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Maple Circuits Ltd.

BSE: 523256 Sector: Engineering
NSE: N.A. ISIN Code: N.A.
BSE 05:30 | 01 Jan Maple Circuits Ltd
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Maple Circuits Ltd. (MAPLECIRCUITS) - Auditors Report

Company auditors report

MAPLE CIRCUITS LIMITED ANNUAL REPORT 2005-2006 AUDITORS' REPORT To The Members of Maple Circuits Limited 1. We have audited the attached Balance Sheet of MAPLE CIRCUITS LIMITED as at 31st March, 2006 and also the Profit and Loss Account and the Cash Flow Statement 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 our audit. 2. 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 misstatements 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. We draw your attention to the following: a) Owing to reasons staled in Note No. 6 in Schedule 12, we could not visit the Company's branch at Srinagar and could not verity the bank balance of Rs. 8166/- (Or) due to non availability of Bank Statement/Confirmation b) (i) Interest payable to financial institutions amounting to Rs. 19,28,49,974/- (including Rs. 1,31,18,179/- for the year) and Central Investment Subsidy claimed but not received amounting to Rs.25,00,000 have not been accounted for (Rel. Note No. 7(b) & 7(d) on Schedule 12). (ii) Penal interest and interest on overdue interest could not be ascertained and provided for (Ref. Note No. 7(b) in Schedule 12} c) No provision has been made in these accounts for depreciation amounting to Rs. 9,96,46,426/- including for the current year Rs. 62,51,205/- (Ref. Note No. 8 in Schedule 12). d) Physical verification has not been carried out in respect of Fixed Assets, Stock of Finished Goods, Stores, Spare Parts and other inventories of the Company and discrepancies, if any, with the book balances has not been ascertained and provided for in these accounts. In view of suspension of operations at Srinagar Factory as referred to in Note 11 and Note 4 in Schedule 12 we are unable to form an opinion about the lull readability of the stocks and on the appropriateness of carrying forward the fixed assets and inventories at their book values. e) Certain Foreign currency loans from financial institutions outstanding as at 31st March, 2006 have not been converted at the year end exchange rate resulting in under statement of such foreign currency loans and plant and machinery each by Rs. 2,97,65,658/- and non-provision of Depreciation thereon by Rs. 15,32,942/- (Ref. Note No.7(a) in Schedule 12). f) No provision has been made in respect of interest on bank overdraft/cash credit the amount of which has not been ascertained (Refer note 7(c) on Schedule 12). g) In the absence of confirmations of balances at the end of the year from ICICI, IDBI, SBI and SBH, we are unable to comment on the correctness of term loans and secured loan from such financial institutions and banks. h) Sundry Debtors, Advances & Deposits of Rs. 2.79 lacs, Rs. 3.62 lacs & Rs. 12.85 lacs respectively are being carried forward in the accounts since long. Hence we are unable to form any opinion as to the recoverability / adjustments of these accounts (Refer Note 12 on Schedule 12). i) As referred in note no. 4, the Company has ceased its operations from 1st April, 1990 due to adverse law and order situation at Srinagar. However, these accounts have been prepared on the basis that the Company is a going concern. j) In the absence of availability of any information in respect of amount payable to Small Scale Industries included in Sundry Creditors. we are unable to form any opinion on the same. k) The Balance Sheet, Profit and Loss Account and the Cash Flow Statement complied with Accounting Standards referred to in Subsection (3C) of Section 211 of the Companies Act, 1956 except AS-6 on Depreciation Accounting, AS-10 on Accounting for Fixed Assets, AS-11 on Accounting for effect of changes in Foreign Exchange Rates, AS-22 on Amounting for Taxes on Income and AS-28 on Impairment of Assets. 4.1 In our opinion and according to the information and explanations given to us, no persons appointed as a director in the Company during the year under audit was, prima facie, disqualified from being appointed as a director, under Clause (g) of Sub-section (1) of Section 274 of the Companies Act, 1956. 4.2 Subject to paragraphs 3(a), 3(b)(ii), 3(d), 3(f), 3(g), 3(h), 3(j) above, we have obtained all the information and explanations, which to the best of our knowledge and belief, were necessary for the audit. In our opinion, subject to our remarks in paragraph 3 above, proper books of account have been kept as required by law, so far as appears from our examination of the books. 4.3 The Balance Sheet, Profit and Loss Account and the Cash Flow Statement referred to in this report are in agreement with the books of account. 4.4 In our opinion and to the best of our information and according to the explanations given to us the said accounts, read in conjunction with Schedules 1 to 12 subject to our remarks in 3 and 4.2 above with consequential effect on the loss for the year and the net assets position at the year end, give the information required by the Companies Act, 1956 in the manner so required and also give a true and fair view : (i) In the case of the Balance Sheet, of the state of affairs of the company as at 31st March, 2006. (ii) In the case of the Profit and Loss Account, of the loss for the year ended on that date, and (iii) In case of the Cash Flow Statement, of the cash flows for the year ended on that date. 5. As required by the Companies (Auditor's Report) (Amendment) Order, 2004 issued by the Central Government in terms of Section 227 (4A) of the Companies Act, 1956 and on the basis of such verification of the books and records as considered appropriate and available and according to the information and explanations given to us, we report that: (i)(a) The Company has maintained records to show full particulars including quantitative details and situation of its fixed assets upto 31st March 1989. Such records, we understand, are lying at Srinagar plant and accordingly not available for the purpose of the audit. In view of non-availability of records, we are unable to comment on the state of the records in respect of the fixed assets. (i)(b) As indicated in Note-11 on Schedule 12, the fixed assets of the Company have not been physically verified by the management during the year. In view of the above, it is not possible to ascertain and comment on the discrepancies, if any, between the book records and the physical inventory of fixed assets. (i)(c) During the year substantial part of fixed assets have not been disposed off by the company. Therefore, the provisions of clause (i)(c) of paragraph 4 of the aforesaid order are not applicable to the company. (ii)(a) As indicated in Note-11 on Schedule 12, stores, spares, finished goods and other inventories of the Company could not be physically verified by the management during the year. (ii)(b) In view of what has been stated in clause (ii)(a) above we are unable to comment on the procedures of physical verification of stocks. (ii)(c) Since no physical verification of stock was carried out by the management during the year the question of any adjustments arising out of such verifications does not arise. (iii)(a) The Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. As such information in terms of clauses (b), (c) and (d) are not applicable. (iii)(b) The Company has not taken any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. As such information in terms of clauses (l) and (g) are not applicable. (iv) Since there was no purchase of inventory and fixed assets and there was no sale of goods during the year, paragraph (iv) of the Order is not applicable. (v) In our opinion and according to the information and explanations given to us and based on the representations by the management, there are no contracts or arrangements that need to be entered in the register maintained under section 301 of the Companies Act, 1956. Accordingly sub- clause (b) of clause (v) of the order is not applicable to the Company for the current year. (vi) The Company has not accepted any deposits from the public. Hence, the directives issued by the Reserve Bank of India and provisions of sections 58A and 58AA or any other relevant provisions of the Companies Act, 1956 and Rules framed thereunder are not applicable. Also no order has been passed by the Companies Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal. (vii) During the year internal audit was carried out. However, under the circumstances stated in Note 4 on Schedule 12 the same needs to be further strengthened. (viii) As explained to us, the Central Government has not prescribed the maintenance of cost records under Section 209(1)(d) of the Companies Ad, 1956 for the company's products. (ix) As per information and explanation given to us, in view of suspension of operations and there being no employees on the rolls of the Company, the question of depositing provident fund, employees' state insurance, sales tax, customs duty, excise duty, cess, service tax etc. does not arise. At the last day of the financial year, there were no amounts outstanding in respect of undisputed Investor Education and Protection Fund, Income Tax, Wealth Tax, Service Tax etc. which were due for more than six months from the dale they became payable. (x) The accumulated losses of the company as at 31st March, 2006 are less than fifty percent of its net worth and it has incurred cash losses during the financial year covered by our report and the immediately preceding financial year. (xi) As indicated in Note 7(a), (b) and (c) on Schedule 12, the default in repayment of dues to financial institutions and banks cannot be ascertained and accordingly we are unable to comment on the same. (xii) Since the company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities, paragraph (xii) of the Order is not applicable. (xiii) As the company is not a nidhi/mutual benefit fund/society, paragraph (xiii) of the Order is not applicable. (xiv) Since the company is not dealing or trading in shares, securities, debentures and other investments, paragraph (xiv) of the Order is not applicable. (xv) Since the company has not given any guarantee for loans taken by others from bank or financial institutions, paragraph (xv) of the Order is not applicable. (xvi) Since no term loans were taken during the year, paragraph (xvi) of the Order is not applicable. (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 no funds raised on short-term basis have been used for long-term investments and vice versa. (xviii) According to the information and explanations given to us, during the year, the company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act. (xix) Since the company has not issued any debentures, paragraph (xix) of the Order is not applicable. (xx) Since the company has not raised any money during the year by way of public issue, paragraph (xx) of the Order is not applicable. (xxi) Based upon our selective audit procedures and the information and explanations given by the management, we report that no fraud on or by the company has been noticed or reported during the year. For TARMASTER & COMPANY Chartered Accountants A. K. Chakrabarti Kolkata Partner 29th June, 2006 (M. No. 15374)
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