| 1. We have audited the attached Balance Sheet of M/S TULIP TELECOM
LIMITED as at 31st March, 2013, the Profit & Loss Account and also the
Cash Flow statement on the 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 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 (Auditors Report) Order, 2003 as
amended by The Companies (Auditors Report) (Amendment) Order, 2004
issued by Central Government of the India in terms of section 227(4A)
of the Companies Act, 1956, and on the basis of such checks as we
considered appropriate and according to information and explanation
given to us and books and records examined by us in the normal course
of audit, we annex hereto a statement on the matters specified in
paragraph 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to above, we
report that:
a. 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.
b. In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
books of account of the Company.
c. The Balance Sheet, Profit & Loss Account and Cash Flow statement
dealt with the report are in agreement with the books of account of the
company.
d. In our opinion the Balance Sheet, Profit & Loss account and Cash
Flow statement complies with the Mandatory Accounting Standards
referred to in Section 211(3C) of the Companies Act, 1956.
e. On the basis of written representation received from the directors,
as on 31st March, 2013 and taken on record by the Board of Directors,
we report that none of the director is disqualified from being
appointed as a director of the company, as on 31st March, 2013, under
clause (g) of sub-section (1 )of section 274 of the Companies Act,
1956.
f. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with the notes
thereon, 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:-
i. In the case of the Balance Sheet, of the state of affairs of the
company as at 31st March, 2013.
ii. In the case of the Profit & Loss Account, of the Loss of the
company for the Six months period ended on that date; and
iii. In the case of Cash Flow Statement, for the cash flow of the
company for the Six months period ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE TO THE
MEMBER OF M/s TULIP TELECOM LIMITED ON THE ACCOUNTS FOR THE PERIOD
ENDED MARCH 31, 2013.
1) a. The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b. The Fixed Assets have been physically verified by the management
during the period, which in our opinion is reasonable having regard to
the size of the company and the nature of its assets. No material
discrepancies were noticed on physical verification.
c. There was no substantial disposal of fixed assets during the
period.
2) a. As informed to us by management, physical verification of
inventory has been conducted at reasonable intervals during the period.
b. The procedures followed by the management for physical verification
of inventory are reasonable and adequate in relation to the size of the
company and the nature of its business.
c. On the basis of our examination of records of inventory, the
company is maintaining proper records of
3) a. The company has not granted or taken any loans, secured or
unsecured from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956 other
then disclosed in balance sheet.
b. Accordingly, Clause 3(b), 3(c) & 3(d) of the order are not
applicable.
4) In our opinion and according to the information and explanations
given to us, there is an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventory and fixed assets and for the
sale of goods.
5) a. In our opinion and according to the information and explanations
given to us the transactions that need to be entered in to 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 explanation given
to us, the transactions made in pursuance of contracts or arrangements
entered into the register maintained under section 301 of the Companies
Act, 1956 and exceeding the value of Rs. Five Lakhs in respect of any
party during the year have been made at prices, which are reasonable
having regard to prevailing market price at relevant time.
6) The company has not accepted deposits from the public, hence the
directives issued by the Reserve Bank of India and the provisions of
section 58A & 58AA of the Act are not applicable.
7) In our opinion, the company has an internal audit system
commensurate with its size and nature of business.
8) We have broadly reviewed the books of account maintained by the
Company pursuant to the rules prescribed by the Central Government for
maintenance of cost records under section 209(1 )(d) of the Companies
Act, 1956 in respect of corporate data connectivity business activities
and are of the opinion that prima facie, the prescribed accounts and
records have been made and maintained. However, we have not made a
detailed examination of the records.
9) a. The company is not regular in depositing undisputed statutory
dues which are applicable to the company including Provident Fund,
Employee's State Insurance, Income Tax, Sales Tax, Custom Duty, Excise
Duty, Cess, Service Tax and anyotherstatutorydues with the appropriate
authorities,
b. According to the information and explanations given to us following
amounts of undisputed statutory dues are outstanding as on 31st March,
2013 for a period exceeding six months:
Name of Statute Nature of Dues Amount (Rs) which relate
Income Tax TDS 136.02
Income Tax TDS 183.07
Income Tax TDS 337.72
Income Tax TDS 327.1
Income Tax TDS 318.58
Income Tax TDS 307.16
Sales Tax/VAT Sales Tax 14.22
Sales Tax/VAT Sales Tax 11.67
Name of Statute Period to Due date Date when
paid Deposited
Income Tax Apr'12 07-May-12
Income Tax May'12 07-Jun-12
Income Tax June'12 07-Jul-12
Income Tax July'12 07-Aug-12
Income Tax Aug'12 07-Sep-12
Income Tax Sept'12 07-0ct-12
Sales Tax/VAT June'12 25-Jul-12
Sales Tax/VAT Sept'12 25-0ct-12
c. According to the information and explanation given to us, the
following are the disputed amount of Statutory dues outstanding as on
March 31, 2013 for a period exceeding six months:-
(Rs. In Lacs)
Name of Period to Amount
Statute which relate (Rs.)
Sales Tax VAT 2007-08 75.90
Sales Tax VAT 2007-08 26.78
Sales Tax VAT 2008-09 39.98
Sales Tax VAT 2008-09 50.83
Total 193.49
Name of Statute Demand Description Forum where dispute is
pending
Sales Tax VAT VAT Plus Interest Special Comm. DVAT, New Delhi
Sales Tax VAT Penalty Special Comm. DVAT, New Delhi
Sales Tax VAT VAT Plus Interest Special Comm. DVAT, New Delhi
Sales Tax VAT Penalty Special Comm. DVAT, New Delhi
Nameof Period to Amount Demand
Description Forum where dispute
is
Statute which relate (Rs.) pending
Custom
Duty 2004-05 23.36 Custom duty
demand CESTAT- Mumbai
Total 23.36
10) The company does not have any accumulated losses at the end of the
financial period; however it has incurred cash losses ofRs. 16,088.79
Lacs in the current period. There are no accumulated losses or cash
loses reported in the immediately preceding financial period.
11) Based on our audit procedures and as per the information and
explanations given to us, the company has defaulted on redemption of
Foreign currency convertible bonds aggregating to Rs. 78533.73 Lacs
(USD 145 Millions) (including redemption premium). The bonds become due
for redemption on 26th August, 2012 and have not been redeemed till the
date of this report. The company during the period has also defaulted
in repayment of dues to financial institutions and banks in respect of
Letter of Credit/Bill discounting/ External Commercial Borrowings/ Non
Convertible Debentures/ Term Loans Liabilities. Followinq are the
details ofsuch defaults:
(Rs. In Lacs)
Particulars Delay upto Delay 91-180 Delay 181-250 Total
90 days days days
Letter of
Credit/ Bill
Discounting/ 18,014.47 27,559.59 1,476.53 47,050.59
Bank Guarantees
Term Loans 6,013.00 6,013.00 3,190.09 15,210.09
External
Commercial
Borrowings Nil 3,358.00 3,358.00 6,716.00
Non Convertible
Debentures Nil 5,000.00 Nil 5,000.00
The CDR proposal of the company has been approved by the CDR empowered
group in their meeting held on March 25, 2013 which cured all defaults
during the period to financial institutions and banks except for dues
to non CDR lenders amounting to Rs. 10,806.09 Lacs on account of Term
Loans/ External Commercial Borrowings/ Non Convertible Debentures/
Interest, which continues postthe period-end.
12) The company has not granted loan & advance on the basis of security
by way of pledge of shares, debentures & other securities; hence this
point of order is not applicable.
13) The provisions of any special statute applicable to chit fund are
not applicable to the company.
14) The company is not dealing in or trading in shares, securities,
debenture & other investments.
15) According to the information and explanations given to us, the
company has given guarantees for loans taken by others from banks or
financial institutions, the term and conditions whereof in our opinion
are not prime-facie prejudicial to the interest of the company.
16) In our opinion and according to the information and explanation
given to us, the term loans were applied for the purpose for which
obtained.
17) Based on the information and explanations given to us on an overall
examination of the balance sheet of the company, in our opinion, there
are no funds raised on short term basis which have been used for long
term investment and vice versa.
18) According to the information and explanation given to us the
company has not made preferential allotment of shares to parties and
Companies covered in the register maintained under section 301 of the
Companies Act, 1956.
19) The company has not issued any debentures during the period under
audit.
20) The company has not raised any money by way of public issues during
the period.
21) According to the information and explanation given to us and to the
best of our knowledge and belief, no fraud on or by the company has
been noticed or reported during the course of our audit.
For R. CHADHA & ASSOCIATES
Chartered Accountants
Firm Reg. No.: 004046N
Place: New Delhi
Date:May 30, 2013 Rakesh Chadha
Partner
Membership No. 83135 |