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Dhanashree Electronics Ltd.

BSE: 542679 Sector: Engineering
NSE: N.A. ISIN Code: INE413F01016
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Dhanashree Electronics Ltd. (DHANASHREEELECT) - Auditors Report

Company auditors report

DHANASHREE ELECTRONICS LIMITED ANNUAL REPORT 2008-2009 AUDITORS' REPORT We have audited the attached Balance Sheet of M/s. DHANASHREE ELECTRONICS LIMITED of PLOT NO. XI-16, BLOCK EP & GP, SECTOR 'V' SALT LAKE CITY, KOLKATA-700 091 (Permanent Account Number: AABCD0954E) as 31st March, 2009 together with the Profit and Loss Account of the Company for the year ended on that date, 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 the 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. 1. As required by the Companies (Auditors' Report) Order 2003 as amended by Companies (Auditors' Report) (Amendment) Order, 2004 (the 'Order') issued by the Central Government in terms of Section 227 (4A) of the Companies Act, 1956, we annex hereto a statement on the matters specified in paragraphs 4 and 5 of the said Order. Further to our comments referred to in paragraph (1) above, we report that: Subject to the Following: (1) Cost of the Filament Machine imported from Hungary which is lying with the Custom warehouse at Calcutta Port and which is included in Work in progress should be Impaired as per AS-28 issued by the ICAI as the Recoverable Amount is Nil as against the Carrying Amount and accordingly should have been Charged to Profit & Loss A/c. We have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purpose of the audit: (a) In our opinion, proper books of accounts as required by law have been kept by the Company so far as appears from our examination of the books; (b) The Balance Sheet, Profit & Loss Account and the Cash Flow Statement dealt with by this report are in agreement with the books of accounts; (c) In our opinion, Balance Sheet, Profit & Loss Account and the Cash Flow Statement dealt with by this Report comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956 except as otherwise stated in Schedule 'Xiii'. (d) In our opinion and based on information and explanations given to us, none of the directors are disqualified as on 31st March, 2009 from being appointed as directors in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956. (e) In our opinion and to the best of our information and according to the explanations given to us, the accounts read together with the significant accounting policies and the other notes thereon, give 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: (i) in the case of Balance Sheet, of the state of affairs of the Company as at 31st March, 2009; (ii) in the case of Profit & Loss Account, of the Profit for the year ended on that date; (iii) in the case of Cash Flow Statement, of the cash flows of the Company for the year ended on that date. Place: P-38, India Exchange Place, For SURANA SUNIL & CO. Arun Chambers, Kolkata (Chartered Accountants) Dated: 25/08/2009 Sunil Surana Proprietor Membership No. 62892 Annexure to Auditors' Report Referred to in Paragraph 1 of our report of even date: Bases upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and in our opinion and in terms of the information and explanations given to us and the books and records examined by us in the normal course of audit, we report that; 1. In respect of fixed assets: a. The Company has maintained proper records showing full particulars including quantitative details and situation of the fixed asset on the basis of available information. b. The fixed assets has been physically verified by the management during the year in a phased periodical manner, which in our opinion is reasonable, having regard to the size of the Company and nature of its assets. No material discrepancies were noticed on such physical verification. c. No substantial part of fixed assets have been disposed off during the year to affect the going concern of the Company 2. In respect of its inventories: a. Inventories have been physically verified by the management at regular intervals during the year. 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 has maintained proper records of inventories. There was no material discrepancies noticed on physical verification of inventory as compared to the book records. 3. (a) The Company has not granted any loans secured or unsecured to any company, firm or other party covered in the register maintained under section 301 of the Companies Act, 1956. In view of clause (iii) (a) the clauses (iii)(b), (iii)(c) and (iii)(d) are not applicable. (b) The Company has not taken any loans secured or unsecured from any company, firm, or other party covered in registers maintained under section 301 of the Companies Act, 1956. In view of (iii)(e), the clauses (iii)(f) and (iii)(g) are not applicable. 4. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business for the purchase of inventory, fixed assets and also for the sale of goods. During the course of our audit, we have not observed any major weaknesses in internal controls in respect of these areas. 5. a) According to the information and explanations given to us, during the year under audit there have been no contracts or arrangements which need to be entered in the register maintained under section 301 of the Companies Act, 1956. b) In view of clause (v) (a) above, the clause (v) (b) is not applicable. 6. In our opinion and according to the information and explanations given to us, the Company has not accepted any loan or deposits as specified under the provisions of Section 58A and 58AA or any other relevant provisions of the Companies Act, 1956. 7. In our opinion, the company has an internal audit system commensurate with its size and nature of its business. However, it needs to be further strengthened. 8. We have been informed that maintenance of Cost records as specified under section 209(1)(d) of the Companies Act, 1956, is not applicable to Company. 9. In respect of statutory dues: a. The company is regular in depositing the undisputed statutory dues including Provident Fund, Income-Tax, Sales-Tax, Customs Duty, Cess, Employees' State Insurance, and other statutory dues with the appropriate authorities. There are no statutory dues in respect of Investor Education and Protection Fund Wealth Tax, Service Tax Excise Duty,. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31st March, 2009 for a period of more than six months from the date of becoming payable. b. According to the information and explanations given to us, no undisputed amounts payable in respect of sales tax, income tax, customs duty, wealth tax, cess, excise duty were in arrears as at 31st March 2009 for a period of more than six months from the date they became payable. 10. The Company has accumulated losses as at 31.03.2009 and has not incurred any Cash loss during the financial year covered by our audit. 11. In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to financial institution, bank or debenture holders. 12. According to the information and explanations given to us, the company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. 13. 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. The Company is not dealing 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. The Company has not given any 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. Based on an overall examination of the balance sheet and cash flow statement of the company, we report that no funds raised on short term basis have been used for long term investment. 18. The Company has not made any preferential allotment of shares during the year to parties and companies covered in the Register maintained under Section 301 of the Companies Act, 1956. 19. The Company has not issued any debentures. 20. According to the information and explanations given to us, the Company has not raised any money by way of public issue during the year. 21. According to the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the period covered by our audit. Place: P-38, India Exchange Place, For SURANA SUNIL & CO. Arun Chambers, Kolkata (Chartered Accountants) Dated: 25/08/2009 Sunil Surana Proprietor Membership No. 62892