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S & S Power Switchgear Ltd.

BSE: 517273 Sector: Engineering
NSE: S&SPOWER ISIN Code: INE902B01017
BSE 05:30 | 01 Jan S & S Power Switchgear Ltd
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S & S Power Switchgear Ltd. (S&SPOWER) - Auditors Report

Company auditors report

S AND S POWER SWITCHGEAR LIMITED ANNUAL REPORT 2011-2012 AUDITORS' REPORT To the Members of S&S Power Switchgear Limited, Chennai. 1. We have audited the attached Balance sheet of S&S Power Switchgear Limited, as at 31st March 2012, the Profit and Loss Account and Cash Flow Statement for year ended on that date annexed thereto, which we have signed under reference to this report. 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 have 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 that 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 the 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, issued by the Central Government of India in terms of Section 227(4A) of The Companies Act, 1956 and on the basis of such checks as 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 the Company. 4. Further to our Comments in the Annexure referred to in paragraph 3 above, we report that, i. The company has not fulfilled its export obligations as disclosed in Note 36 & 40 of financial statements, in respect of two advance licenses availed in earlier years. Consequently, we are unable to express any opinion on the possible additional levy against the company. ii. The company has provided a sum of Rs.236.10 lakhs as disclosed in Note 39 of financial statements, during the year on the exposure in its subsidiary Acrastyle Power (India) Limited in the form of investments aggregating to Rs.1716.54 lakhs and loans and interest receivable aggregating to Rs.605.67 lakhs. We are unable to express an opinion on the adequacy of the provision recognizing the diminution in the value of investments and doubtfulness of the recovery of the loans. iii. The company has made provision for doubtful deposits Rs.6.74 Lakhs against certain long term loans and advances aggregating to Rs. 29.03 Lakhs. We are unable comment on the adequacy of the provision made and consequential impact of financial results for the year and net asset position. iv. Subject to Note 38 to financial statements, we have obtained all information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit. v. In our opinion, the company has kept proper books of accounts as required by law so far, as it appears from our examination of those books. vi. The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the Books of Accounts. vii. In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in compliance with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956 to the extent applicable, except the following: a) Short provisioning of Rs.2.33 Lakhs between the actuarial gratuity liability and liability recognized in the books. viii. On the basis of written representations received from the directors, and taken on record by the Board of Directors, we report that none of the director of the company is disqualified as at 31st March 2012 from being appointed as director in terms of section 274(1)(g) of the Act. ix. Subject to our observation above in our opinion and to the best of our information and according to the explanations given to us, the said accounts, 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 of the Balance Sheet, the State of Affairs of the Company as at 31st March 2012. b) In the case of the Profit and Loss Account, the LOSS of the company for the year ended on that date. c) In the case of Cash Flow Statement, of the cash flows for the year ended on that date. ANNEXURE TO THE AUDITOR'S REPORT: Annexure referred to in paragraph 3 of the auditor's report of even date to the members of S&S Power switchgear Limited on the Financial Statements for the period ended 31st March 2012. i. (a) The Company has maintained proper records in soft - form to show full particulars, including quantitative details and situation of fixed assets. (b) The fixed assets of the Company have been physically verified by the management during the period wherever possible as represented by the management and there have been no material discrepancies and to comment on the material discrepancies between the book records and the physical inventory of fixed assets does not arise. (c) During the period, substantial part of fixed assets have not been disposed off by the Company. ii. (a) In our opinion based on the information available and explanation given to us by the management, physical verification of inventory has been conducted at reasonable interval by the management. (b) Based on above the procedures of physical verification of inventory 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 is maintaining proper records of inventory and there no material discrepancies noticed in physical verification. iii. The Company has not granted loans to a party covered in the register maintained under section 301 of the Act. The company has not taken loan from companies covered in the register maintained under Section 301 of the Companies Act, 1956 during the reporting year, But the Company has repaid the outstanding loan taken during the previous financial years aggregating to Rs.40 lakhs. In our opinion the rate of interest and other terms and conditions underlying the loan are not prima facie prejudicial to the interests of the company. iv. In our opinion and according to the information and explanations given to us, there exists an adequate internal control system commensurate with the size of the company and the nature of its business, with regard to purchase of inventory, fixed assets and with regard to the sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control system of the company. v. (a) According to the information and explanations given to us, we are of the opinion that the particulars of all contracts or arrangements 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, the 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 any party during the period have been made at prices which are reasonable having regard to prevailing market prices at the relevant time. vi. During the period the Company has not accepted any deposits from public, hence the directives issued by the Reserve Bank of India and the provisions of sections 58A, 58AA or any relevant provisions of the Act and the rules framed there under are not applicable to this Company. vii. The company does not have an internal audit system. viii. According to the information provided to us, the Central Government has not prescribed the maintenance of Cost records u/s 209(1)(d) of the Companies Act for the reporting period. ix. (a) The company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education fund, employees' state insurance, income tax, sales tax, wealth tax, service tax, custom duty, excise duty and other material statutory dues applicable to it, subject to note 29 of the financial statements. (b) The Company has disputed the claim on account of statutory enactments at the various forums as set out in Note-27 to the financial statements. x. In our opinion, the accumulated losses of the company are not more than fifty per cent of its net worth. Further, the company has not incurred cash losses during the financial year covered by our audit and also no cash loss incurred in the immediately preceding financial period. xi. In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to a financial institution, bank or debentures holders. xii. During the period, the company has not granted any loans or advances on the basis of security by way of pledge of shares, debentures and other securities. xiii. In our opinion, 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. xiv. 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 Companies (Auditor's Report) Order, 2003 are not applicable to the company. xv. During the period under review, the company has not issued any fresh guarantee for loans taken by others from banks and financial Institutions. xvi. No fresh term loans have been obtained during the reporting period. 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 the no funds raised on short-term basis have been used for long-term investment. xviii. According to the information and explanations given to us, the company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act, xix. According to the information and explanations given to us during the period covered by our audit report, the company has not issued debentures. xx. The company has not raised any money by way of Public Issue during the period. Therefore, commenting on the end use of such funds does not arise. xxi. According to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the year. For GSV Associates Chartered Accountants Firm No. 006179S M R Venkatesh Date : August 23, 2012 Partner Place: Chennai M. NO. 201407 AUDITORS' REPORT ON THE ABRIDGED FINANCIAL STATEMENTS To The Members of S&S Power Switchgear Limited, We have examined the attached abridged Balanced Sheet of S&S Power Switchgear Limited as at March 31, 2012 and the related abridged Profit and Loss Account for the period ended on that date annexed thereto and the Cash Flow statement for the year ended on that date, together with the notes there on, These abridged financial statements have been prepared by the Company pursuant to Rule 7A of the Companies (Central Government's) General Rules and Forms, 1956 and are based on the financial statements of the Company for the year ended March 31, 2012 prepared in accordance with Schedule VI of Companies Act, 1956 and is covered by our report of even date to the members of the Company which report is attached herewith, For GSV Associates Chartered Accountants Firm No. 0061 79S M R Venkatesh Date : August 23, 2012 Partner Place: Chennai M. No. 201407