the manner so required
and subject to Note No.2, 4,,8 & 9 read with Significant Accounting
Policies included therein, give a true and fair view in conformity with the
accounting principles generally accepted in India.
* In case of the Balance Sheet, of the state of affairs of the Company as
at 31st March 2011
* In the case of the Profit and Loss Account, of the Company, of the profit
for the year ended on that date.
And
* In case of the Cash Flow Statement of the company , of the cash flows for
the year ended on that date.
For Ramesh Batham And Co.
Chartered Accountants
Sd/-
Ramesh Batham
Proprietor
Firm Reg. No 123638W
M. No. 114178
Place: Mumbai
Date : 2nd September 2011
Annexure To The Auditors` Report:
Re:- Avance Technologies Limited - F.Y. 2010-11 Referred to in paragraph 3
of our report of even date,
(i) Fixed Assets:
(a) The Company is generally maintaining proper records showing full
particulars including quantitative details and situation of fixed assets.
(b) Assets have been physically verified by the management during the year.
According to the information and explanations given to us, there is regular
program of verification which, in our opinion is reasonable having regards
to the size of the Company and the nature of its assets. No material
discrepancies were noticed on such verification.
(c) Based on our scrutiny of the records of the company and the information
and explanation received by us, we report that there was no sale of fixed
assets. Hence, the question of reporting whether the sale of any
substantial part of fixed assets has affected the going concern of the
company does not arise.
(ii) Inventories:
(a) The Inventory has been physically verified during the year by the
management. In our opinion, the frequency of 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 has maintained proper records of Inventories and no
material discrepancy noticed on physical verification.
(iii) Loans And Advances:
The company has neither taken nor granted any loans or advances in nature
of loans to parties covered under register maintained under section 301 of
the Companies Act, 1956. Hence, the question of reporting whether the terms
and conditions of such loans are prejudicial to the interest of the
Company, whether reasonable steps for the recovery / repayment of over dues
of such loans are taken does not arise.
(iv) Internal Control:
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 purchases
of inventory, fixed assets and with regard to the sale of goods. During the
course of our audit, we have not observed any continuing failure to correct
major weaknesses in internal control except as stated above.
(v) Transactions With Related Parties As Per Register Of Contracts Under
Section 301 Of The Companies Act, 1956:
(a) According to the information and explanations given to us, 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, there is no transaction made with related parties in pursuance of
contracts or arrangements entered in the register maintained under section
301 of the Companies Act, 1956 aggregating the value of rupees five lakhs
or more in respect of any party during the year.
(vi) Deposits From Public:
In our opinion and according to the information and explanations given to
us, the Company has not accepted any deposits from the public. However,
Inter corporate Loan outstanding to the extent of Rs.3,90,00,000/-.
(vii) Internal Audit System:
The Company has an internal audit system commensurate with size and nature
of its business.
(viii) Cost Records:
As informed to us, The Company is not required to maintain cost records
under section 209 (1) (d) of the Companies Act, 1956.
(ix) Statutory Dues:
(a) According to the records of the Company, undisputed statutory dues
including provident fund, sales tax, custom duty, excise duty, cess and
other statutory dues have been generally deposited with the appropriate
authorizes, except Income Tax Rs.12,32,573/- for A.Y. 2010-2011,
Rs.2,38,062/- for A.Y.2008-2009.
(b) According to the information and explanation given to us details of
disputed Income tax which have not been deposited as on 31st March, 2011 on
account of any dispute are given below. Otherwise there are no disputed
Liabilities on account of Sales Tax, Custom Duty, Wealth Tax, Service Tax,
Excise duty and Cess as on 31st March, 2011.
Name of Nature of Amount Rs. Period for Forum Where
Statute Disputes Which Amount Dispute is
Related Pending
Income Tax U/s 143 (3) 1,73,27,357/- A.Y. 2001-02 I.T Tribunal
r.w.s. 147 and CIT Appeal
of u/s 154
Income Tax U/s 143 (3) 1,94,905/- A.Y. 2002-03 I.T Tribunal
Income Tax Demand 20,000/- A.Y. 2002-03 I.T.O
Income Tax U/s 271(1)(c) 47,56,416/- A.Y. 2002-03 CIT Appeal
Income Tax Proceeding 6,47,978/- A.Y. 2006-07 I.T Tribunal
U/s 271(1)
Income Tax Proceeding 2,33,521/- A.Y. 2003-04 I.T Tribunal
U/s 271(1)(c)
Income Tax 1,00,083/- A.Y. 2003-04
Income Tax U/s 221 93,098/- A.Y. 2009-10 I.T. Tribunal
(x) Sick Industry:
The Company has No accumulated losses and has not incurred any cash losses
during the financial year 2010-2011, covered by audit. Further, the Company
has no cash losses in the immediately preceding financial year.
(xi) Dues To Financial Institutions:
Based on our audit procedures performed and on the information and
explanation given by the management, the Company has yet to complete the
processor and release the charge of bank with ROC for the securities
offered to Allahabad bank for loan amount of Rs. 1,66,97,612/-. As informed
by management, bank has agreed for one time settlement.
Further, The Company has neither taken any loans from debenture holder
hence no question of reporting arises to that extent.
(xii) Secured Loans And Advances Granted:
In our opinion and according to the information and explanation given to
us, no loans and advances have been granted by the Company on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii) Chit Fund, Nidhi Or Mutual Benefit Company:
In our opinion, the Company is not a chit fund or a nidhi / mutual benefit
fund / society. Therefore, the provisions of Clause 4 (xiii) of the
Companies (Auditor Report) Order, 2003 are not applicable to the Company.
(xiv) Investment Company:
The Company has maintained proper records of transactions and contracts in
respect of investments in shares, debentures and other securities and those
timely entries have been made therein. The shares, debentures and other
securities have been held by the Company in its own name except to the
exemption granted under Section 49(4) of the Companies Act, 1956.
(xv) Guarantees Given By Company
The Company has not given any guarantees for loans taken by other from
banks or financial institutions. There is no guarantee given by the Company
to third party.
(xvi) Term Loans:
In our opinion and according to the information and explanation given to
us, the company has not taken any term loan during the year, hence no
question of reporting arise to that extent.
(xvii) Source Of Funds And Its Application:
According to the information and explanations given to us and on an overall
examination of the Balance Sheet of the Company, we report that no funds
raised on short-term basis have been used for long-term investment. No
long-term funds have been used to finance short-term assets except
permanent working capital.
(xviii) Public Issue/Preferential Issue/Debentures:
The Company has not raised any money by public issue/debenture during the
year. However, during the year the Company has come up with a offer of
preferential allotment of Convertible Equity Warrants for which the Company
has accepted application money to the extent of Rs.63,78,50,000/- from
various parties.
(xix) Fraud:
Based upon our audit procedures performed and on the information and
explanations given by the management we are of the opinion that no fraud on
or by the Company has been noticed or reported during the course of our
audit.
For Ramesh Batham And Co.
Chartered Accountants
Sd/-
Ramesh Batham
Proprietor
Firm Reg. No 123638W
M. No. 114178
Place: Mumbai
Date : 2nd September, 2011. |