annual report 2011-12 - Heavy Engineering Corporation Limited

More documents

Recommendations

Info

ANNUAL REPORT 2011-12 4. Internal Controls In our opinion and according to the information and explanations given to us, and on the basis of test and checks carried out during the course of Audit there is adequate internal control system commensurate with the size of the company and nature of its business relating the purchase of inventory and fixed assets and for sale of goods and service, But there are certain areas where internal controls needs improvement. Some of the major areas where internal control system in operation needs to be strengthened strictly adhered to are as follows in our opinion:- (a) The Company has substantial LD due to non-adherence to delivery schedule. (b) Idle time of machines is high as the labour for these are not adequate. 5. In respect of contracts or arrangement entered in the register maintained in pursuance of Section 301 of the companies Act 1956, to the best of our knowledge and according to the information and explanation given to us: (a) The particulars of contracts or arrangements referred to Section 301 that needed to be entered in the register maintained under the said section have been so entered. The transactions made in pursuance of such contracts or arrangements have been made at prices which are reasonable having regards to the prevailing market prices at the relevant time. 6. Acceptance of deposits from Public In our opinion and according to the information and explanations given to us, The company has not accepted deposits from the public within the meaning of section 58 AA or any other relevant provisions of the Companies Act, 1956 and the rules framed there under. 7. Internal Audit System Internal Audit of the company was carried out by an outside Chartered Accountant Firm during the year, however considering the size of the company and nature of its business; it needs more coverage of financial transactions. 8. Cost Records As explained to us by the Management, the Central Government has prescribed maintenance of Cost records under section 209(1) (d) of the Companies Act, 1956 from financial year 2011-12 for the products of the Company. Currently, cost records are maintained by an outside Cost Accountant Firm. Noted (a) The dearth of working capital, effective manpower and frequent break down of old machines are primarily responsible for delay in execution of order within the delivery schedule which leads to recovery of LD by customer. However effective monitoring is being done for minimizing the delayed delivery/dispatch of goods to customer. (b) Action is being taken for recruitment of fresh technical Workers to avoid idle time due to non availability of adequate work force. Noted Noted Noted Noted. Already covered vast areas like Plants, Projects, Hqrs, Township, Hospital, Transport, Branch Offices,’ HTI, Transit Camp to the extent possible. The internal Audit work for 2011-12 was started from September, 2011 Outside Cost Accountant Firm has been engaged for preparation of compliance report as required under Cost Accounting record Rules 2011. 16
9. Statutory Dues A. According to the information and explanations given by the Company, undisputed statutory dues including Provident Fund, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other statutory dues are generally deposited regularly and no undisputed dues were outstanding as at 31st March, 2012 for a period of more than six months from the date of becoming payable except the cases which are stated below: Name of the Act Type Amount Period Municipal Tax Oct 1999 to Dec Municipal Tax 49,50,000.00 Act ‘2005 The company is paying ` 50,000 per quarter for clearance of dues along with the current Municipal Tax. 9. B. NotedAccording to the information and explanations given by the Company, there is no disputed dues of Income Tax, Sales Tax, wealth Tax, Service Tax, Custom Duty, Excise, Cess that have not been deposited on account of matters pending before appropriate authorities except the cases which are stated as below.- Name of the Act Tribunal(`) Total (`) Provident Fund Act 95,01,53,513.00 95,01,53,513.00 10. Cash Losses The Accumulated loss of the Company as on 31st March, 2012 exceeds 50% of its net worth. The company has not incurred cash losses during the current financial year covered by our audit and also in the immediately preceding financial year. 11. Repayment of Dues In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to financial institutions, banks or debenture holders. 12. According to the information and explanation given to us, the company has not granted any loan or advances on the basis of security, by way of pledge of shares, debentures and other securities. 13. In our opinion and according to the information and explanations given to us, the Company is not a chit fund or a Nidhi/Mutual benefit fund/society. Therefore, clause 4(xiii) of the Companies (Auditor’s Report) Order, 2003 is not applicable to the Company, 14. The Company has not done any transactions for trading in Shares, securities, debentures and other investments during the financial year under audit. 15. According to the information and explanation given to us, the Company has not given guarantees for loans taken by others for Banks or financial institutions, the terms and conditions, whereof, in our opinion, are prima facie prejudicial to the interest of the company. 16. According to the information and explanation given to us and on an overall examination of the Balance Sheet of the Company, We are of the opinion that the term loans were applied for the purpose for which the loans were obtained. ANNUAL REPORT 2011-12 Payment is being made every quarter against old dues based on the agreement with Municipal Corporation. Disclosed in Notes on accounts As per Accounts of the company it transpires that the company has earned a cash profit of Rs 12.90 crore during financial year 2011-12. No comments No comments No comments No comments No comments No comments 17
Page 1 and 2: Jeeef
Page 3 and 4: GLIMPSES OF SOME IMPORTANT EVENTS S
Page 5 and 6: CONTENTS ANNUAL REPORT 2011-12 1. N
Page 7 and 8: BOARD OF DIRECTORS (As on 30.11.201
Page 9 and 10: ANNUAL REPORT 2011-12 DIRECTORS' RE
Page 11 and 12: ANNUAL REPORT 2011-12 Gross Margin
Page 13 and 14: ANNUAL REPORT 2011-12 The company d
Page 15 and 16: ANNUAL REPORT 2011-12 iii) that the
Page 17 and 18: • Replacement of centralized comp
Page 19 and 20: ANNUAL REPORT 2011-12 Attendance of
Page 21: Annexure to the Auditors Report ANN
Page 25: ANNUAL REPORT 2011-12 COMMENTS OF T
Page 28 and 29: OUR PROJECTS Conveyor System at New
Page 30 and 31: OUR PRODUCTS CNC Deep Hole Boring M
Page 32 and 33: ANNUAL REPORT 2011-12 service cost,
Page 34 and 35: ANNUAL REPORT 2011-12 STATEMENT OF
Page 36 and 37: ANNUAL REPORT 2011-12 NOTES FORMING
Page 38 and 39: NOTE NO.-9 ANNUAL REPORT 2011-12 Ty
Page 50 and 51: ANNUAL REPORT 2011-12 NOTE NO. 29 N
Page 52 and 53: ANNUAL REPORT 2011-12 12.11.2010. C
Page 54 and 55: ANNUAL REPORT 2011-12 ANNEXURE - I
Page 56 and 57: ANNUAL REPORT 2011-12 ANNEXURE - II
Page 58 and 59: ANNUAL REPORT 2011-12 Heavy Machine
Page 60 and 61: ANNUAL REPORT 2011-12 D. STOCK OF F
Page 62 and 63: ANNUAL REPORT 2011-12 2011-12 2010-
Page 65 and 66: kebâheveer keâer keâeÙe&#ecelee

annual report 2011-12 - Heavy Engineering Corporation Limited

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?