S AND S POWER SWITCHGEAR LIMITED
ANNUAL REPORT 2011-2012
the Members of
S&S Power Switchgear Limited,
1. We have audited the attached Balance sheet of S&S Power Switchgear
Limited, as at 31st March 2012, the Profit and Loss Account and Cash Flow
Statement for year ended on that date annexed thereto, which we have signed
under reference to 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.
2. 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 that 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 financial statement presentation. We believe that
our audit provides a reasonable basis for our-opinion.
3. As required by the Companies (Auditor's report) Order, 2003, as amended
by the companies (Auditor's Report)(Amendment)Order, 2004, issued by the
Central Government of India in terms of Section 227(4A) of The Companies
Act, 1956 and on the basis of such checks as considered appropriate, and
according to the information and explanations given to us, we give in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of the
said Order to the extent applicable to the Company.
4. Further to our Comments in the Annexure referred to in paragraph 3
above, we report that,
i. The company has not fulfilled its export obligations as disclosed in
Note 36 & 40 of financial statements, in respect of two advance licenses
availed in earlier years. Consequently, we are unable to express any
opinion on the possible additional levy against the company.
ii. The company has provided a sum of Rs.236.10 lakhs as disclosed in Note
39 of financial statements, during the year on the exposure in its
subsidiary Acrastyle Power (India) Limited in the form of investments
aggregating to Rs.1716.54 lakhs and loans and interest receivable
aggregating to Rs.605.67 lakhs. We are unable to express an opinion on the
adequacy of the provision recognizing the diminution in the value of
investments and doubtfulness of the recovery of the loans.
iii. The company has made provision for doubtful deposits Rs.6.74 Lakhs
against certain long term loans and advances aggregating to Rs. 29.03
Lakhs. We are unable comment on the adequacy of the provision made and
consequential impact of financial results for the year and net asset
iv. Subject to Note 38 to financial statements, we have obtained all
information and explanations which to the best of our knowledge and belief
were necessary for the purpose of our audit.
v. In our opinion, the company has kept proper books of accounts as
required by law so far, as it appears from our examination of those books.
vi. The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the Books of Accounts.
vii. In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report are in compliance with the
Accounting Standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956 to the extent applicable, except the following:
a) Short provisioning of Rs.2.33 Lakhs between the actuarial gratuity
liability and liability recognized in the books.
viii. 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 of the company is disqualified as at 31st March 2012 from being
appointed as director in terms of section 274(1)(g) of the Act.
ix. Subject to our observation above in our opinion and to the best of our
information and according to the explanations given to us, the said
accounts, the information 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 the case of the Balance Sheet, the State of Affairs of the Company as
at 31st March 2012.
b) In the case of the Profit and Loss Account, the LOSS of the company for
the year ended on that date.
c) In the case of Cash Flow Statement, of the cash flows for the year ended
on that date.
ANNEXURE TO THE AUDITOR'S REPORT:
Annexure referred to in paragraph 3 of the auditor's report of even date to
the members of S&S Power switchgear Limited on the Financial Statements for
the period ended 31st March 2012.
i. (a) The Company has maintained proper records in soft - form to show
full particulars, including quantitative details and situation of fixed
(b) The fixed assets of the Company have been physically verified by the
management during the period wherever possible as represented by the
management and there have been no material discrepancies and to comment on
the material discrepancies between the book records and the physical
inventory of fixed assets does not arise.
(c) During the period, substantial part of fixed assets have not been
disposed off by the Company.
ii. (a) In our opinion based on the information available and explanation
given to us by the management, physical verification of inventory has been
conducted at reasonable interval by the management.
(b) Based on above the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to the
size of the company and the nature of its business.
(c) The Company is maintaining proper records of inventory and there no
material discrepancies noticed in physical verification.
iii. The Company has not granted loans to a party covered in the register
maintained under section 301 of the Act.
The company has not taken loan from companies covered in the register
maintained under Section 301 of the Companies Act, 1956 during the
reporting year, But the Company has repaid the outstanding loan taken
during the previous financial years aggregating to Rs.40 lakhs. In our
opinion the rate of interest and other terms and conditions underlying the
loan are not prima facie prejudicial to the interests of the company.
iv. In our opinion and according to the information and explanations given
to us, there exists an adequate internal control system commensurate with
the size of the company and the nature of its business, with regard to
purchase of inventory, fixed assets and with regard to the sale of goods
and services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control system
of the company.
v. (a) According to the information and explanations given to us, we are of
the opinion that the particulars of all contracts or arrangements that need
to be entered into the register maintained under section 301 of the
Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations given
to us, the transactions made in pursuance of contracts or arrangements
entered in the register maintained under section 301 of the Companies Act,
1956 and exceeding the value of rupees five lakhs in respect of any party
during the period have been made at prices which are reasonable having
regard to prevailing market prices at the relevant time.
vi. During the period the Company has not accepted any deposits from
public, hence the directives issued by the Reserve Bank of India and the
provisions of sections 58A, 58AA or any relevant provisions of the Act and
the rules framed there under are not applicable to this Company.
vii. The company does not have an internal audit system.
viii. According to the information provided to us, the Central Government
has not prescribed the maintenance of Cost records u/s 209(1)(d) of the
Companies Act for the reporting period.
ix. (a) The company is regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, investor education
fund, employees' state insurance, income tax, sales tax, wealth tax,
service tax, custom duty, excise duty and other material statutory dues
applicable to it, subject to note 29 of the financial statements.
(b) The Company has disputed the claim on account of statutory enactments
at the various forums as set out in Note-27 to the financial statements.
x. In our opinion, the accumulated losses of the company are not more than
fifty per cent of its net worth. Further, the company has not incurred cash
losses during the financial year covered by our audit and also no cash loss
incurred in the immediately preceding financial period.
xi. In our opinion and according to the information and explanations given
to us, the company has not defaulted in repayment of dues to a financial
institution, bank or debentures holders.
xii. During the period, the company has not granted any loans or advances
on the basis of security by way of pledge of shares, debentures and other
xiii. In our opinion, the company is not a chit fund or a nidhi mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of the
Companies (Auditor's Report) Order, 2003 are not applicable to the company.
xiv. In our opinion, the company is not dealing in or trading in shares
securities, debentures and other investments. Accordingly, the provisions
of clause 4(xiv) of the Companies (Auditor's Report) Order, 2003 are not
applicable to the company.
xv. During the period under review, the company has not issued any fresh
guarantee for loans taken by others from banks and financial Institutions.
xvi. No fresh term loans have been obtained during the reporting period.
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 been used for long-term
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 Act,
xix. According to the information and explanations given to us during the
period covered by our audit report, the company has not issued debentures.
xx. The company has not raised any money by way of Public Issue during the
period. Therefore, commenting on the end use of such funds does not arise.
xxi. According to the information and explanations given to us, no fraud on
or by the company has been noticed or reported during the year.
For GSV Associates
Firm No. 006179S
M R Venkatesh
Date : August 23, 2012 Partner
Place: Chennai M. NO. 201407
AUDITORS' REPORT ON THE ABRIDGED FINANCIAL STATEMENTS
The Members of
S&S Power Switchgear Limited,
We have examined the attached abridged Balanced Sheet of S&S Power
Switchgear Limited as at March 31, 2012 and the related abridged Profit and
Loss Account for the period ended on that date annexed thereto and the Cash
Flow statement for the year ended on that date, together with the notes
there on, These abridged financial statements have been prepared by the
Company pursuant to Rule 7A of the Companies (Central Government's) General
Rules and Forms, 1956 and are based on the financial statements of the
Company for the year ended March 31, 2012 prepared in accordance with
Schedule VI of Companies Act, 1956 and is covered by our report of even
date to the members of the Company which report is attached herewith,
For GSV Associates
Firm No. 0061 79S
M R Venkatesh
Date : August 23, 2012 Partner
Place: Chennai M. No. 201407