TO THE MEMBERS OF
MORGAN VENTURES LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of Morgan Ventures Limited("the Company") which comprise the Balance Sheet as at June 30 2014 andthe Statement of Profit and Loss and Cash Flow Statement for the ended and a summary ofsignificant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give atrue and fair view of the financial position financial performance and cash flows of theCompany in accordance with the Accounting' Standards referred to in sub-section (3C) ofsection 211 of the Companies Act 1956 ("the Act") read with the GeneralCircular 15/2013 dated September 13 2013 of the Ministry of Corporate Affairs in respectof section 133 of the Companies Act 2013. This responsibility includes the designimplementation and maintenance of internal control relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management aswell as evaluating the overall presentation of the financial statements. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour qualified audit opinion.
Basis for Qualified Opinion
1. The company has provided for depreciation on old windmills at rates as per technicalreport and not as per rates prescribed in schedule XIV to the Companies Act 1956.Consequent impact of such provision has not been determined.
In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in the basis for qualifiedopinion paragraph financial statements give the information required by the Act in themanner so required and give a true and fair View in conformity with the accountingprinciples generally accepted in India:
a) In the case of the Balance Sheet of the state of affairs of the Company as at June30 2014
b) In the case of the Statement of Profit and Loss of the profit for the year ended onthat date; and
c) In the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2003 ("the Order")issued by the Central Government of India in terms of sub-section (4A) of section 227 ofthe Act we give in the Annexure a statement on the matters specified in paragraphs 4 and5 of the Order.
2. As required by section 227(3) of the Act we report that:
a) We have obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of our audit:
b) In our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books;
c) The Balance Sheet Statement of Profit and Loss and Cash Flow statement dealt withby this Report are in agreement with the books of account;
d) Except for the possible effects of the matter described in the basis for qualifiedopinion paragraph In our opinion the Balance Sheet. Statement of Profit and Loss andCash Flow Statement comply with the Accounting Standards referred to in subsection (3C) ofsection 211 of the Companies Act 1956;
e) On the basis of written representations received from the directors as on June 302014 and taken on record by the Board of Directors none of the directors is disqualifiedas on June 30 2014 from being appointed as a director in terms of clause (g) ofsub-section (1) of section 274 of the Companies Act
f) Since the Central Government has not issued any notification as' to the rate atwhich the cess is to be paid under section .441A of the Companies Act 1956 nor has itissued any Rules under the said section prescribing the manner in which such cess is tobe paid no cess is due and payable by the Company.
For K.K. Jain Co. Chartered Accountants
M. No. 86496
Place: New Delhi Date: 29.08.2014
Annexure referred to in paragraph 2 of our Report of even date to the Members of MorganVentures Limited on the accounts for the year ended at June 2014.
1. (a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) As explained to us. the fixed assets have been physically verified by themanagement during the year in a phased periodical manner which in our opinion isreasonable having regard to the size of the company and nature of its assets. No materialdiscrepancies between the book records and the physical inventory were noticed in respectof the assets physically verified.
(c) In our opinion the company has not disposed off substantial part of fixed assetsduring the year and the going concern status of the company is not affected.
2. (a) Inventories have been physically verified by the management at reasonableintervals during the year.
(b) In our opinion the procedures of physical verification of inventory followed bythe management are reasonable and adequate in relation to the size of the company and thenature of its business.
(c) On the basis of our examination of records of inventory produced to us in ouropinion the company has maintained proper records of inventories. There were no materialdiscrepancies noticed on physical verification of inventory as compared to the bookrecord.
3. (a) The company has not granted any loan secured or unsecured to companies firmsor other parties listed in the register maintained u/s 301 of the Companies Act 1956.
(b) The company has not taken any loan secured or unsecured from companies firms orother parties listed in the register maintained u/s 301 of the Companies Act 1956.
4. In our opinion and according to the information and explanations given to us thereare adequate internal control systems commensurate with the size of the company and thenature of its business with regard to purchase of inventory and fixed assets and for thesale of goods. During the course of our audit no major weakness has been noticed in theinternal control in respect of these areas.
5. (a) According to the information and explanations given to us all the transactionsthat need to be entered in the register required to be maintained under section 301 hasbeen entered.
(b) In our opinion and according to the information and explanation given to us thetransactions with parties with whom transactions exceeding the value of Rupees five lacshave been entered into during the financial year are at prices which are reasonablehaving regard to the prevailing market prices at the relevant time.
6. The company has not accepted any deposit from the public. Therefore the provisionsof Section 58A and 58AA of the Companies Act 1956 and the Rules framed there under donot apply.
In our opinion the company has an internal audit system commensurate with the size andnature of its business.
8. The Central Government has prescribed for maintenance of cost records under section209 (l)(d) of the Companies Act 1956 in respect of power generation. These accounts andrecords have been made and maintained by the company.
9. (I) Undisputed statutory dues including Provident Fund Investor Education andProtection Fund.
Employees State Insurance Income Tax Sales Tax Wealth Tax Service Tax Custom DutyExcise Duty. Cess have been regularly deposited with the appropriate authorities.
(ii) According to the information and explanations given to us no undisputed amountspayable in respect of Income-Tax Sales-Tax Wealth Tax Service Tax Custom Duty ExciseDuty Cess were outstanding at the year end for a period of more than six months from thedate they become payable.
(iii) According to the record of the company and information and explanation given tous there were no disputed dues as on 30lh June 2014 in respect of Sales Tax Income Taxcustom Duty Wealth Tax Service Tax Excise Duty and Cess.
10. The company has no accumulated losses as at 30th June 2014 nor has it incurred anycash losses in the current and immediately preceding financial year
11. Based on our audit procedure and as per information and explanation given by themanagement we are of the opinion that the company has not defaulted in repayment of duesto financial institutions banks or debenture holders.
12. According to the information and explanations given to us and based on thedocuments and records produced to us the company has not granted any loans and advances onthe basis of security by way of pledge of shares debentures and other securities.
13 The provisions of clause 4(xiii) of the Companies (Auditors' Report) Order 2003 arenot applicable to the company.
14. In our opinion the company has maintained proper records and made timely entriestherein in respect of the transactions of dealing or trading in shares securitiesdebentures and other investment made by the company.
15. According to the information and explanation given to us the company has not givenany guarantee for loan taken by others from bank or financial institution.
16. The company has not taken any term Loan during the year.
17. According to the information and explanations given to us and on an overallexamination of the Balance Sheet and Cash Flow Statement of the company we report that nofunds raised on short-term basis have been used for long-term.
18. The company has not made any preferential allotment of shares to parties orcompanies covered in the register maintained under section 301 of the Companies Act 1956during the year.
19. No secured debentures were issued by the company. Therefore no securities havebeen created.
20. The company has not raised any money by a public issue during the year.
21. Based upon the audit procedures performed for the purpose of reporting true andfair view of the financial statements and as per the information and explanations given bythe management we report that no fraud on or by the company has been noticed or reportedduring the course of our audit.
| ||For K.K. Jain & Co. |
| ||Chartered Accountants |
| ||FRN No. 002465N |
| ||Sd/- |
| ||C.A. Simmi Jain |
|Place: New Delhi ||Partner |
|Date: 29.08.2014 ||M. No. 86496 |