We have audited the attached Balance Sheet of the CREDENCE SOUND &
VISION LIMITED as at 31ST March 2009 and also the Profit 8b Loss
account of the company for the period ended 31st March 2009 annexed
thereto. These financial statements are the responsibility of the
companys management. Our responsibility is to express an opinion on
these financial statements based on our audit. -
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 misstatements. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosure in 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 on
our opinion.
1. As required by Manufacturing and other Companies (Auditors Report)
Order, 2003, issued by the Central Government in terms of Section 227
(4A) of the companies Act, 1956 On the basis of such checks we
considered appropriate and according to the information and explanation
given to us during the course of audit. We give in Annexure here to
Statement on the matters specified in paragraphs 4 & 5 of the said
order.
2. Further to our comments in the Annexure referred to in paragraph 1
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 purposes of our
audit.
b) In our opinion, the company has kept proper books of account as
required by law so far as appears from our examination of the books of
account.
c) The Balance sheet and Profit & Loss account dealt with by this
report are in agreement with the books of accounts.
d) In our opinion, the Balance Sheet, Profit and Loss Account dealt
with by this report comply with the accounting standards referred to in
sub-section (3c) of section 211 of the Companies Act, 1956.
e) 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 Directors is disqualified as on 31st March 2009 from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
3. In our opinion, and to the best of our information and according to
the explanations given to us, the said Balance sheet and the profit &
Loss A/C subject to note No. 16 relating to interest on term loan from
M.S.F.C. read together 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.
i) In so far as it relates to the Balance Sheet, of the state of
affairs of the company as at 31st March, 2009.
And
ii) In so far as it relates to the Profit & Loss Account, of the profit
of the company for the period ended on that date.
And
iii) In the case of the Cash Flow statement, of the cash flows for the
period ended on that date.
REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE
1. The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
a) As per the information and explanations given to us, the company has
a system of physical verification of all fixed assets and accordingly
the fixed assets were physically verified by the management. In our
opinion the frequency of the verification is reasonable. No material
discrepancies have been noticed on verification.
b)" None of the Fixed Assets have been revalued during the year.
2. The company has no inventory of stock.
3. According to information and explanation given to us the Company
has not taken unsecured interest free loan from companies, firms or
other parties listed in the register maintained Under Section 301 from
the Companies Act under the same management defined under section (IB)
of section 370 of the Companies Act, 1956.
4. According to information and explanation given to us the company
has not given interest free loan to companies, firms or other parties
listed in the register maintained under sec. 301 of the Companies Act,
1956.
5. In our opinion and according to the information and explanations
given to us, there are no transactions, in respect of any party during
the year, made in pursuance of contracts or arrangements that need to
be entered in the register maintained under Section 301 of the
Companies Act, 1956.
6 In respect of loans and advances in the nature of loans given by the
company, parties are generally repaying the principal amounts as
stipulated except where disputes have arisen.
7. In our opinion, and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature if its
business.
8. As explained to us the company is not having any unserviceable or
damage goods.
9. The company has not accepted any deposit from the public within the
meaning of Sec. 58A of the Companies act, 1956 and rule framed there
under.
10. As informed to us, the company is not having any by- products or
scrap.
11. In our opinion, and according to information and explanation given
to us, the company has an internal audit system commensurate with its
size and the nature of its business.
12. The Central Government has not prescribed maintenance of cost
records Under Section 209 (1) (d) of the companies Act, 1956.
13. According to the information and explanation given to us the
employees P. F. and ESIC are not applicable to the company and the
company did not have any other PF scheme.
14. According to the information and explanation given to us and books
and records examined by us, there are no undisputed and outstanding
amounts, payable in respect of wealth tax, sale tax custom duty and
excise duty outstanding as at 31 st March, 2009 for a period of more
than six months from the date they become payable.
15. In our opinion and according to the information and explanations
given to us, no personal expenses have been charged to revenue account
other than those payable under contractural obligations or in
accordance with generally accepted business practice.
16 In our opinion and according to the information and explanations
given to us, the company is not covered within the definition of a Sick
Industrial company as contained in Section 3(1) (O) of the Sick
Industrial companies (Special Provision) Act, 1985.
17. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other similar
securities.
18. The company has not taken any new term loan or given guarantee
during the year
19. The company had taken term loan from MSFC and it has failed to
service the same and there in default in repayment of principal as well
as interest. As informed to us, the company is in the process of
settling the same and in the opinion of the directors no liability
towards interest is likely to arise.
20. The company has not raised any money by public issue during the
year therefore the requirement of disclosure by the management on the
end use of money raised by public issues and verification of the same
is not applicable.
21. The accumulated loss of the company at the end of the current
financial year is more than 50% its networth. The loss is mainly
because of provision made for doubtful receivables and advances and
impairment of assets.
22. The company has not used any funds raised on short term basis for
long term investment and vice versa.
23. As per information given to us, special statutes regarding chit
Fund, Nidhi or mutual benefit society are not applicable to the
company.
24. The company has maintained proper records and contracts in respect
of investments in shares securities, debentures and other investments.
All the investments were held by the company in its own name.
25. 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 P R AGARWAL & AWASTHI
CHARTERED ACCOUNTANTS
Sd/-
PAWAN Kr AGARWAL
PARTNER
M. NO. 34147
Place: Mumbai
Date : 30.06.2009
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