We have audited the attached Balance Sheet of ZENERGY LIMITED as at
3lst March 2003 and also the Profit and Loss Account of the Company for
the year ended on that date annexed therto. 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
report.
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 about whether the
financial statements are free of material rnlsstatement. 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 the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
As required by the Manufacturing and Other Companies (Auditor's Report)
Order, 1988 Issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Companies Act. 1956, we
enclosed in the Annexure a statement of the matters specified In
paragraphs 4 and 5 of the said order on the basis of such checks of the
books and records as were considered appropriate, and according to the
Information and explanations given to us in the course of audit
1. Further to our comments in the Annexure referred to In paragraphs
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 accounts as required by law have been
kept by the Company so far as it appears from our examination of the
Books.
c) The Balance Sheet and the Profit and Loss Account dealt with by this
report are in agreement with the Books of Account.
d) In our opinion, the Profit and Loss Account and the Balance sheet
comply with Accounting standards referred to in section 211(3c) of the
Companies Act. 1956 to the extent applicable:
e) On the basis of our review of the confirmations received from the
companies in which the Directors of the company are Directors, and the
information and the explanations given to us, none of the Directors of
the company are prima facie, as at 31st arch. 2003 disqualified from
being appointed as Directors of the Company 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 accounts read with the notes forming
part of the accounts mentioned below, gives the information required by
the Companies Act, 1956 in the manner so required and give a true and
fair view subject to a) Note No. 9. b) Note No. 10(ii), c) Note No. 13.
a) In the case of the Balance Sheet of the State of Affairs of the
Company as at 31st March, 2003.
and
b) In the case of Profit and Loss Account of the Loss for
the year ended on that date.
ANNEXURE TO THE AUDITOR'S REPORT
Refered to In paragraph 1 of our report of even date :
I) The company is maintaining proper records showing full particulars
including quantitative details, and situation of Fixed Assets. The
Fixed Assets have been physically verified by the management at
reasonable intervals. No material discrepancies were noticed during
such verification.
ii) Nona of the Fixed Assets have been revalued during the year.
iii) As there are no store and stock items, the physical verification
of stores spare parts at reasonable intervals is not carried out.
iv) The company has taken unsecured loans from the companies under the
same management as defined under sub section (1B) of section 370 of the
Companies Act. 1956 (1 of 1956).
v) The Company has granted loans and advances to Orange Media Pvt. Ltd.
and Palakkad Power Generating Company Private Limited to the tune of
Rs. 37,89,184 and Rs. 2,31.02,971 respectively being the companies
under the same management as defined under sub section (1 B) of section
370 of the Companies Act, 1050 (1 of 1956). As there are no terms and
conditions attached to the above loans, we are unable to place our
opinion on the same, to be prejudical to the interest of the company.
vi) The company has not given any loans or advances in the nature of
loans except as given in clause (v).
vll) There are no adequate internal control procedures commensurate
with the size of the company and the nature of its business since the
company does not have operations.
viii) The company has not accepted any deposits from public during the
year.
ix) The company has a comprehensive internal audit system commensurate
with the size & nature of the business.
x) The Central Government has not prescribed the maintainance of cost
records under section 298(1 )(d) of the Companies Act. 1956 (1 of
1956).
xi) The company has not registered with Provident Fund authorities &
hence it has not deducted or paid any funds to the provident fund
account.
xii) There were no undisputed amounts payable, in respect of Income
Tax, Wealth Tax. Sales Tax, Customs duty and Excise duty which were
outstanding as at the last day of the financial year and due for more
than six months from the date they become payable.
xiii)No personal expenses have been charged to the revenue account
during the year.
xlv) The company Is not a sick industrial company as defined In clause
(0) of sub section (1) of section 3 of the Sick Industrial Companies
(Special Provisions) Act. 1985 ( 1 of 1986 )
xiv)The company has an adequate system of authorisation at proper
levels and reasonable system of internal controls for the issue and
allocation of stores and spares, commensurate with its size and nature
of its business.
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