Mar 31, 2015
We have audited the accompanying financial statements of Arex
Industries Limited ("the Company"), which comprise the Balance Sheet as
at 31st March, 2015, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accountings records, relevant to the preparation
and presentation of the financial statements that give a true and fair
view and are free from material misstatement, whether due to fraud or
error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal
financial control relevant to the Company's preparation of the
financial statements that give a true and fair view in order to design
audit procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on whether the Company has in
place an adequate internal financial controls system over financial
reporting and the operating effectiveness of such controls. An audit
also includes evaluating the appropriateness of the accounting policies
used and the reasonableness of the accounting estimates made by the
Company's Directors, as well as evaluating the overall presentation of
the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, and its profit and its cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of sub
section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order,
to the extent applicable.
2. As required by section 143(3) of the Act, we report that:
a. We have sought and 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 account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
c. The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d. In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014 .
e. On the basis of written representations received from the directors
as on 31st March, 2015 taken on record by the Board of Directors, none
of the directors is disqualified as on 31st March, 2015 from being
appointed as a director in terms of section 164(2) of the Act.
f. With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position by way of Note 25 to the financial statements.
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
Annexure to Independent Auditors' Report
[Referred to in Paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements" of our report of even date]
1. (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) As explained to us, physical verification of Fixed Assets was
conducted by the management during the year. In our opinion, frequency
of physical verification is reasonable having regard to the size of the
operation of the company. According to the information and explanation
given to us no material discrepancies were noticed on such
verification.
2. (a) As explained to us, during the year, the management has
conducted physical verification of inventories at regular intervals,
the frequency of which, in our opinion, are reasonable and adequate in
relation to the size of the Company and nature of its business.
(b) The procedures for the physical verification of inventories
followed by management are reasonable and adequate in relation to the
size of the Company and the nature of its business.
(c) In our opinion, the Company has maintained proper records in
respect of inventories. We have been explained that no material
discrepancies were noticed on physical verification of inventories,
when compared with their book balance.
3. During the year under review, the company has not granted any
loans, secured or unsecured to companies, firms or other parties
covered in the register maintained under section 189 of the Companies
Act, 2013. Consequently, requirements of clause (iii) (a) and (iii) (b)
of paragraph 3 of the order are not applicable.
4. In our opinion, and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the company and nature of its business, for the
purchase of inventory and fixed assets and for the sale of goods and
services. In our opinion, and according to the information and
explanations given to us, there is no continuing failure to correct
major weaknesses in internal control systems.
5. The company has not accepted any deposits from the public.
6. According to the information and explanation given to us the
maintenance of cost records has not been prescribed under sub-section
(1) of Section 148 of the Companies Act, 2013.
7. (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the company
has been generally regular in depositing undisputed statutory dues
including Provident Fund, Employees' State Insurance, Income-tax, Value
Added Tax, Wealth Tax, Custom duty, Excise duty, Service Tax, Cess and
any other dues whichever is applicable during the year with the
appropriate authorities and no undisputed dues payable in respect of
outstanding statutory dues were in arrears as at 31st March, 2015 for a
period of more than six months from the date they became payable.
(b) According to the information and explanations given to us as at
31st March, 2015 there are no amounts in respect of sales tax/ income
tax/ custom duty/ wealth tax/ excise duty/ service tax/ cess that have
not been deposited with the appropriate authorities on account of any
dispute except as stated below.
Nature of the Statute Nature of the Dues Amount
Income tax Act Income tax 511670
Income tax Act Income tax 1351672
Nature of the Period to which amount Forum where dispute
Statute relates is pending
Income tax Act Assessment year 2012-13 CIT(Appeals)
Income tax Act Assessment year 1996-97 High Court of Gujarat
(c) According to the information and explanations given to us and on
the basis of our examination of the books of account, the amount
required to be transferred to the Investor Education and Protection
Fund has been transferred to such fund by the Company within time.
8. The company does not have any accumulated losses at the end of the
financial year. The company has not incurred cash losses in the current
as well as in the immediately preceding financial year.
9. The company has not defaulted in repayment of dues to financial
institution/banks.
10. In our opinion and according to the information and explanation
given to us, the company has not given any guarantee for loan taken by
others from banks and financial institutions.
11. In our opinion , the term loans disbursed by bank during the year
have been applied for the purpose for which they have been obtained.
12. 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 C.R. SHAREDALAL & CO.
CHARTERED ACCOUNTANTS,
(Registration No.109943W)
(J.K. Patel)
PLACE : CHHATRAL PARTNER
DATE : 19-05-2015 Membership No.047136
Mar 31, 2014
We have audited the accompanying financial statements of Arex
Industries Limited ("the Company"), which comprise the Balance Sheet as
at March 31, 2014, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards notified under the Companies Act, 1956 ("the
Act") read with the General Circular 15/ 2013 dated 13th September,
2013 of the Ministry of Corporate Affairs in respect of section 133 of
the Companies Act, 2013. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error.
In making those risk assessments, the auditor considers internal
control relevant to the Company''s preparation and fair presentation of
the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the entity''s internal control. An
audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of the accounting estimates made
by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, 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 account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account ;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards notified
under the Companies Act, 1956 read with the General Circular 15/2013
dated 13 September 2013 of the Ministry of Corporate Affairs in respect
of section 133 of the Companies Act, 2013;
e. on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITOR''S REPORT (Referred to in our Report of Even
Date)
1. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) As explained to us, physical verification of Fixed Assets was
conducted by the management during the year. In our opinion the
frequency of physical verification is reasonable having regard to the
size of the operation of the Company. According to the information and
explanation given to us no material discrepancies was noticed on such
verification.
(c) The Company has not disposed off any substantial part of Fixed
Assets during the year.
2. (a) As explained to us, during the year, the management has
conducted physical verification of inventories at regular intervals,
the frequency of which, in our opinion, are reasonable and adequate in
relation to the size of the Company and nature of its business.
(b) The procedures for the physical verification of inventories
followed by management are reasonable and adequate in relation to the
size of the Company and the nature of its business.
(c) In our opinion, the Company has maintained proper records in
respect of inventories. We have been explained that no material
discrepancies were noticed on physical verification of inventories,
when compared with their book balance.
3. (a) During the year under review, 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. Consequently requirements of clauses (iiia), (iiib), (iiic)
and (iiid) of paragraph 4 of the order are not applicable.
(b) (a) During the year under review, the Company has taken loans from
five parties covered in the register maintained under section 301 of
the Companies Act, 1956. Maximum amount outstanding during the year is
Rs. 288=83 Lacs (P.Y. Rs. 277=00 Lacs) and year end balance is Rs. 205 Lacs
(P.Y. Rs. 153 Lacs).
(b) In our opinion, rate of interest and other terms and conditions of
loans, taken by the Company are prima facie not prejudicial to the
interest of the Company.
(c) The Company is regular in paying interest and repayment of
principal amount.
4. In our opinion, and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and nature of its business, for the
purchase of inventory, fixed assets and for sale of goods. In our
opinion, and according to the information and explanations given to us,
there is no continuing failure to correct major weaknesses in internal
control.
5. (a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that
the particulars of contracts or arrangements referred to in Sec. 301 of
the Companies Act, 1956 have been entered in the Register required to
be maintained under that section.
(b) These transactions have been at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
6. During the year, the Company has not accepted any deposits from the
public under the directives issued by the Reserve Bank of India and the
provisions of Section 58A and 58AA or any other relevant provisions of
the Companies Act, 1956.
7. The Company has an internal audit system which, in our opinion, is
commensurate with its size and the nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of sub-section(1) of Section 209 of the
Act, and are of the opinion that, prima facie, the prescribed accounts
and records have been made and maintained. We have not, however, made
a detailed examination of the records with a view to determine whether
they are accurate or complete.
9. (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company
has been generally regular in depositing undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income-tax, Central Excise Duty, Custom
Duty, Service Tax, Cess and other applicable statutory dues during the
year with the appropriate authorities. As at 31st March, 2014 there are
no undisputed dues payable, for a period of more than six months from
the date they become payable. (b) According to the information and
explanation given to us, there are no dues of Income tax, Sales tax,
Wealth tax, Excise Duty, Custom Duty, Service Tax, Cess or any other
applicable taxes which have not been deposited on account of any
dispute.
10. The Company does not have any accumulated losses at the end of the
financial year. Also the company has not incurred any cash losses in
the current as well as in the immediately preceding financial year.
11. The Company has not defaulted in repayment of installment of dues
of financial institutions and banks.
12. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. Provision of special statutes applicable to Mutual Benefit
Company, Chit Fund Company or Nidhi Company, are not applicable to the
company during the year under review.
14. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments during the year under review. The investments of the
company are held in its own name.
15. According to the information and explanations given to us, company
has not given any guarantee for loan taken by others from banks and
Financial Institutions.
16. In our opinion, the term loans disbursed by bank during the year
have been applied for the purpose for which they have been obtained.
17. According to the Cash-flow statement and other records examined by
us and the information and explanations given to us, on an overall
basis, funds raised on short term basis have not, prima facie, been
used during the year for long term investment.
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under section
301 of the Companies Act, 1956.
19. The Company has not issued any debentures during the year. Hence
reporting on the question of securitization do not arise.
20. The Company has not raised any money by way of public issues
during the year.
21. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the year
ended March 31, 2014.
For C R SHAREDALAL & CO.
Chartered Accountants
(Registration No.109943W)
(J. K. Patel)
Place : Chhatral Partner
Date : 30th May, 2014 Membership No. 047136
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Arex
Industries Limited ("the Company"), which comprise the Balance Sheet as
at March 31, 2013, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and '' fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of die Balance Sheet, of the state of affairs of the
Company as at March 31,2013;
(b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, 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 account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. the Balance-sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e. on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITOR''S REPORT (Referred to in our Report of Even
Date)
1. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) As explained to us, physical verification of Fixed Assets was
conducted by the management during the year. In our opinion, the
frequency of physical verification is reasonable having regard to the
size of the operation of the Company. According to the information and
explanation given to us no material discrepancies was noticed on such
verification.
(c) The Company has not disposed off any Substantial part of Fixed
Assets during the year.
2. (a) As explained to us, during the year, the management has
conducted physical verification of inventories at regular intervals,
the frequency of which, in our opinion, are reasonable and adequate in
relation to size of the Company and nature of its business.
(b) The procedures for the physical verification of inventories
followed by management are reasonable and adequate in relation to the
size of die Company and die nature of its business.
(c) In our opinion, the Company has maintained proper records in
respect of inventories. We have been explained that no materia]
discrepancies were noticed on physical verification of inventories,
when compared with their book balance.
3. (a) During the year under review, 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. Consequently requirements of clauses (iiia), (iiib), (iiic)
and (iiid) of paragraph 4 of the order are not applicable. (b) (a)
During the year under review, the Company has taken loans from six
parties covered in the register maintained under section 301 of the
Companies Act, 1956. Maximum amount outstanding during the year is
Rs.277=00 Lacs (P.Y. Rs.l74= 50 Lacs) and year end balance is Rs.
153=00 Lacs.( P.Y. 154=20 Lacs).
(b) In our opinion, rate of interest and other terms and conditions of
loans, taken by the Company are prima facie not prejudicial to the
interest of the Company.
(c) The Company is regular in paying interest and repayment of
principal amount.
4. In our opinion, and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and nature of its business, for the
purchase of inventory, fixed assets and for sale of goods. In our
opinion, and according to the information and explanations given to us,
there is no continuing failure to correct major weaknesses in internal
control.
5. (a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that
the particulars of contracts or arrangements referred to in Sec.301 of
the Companies Act, 1956 have been entered in the Register required to
be maintained under that section.
(b) These transactions have been at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
6. During the year, the Company has not accepted any deposits from the
public under the directives issued by the Reserve Bank of India and the
provisions of Section 58A and 58AA or any other relevant provisions of
the Companies Act, 1956.
7. The Company has an internal audit system which, in our opinion, is
commensurate with its size and the nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of sub-section (1) of Section 209 of the
Act, and are of the opinion that, prima facie, the prescribed accounts
and records have been made and maintained. We have not, however, made a
detailed examination of die records with a view to determine whether
they are accurate or complete.
9. (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company
has been generally regular in depositing undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income-tax, Central Excise Duty, Custom
Duty, Service Tax, Cess and other applicable statutory dues during the
year with the appropriate authorities. As at 31st March, 2013 there are
no undisputed dues payable, for a period of more than six months from
The date they become payable. (b) According to me information and
explanation given to us, there are no dues of Income tax, Sales tax,
Wealth tax, Excise Duty, Custom Duty, Service Tax, Cess or any other
applicable taxes which have not been deposited on account of any
dispute.
10. The Company does not have any accumulated losses at the end of the
financial year. Also the company has not incurred any cash losses in
the current as well as in the immediately preceding financial year.
11. The Company has not defaulted in repayment of installment of dues
of financial institutions and banks.
12. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. Provisions of special statutes applicable to Mutual Benefit
Company, Chit Fund Company or Nidhi Company are not applicable to the
company during the year under review.
14. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments during the year under review. The investments of the
company are held in its own name.
15. According to the information and explanations given to us, company
has not given any guarantee for loan taken by others from banks and
Financial Institutions.
16. In our opinion, the term loans disbursed by bank during the year
have been applied for the purpose for which they have been obtained.
17. According to the Cash-flow statement and other records examined by
us and the information and explanations given to us, on an overall
basis, funds raised on short term basis have not, prima facie, been
used during the year for long term investment.
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under section
301 of the Companies Act, 1956.
19. The Company has not issued any debentures during the year. Hence
reporting on the question of securitization do not arise.
20. The Company has not raised any money by way of public issues
during the year.
21. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the year
ended March 31, 2013.
For C R SHAREDALAL & CO.,
Chartered Accountants
(Firm Regn No.l09943W)
PLACE: Ahmedabad (J K Patel)
DATE : 29th May, 2013 Partner
Membership No.047136
Mar 31, 2012
We have audited the attached Balance Sheet of AREX INDUSTRIES LIMITED
as at 31st March, 2012 and also the Statement of Profit and Loss for
the year ended on that date annexed thereto and Cash Flow Statement for
the year ended on that date. 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.
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 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.
As required by the Companies (Auditor's Report) Order, 2003, as amended
by the Companies (Auditors Report) Amendment Order, 2004 (together the
Order) issued by the Central Government in terms of Section 227(4A) of
the Companies Act, 1956, and on the basis of such checks of books and
records as we considered appropriate and on the basis of information
and explanations given to us during the course of our audit which were
necessary to the best of our knowledge and belief, we report, on the
matters specified in paragraph 4 and 5 of the said Order in the
attached Annexure.
Further to our comments in the Annexure referred to above, we report
that:
(i) 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;
(ii) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books.
(iii) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
(iv) In our opinion, the Balance Sheet, the Statement of Profit and
Loss and the Cash Flow Statement dealt with by this report comply with
the accounting standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956; to the extent applicable to the company
during the year under review.
(v) On the basis of written representations received from the
directors, as on 31st March, 2012, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March, 2012 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with
Significant Accounting policies and notes thereon, particularly note
no. 39 to the financial statements, 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 ;
(a) in the case of the Balance Sheet, of the State of Affairs of the
Company as at 31st March, 2012;
(b) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date; and
(c) in the case of Cash Flow Statement, of the Cash Flows of the
Company for the year ended on that date.
ANNEXURE TO THE AUDITOR'S REPORT
(Referred to in our Report of Even Date)
1. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) As explained to us, physical verification of Fixed Assets was
conducted by the management during the year. In our opinion the
frequency of physical verification is reasonable having regard to the
size of the operation of the Company. According to the information and
explanation given to us no material discrepancies was noticed on such
verification.
(c) The Company has not disposed off any Substantial part of Fixed
Assets during the year.
2. (a) As explained to us, during the year, the management has
conducted physical verification of inventories at regular intervals,
the frequency of which , in our opinion, are reasonable and
adequate in relation to the size of the Company and nature of its
business.
(b) The procedures for the physical verification of inventories
followed by management are reasonable and adequate in relation to the
size of the Company and the nature of its business.
(c) In our opinion, the Company has maintained proper records in
respect of inventories. We have been explained that no material
discrepancies were noticed on physical verification of inventories,
when compared with their book balance.
3. (a) During the year under review, 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. Consequently requirements of clauses (iiia), (iiib), (iiic)
and (iiid) of paragraph 4 of the order are not applicable.
(b) (a) During the year under review, the Company has taken loans from
five parties covered in the register maintained under section 301 of
the Companies Act, 1956. Maximum amount outstanding during the year is
Rs. l74 = 50 Lacs (P.Y. Rs. l39 = 76 Lacs) and year end balance is Rs.
154 = 20 Lacs. (P.Y. Rs. 89 = 65 Lacs).
(b) In our opinion, rate of interest and other terms and conditions of
loans, taken by the Company are prima facie not prejudicial to the
interest of the Company.
(c) The Company is regular in paying interest and repayment of
principal amount.
4. In our opinion, and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and nature of its business, for the
purchase of inventory, fixed assets and for sale of goods. In our
opinion, and according to the information and explanations given to us,
there is no continuing failure to correct major weaknesses in internal
control.
5. (a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that
the particulars of contracts or arrangements referred to in Sec. 301
of the Companies Act, 1956 have been entered in the Register required
to be maintained under that section.
(b) These transactions have been at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
6. During the year, the Company has not accepted any deposits from the
public under the directives issued by the Reserve Bank of India and the
provisions of Section 58A and 58AA or any other relevant provisions of
the Companies Act, 1956.
7. The Company has an internal audit system which, in our opinion, is
commensurate with its size and the nature of its business.
8. To the best of our knowledge and according to the information and
explanation given to us, the Central Government has not prescribed
maintenance of cost records under section 209(1)(d) of the Companies
Act, 1956 for the product of the Company.
9. (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company
has been generally regular in depositing undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees' State Insurance, Income-tax, Central Excise Duty, Custom
Duty, Service Tax, Cess and other applicable statutory dues during the
year with the appropriate authorities. As at 31st March, 2012 there
are no undisputed dues payable, for a period of more than six months
from the date they become payable.
(b) According to the information and explanation given
to us, there are no dues of Income tax, Sales tax, Wealth tax, Excise
Duty, Custom Duty, Service Tax, Cess or any other applicable taxes
which have not been deposited on account of any dispute.
10. The Company does not have any accumulated losses at the end of the
financial year. Also the company has not incurred any cash losses in
the current as well as in the immediately preceding financial year.
11. The Company has not defaulted in repayment of installment of dues
of financial institutions and banks.
12. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. Provision of special statutes applicable to Mutual Benefit
Company, Chit Fund Company or Nidhi Company are not applicable to the
company during the year under review.
14. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments during the year under review. The investments of the
company are held in its own name.
15. According to the information and explanations given to us, company
has not given any guarantee for loan taken by others from banks and
Financial Institutions.
16. In our opinion, the term loans disbursed by bank during the year
have been applied for the purpose for which they have been obtained.
17. According to the Cash-flow statement and other records examined by
us and the information and explanations given to us, on an overall
basis, funds raised on short term basis have not, prima facie, been
used during the year for long term investment.
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under section
301 of the Companies Act, 1956.
19. The Company has not issued any debentures during the year. Hence
reporting on the question of securitization do not arise.
20. The Company has not raised any money by way of public issues
during the year.
21. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the year
ended March 31, 2012.
FOR C.R. SHAREDALAL & CO.
Chartered Accountants
(Registration No. 109943W)
(J. K. Patel)
Partner
Membership No. 047136
Place : Ahmedabad
Date : 31st July, 2012
Mar 31, 2011
We have audited the attached Balance Sheet of AREX INDUSTRIES LIMITED
as at 31st March, 2011 and also the Profit and Loss Account for the
year ended on that date annexed thereto and Cash Flow Statement for the
year ended on that date. 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.
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 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.
As required by the Companies (Auditor's Report) Order, 2003, as
amended by the Companies (Auditors Report) Amendment Order, 2004
(together the Order) issued by the Company Law Board in terms of
Section 227(4A) of the Companies Act 1956, and on the basis of such
checks of books and records as we considered appropriate and on the
basis of information and explanations given o us during the course of
our audit which were necessary to the best of our knowledge and belief,
we report, on the matters specified in paragraph 4 and 5 of the said
Order in the attached Annexure,
Further to our comments in the Annexure referred to above, we report
that ;
(i) 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;
(ii) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books,
(iii) The Balance Sheet , Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
(iv) In our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section(3C) of section 211 of
the Companies Act, 1956, to the extent applicable to the company during
the year under review.
(v) On the basis of 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
3lst March, 201) from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with
Significant Accounting policies and notes thereon 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
general y accepted in India ;
(a) in the case of the Balance Sheet, of the State of Affairs of the
Company as at 31st March, 2011;
(b) in the case of the Profit and Loss Account, of the profit of the
Company for the year ended on that date; and
(c) in the case of Cash Flow Statement, of the Cash Flows of the
Company for the year ended on that date.
1 (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) As explained to us, physical verification of Fixed Assets was
conducted by the management during the year. In our opinion the
frequency of physical verification is reasonable having regard to the
size of the operation of the Company. According to the information and
explanation given to us no material discrepancies was noticed on such
verification.
(c) The Company has not disposed off any Substantial part of Fixed
Assets during the year.
2. (a) As explained to us, during the year, the management has
conducted physical verification of inventories at regular intervals,
the frequency of which , in our opinion, are reasonable and adequate in
relation to the size of the Company and nature of its business.
(b) The procedures for the physical verification of inventories
followed by management arc reasonable and adequate in relation to the
size of the Company and the nature of its business.
(c)In our opinion, the Company has maintained proper records in respect
of inventories. We have been explained that no material discrepancies
were noticed on physical verification of inventories, when compared
with their book balance.
3. (a) During the year under review, 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. Consequently requirements of clauses (iiia), (iiib), (iiic)
and (iiid) of paragraph 4 of the order are not applicable.
(b) (a) During the year under review, the Company has taken loans from
four parties covered in the register maintained under section 301 of
the Companies Act, 1956. Maximum amount outstanding during the year is
Rs. 139= 76 Lacs and year end balance is 89=65 Lacs.
(b) In our opinion, rate of interest and other terms and conditions of
loans, taken by the Company are prima facie not prejudicial to the
interest of the Company.
(c)The Company is regular in paying interest and repayment of principal
amount.
4. In our opinion, and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and nature of its business, for the
purchase of inventory, fixed assets and for sale of goods. In our
opinion, and according to the information and explanations given to us,
there is no continuing failure to correct major weaknesses in internal
control.
5. (a)To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that
the particulars of contracts or arrangements referred to in Sec. 301
of the Companies Act, 1956 have been entered in the Register required
to be maintained under that section.
(b)These transactions have been at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
6. During the year, the Company has not accepted any deposits from the
public under the directives issued by the Reserve Bank of India and the
provisions of Section 58A and 58AA or any other relevant provisions of
the Companies Act, 1956.
7. The Company has an internal audit system which, in our opinion, is
commensurate with its size and the nature of its business.
8. To the best of our knowledge and according to the information and
explanation given to us, the Central Government has not prescribed
maintenance of cost records under section 209(l)(d) of the Companies
Act, 1956 for the product of the Company.
9. (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company
has been generally regular in depositing undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees' State Insurance, Income-tax, Central Excise Duty, Custom
Duty, Service Tax, Cess and other applicable statutory dues during the
year with the appropriate authorities. A few minor delays have been
noted. However, at 31st March, 2011 there are no undisputed dues
payable, for a period of more than six months from the date they become
payable.
(b)According to the information and explanation given to us, there are
no dues of Income tax, Sales tax, Wealth tax, Excise Duty, Custom Duty,
Service Tax, Cess or any other applicable taxes which have not been
deposited on account of any dispute.
10. The Company does not have any accumulated losses at the end of the
financial year. Also the company has not incurred any cash losses in
the current as well as in the immediately preceding financial year.
11. The Company has not defaulted in repayment of installment of dues
of financial institutions and banks.
12. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. Provision of special statutes applicable to Mutual Benefit
Company, Chit Fund Company or Nidhi Company are not applicable to the
company daring the year under review.
14. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments during the year under review. The investments of the
company are held in its own name.
15. According to the information and explanations given to us, company
has not given any guarantee for loan taken by others from banks and
Financial Institutions.
16. In our opinion, the term loans disbursed by bank during the year
as well as those taken in earlier years have been applied for the
purpose for which they have been obtained.
17. According to the Cash-flow statement and other records examined by
us and the information and explanations given to us, on an overall
basis, funds raised on short term basis have not, prima facie, been
used during the year for long term investment.
I8. The Company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under section
301 of the Companies Act, 1956.
19. The Company has not issued any debentures during the year. Hence
reporting on the question of securitization do not arise.
20. The Company has not raised any money by way of public issues
during the year.
21. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the year
ended March 31, 2011.
For C R SHAREDALAL & CO.
Chartered Accountants
Firm Regn No. 109943w
Place : Ahmedabad J K Patel
Date : 3rd August, 2011 Partner
Membership No. 047136
Mar 31, 2010
We have audited the attached Balance Sheet of AREX INDUSTRIES LIMITED
as at 31st March, 2010 and also the Profit and Loss Account for the
year ended on that date annexed thereto and Cash Flow Statement for the
year ended on that date. 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 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.
As required by the Companies (Auditors Report) Order, 2003, as amended
by the Companies (Auditors Report) Amendment Order, 2004 (together the
Order) issued by the Company Law Board in terms of Section 227(4A) of
the Companies Act, 1956, and on the basis of such checks of books and
records as we considered appropriate and on the basis of information
and explanations given to us during the course of our audit which were
necessary to the best of our knowledge and belief, we report, on the
matters specified in paragraph 4 and 5 of the said Order in the
attached Annexure.
Further to our comments in the Annexure referred to above, we report
that :
(i) 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;
(ii) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books.
(iii) The Balance Sheet , Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
(iv) In our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956; to the extent applicable to the company during
the year under review.
(v) On the basis of written representations received from the
directors, as on 31s1 March, 2010, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March, 2010 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with
Significant Accounting policies and notes thereon 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 ;
(a) in the case of the Balance Sheet, of the State of Affairs of the
Company as at 31st March, 2010;
(b) in the case of the Profit and Loss Account, of the profit of the
Company for the year ended on that date; and
(c) in the case of Cash Flow Statement, of the Cash Flows of the
Company for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
(Referred to in our Report of Even Date)
1. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) As explained to us, physical verification of Fixed Assets was
conducted by the management during the year. In our opinion the
frequency of physical verification is reasonable having regard to the
size of the operation of the Company. According to the information and
explanation given to us no material discrepancies was noticed on such
verification.
(c) The Company has not disposed off any Substantial part of Fixed
Assets during the year.
2. (a) As explained to us, during the year , the management has
conducted physical verification of inventories at regular intervals,
the frequency of which, in our opinion, are reasonable and adequate in
relation to the size of the Company and nature of its business. (b)
The procedures for the physical verification of inventories followed by
management are reasonable and adequate . in relation to the size of the
Company and the nature of its business.
(c) In our opinion, the Company has maintained proper records in
respect or inventories. We have been explained that no material
discrepancies were noticed on physical verification of inventories,
when compared with their book balance.
3. (a) During the year under review, 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. Consequently requirements of clauses (iiia), (iiib), (iiic)
and (iiid) of paragraph 4 of the order are not applicable.
(b) (a) During the year under review, the Company has taken loans from
two parties covered in the register maintained under section 301 of the
Companies Act, 1956. Maximum amount outstanding during the year is Rs.l
11.50 Lacs and year end balance is 99.00 Lacs.
(b) In our opinion, rate of interest and other terms and conditions of
loans, taken by the Company are prima facie not prejudicial to the
interest of the Company.
(c) The Company is regular in paying interest and repayment of
principal amount.
4. In our opinion, and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and nature of its business, for the
purchase of inventory, fixed assets and for sale of goods. In our
opinion, and according . to the information and explanations given to
us, there is no continuing failure to correct major weaknesses in
internal control.
5. (a)To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that
the particulars of contracts or arrangements referred to in Sec. 301 of
the Companies Act, 1956 have been entered in the Register required to
be maintained under that section.
(b) These transactions have been at prices which are reasonable having
regard to the prevailing market prices at the relevanttime.
6. During the the year, the Company has not accepted any deposits from
the public under the directives issued by the Reserve Bank of India and
the provisions of Section 58A and 58AA or any other relevant provisions
of the Companies Act. 1956.
7. The Company has an internal audit system which, in our opinion, is
commensurate with its size and the nature of its business.
8. To the best of our knowledge and according to the information and
explanation given to us, the Central Government has not prescribed
maintenance of cost records under section 209(1 )(d) of the Companies
Act, 1956 for the product of the Company.
9. (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company
has been generally regular in depositing undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income-tax, Custom Duty, Service Tax, Cess
and other applicable statutory dues during the year with the
appropriate authorities, A few minor delays have been noted. However,
at 31st March, 2010 there are no undisputed dues payable, for a period
of more than six months from the date they become payable.
(b)According to the information and explanation given to us, there are
no dues of Income tax, Sales tax. Wealth tax, Excise Duty, Custom Duty,
Service Tax, Cess or any other applicable taxes which have not been
deposited on account of any dispute.
10. The Company does not have any accumulated losses at the end of the
financial year. Also the company has not incurred any cash losses in
the current as well as in the immediately preceding financial year.
11. The Company has not defaulted in repayment of installment of dues
of financial institutions and banks.
12. According to the information and explanations given to us, the
Company ha-, not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other secuniies.
13. Provision of special statutes applicable to Mutual Benefit
Company, Chit Fund Company or Nidhi Company are not applicable to the
company during the year under review.
14. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities. debentures
and other investments during the year under review. The investments of
the company are held in its own name.
15. According to the information and explanations given to us, company
has not given any guarantee for loan taken by others from banks and
Financial Institutions.
16. In our opinion, the term loans disbursed by bank during the year
as well as those taken in earlier years have been applied for the
purpose for which they have been obtained.
17. According to the Cash-flow statement and other records examined by
us and the information and explanations given to us, on an overall
basis, funds raised on short term basis have not, prima facie, been
used during the year for long term investment.
18.The Company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under section
301 of the Companies Act, 1956.
19. The Company has not issued any debentures during the year. Hence
reporting on the question of scrutinization do not arise.
20. The Company has not raised any money by way of public issues
during the year.
21. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the year
ended March 31, 2010.
FOR C. R. SHAREDALAL & CO.,
CHARTERED ACCOUNTANTS
PLACE : AHMEDABAD FIRM REGN. NO. 109943w
(J.K.PATEL)
DATE : July 29, 2010 PARTNER
MEMBERSHIP NO.047136