NAINA SEMICONDUCTOR LIMITED
ANNUAL REPORT 2010-2011
Naina Semiconductor Limited
Mota Haldu, Haldwani
DISTT: NAINITAL - (Uttrakhand)
We have audited the attached Balance Sheet of Naina Semiconductor Limited,
Haldwani, Distt. Nainital (Uttrakhand) as on 31st March,2011 and the Profit
& Loss Account and Cash Flow statement for the year ended on that date and
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.
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.
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 accounts as required by the Companies
Act, 1956 have been kept by the company so far as it appears from our
examination of those books.
iii) The Balance Sheet and Profit and Loss Account cash flow dealt with in
this report are in agreement with the books of account and also are in
compliance with the mandatory accounting standards reffered to in section
211 (3C) of the companies Act 1956 to the extent applicable.
iv) In our opinion and to the best of our information and according to the
explanations given to us, the said accounts read with notes thereon, give
the information required by the Companies Act, 1956 and also give true and
a) In the case of Balance Sheet of the state of affairs of the company as
at 31st March, 2011
b) In the case of Profit & Loss Account the profit for the year ended on
c) On the basis of written representation received from the Directors as on
31st March, 2011 and taken on record by the Board-of Directors, none of the
Directors is disqualified as on the above date from being appointed as
director in terms of Section 274 (1) (g) of the Companies Act, 1956.
d) The Balance Sheet and Profit & Loss Account dealt with by this report
are in agreement with the books of account.
e) In the case of Cash Flow Statement, of the cash flows for the year ended
on that date.
V) As required by the companies (Auditor's 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 considered appropriate, we
further report on the matters specifically in paragraph 4 & 5 of the said
order to the extent applicable.
1. The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. As explained
to us the fixed assets have been physically verified by the management
during the year. No serious discrepancies were noticed on such
2. The management has conducted physical verification at reasonable
intervals in respect of finished goods, store, spare parts and raw
3. As explained to us, in respect of goods traded in , the company has
resonable system for the determination of damaged goods and in our opinion,
adequate provisions have been made in the accounts for the losses arising
on the items so determined.
4. The procedure of physical verification of stocks followed by the
management is reasonable and adequate in relation to the size of the
company and the nature of its business.
5. No material discrepancies have been noticed on physical verification of
stocks as compared to book records.
6. In our opinion, the valuation of the stocks is fair and proper and in
accordance with the normally accepted accounting principles. The basis of
valuation of stocks is the same as in the preceding year.
7. The company has not taken any loans, secured or unsecured, from
companies, firms or other parties listed in the registers maintained under
section 301 and 370 (1B) of the Companies Act, 1956.
8. The company has not granted any loans, secured or unsecured, to
companies, firms or other parties listed in the register maintained under
section 301 (1B) of the Companies Act, 1956.
9. In respect of loans and advances given by the company during the year,
there are no stipulations for repayment of principal or any interest theron
as per verification of records produced before us and as confirmed by the
10. In our opinion, the company has an adequate internal control procedure
commensurate with the size of the company and the nature of the business
for the purchase of stores, raw materials, including components, plant and
machinery, equipemnt and other assets and for the sale of goods.
11. In our opinion and according to the information and explanations, given
to us, the company has not entered into any transactions of purchase of
goods and materials and sale of goods, material and services in excess of
Rs. 50,000/- in value, in pursuance of contracts or arrangement entered in
the register (s) maintained under section 301 of the Companies Act, 1956.
The company has no subsidiary.
12. The company has a system for the determination of unserviceable or
damaged stores, raw materials and finished goods and in our opinion,
provision for loss has been made in accounts.
13. The company has not accepted any deposits from the Public.
14. In our opinion, the company is maintaining reasonable records for the
sale and disposal of realisable scrap. The company has no by-products.
15. The company is maintaining cost records under section 209 (1) (d) of
the Companies Act, 1956 for any of the products of the company as per cost
accounting records(Electronic Products) Rule 2001
16. The company is regular in depositing Provident Fund dues. A notice has
been served on the company requiring it to pay the arrear of Rs. 76,230/-
of Employees State Insurance Corporation. Company has challenged its
coverage under the Act in the court of law and seek the stay on the payment
17. There are no undisputed amounts payable in respect of Income Tax,
Wealth Tax, Customs Duty and Excise Duty outstanding as at last day of
financial year concerned for a period of more than 6 months from the date
they become payable.
18. No personal expenses, whether of the Directors or employees, have been
charged to the revenue account other than those payable under contractual
obligations or accepted business practice.
19. According to the information & explanations given to us, no Fraud in or
by the company has been noticed or reported during the year.
20. According to the records of the company its accumulated losses at the
end of the Financial year are less than 50% of its net worth. The company
has not incurred cash losses in the financial year under report and in the
financial year immediately preceding such financial year.
21. In our opinion, the company is not chit-fund or Nidhi mutual benefit
fund / society. Therefore the provision of clause 4(XIII) of the companies
(auditor's report) order 2003 are not applicable to the company.
22. In our opinion and according to the information and explanations given
to us, the company is not dealing in or trading in shares, securities,
debentures and other investment.
23. The company has not made any fresh allotment of shares and debentures.
Therefore the provisions of clause 4(X V111 & XIX) of the companies act
(auditor's report) order 2003 are not applicable to the company.
for VINOD SHARMA & ASSOCIATES
Place: New Delhi VINOD SHARMA
Date : 30th May, 2011 CHARTERED ACCOUNTANT