You are here » Home » Companies » Company Overview » NEPC India Ltd

NEPC India Ltd.

BSE: 500301 Sector: Engineering
NSE: NEPCMICON ISIN Code: INE588A01016
BSE LIVE 14:31 | 21 Aug 1.04 -0.05
(-4.59%)
OPEN

1.04

HIGH

1.04

LOW

1.04

NSE 10:20 | 27 Jun Stock Is Not Traded.
OPEN 1.04
PREVIOUS CLOSE 1.09
VOLUME 2000
52-Week high 2.44
52-Week low 1.04
P/E
Mkt Cap.(Rs cr) 7
Buy Price 0.00
Buy Qty 0.00
Sell Price 1.04
Sell Qty 42340.00
OPEN 1.04
CLOSE 1.09
VOLUME 2000
52-Week high 2.44
52-Week low 1.04
P/E
Mkt Cap.(Rs cr) 7
Buy Price 0.00
Buy Qty 0.00
Sell Price 1.04
Sell Qty 42340.00

NEPC India Ltd. (NEPCMICON) - Auditors Report

Company auditors report

NEPC INDIA LIMITED ANNUAL REPORT 2011-2012 AUDITORS' REPORT The Members NEPC India Limited., We have audited the attached Balance sheet of NEPC India Limited as on 31st March, 2012 and the Profit and Loss Account and the Cash Flow Statement of the Company for the year ended on that date annexed thereto, which we have signed under reference tb this report. 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 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. 2. As required by the Companies (Auditors Report) Order, 2003 as amended by Companies (Auditor's Report) (Amendment) Order, 2004 (together 'the Order') issued by the Central Government of India in terms of sub section 4A of section 227 of 'the Companies Act, 1956' of India (the Act), and on the basis of such checks of the books and records of the Company as we consider appropriate and according to the information and explanations given to us, we give in the Annexure hereto a statement on the matters specified in Para 4 & 5 of the said Order to the extent applicable to the Company during the period. 3. Further to our comments in the Annexure referred to in Para 2 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 maintained by the Company in respect of all material transactions so far as appears from our examination of those books. iii) The balance sheet, profit and loss account and cash flow statement dealt with by this report are in agreement with the books of account; iv) In our opinion, the balance sheet, profit and loss account and the cash flow statement comply with the Accounting Standards referred to in sub- section (3C) of section 211 of the Companies Act, 1956 to the extent made mandatory, subject to what is stated in point No. II(3), II(08), II(10), II(12) in Note-19 Significant Accounting Policies and Notes Accounts; v) On the basis of written representations received from the directors and taken on record by the Board of Directors, we report that none of the director is disqualified as on 31st March, 2011 from being appointed as director in terms of clause (g) of sub section (1) of section 274 of the Companies Act; vi) Attention of the members is invited to the following point which have been explained in Note-19, Significant Accounting Policies and Notes on Accounts: a) Note II.3: regarding pending confirmation and reconciliations, if any, in respect of certain debtors, loans and advances, bank balance, deposits and current liabilities; b) Note 11.08: regarding non-recognition of Impairment of Assets pertaining to the Airline Division even though the conditions for the same exists which is in contravention with the provisions stipulated in Account Standard 28 - Impairment of Assets issued by the Institute of Chartered Accountants of India resulting in over statement of Fixed Assets and under statement of Losses for the year - Amount unascertainable (previous year Amount unascertainable). c) Note 11.10: regarding non-provision of retirement benefits in the financial statements on accrual basis which is in contravention with the provisions stipulated in Accounting Standard 15 Accounting for Retirements Benefits - Amount unascertainable (previous year Amount unascertainable). d) Note II.10.: regarding non-provision of Deferred Taxes on the timing differences that may arise due to disallowance of certain expenses is in contravention with the provisions stipulated in Accounting Standard 22 - Taxes on Income - Amount unascertainable (previous year Amount unascertainable); vii) In our opinion and to the best of our information and according to the explanations given t o us, the said accounts subject to what is stated in paragraph 3(vi) above having consequential impact (presently un- ascertainable) on the profit for the Company and read together with other Significant Accounting Policies and other Notes thereon given in Note 19, give the information as required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India; a) In case of the Balance Sheet, of the State of Affairs of the Company as at 31st March, 2012. b) In case of the Profit and Loss Account, of the Loss of the Company for the year ended on that date; and c) In the case of Cash Flow Statement, of the cash flow for the year ended on that date. For A. Nageswaran Chartered Accountant Membership No. 200/23911 Place: Chennai Dated: 30-07-2012 Annexure to the Auditors' Report: (Referred to in paragraph 2 of our report of even date) In terms of the information and explanation given to us and the books and records examined by us and on the basis of such checks as we considered appropriate, we further report as under: (i) Fixed Assets: a) The Company is in the process of updating its records showing full particulars including quantitative details and situation of fixed assets on the basis of available information. b) During the year, the fixed assets have been physically verified by the management, during the course of updation of records, in accordance with the phased programme of verification adopted by the management. Discrepancies, if any,will be adjusted on updation of the said records. c) During the year, the Company has not disposed off substantial part of the fixed assets and the going concern status of the Company has not been affected. (ii) Inventories: a) During the year the management has conducted physical verification of inventories at regular intervals. b) The procedures of physical verification of Inventories followed by the management, in our opinion, are reasonable and adequate in relation to the size of the Company and nature of its business. c) The Company is maintaining proper records of inventory and no material discrepancies were noticed on its physical verification. (iii) Loans & Advances either granted or taken: a) (i) As per the records verified by us, the Company has not taken interest-free loans Secured or Unsecured from the parties covered in the register maintained under section 301 of the Companies Act, 1956. (ii) The Company has granted interest-free advances to one of related parties covered in the register maintained under Section 301 of the Companies Act 1956, with maximum balance during the year of Rs.31,19,89,895/- and closing balance of Rs. 31,19,89,895. b) In our opinion, the other terms and conditions of the above advances are not prima facie prejudicial to the Company's interests. c) The above advances are being repaid as per the stipulations wherever made or as rescheduled. d) Based on the representations received from the management, we are of the opinion that the Company has taken reasonable steps for the recovery of the above advances. (iv) Internal Controls: Based on the information and explanations given to us, we are of the opinion that the internal control procedures prevailing in the Company need to be strengthened further to make them commensurate with its size and the nature of its business. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal controls. (v) Transaction s covered by Section 301: a) During the year the transactions that need to be entered into a register in pursuance of section 301 of the Act have been so entered by the Company; b) Based on information and explanations given to us, we are of the opinion that, each of these transactions have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time; (vi) Public Deposits: In our opinion and according to the information and explanations given to us, the company has not accepted any deposits from the public to which the provisions of section 58A and 58AA or any other relevant provisions of the Act and the Companies Acceptance of Deposits Rules, 1975 apply. (vii) Internal Audit: There is no formal internal audit system prevailing in the Company during the year under review. (viii) Cost Records: The Central Government has not prescribed for maintenance of cost records under section 209(1)(d) of the Companies Act, 1956. (ix) Statutory Dues: (a) Based on the records verified by us and as certified by the management, the Company has been generally regular in depositing undisputed statutory dues arising to the Company in respect of the Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Sales Tax, Wealth Tax, Customs Duty, Service Tax, Cess and any other Statutory Dues during the period to the appropriate authorities. As at 31st March, 2012 except what is reported below, there were no undisputed dues which were outstanding for a period of more than six months from the date they became payable: Sl. Name of Nature of the Amount Period to Due date No. the statute dues Rs. which the amount relates 1. Income Tax Tax Deducted 3,26,727 Various 7th of the Act, 1961 at Source periods month following respective months (b) Following are the details of disputed statutory dues which have not been deposited on account of disputes as listed below: Sr. Nature of dues & Period to which Amount Name of the Forum No. Assessment Year amount relates (Rs.) under which dispute is pending 1. Sales Tax F.Y. 2000-01 80,385 Sales Tax Appellate (Including Tribunal Interest and penalty Wherever F.Y. 2001-02 82,344 Sales Tax Appellate applicable) Tribunal 2. Income Tax A.Y. 1992-93 12,774 Commissioner of (Including Income Tax interest & Appellate Tribunal penalty, wherever A.Y. 1993-94 1,33,39,000 Income Tax (Appeals) A.Y. 1994-95 4,52,69,296 Income Tax Appellate Tribunal A.Y. 2004-05 30,000 Income Tax Appellate Tribunal A.Y. 2005-06 30,000 Commissioner of Income Tax applicable) (Appeals) (x) Accumulate d Losses: The Company's accumulated losses as at the close of the current year is more than fifty percent of its Net worth as on the said date. (xi) Loans against pledge of Securities: During the year under review, the Company has not granted any loans and/or advances on the basis of security by way of pledge of shares, debentures and other securities to any party. (xii) Applicability of special statute: The provisions of any special statute applicable to Chit Fund, Nidhi and Mutual Benefit Society are not applicable to the Company during the year under review. (xiii) Dealing/trading in shares or Security: As per the records made available to us and verified by us, the Company has not dealt with or traded in shares, securities, etc., during the year under review. (xiv) Guarantees given: In our opinion, the terms and conditions of the guarantees given by the Company in respect of the loans taken by related parties from banks were not prejudicial to the interests of the Company. (xv) Application of Funds raised: a) During the year, the Company has not raised any new Term Loans. b) Based on our verification of the books of accounts, the information and explanations given o t us, in this regard and on the overall examination of the balance sheet of the Company we are of the view that the funds raised on short-term basis by the Company have not been utilized for long term purposes and vice versa. (xvi) Preferential allotment: During the year under review, the Company has not made any preferential allotment of equity shares to any party/concern listed in the Register maintained under Section 301 of the Companies Act, 1956. (xvii) Security against Debentures: The Company has not issued any debentures during the year under review. (xviii) End use of Public Issue Money: During the year, the Company has not raised any money by Public Issue. (xix) Frauds: 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 according to the information and explanations given to us, we have neither come across any instance of material fraud on or by the Company, noticed or reported during the year nor have been informed of such case by the management. For A. Nageswaran Chartered Accountant Membership No. 200/23911 Place: Chennai, Dated: 30-07-2012.