in a Dynamic Environment - Domain-b

Annual Report 2008-09(vii) In our opinion, the Company has an internal audit system commensurate with the size and nature of itsbusiness.(viii) We have broadly reviewed the books of account and records maintained by the Company relating to themanufacture of electronic products, pursuant to the Rules made by the Central Government for themaintenance of cost records under Section 209(1)(d) of the Companies Act, 1956 and are of the opinion thatprima facie, the prescribed accounts and records have been made and maintained. We have, however, notmade a detailed examination of the records with a view to determining whether they are accurate or complete.To the best of our knowledge and according to the information given to us, the Central Government has notprescribed the maintenance of cost records for any other products of the Company.(ix) (a) According to the information and explanations given to us, the Company is generally regular in depositingwith appropriate authorities undisputed statutory dues including Provident fund, Investor Education andProtection Fund, Employees’ state insurance, Income tax, Wealth tax, Sales tax, Customs duty, Excise duty,Service tax, cess and other material statutory dues applicable to it.(b) According to the information and explanations given to us, no undisputed amounts payable in respect ofProvident fund, Investor Education and Protection Fund, Employees’ state insurance, Income tax, Sales tax,Customs duty, Excise duty and cess were in arrears, as at March 31, 2009 for a period of more than sixmonths from the date they became payable. An amount of Rs. 0.10 crores is outstanding for more thansix months with respect to the Labour Welfare Fund.(c) According to the information and explanations given to us, details of dues of Sales tax, Service tax andIncome tax which have not been deposited on account of any dispute are given below:Particulars Period to which Forum where the Amountthe amount relates dispute is pending (Rs. in crores)Sales Tax 2001 - 02, 2002 – 03, High Court 5.312003 – 04, 2004 – 05,2005 – 06, 2007 – 08,2008 - 092002 – 03, 2003 – 04, Tribunal 4.662004 – 05, 2005 – 062006 – 07 Appellate Deputy Commissioner 2.952001 – 02, 2002 – 03 Commissioner of Sales Tax 0.032004 - 05 Joint Commissioner 0.092004 - 05 Deputy Commissioner of Commercial Taxes 5.112003 – 04, 2004 - 05 Assistant Commissioner 0.692001- 02 Assistant Commissioner, Appeals 0.282006 - 07 Inspecting Assistant Commissioner 0.27Service Tax 2004 – 2005 Commissioner of Service Tax 3.15Income Tax 2004 – 05 Commissioner of Income Tax (Appeals) 91.72(x) The Company does not have accumulated losses. The Company has not incurred cash losses during the financialyear covered by our audit and in the immediately preceding financial year.(xi) In our opinion and according to the information and explanations given to us, the Company has not defaultedin repayment of dues to a financial institution or bank.(xii) In our opinion and according to the information and explanations given to us, the Company has not grantedloans and advances on the basis of security by way of pledge of shares, debentures and other securities.(xiii) In our opinion and according to the information and explanations given to us, the Company is not dealing in or102