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Renowned Auto Products Mfrs Ltd.

BSE: 505167 Sector: Auto
NSE: N.A. ISIN Code: N.A.
BSE 05:30 | 01 Jan Renowned Auto Products Mfrs Ltd
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Renowned Auto Products Mfrs Ltd. (RENOWNEDAUTO) - Auditors Report

Company auditors report

RENOWNED AUTO PRODUCTS MANUFACTURES LIMITED ANNUAL REPORT 2008-2009 AUDITORS' REPORT TO THE MEMBERS OF RENOWNED AUTO PRODUCTS MFRS. LIMITED. 1. We have audited the attached Balance Sheet of RENOWNED AUTO PRODUCTS MFRS LIMITED, (The Company) as at 31st March 2009 and also the Profit and Loss account and Cash Flow Statement for the year ended on that date annexed thereto. 2. 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 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. 3. As required by the Companies (Auditor's Report) Order, 2003 as amended by the Companies (Auditor's Report) (Amendment) order, 2004 (together the 'Order) issued by the Central Government in exercise of the powers conferred by Section 227(4A) of the Companies Act 1956, and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, We give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said order to the extent applicable to this Company. Further to our comments in the Annexure referred to above, we report that: i) 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. ii) 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 those books and adequate returns for our audit have been received from the branch not visited by us. iii) The Balance Sheet, Profit and Loss account and Cash Flow Statement dealt with by this report are in agreement with the books of accounts. iv) In our opinion, the Balance Sheet, Profit and Loss account and 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. v) On the basis of written representation received from the Directors of the Company as at 31st March 2009 and taken on record by the Board of Directors, we report that none of the Directors are disqualified as on 31st March 2009 from being appointed as Director in terms of clause (g) of sub section (1) of section 274 of the Companies Act, 1956. vi) In our opinion and to the best of our information and according to the explanations given to us, the said accounts 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: a) In the case the Balance Sheet, of the state of affairs of the Company as at 31.03.2009. b) In the case of the Profit and Loss account, of the Loss for the year ended on that date; and c) In the case of the Cash Flow Statement, the cash flow for the year ended on that date. For Haribhakti & Co., Chartered Accountants Place: Bangalore (Sunil Birla) Date : 25th August, 2009 Partner Membership No.: 202226 ANNEXURE TO AUDITOR'S REPORT Referred in Paragraph 3 of our report of even date on the Accounts of RENOWNED AUTO PRODUCTS MFRS LIMITED for the year ended 31st March, 2009. 1. (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets. (b) As explained to us, the Company has a regular programme of physical verification of its fixed assets by which all fixed assets are verified in a phased manner over a period of three years. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. (c) The assets disposed off during the year are not significant and therefore does not affect the going concern status of the Company. 2. (a) The inventory of finished goods, stores, spare parts, raw materials and components (except for material in transit & Sub Contractors) has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable. (b) In our opinion and according to the information and explanation given to us, the procedure of physical verification of inventory followed by the management is reasonable and adequate in relation to size of the Company and the nature of its business. (c) In our opinion, the Company is maintaining reasonable records of inventory except for Work in progress & Sub contractors, which need to be strengthened, commensurate with the requirements of internal control. Further the discrepancies noticed on physical verification of inventory, were not material and as informed to us the same has been dealt with in the books of accounts. 3. (a) The Company has not granted any loans, secured or unsecured, from companies, firms or other parties covered in the register maintained under section 301 of the Act and accordingly, the sub-clauses (b), (c) and (d) of clause (iii) of paragraph 4 of the order are not applicable. (b) The Company has not taken any loans, secured or unsecured, from companies, firms or other parties covered in the register maintained under section 301 of the Act and accordingly, the sub-clauses (f) and (g) of clause (iii) of paragraph 4 of the order are not applicable. 4. In our opinion, having regard to the explanation given that certain items purchased are of special nature for which suitable comparative quotations have not been obtained, there is an adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of Inventory, fixed assets and for the sale of goods. Further, on the basis of our examination of the books and records of the Company, and according to the information and explanations given to us, we have neither come across nor have been informed of any continuing failure to correct major weakness in the aforesaid internal control system. 5.(a) According to the information and explanations given to us, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the Companies Act. 1956 have been so entered. (b) In our opinion and according to the information and explanations given to us, transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of Rupees five lakhs in respect of each party during the year have been made at prices which are reasonable having regard to the prevailing market prices at the relevant times. 6. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public within the meaning of section 58A and 58AA of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975. 7. The Company has an internal audit system, the scope and coverage of which need to be strengthened to make it commensurate with the size and nature of the business. 8. We have broadly reviewed the books of account relating to materials, labour and other items of cost maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 209 (1) (d) of the companies Act, 1956 and we are of the opinion that prima facie the prescribed accounts and records have been maintained. We have not however made a detailed examination of the records with a view to determining whether they are accurate or complete. 9. (a) The Company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education and protection fund, employees' state insurance, income tax, sales tax, wealth tax, Service tax, Custom duty, Excise Duty cess and other statutory dues applicable to it, except for an amount of Rs. 672,176/- towards sales tax which is an outstanding statutory dues as at the last working day of the financial year which are in arrears for more than 6 months from the date the amount became payable. (b) According to the information and explanations given to us there are no dues of income tax, Wealth Tax and cess which have not been deposited with the appropriate authorities on account of any dispute. Statute Nature of Tax Forum where Dispute Amount (Rs.) is pending The Central Excise Excise Duty Tribunal Chennai. 3,943,095/- Act, 1944 Excise Duty Dpy. Commissioner, 63,940/- Hosur I Division Excise Duty Dpy. Commissioner, 449,718/- Hosur II Division TN Sales Tax Sales Tax CTO, Hosur 18,850,039/- Service Tax, Chapter Service Tax Tribunal, Chennai 55,284/- V of the finance act, 1994 Service Tax Chennai III 254,405/- Commissionarate, Hosur II Division Service Tax Commissioner of 51,554/- Central Excise Appeals 10. The Company has accumulated losses as on 31st March, 2009 exceeding 50% of its net worth. It has incurred cash loss during the financial year. For the immediate preceding financial year it earned cash profit. 11. In our opinion and according to the information and explanation provided to us, the Company has not taken any loan from financial institution or bank or debenture holders. Hence the question on commenting with respect to default of re-payment of the same does not arise. 12. In our opinion and according to the information and explanations given to us, the Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities. 13. The provisions of any special statute applicable to Chit fund / Nidhi / Mutual benefit fund / societies are not applicable to the Company. 14. In our opinion, the Company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the order are not applicable to the Company. 15. In our opinion, and according to the information and explanations given to us, the Company has not given any guarantees for loans taken by others from banks or financial institutions. 16. The Company has not obtained any term loans. Accordingly, the provisions of clause 4(xvi) of the order are not applicable to the Company. 17. On the basis of an overall examination of the balance sheet of the Company, in our opinion and according to the information and explanations given to us, there are no funds raised on a short-term basis, which have been used for long-term investment. 18. According to the information and explanations given to us, the Company has not made any preferential allotment of shares to companies covered in the register maintained under section 301 of the Act. 19. As per the information and explanations given to us, the Company has not issued any debentures during the year. Accordingly, the provisions of the clause 4(xix) of the order are not applicable to the Company. 20. The Company has not raised money by public issues during the year. Accordingly, the provisions of clause 4(xx) of the order are not applicable to the Company. 21. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of fraud on or by the Company nor have we been informed of such case by the management. For Haribhakti & Co., Chartered Accountants Place: Bangalore (Sunil Birla) Date : 25th August, 2009 Partner Membership No.: 202226