1.We have audited the attached Balance Sheet of HIGHLAND INDUSTRIES
LIMITED, as at 31st March 2010 and the Profit & Loss Account 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 the 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 issued by
the Central Government of India in terms of sub-section (4A) of section
227 of the Companies Act5, 1956, we enclose in the Annexure a statement
on the matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in Annexure referred-to above, we report
that:
a. Note no.4 of the notes to the accounts that balance of sundry
debtors, sundry creditors, loans & Advances are subject to confirmation
and Reconciliation.
b. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
c. In our opinion, proper books of account as required by law have been
kept by the company so far as appear from our examination of those
books;
d. In our opinion, the Balance sheet, profit & Loss Account and cash
flow statement dealt with by the report comply with accounting
standards referred to in subsection 3(c) of 211 of the companies Act,
1956, with the books of account;
e. On the basis of the written representations received from the
Directors as on 31st March,2011 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2011 from being appointed as a Director in terms of
clause(g) of subsection (l) 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 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, 2011; and
ii. In the case of Profit & Loss Account, of the "Profit" for the year
ended on that date.
iii. In the case of cash flow statements, of the cash flows for the
period ended on that date.
ANNEXURE TO AUDITORS REPORT
1. Since the company had no fixed assets during the year, clause 4(i)
of the Companies (Auditors Report) Order, 2003 is not applicable.
2. Since the Company does not have inventories during the year under
report, clause 4{ii) of the Companies (Auditors Report) Order, 2003 is
not applicable.
3. 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. and to companies under
the same management as defined under sub-section (1b) of sec 370 of the
companies Act,1956 and in our opinion, the terms and conditions are
prima face not prejudicial to the interests of the company.
4. 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 companies Act, 1956 and in our opinion the
terms & conditions are not prejudicial to the interests of the company.
5. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedure commensurate
with the size of the Company and nature of its business. During the
course of audit we have not observed any major weakness in internal
controls.
6. According to the information and explanations given to us, there are
no Contracts or arrangements that needs to be entered in the register
maintained under section 301 of the Companies Act, 1956.
7. The Company has not accepted any deposits from the public and
consequently the provisions of section 58A and 58AA or any other
relevant provision of the Act and the rules framed there under and the
directives issued by the Reserve Bank of India are not applicable.
8. in our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
9. To the best of our knowledge and according to the information and
explanations given to us Central Government has not prescribed
maintenance of cost records under section 209(1) (d) of the Companies
Act, 1956.
10. i) According to the records of the company , undisputed statutory
due inclosing 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, wherever
applicable, have been regularly deposited with appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at 31st March, 2011 for a period of more then six months
from the date they became payable except to the extent that the company
has not deposited fully the Income Tax as computed by it to the Income
Tax Department for Assessment years 2009-10, 2010-11 and 2011-12.
ii) To the best of our knowledge and according to information and
explanations provided to us, the Company has no disputed dues under
income Tax.
11. The Company has no accumulated losses at the end of the financial
year and it has not incurred cash losses in the current and immediately
preceding financial year.
12. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to the
debentures holders. Further the Company has not borrowed any amounts
from the financial institutions or banks during the year under audit.
13. In our opinion and according to the explanation given to us and
based on the information available, no loans and advances have been
granted by the company on the basis of security by way of pledge of
share, debentures and other securities.
14. In our opinion, the company is not a chit fund / nidhi / mutual
benefit fund / society. Therefore, Clause 4(xiii) of the companies
(Auditors Report) Order 2003 is not applicable to the Company.
15. The company has maintained proper records of transaction and
contracts and made timely entries therein respects of investments made
by the company. The company's investments are held in its own name.
16. The Company has not given any guarantees for loans taken by others
from any bank or financial institutions.
17. The Company has not taken any term loans during the year.
18. According to the information and explanations given to us and on
overall examinations of the Balance Sheet of the Company, we report
that the Company has not raised short terms funds during the year from
any financial institution/Bank.
19. During the year, the Company has not made any preferential
allotment of shares to a parties and companies covered in the register
maintained under section 301 of the Companies Act, 1956.
20. During the year cover by our report, the Company has not raised any
monies by way of issue of Secured debentures.
21. The Company has not raised any monies by way of Public Issue during
the year.
22. As per the information and explanations given to us, no fraud on or
by the Company has been noticed or reported during the year.
For, N. L. Upadhyaya & Co.
Chartered Accountants
Firm Registration No.11165 W
(N. L. Upadhyaya)
Place: Mumbai Proprietor
Date : 05.08.2011 Membership No. 35535 |