To the Members of
EXELON INFRASTRUCTURE LIMITED
Report on the Financial Statements :
We have audited the accompanying financial statements of EXELON INFRASTRUCTURELIMITED ("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 ended anda summary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements :
The Company's Management is responsible for the preparation of these financialstatements that give a true and fair view of the financial position financial performanceand cash flows of the Company in accordance with the Accounting Standards referred to inSub-Section(3C) of Section 211 of the Companies Act1956('the Act')read with the Generalcircular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respectof Section 133 of the Companies Act2013. This responsibility includes the designimplementation and maintenance of internal control relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
Auditor's Responsibility :
Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing 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 effectiveness of the entity's internal control. An auditalso includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by management as well as evaluating theoverall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide 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 by the 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 atMarch 31 2014; and
(b) In the case of the Statement of Profit and Loss Account of the profit for the yearended on that date; and
(c) In the case of the Cash Flow Statement of the cash flows for the year ended onthat date.
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.
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 Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards referred to in Sub-Section(3C)of Section211 of the Companies Act1956('the Act')read with the General circular 15 2013 dated 13September 2013 of the Ministry of Corporate Affairs in respect of Section 133 of theCompanies Act2013.
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) ofsub-section (1) of section 274 of the Companies Act 1956.
| ||For P. Murali & Co. |
| ||Chartered Accountants |
| ||Firm's Regn: 007257S |
| ||Sd/- |
| ||P. Murali Mohana Rao |
| ||Partner |
|Place: Hyderabad ||Membership No. 023412 |
|Date: May 30th 2014 || |
ANNEXURE TO THE AUDITORS' REPORT
I. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Fixed Assets.
(b) As explained to us the fixed assets have been physically verified by themanagement at reasonable intervals and no material discrepancies between the book recordsand the physical inventory have been noticed on such verification.
(c) During the year the Company has not disposed any Fixed Assets. Hence applicabilityof the clause whether the company has disposed off substantial part of Fixed Asset is notapplicable.
II (a) The Inventory has been physically verified during the year by the Management andin our opinion the frequency of verification is reasonable.
(b) In our opinion the procedures of the physical verification of inventory followedby the Management are reasonable and adequate in relation to the size of the Company andthe nature of its business.
(c) The Company is maintaining proper records of inventory and as explained to us nomaterial discrepancies were noticed on physical verification of stocks as compared to bookrecords.
III. (a) The Company has not granted loans secured or unsecured to Companies Firms orother parties covered under Sec.301 of Companies Act 1956.
(b) As the Company has not granted any loan the clause of whether the interest &other terms and condition on which loans have been granted to parties listed in theregister maintained under section 301 is prejudicial to the interest of company is notapplicable.
(c) As no loans are granted by company the clause of receipt of interest &principal amount from parties is not applicable to the company.
(d) No loans have been granted to Companies Firms and other parties listed in theregister U/S 301of the Companies Act 1956. Hence overdue Amount of more than rupees oneLac does not arise and the clause is not Applicable.
(e) The Company has not taken loans secured or unsecured from Companies Firms orother Parties covered in the register maintained U/s.301of the Companies Act 1956.
(f) As the Company has not taken loans the clause of whether the rate of interest andother terms and conditions on which loans have been taken from parties listed in theregister maintained under section 301 is prejudicial to the interest of company is notapplicable.
(g) As no loans are taken by the Company the clause of repayment of interest &principal amount to parties is not applicable to the Company.
IV. In our opinion and according to the information and explanations given to us thereare generally adequate internal control systems commensurate with the size of the companyand the nature of its business with regard to purchase of inventory and fixed assets andfor sale of goods and services. We have not observed any major weakness in the internalcontrol system during the course of the audit.
V. a) In our opinion and according to the information and explanations given to usduring the year no contracts or arrangements referred to in Section 301 of the CompaniesAct 1956 have been entered into by the Company.
b) According to the information and explanations given to us as no such contracts orarrangements have been made by the company the applicability of the clause of chargingthe reasonable price having regards to the prevailing market prices at the relevant timedoes not arise.
VI. The Company has not accepted any deposits from the public and hence theapplicability of the clause of directives issued by the Reserve Bank of India andprovisions of section 58A 58AA or any other relevant provisions of the Act and the rulesframed there under does not arise. As per information and explanations given to us noorder from the Company Law Board or National Company Law Tribunal or Reserve Bank of Indiaor any Court or any other Tribunal has been received by the Company.
VII. In our opinion the company is having internal audit system commensurate with itssize and nature of its business.
VIII. We have broadly reviewed the books of account maintained by the Company inrespect of products where pursuant to the rules made by the Central Government of Indiathe maintenance of cost records has been prescribed under clause (d) of sub section (1) ofSection 209 of the Act and are of the opinion that prima facie the prescribed accountsand records have been made and maintained. We have not however made a detailedexamination of the records with a view to determine whether they are accurate or complete.
IX. (a) The Company is not regular in depositing statutory dues amount outstandingtowards Income Tax which is outstanding for more than 6 months from the date they becamepayable are:-
|SI No. ||Year ||Amount in Rs. |
|1 ||2009-10 ||1502815 |
|2 ||2010-11 ||1616590 |
|3 ||2011-12 ||2534460 |
|4 ||2012-13 ||6202530 |
| ||Total ||11856395 |
(b) According to the information and explanations given to us no disputed amountspayable in respect of Income Tax and any other statutory dues as at the end of the period.
X. The Company has been registered for a period of not less than 5 years and thecompany has no accumulated losses at the end of the financial year and the company has notincurred cash losses in this financial year and in the immediately preceding financialyear.
XI. According to information and explanations given to us the Company has notdefaulted in repayment of dues to financial institutions or banks.
XII. 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 and hence the applicability of the clause regardingmaintenance of adequate documents in respect of loans does not arise.
XIII. This clause is not applicable to this Company as the Company is not covered bythe provisions of special statute applicable to Chit Fund in respect of Nidhi/MutualBenefit Fund/Societies.
XIV. According to the information and explanations given to us the company is notdealing or trading in shares securities Debentures and other investments and hence theprovisions of clause 4(xiv) of the Companies (Auditor's Report) Order 2003 are notapplicable to the Company.
XV. According to the information and explanations given to us the Company has notgiven any guarantees on behalf of the loans taken by others.
XVI. According to the information and explanations given to us the Term Loans obtainedby the company were applied for the purpose for which such loans were obtained by theCompany.
XVII. According to the information and explanations given to us the funds are raisedby the Company on short-term basis are not being applied for long term investments.
XVIII. According to the information and explanations given to us the Company has notmade any preferential allotment of Shares to parties and Companies covered in the Registermaintained under section 301 of the Companies Act 1956 and hence the applicability of theclause regarding the price at which shares have been issued and whether the same isprejudicial to the interest of the Company does not arise.
XIX. According to the information and explanations given to us the company does nothave any debentures and hence the applicability of the clause regarding the creation ofsecurity or charge in respect of debentures issued does not arise.
XX. According to information and explanations given to us the company has not raisedmoney by way of public issues during the year; hence the clause regarding the disclosureby the management on the end use of money raised by public issue does not arise.
XXI. According to the information and explanations given to us no fraud on or by theCompany has been noticed or reported during the year under audit.
| ||For P. Murali & Co. |
| ||Chartered Accountants |
| ||Firm Regn No. 007257S |
| ||Sd/- |
| ||P.Murali Mohana Rao |
|Place: Hyderabad ||Partner |
|Date: May 30th 2014 ||Membership No. 023412 |