SRI SKANDAN INDUSTRIES LIMITED
ANNUAL REPORT 2004-2005
We have audited the attached Balance Sheet of SRI SKANDAN INDUSTRIES
LIMITED as at 31st March 2005 and the Profit and Loss Account for the year
ended on that date annexed thereto. These Financial Statements are the
responsibility of the 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 amount 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. As required by the Companies (Auditors' Report) Order, 2003, issued by
the Central Government in terms of Section 227 (4A) of the-Companies Act,
1956, we enclose in the Annexure a statement on the matters specified in
paragraphs 4 & 5 of the said order.
II. Further to our comments in the Annexure referred to in paragraph (I)
1. We have obtained all the information and explanation, which to the best
of our knowledge and belief were necessary for the purpose of our audit,
save as otherwise stated herein;
A. No confirmation of balances from Debtors and Creditors were obtained.
B. No proper record of fixed assets and lease-hold lands are maintained.
2. In our opinion proper books of accounts has been kept by the concern so
far as it appears from our examination of the books, save as stated in para
3. The Balance Sheet and Profit and Loss Account dealt with by this report
are in agreement with the books of account.
4. In our opinion the Profit and Loss account Balance Sheet dealt with by
this report have been prepared in compliance with the accounting standards
referred to in sub-section (3C) of section 211 except Accounting Standards
16, 17, 22, 25, 28, 30
5. According to the information and explanation given to us, no Director is
disqualified from being appointed as Director under clause (g) of sub-
section (1) of section 274.
In our opinion and to the best of our information and according to the
explanations given to us, the said Balance Sheet and Profit and Loss
Account read together with the Schedules and Notes thereon and subject to
give the information required by the Companies Act 1956, in the manner so
give a true and fair view in conformity with the accounting principles
generally accepted in India
i. In the case of the Balance Sheet of the State of Affairs of the company
as at 31st March 2005 and
ii. In the case of the Profit and Loss Account, loss of the company for the
year ended on that date.
for PRAKASH & PRASAD
PLACE : Chennai V RAMPRAKASH
DATE : 5-9-2005 (Proprietor)
ANNEXURE TO AUDITOR REPORT
1. (a) The company has not maintained proper records showing full
particulars including quantitative details and situation of fixed assets.
(b) Some of the assets have not been physically verified by the management
during the year.
(c) None of the fixed asset of the company has been disposed off during the
2. (a) The inventory has been physically verified during the year by the
management. In our opinion, the frequency of verification is reasonable.
(b) The procedures of physical verification of inventories 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. The
discrepancies noticed on verification between the physical stocks and the
book records were not material.
3. The company has not taken or granted any loan from companies, firms and
other parties covered in the register maintained under section 301 of the
companies act, 1956.
4. In our opinion and according to the information and explanation given to
us, there are adequate internal control procedures commensurate with the
size of the company and the nature of business with regard to the sale of
goods. During the course of audit we have not observed any continuing
failure to correct major weakness in internal controls.
5. According to the information and explanations given to us, we are of the
opinion that no Transactions have been made in pursuance of any contracts
or arrangements which are Required to be entered into the register
maintained under section 301 of the companies act, 1956.
6. In our opinion and according to the information and explanations given
to us, the company has not accepted or renewed any deposits under the
provision of the companies (acceptance of Deposits) Rules, 1975 from
7. In our opinion, the company has no internal audit system commensurate
with the size and nature of its business.
8. The Central Government has not prescribed for the maintenance of cost
records under section 209 (1) (d) of the companies act, 1956, by the
9. (a) The company is not regular in depositing with appropriate
authorities undisputed statutory dues including provident fund, investor
education protection fund, employees state insurance, and other dues
payable to Pollution Control Board.
(b) According to the information and explanations given to us, no
undisputed amounts. payable in respect of income tax, wealth tax, sales
tax, customs duty, excise duty and cess were in arrears, as at 31/3/05 for
a period of more than six months from the date they become payable.
(c) According to the information and explanation given to us, there are no
dues of sales tax, income tax, customs duty, wealth tax, excise duty and
cess which have not been deposited on account of any dispute.
10. In our opinion, the accumulated losses of the company are more than
fifty percent of its net worth. The company has not incurred cash losses
during financial year covered by our audit as in the earlier year.
11. 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 debenture holders.
12. The company has not granted loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. 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.
14. In our opinion, the company in 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.
15. In our opinion, the company has not given guarantees for loans taken by
others from banks or financial institutions.
16. In our opinion, the term loans have been applied for the purpose for
which they were raised.
17. According to the information and explanation given to us and on an
overall examination of the balance sheet of the company, we report that no
funds raised on short term basis have been used for long term investment.
No long term funds have been used to finance short term assets except
permanent working capital.
18. According to the information and explanations given to us, the company
has not made any preferential allotment of shares during the year under
audit to parties and companies covered in the register maintained under
section 301 of the act.
19. The company has not issued any debenture at any time.
20. The company has not raised any money by public issues during the year
21. According to the information and explanations given to us, no fraud on
or by the company has been noticed or reported during the course of our
for PRAKASH & PRASAD
PLACE : Chennai V RAMPRAKASH
DATE : 5-9-2005 (Proprietor)