THE MEMBERS OF
RADIX INDUSTRIES (INDIA) LIMITED CHIVATAM.TANUKU.
Report on the Financial Statements:
We have audited the accompanying financial statements ofRADIX INDUSTRIES (INDIA)LIMITED ("the Company") which comprise the Balance Sheet as at March 312014 and the Statement of Profit and Loss and Cash Flow Statement for the year thenended and a summary of significant 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 read with the General Circular 15/2013 dated 13September 2013 of the Ministry of Corporate Affairs in respect of Section 133 of theCompaniesAct 2013.. This responsibility includes the design implementation andmaintenance of internal control relevant to the preparation and presentation of thefinancial statements that give a true and fair view and are free from materialmisstatement 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 onAuditing 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 auditor considers internal control relevant tothe Company's preparation and fair presentation of the financial statements in order todesign audit procedures that are appropriate in the circumstances but not for the purposeof expressing an opinion on the entity's internal control. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by management as well as evaluating the overall presentation ofthe financial statements. We believe that the audit evidence we have obtained s isufficient and appropriate to provide a basis for our audit opinion.
In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required bythe 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 March312014;
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. In our opinion the Balance Sheet the Statement of Profit and Loss and the CashFlow Statement comply with the Accounting Standards notified under the Companies Act 1956read with the General Circular 15/2013 dated 13 September 2013of the Ministry of CorporateAffairs in respect of section 133 of the Companies Act 2013.
e. On the basis of written representations received from the directors as on March 312014 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2014 from being appointed as a director in terms of clause (g) ofsubsection (1) of section 274 of the Companies Act 1956.
f. Since the Central Government has not issued any notification as to the rate at whichthe cess is to be paid under section 441A of the Companies Act 1956 nor has it issued anyRules under the said section prescribing the manner in which such cess is to be paid nocess is due and payable by the Company.
| ||For CHEVUTURlASSOCIATES |
| ||CharteredAccountants |
| ||Firm Reg. No.000632S |
|Place: Tanuku || |
|Date : 9th May 2014 || |
| ||(CA. Srinivasa Rao Cherukuri) |
| ||Partner |
| ||M. No.209237 |
Annexure to the Auditor's Report:
1.1 According to the information and explanations furnished to us the company hasmaintained proper records showing full particulars including quantitative details andsituation of its fixed assets.
1.2 According to the information and explanations furnished to us the company hasphysically verified its fixed assets during the period and no material discrepancies werenoticed on such verification carried out during the period.
1.3 According to the information and explanations furnished to us the company has notdisposed of a substantial part of its fixed assets during the period under report.
2.1 According to the information and explanations furnished to us the company hasphysically verified its inventories during the period under report. In our opinion thefrequency and extent of such verification is reasonable.
2.2 In our opinion the procedures of physical verification of inventories followed bythe management are reasonable and adequate in relation to the size of the company and thenature of its business.
2.3 According to the information furnished to us the company is maintaining properrecords of its inventory. The discrepancies if any noticed on verification of inventoriesbetween the physical stocks and the book records were not material and have been properlydealt with in the books of account.
3.1 According to the information and explanations furnished to us the company has notgranted any loans to companies firms or other parties covered by the register maintainedunder Section 301 of the Companies Act 1956 at the beginning of the period under reportor during the period under report and consequently reporting under sub-clauses b c and dof clause 4 (iii) of the Order does not arise during the period under report.
3.2 According to the information and explanations furnished to us the company has nottaken any loans from directors or from the parties who is covered by the registermaintained under section 301 of the Companies Act 1956.Hence the reporting requirement interms of clause efg of 4 (iii) of the said order does not arise
4. In our opinion and according to the information and explanations given to us thereare adequate internal control procedures commensurate with the size of the company and thenature of its business with regard to purchase of inventory fixed assets and with regardto the sale of goods and services. Further during the course of our audit we have notcome across any instances of major weaknesses in internal control system that in ouropinion require correction but have so continued without correction
5. In our opinion and according to the information and explanations given to us thetransactions which have been entered into pursuant to contracts that have been entered inregister maintained under section 301 of the companies Act 1956 during the year underreport have been made at prices which are reasonable having regard to prevailing marketprices at the relevant time.
6. According to the information and explanations given to us the company has notaccepted any deposits covered under the provisions of section 58A58AAor any otherrelevant provisions of the Act. Further according to the information furnished to us noorder has been passed on the company by the Company Law Board or National Company LawTribunal or Reserve Bank of India or any Court or any other Tribunal for non-compliancewith the provisions of Sections 58A and58AAoftheCompaniesAct 1956.
7. In our opinion the company has an internal audit system commensurate with the sizeand nature of its business.
8. We have broadly reviewed the books of account and records maintained by the Companypursuant to the Rules made by the Central Government for the maintenance of Cost Recordsunder Section 209(1) (d) of the Companies Act 1956 wherever prescribed and we are ofthe opinion that prima facie the prescribed accounts and records have been made andmaintained.
However we are not required to and have not carried out a detailed audit of the same.
9.1 According to the information and explanations furnished to us and according to thebooks and records produced for our examination in our opinion the company is regular indepositing with the appropriate authorities the undisputed statutory dues includingProvident Fund
Employees' State insurance Income Tax Sales Tax Wealth Tax Service Tax Custom Dutyand other material statutory dues wherever applicable to it and further there are noundisputed statutory dues that were outstanding as at the date of the Balance Sheet fora period of more than six months from the date they became payable
9.2 According to the information and explanations furnished to us and according to therecords of the company the company has no disputed dues on account of Income Tax WealthTax Service Tax Sales Tax Customs Duty Excise Duty or Cess pending remittance as atMarch 312014.
10 The company had no accumulated losses atthe end of the year under report and it didnot incur cash losses during the financial year or in the immediately preceding financialyear.
11. According to the information and explanations given to us there were no defaultsin repayment of dues to financial institutions banks or debenture holders at the date ofbalance sheet.
12. According to the information and explanations given to us the company has notgranted any loans or advances on the basis of security by way of pledge of sharesdebentures and other securities.
13. In our opinion and according to the information and explanations furnished to usthe company is not a chit fund or a nidhi / mutual benefit fund / society and hence therequirements of clause 4(xiii) of the Companies (Auditor's Report) Order 2003 are notapplicable to the company during the period under report.
14. In our opinion and according to the information and explanations furnished to usthe company is not dealing in or trading in shares securities debentures and otherinvestments.
Accordingly the requirements of clause 4(xiv) of the Companies (Auditor's Report)Order 2003 are not applicable to the company during the period under report under report.
15. According to the information and explanations furnished to us the company has notgiven any guarantee for loans taken by others from any banks or financial institutionsduring the period and also there are no such outstanding guarantees as on date of balancesheet.
16. The company has not obtained any term loans from Banks and Financial Institutions.Hence reporting requirement in terms of Clauses (xvi) does not arise during the periodunder report.
17. In our opinion and according to the information and explanations furnished to usand on an overall examination of Balance Sheet of the company we are of the opinion thatconsidering the internal accruals of the company during the period under report fundsraised by the company on short term basis have prima facie not been used for long termapplications except for permanent working capital.
18. According to the information and explanations given to us the company has not madeany preferential allotment of shares to the parties covered in the register maintainedunder section 301 of the Companies Act 1956.
19. According to the information and explanations given to us the company has notissued any debentures during the period under report.
20. The company has not raised any monies through public issue of its securities duringthe period under report and the question of end use of such monies did not arise duringthe period under report.
21. According to the information and explanations furnished to us and based on theaudit procedures generally adopted by us we report that during the period no fraud onor by the company has been noticed or reported that is either significant or could havecaused a material misstatement in the financial statements.
| ||For CHEVUTURI ASSOCIATES |
| ||Chartered Accountants |
| ||Firm Reg. No.000632S |
|Place: Tanuku || |
|Date: 9th May2014 || |
| ||(CA. Srinivasa Rao Cherukuri) |
| ||Partner |
| ||M. No.209237 |