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JCL Ltd.

BSE: 530335 Sector: Industrials
NSE: N.A. ISIN Code: N.A.
BSE 05:30 | 01 Jan JCL Ltd
NSE 05:30 | 01 Jan JCL Ltd

JCL Ltd. (JCL) - Auditors Report

Company auditors report

JCL LIMITED ANNUAL REPORT 2004-2005 AUDITORS' REPORT THE MEMBERS, J.C.L. Limited, Hyderabad We have audited the attached Balance Sheet of 'JCL LIMITED' Hyderabad as at 31st March, 2005 together with the 'Loss on account of sale of assets by seizure A/c' for the year ended on that date annexed hereto. 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. 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. Further to our comments in the annexure referred to below, we report that; 1. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit. 2. 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 books. 3. On the basis of written representation received from the directors and taken on record by the Board of Directors we report that none of the directors is disqualified as on 31.03.2005 from being appointed as director in terms of clause (g) of sub section (1) of section 274 of the Companies Act, 1956. 4. In our opinion the Balance Sheet complys with the Accounting Standards referred to in section (3C) of Section 211 of the Companies Act, 1956. 5. We draw attention to Note 1 of the Schedule 9 to the financial statement. It may be noted that the company is no longer a going concern. 6. Subject to the note 1,2 & 12 given in Schedule-9 annexed to the Balance Sheet in our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with the schedules attached thereto, give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view. (a) in the case of the Balance Sheet of the State of affairs of the Company as at 31.03.2005. (b) in the case of 'Loss on account of sale of assets by seizure A/c of the balance carried to Balance sheet. 7. As required by the Companies (Auditors Report) Order 2003 issued by the Central Government and on the basis of such verifications as we considered appropriate, we furnish in the annexure appended hereto a statement on the matters specified in paras 3 & 4 of the said order. for J.S. KAMESWARA RAO & CO., CHARTERED ACCOUNTANTS SD/- (J.S. KAMESWARA RAO) PARTNER PLACE : HYDERABAD DATE : 12.11.2005 ANNEXURE TO THE AUDIT REPORT OF THE ACCOUNTS OF J.C.L. LIMITED, HYDERABAD FOR THE YEAR ENDED 31ST MARCH 2005 (Referred to in para 7 of report of even date) i) a) The Company has maintained proper records to show full particulars including quantitative details and situation of fixed assets. b) Physical verification of fixed assets was not conducted by the management during the year since the assets were seized by A.P. State Financial Cor-operation and subsequently auctioned. c) The land, building, Plant & Machinery and other assets were auctioned by the A.P. State Financial Corporation for recovery of their dues and this has adversely affected the status of the company as a going concern. ii) a) The Company has no stocks of the finished goods and raw materials. Therefore the question of physical verification of stocks, adjustment of variances etc does not arise. b) For the reasons state above, the question of valuation of stocks also does not arise. iii) a) The Company has not taken any loans from companies, firms or other parties covered in the register maintained U/S.301 of the Companies Act, 1956. b) The rate of interest and other terms and conditions of loans taken by the company are not prima- facie prejudicial to the interests of the company. c) The Company has defaulted in repayment of dues to the financial institutions, The financial institutions therefore seized the fixed assets of the company for recovery of their dues. d) No loans were granted by the company to any party. iv) In our opinion and according to the information and explanations given to us there are adequate internal control procedures commensurate with size of the Company and the nature of its business with regard to purchase of inventory and fixed assets and for the sale of goods. v) According to the information and explanations given to us and according to our assessment, there were no transactions that need to be entered into a register in pursuance to Sec.301 of the Act. vi) The Company has not accepted any deposits from the public. vii) The Company has no internal audit system. viii) The Central Government has not prescribed maintenance of cost records in respect of the product of the Company U/S. 209(1)(d) of the Companies Act, 1956. ix) According to the information and explanations given to us, no undisputed statutory dues payable in irrespect of Provident Fund, ESI, Wealth Tax, customs duty excise duty etc were outstanding, as at 31st March, 2005 for a period of more than six months from the date they became payable. But Income Tax to an extent of Rs. 1,54,481/- is pending payment. x) Due to auction of the fixed assets of the company by the financial institutions the company has lost more than fifty percent of its net worth. It did not carry out any commercial operations since the date of incorporation. Therefore the question of cash losses in the earlier years does not arise. xi) The Company has defaulted in repayments to two financial institutions as already reported above. xii) The Company has not granted loans or advances to any persons on the basis of Security, by way of pledge of shares, debentures or other Securities. xiii) The Company has not given any guarantee for loans taken by others from banks or financial institutions. xiv) The term loan obtained by the company were applied for the purpose for which they were obtained. xv) The funds raised on short term basis were not used to long term purpose and vice versa. xvi) The Company has not made any preferential allotment of shares to any persons. xvii) The Company has not issued any debentures. Therefore the question of creation of securities does not arise. xviii) The Company has not raised any money by Public issue during the year. xix) No fraud on or by the Company was noticed or reported during the year. xx) The Provisions of Paras xiii & xiv do not apply to this company. for J.S. KAMESWARA RAO & CO., CHARTERED ACCOUNTANTS SD/- (J.S. KAMESWARA RAO) PARTNER PLACE : HYDERABAD DATE : 12.11.2005
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