THE MEMBERS OF
VOLGA AIR TECHNICS LIMITED.
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of VOLGA AIR TECHNICS LIMITED("THE COMPANY") which comprise the balance sheet as at 31st March2104 and the statement of profit and loss and the cash flow statement for the year thenended and a summary of significant accounting policies and other explanatory information.
MANAGEMENTS RESPONSIBILTY FOR THE FINANCIAL STATEMENTS
Management is responsible for the preparation of these financial statements that give atrue and fair view of the financial position financial performance and cash flows of theCompany in accordance with the Accounting Standards referred to in sub section (3C) of thesection 211 of the Companies Act 1956 ("the Act)read with the General Circular15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of Section133 of the Companies Act2013 .since the production activities are suspended from22/11/2009. This responsibility includes the design implementation and maintenance ofinternal control relevant to the preparation and presentation of the financial statementsthat give a true and fair view and are free from material misstatement whether due tofraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Accounting Standards on Auditingissued by the Institute of Chartered Accountants of India. Those Standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether 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 financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances(since the production activities are suspended from 22.11.2009) but not forthe purpose of expressing an opinion on the effectiveness of the entity's internalcontrol. An audit also includes evaluating the appropriateness of accounting policies usedand the reasonableness of the accounting estimates made by management as well asevaluating the overall 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 explanations given to us thefinancial statements give the information required by the Act in the manner required andto give a true and fair view in conformity with the accounting policies generally acceptedin India:
(i) In the case of the balance sheet of the state of affairs of the Company as at 31stMarch 2014
(ii) In the case of the statement of profit and loss of the profit for the year endedon that date; and
(iii) In case of the cash flows statement of the cash flows for the year ended on thatdate.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor's Report) Order 2003 ('the Order") asamended issued by the Central Government of India in terms of sub section (4A) of thesection 227 of the Act. We give in the Annexure a statement on the matters specified inparagraphs 4 and 5 of the Order.
2. As required by section 227 (3) of the Act we report that:
(a) We have obtained all the information and explanation 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 so far as appears from our examination of those books;
(c) The Balance sheet profit and loss and cash flow statement dealt with by thisReport 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 the sub section (3c) of thesection 211 of the Companies Act 1956 read with the General Circular 15/2013 dated 13September 2013 of the Ministry of Corporate Affairs in Respect of section 133 of theCompanies Act 2013. and
(e) On the basis of written representations received from the directors as on 31 March2014 and taken on record by the Board of Directors none of the directors is disqualifiedas on 31 March 2014 from being appointed as a director I terms of clause (g) ofsub-section (1) of section 274 of the Companies Act 1956.
(f) Attention is invited to following notes in schedule-l (A) (7). Note No.7.
1. Non provision of interest on term loan & CC limits granted by financialcorporation GHC IDBI and CENTRAL BANK OF INDIA.
FOR S.N MEHTA & ASSOCIATES
FIRM REG NO 106306W
ANNEXURE TO THE AUDITOR'S REPORT
As required by the Companies (Auditor's Report) Order 2003 and According to theinformation and explanations given to us during the course of the audit and on the basisof such checks as were considered appropriate we report that:
The nature of Company's activities during the year has been such that clauses (xii)(xiii) and (xiv) of paragraph 4 of the Companies'. (Auditor's Report) Order 2003 are notapplicable to the Company for the year ended.
1) (a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets;
(b) As explained to us the assets have been physically verified by the management inaccordance with a phased programmed of verification which in our opinion is reasonableconsidering the size and the nature of its business. The frequency of verification isreasonable and no material discrepancies have been noticed on such physical verification.
(c) In our opinion and according to the information and explanation given to us theCompany has not disposed off any fixed assets during the year.
2) There in no inventory during the year hence there is no question of verificationthereof.
3) (a) In our Opinion and according to the information and explanations given tous the Company has not granted any loans secured or unsecured from the companies firmsother parties covered in the register maintained under the section 301 of the Act.
(b) In our Opinion and according to the information and explanations given to us theCompany has not taken any loans secured or unsecured from the companies firms or theparties covered in the register maintained under the section 301 of the Act.
(c) There is no unsecured loan to the employee and others.
4) The Company has suspended production from 22.11.2009 and hence there are notransactions during the year
Company has Interest Income Only.
5) Company has no Purchase/Sales during the year.
6) According to information & explanation given to us except the loan frombody corporate obtained in earlier years the company does not have any deposit from thepublic. There is no stipulation as regards payment of interest & also the time ofre-payment and therefore in our honest belief & opinion provisions of section 58A& 58aa of the Companies Act 1956 & the Companies (acceptance of deposit) rules1975 are not applicable to the company.
7) In our opinions there is no Business activity during the year. Hence there inno requirements of internal audit.
8) There are no manufacturing activities carried out by the Company for AirConditioners as such there is no need to review the cost record.
9) (a) According to the record of the company there are no undisputed statutorydues such as interest provident fund and sales tax. Since no interest is payable duringthe year there are no employees in the company and there is no business during the yearand hence there are no statutory dues as regards Service tax Customs duty Excise dutycess. There is no statutory dues as regards wealth tax. According to the information andexplanation given to us no undisputed amount are outstanding as at 31 march 2014.
(b) Disputed sales tax not deposited have been disclosed in note 9 under the headcontingent liabilities not provided for the in the notes to the accounts under schedule 1(B).
10) The Company has accumulated losses & company has incurred loss in thecurrent financial year and has loss also in the immediately preceding financial year.
11) The Company has defaulted in repayment of its dues to the Bank and financialInstitutions. The unpaid amount is Rs. 10 13 80064 and 42 25101.As per Note 5 of theBalance sheet. The Loans were obtained during the period 1994-1995 and 1995-1996.TheCompany has not provided and defaulted in payment of interest.
12) According to the information and explanations given to us the Company has notgiven any guarantee for loans taken by others from banks or financial institutions.
13) In our Opinion and according to the information and explanations given to usthe Company has not obtained term loans during the year.
14) According to the information and explanations given to us and an overallexamination of the balance sheet of the Company we are of the opinion that the fundsraised on the short term basis have not been used for long -term investment.
15) According to the information and explanations given to us the company is not achit fund or a nidhi/mutual benefit fund/society. Accordingly the provisions of clause 4(xiii) of the order are not applicable.
16) The Company has not made any preferential allotment of shares to parties andcompanies covered in the register maintained under the Section 301 of the Act 1956 duringthe year.
17) No debentures have been issued by the Company and hence the question ofcreating securities in respect thereof does not arise.
18) The Company does not have secretary from 1.3.2010.
19) The company has not raised any money by public issues during the year.
20) According to the information and explanations given to us no material fraud onor by the Company has been noticed or reported during the course of our audit.
FOR S.N MEHTA & ASSOCIATES
FIRM REG NO 106306W