AAKAR TECHNOLOGIES LIMITED
(FORMERLY KNOWN AS AAKAR ENGINEERING AND MANUFACTURING COMPANY LIMITED)
ANNUAL REPORT 2007-2008
The Members of
M/s. AAKAR TECHNOLOGIES LIMITED
(FORMERLY KNOWN AS AAKAR ENGINEERING AND MANUFACTURING COMPANY LIMITED)
We have audited the attached Balance Sheet of M/s. AAKAR ENGINEERING &
MANUFACTURING COMPANY LIMITED as at 31st March 2008, together with the
Profit & Loss Account of the Company 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.
1. We have 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 the
management, as well as evaluating the overall presentation of the financial
statements. We believe that our audit provides a reasonable basis for our
2. As required by the Companies (Auditors Report) Order., 2003 issued by
the Central Government in terms of section 227(4A) of the Companies Act,
195G, we annex hereto a statement on the matters specified in paragraph 4
and 5 of the said order.
3. Further to our comments in the Annexure referred to in paragraph 2
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 accounts as required by the law have been
maintained by the company so far as it is appears from our examination of
c) The Balance Sheet & Profit & Loss Account dealt with by this report are
in agreement with the books of accounts.
d) In our opinion, the Balance Sheet and Profit and Loss Account comply
with the Accounting standards referred to in Sub-Section 3(C) of the
section 211 of the Companies Act, 1956 to the extent applicable.
e) On the basis of information obtained, we state that none of the
Directorship of the Company are prima-facie disqualified under section 274
(1) (g) of the Companies Act, 1956 from being appointed as a Director of
the Company as on 31st March, 2008.
f) In our opinion and to the best of our information and according to the
explanations given to us, the said accounts give a true and fair-view.
i) In the case of Balance Sheet of the State of Affairs of the Company as
at 31st March, 2008 and
ii) In the case of the Profit & Loss Account, of the Loss of the Company
for the year ended on that date.
iii) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
For S.M. BHAT & ASSOCIATES
Mr. S.M. BHAT
DATE : 25th July, 2008.
ANNEXURE REFERRED TO IN PARAGRAPH 2 OF OUR REPORT OF EVEN DATE OF THE
ACCOUNTS FOR THE YEAR ENDED 31st MARCH 2008 OF M/s. AAKAR TECHNOLOGIES
LIMITED (FORMERLY KNOWN AS AAKAR ENGINEERING AND MANUFACTURING COMPANY
As required by the Companies (Auditors Report) Order, 2003 issued by the
Company Law Board in terms of section 227(4A) of the Companies Act, 1956
and on the basis of such checks as we consider 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) As explained to us, all the assets have been physically verified by the
management at reasonable intervals during the year. According to the
information and explanations given to us, no discrepancies have been
noticed on such physical verification by the management;
(c) As informed to us none of the fixed assets of the company has been
disposed off during the year.
ii) (a) The inventories have been physically verified by the management at
reasonable intervals during the year;
(b) In our opinion, 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) In our opinion, the company is maintaining proper records of inventory.
The discrepancies noticed on physical verification were not material in
relation to the operations of the company and the same have been properly
dealt with in the books of accounts;
iii) The company has not taken / granted any loans and advances in the
nature of loans from / to parties covered in the registered maintained
under section 301of the Companies Act, 1956.
iv) In our opinion and according to the information and explanations given
to us, there are generally adequate internal control procedures
commensurate with the size of the Company and the nature of its business
for purchase shares' and securities, plant and machinery, equipments and
other assets and sale of shares and securities.
v) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that there are no transactions that need to be entered into the
register in pursuance of section 301 of the Act.
vi) In our opinion and according to the information and explanations given
to us, the company has not accepted any deposits from public during the
year within the meaning of section 58A and 58AA of the Companies Act, 1956
and rules framed thereunder.
vii) In our opinion and according to the information and explanations given
to us, there are no internal audit system commensurate with the size of the
Company and the nature of its business.
viii) As informed to us maintenance of cost records has not been prescribed
by the Central Government u/s 209(1)(d) of the Companies Act, 1956, in
respect of the activities carried on by the Company.
ix) (a) According to the records of the company, the company is regular in
depositing with appropriate authorities undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Employees' State
Insurance, Income-tax, Sales-tax, Wealth Tax, Custom Duty, Excise Duty,
Cess during the year except there is a delay in payment of Fringe Benefit
tax and sales tax payments.
(b) According to the information and explanations given to, us, no
undisputed amounts payable in respect of income tax, wealth tax, sales tax,
custom duty and excise duty were outstanding as at 31st March, 2008 except
Fringe Benefit Tax and sales tax for a period of more than six months from
the date they become payable.
(c) According to the information and explanation given to us there are no
dues of sales tax, income tax, custom duty, wealth tax, excise duty or Cess
outstanding at the year ended on account of any dispute.
x) The accumulated losses of the Company as at 31st March 2008, are more
than half of its net worth and the Company has incurred cash loss of
Rs.76,78,197/- in the current financial year and Rs. 2,36,82,668/- in the
financial year immediately. preceding the financial year.
xi) Based on our audit procedure and as per the information and
explanations given by the management, the Company has defaulted in
repayment of following dues to Banks:
Period of default Amount (Rs.)
Above 180 Days 7,34,85,943/-
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) In our opinion, considering the nature of activities carried on by
the Company during the year, the provisions of any special statute
applicable to chit fund / nidhi / mutual benefit fund / societies are not
applicable to it.
xiv) On the basis of our examination of the companies records we are of the
opinion that the company is maintaining adequate records regarding
transactions and contracts regarding its dealing in shares and securities
and timely entries have been made in these records.
xv) According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, we report that the
Company has not given any guarantees for loans taken by others from banks
or financial institutions.
xvi) The Company has not taken any term loan during the year.
xvii) According to the information and explanations given to us and on an
overall examination of the balance sheet of the company, we report that the
no funds raised on short-term basis have used for long term investment. No
long term funds have been used to finance short-term assets.
xviii) According to the information, and explanations given to us, 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) According to the information and explanations given to us, during the
year covered by our audit report, the Company has not issued debentures.
xx) The Company has not made any public issue during the year.
xxi) Based upon on the Audit procedures performed and information and
explanations given by the management, we report that no fraud on or by the
company has been noticed or reported during the course of our Audit.
For S M BHAT & ASSOCIATES
PLACE: MUMBAI Proprietor
DATE : 25th July. 2008.