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Auditor Report of Atharv Enterprises Ltd.

Mar 31, 2016

INDEPENDENT AUDITOR''S REPORT

To,

The Members,

ATHARV ENTERPRISES LIMITED Report on the Financial Statements

We have audited the accompanying financial statements of ATHARV ENTERPIRSES LlMITED("the Company"), which comprise the Balance Sheet as at March 31, 2016, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting polides and other explanatory information.

Management''s Responsibility For the Financial Statements

The Company''s Board of Directors is responsible for the matters 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 the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and

detecting the 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 internal financial control, that were operating effectively for ensuring the accuracy and completeness of the accounting 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.

Auditors 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 there under.

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 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 contract relevant to the Company''s preparation of the financial statements that give true and fair view 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 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;

a- In the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2016

b. In the case of profit and Loss Account, of the PROFIT of the Company for the year ended on that date.

c. in the case of the Cash Row 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, 2016 issued by the Company Law Board in terms of Section 143 (11) of the Act., We annexed hereto a statement on the matters specified in the paragraphs 3 and 4 of the said order to the extent they are applicable in the company.

2. Further to our comments in the Annexure referred to in paragraph 1 above:-

(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) Jn our opinion, proper books ol account as required by taw have been kept by the company, so far as appears from our examination of the books,

(c) The Balance Sheet, profit and Loss Account and cash flow statement dealt with by this report are in agreement with the books of account.

(d) In our opinion, the aforesaid standalone 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 31,03,2016 taken on record by the Board of Directors, we report that none of the directors 1s disqualified as on March 31, 2016 from being appointed as a Director in terms of Section 164 (2) of the Act, and;

(f) With respect to the other matters included in the Auditor''s Report and to the best of. our information and according to the explanations given to us:

(g) With respect to the other matters included in the Auditor''s Report and to the bestows our information and according to the explanations given to us:

1. The Company does not have any pending litigations which would impact its financial position.

ii. The Company did not have any long- term contracts including derivatives which there were any material foreseeable losses.

iii. The Company is not liable for contribution to the investor Education and protection fund.

1. In respect of its assets

a) The Company has maintained ... records showing full particulars including quantitative details of Fixed Assets. One of the Cars still stands registered in the of erstwhile directors of the company.

b) As explained to us, fixed assets have been physically verified by the management during the year, which in our opinion is reasonable, having regard to the size of the Company and nature of the assets. No material discrepancies were noticed in such physical verification.

2, I n respect of 1 n ventories:

a) As explained to us, inventories have been physically verified by the management at regular intervals during the year.

b) In our opinion, and according to information and explanation given to us, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business,

c) The Company has maintained proper records of inventories. As explained to us, there were no material discrepancies noticed on physical verification of inventory as compared to the book records.

3- The Company has. not granted any loans, secured or unsecured, to companies, firms or other parties covered in the registered maintained under Section 189 of the Companies Act, 2013.

4. In our opinion and according to our information and explanation given to us, there are adequate internal control procedure commensurate with the size of the Company and the nature of its business for the purchase of inventory, fixed assets and also for the sale of the goods. During the course of our audit, we have not observed any major weaknesses in internal controls.

5. The Company has not accepted any deposits from the public.

6. The Central Government has not prescribed maintenance of Cost Records under Section 209, <1) (d) of the Companies Act, 1956 for the company.

7. h respect of statutory dues:

a) According to the records of the Company undisputed statutory dues including Income-Tax, sales tax and other statutory dues have been generally regularly

7. In respect of statutory dues:

a) According to the records of the Company undisputed statutory dues Including Income-Tax, sales tax and other statutory dues have been generally regularly deposited with the appropriate authorities. However there are some major delays in depositing TDS. According to the information and explanation given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31 March, 2016 for a period of more than six months from the date of becoming payable. The company is not liable to Provident fund, Investor " Education and Protection Fund, ESI, Wealth Tax, Custom Duty and Cess as certified by the company.

8. The accumulated losses of the '' company are not more than fifty percent of its worth Company at the end of the financial year under report and has not incurred any cash losses during the financial year covered by our audit or in the immediately preceding financial year.

9. The company has not defaulted in repayment of dues to banks. It does not have any liabilities towards financial institution or debenture holders.

10. Based on our audit procedures and as per information given to us the Company has not given guarantees for loans taken by others from banks or financial institutions.

11. Based on our audit procedures and as per information given to us the company has not raised any term loans during the year.

12. in our opinion and according to the information and explanation given to us, no fraud on /or by the Company has been noticed or reported during the year , that causes the financial statement to be materially misstated.

Sanjay M. Vhanbatte Proprietor M. NO. 044808

We have audited the internal financial controls over financial reporting of ATHARV ENTERPRISES PRIVATE LIMITED the Company) as of March 31, 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

REPORT ON THE INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING UNDER CLAUSE (i) OF SUB-SECTION 3 OF SECTION 143 OF THE COMPANIES ACT, 2013 {"THE ACT'')

MANAGEMENTS RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS The Company''s management is responsible for establishing and maintaining internal control based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") issued by the Institute of Chartered Accountants of India. These responsibilities include the design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation if reliable financial information, as required under the Companies Act, 2013.

AUDITORS’ RESPONSIBILITY

Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013 to the extent applicable to an audit of internal financial controls* Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence I about the adequacy of the internal financial. controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. 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.

We believe that the audit evidence we have obtained is sufficient and I appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.

meaning OF INTERNAL FINANCIAL

controls over financial reporting

A company''s internal financial control lover financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transaction are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and payments of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance .regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company''s assets that could have a material effect on the financial statements.

INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL

reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Disclaimer of Opinion

According to the information and explanations given to us, the company does not have documented framework of internal financial control over financial reporting on criteria based on or considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. On an overall examination of accounting procedure and financial reporting it is observed '' that the information system used by the company does not have sufficient checks and controls with regard to Internal financial control over financial reporting. Because of this reason, we are unable to obtain sufficient appropriate audit evidence to provide a basis for our opinion whether the Company had adequate internal financial controls over financial reporting and whether such internal financial controls were operating effectively as at March 31, 2016.

We have considered the disclaimer reported above in determining the nature, timing, and extent of audit tests applied in our audit of the financial statements of the Company, and the disclaimer does not affect our opinion on the financial statements of the Company

1. In respect of its fixed assets :

a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.

b) As informed to us, the fixed assets have been physically verified by the management during the year in a phased periodical manner, which in our opinion is reasonable having regard to the size of the company and nature of its assets. No material discrepancies were noticed on such physical verification.

c) The title deeds of immovable properties are held in the name of the company,

2. In respects of its inventories:

a) As explained to us, inventories have been physically verified by the management at regular intervals during the year.

b) As explained to us, there were no material discrepancies noticed on physical verification of inventory as compared to the book records.

3. Loans Given By Company:

The Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability parties covered in the Register maintained under section 189 of the Act. Accordingly, the provisions of clause 3 (a) to

4. Loans To Directors And Loans & investments By Company:

in our opinion and according to the information and explanations given to us, the company has not granted any loans, made any investments, provided any guarantees or given any security attracting the provisions of section 185 and 186 of the Companies Act, 2013,

5. Acceptance of Deposits:

The Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with regard to the deposits accepted from the public are not applicable.

6. Maintenance Of Cost Record-

The company is not liable to maintain cost records.

7. in respect of statutory dues;

a) According to the records of the Company, undisputed statutory dues including Income Tax and Sales Tax have been generally regularly deposited with the appropriate authorities except for some delays in depositing the TDS. According to the information and explanations given

to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31st March, 2016 for a period of more than six months from the date of becoming payable except the following:

b) The company is not liable to pay provident Fund, Excise duty, Service Tax, Employees State Insurance, Customs Duty and other Statutory dues.

There were no disputed tax liabilities which were outstanding.

8. Default In Repayment Of Loan And Borrowing: ..

In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowing dues to banks. The Company has not taken any loan either from financial institutions or from the government and has not issued any debentures.

9, Application Of Funs Raised;

Based upon the audit procedures performed and the information and explanations given by the management, the company has not raised moneys byway of initial public offer or further public offer including debt instruments. The terms loans raised by the company have been applied for the purpose for which they have been raised.

10. Fraud:

Based upon the audit procedures performed and the information and explanations given by the management, we report that no fraud by the Company or on the company by its officers or employees has been noticed or reported during the year.

11. Managerial Remuneration:

- Based upon the audit procedures

- performed and the information and

- explanations given by the

- management, the managerial

- remuneration has been paid or

- provided in accordance with the

- requisite approvals mandated

- by the provisions of section 197 read

- with Schedule V to the Companies

- Act.

- 12. Deposits Of Nidhi Company;

- In our opinion, the Company is not a

- Nidhi Company. Therefore, the

- provisions of clause 4 (xii) of the H Order are not applicable to the

II company.

13. Related Party Transaction:

In our opinion, ail transactions with I the related parties are in compliance I with section 177 and 188 of Companies Act, 2013 and the details have been disclosed in the Financial ,Statement as required by the applicable accounting standards.

14. Issue Of Preference Shares Or Partly Convertible Debentures:

Based upon the audit procedure performed and the information and P explanations given by the D management, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of clause 3 (xiv) of the Order are not applicable to the Company and hence not commented upon,

15 - Non -Cash Transactions With Directors:

Based upon the audit procedures and the information and explanations given by the management, the company has not entered into any non-cash transactions with directors I or persons connected with him. Accordingly, the provisions of clause 3 (xv) of the Order are not applicable to the Company and hence not commented upon.

16. Registration With Reserve Bank Of India:

In our opinion, the company is required to be registered under section 45 IA of the Reserve Bank of India Act, 1934 but the company has not obtained such registration as on the date of this report.

To Board of Directors of ATHARV ENTERPRISES LIMITED

We have audited the accompanying Statement Standalone financial results ("the statement") of ATHARV ENTERPRISES LIMITED for the year ended 31,03,2016, attached herewith, being submitted by the company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This financial statements j which is the responsibility of the Company''s management and approved by the Board of Directors, has been prepared on the basis of related financial statements which are in accordance with the Accounting Standard prescribed, under Section 133 of the Companies Act, 2103, as applicable and other accounting principles generally accepted in India, Our responsibility is to express an opinion on the Statement.

We conducted our- audit in accordance with the auditing standards generally accepted in India. Those Standards require that we comply with ethical requirements and we plan and perform the audit to obtain reasonable assurance that the Statement is free of material misstatement(s).

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Statement. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the Statement, 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 statement 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 Company''s internal control. An audit An audit also includes evaluating appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the management, as well as evaluating the overall presentation of the statement.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

In our opinion and to the best of our information and according to the explanations given to us the statement:

i. Is presented in accordance with the requirements of Regulation 33 of the SEBI (listening Obligations and Disclosure Requirements) Regulations, 2015 in this regard; and

ii. gives a true and fair view in conformity with the aforesaid Accounting Standards and other accounting principles generally accepted in India of the net profit and other financial information of the company for the year ended 31,03,2016.

ATHARV ENTERPRISES LIMITED -ANNUAL ACCOUNTS - 2015 - 16

The Statement includes the results for the Quarters ended March 31 , 2016 and March 31 , 2015 being the balancing figures between the audited figures in respect of the full financial year and the audited year to date figures up to the third quarter of the relevant financial year.

For and on behalf of

SAN JAY VHANBATTE & CO.

Chartered Accountants

FRN:112996 W

Place: Kolhapur

Date: 30.05,2016


Mar 31, 2015

We have audited the accompanying financial statements of ATHARV ENTERPIRSES LIMITED ("the Company"), which comprise the Balance Sheet as at March 31, 2015, 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

The Company's Board of Directors is responsible for the matters 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 the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and

detecting the 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 internal financial control, that were operating effectively for ensuring the accuracy and completeness of the accounting 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.

Auditors 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 there under.

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 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 true and fair view 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 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;

a. In the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2015

b. In the case of profit and Loss Account, of the PROFIT of the Company for the year ended on that date.

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, 2015 issued by the Company Law Board in terms of Section 143 (11) of the Act. , We annexe hereto a statement on the matters specified in the paragraphs 3 and 4 of the said order to the extent they are applicable in the company.

2. Further to our comments in the Annexure referred to in paragraph 1 above:-

(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 appears from our examination of the books.

(c) The Balance Sheet, profit and Loss Account and cash flow statement dealt with by this report are in agreement with the books of account.

(d) In our opinion, the aforesaid s t andalone 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 31.03.2015 taken on record by the Board of Directors, we report that none of the directors is disqualified as on March 31, 2015 from being appointed as a Director in terms of Section 164 (2) of the Act, and;

(f) With respect to the other matters included in the Auditor's Report and to the best of our information and according to the explanations given to us :

i. The Company does not have any pending litigations which would impact its financial position.

ii. The Company did not have any long-term contracts including derivatives contracts for which there were any material foreseeable losses.

iii. The company is not liable for contribution to the Investor Education and Protection Fund.

FINANCIAL YEAR ENDING 31ST MARCH, 2015

ANNEXURE TO THE AUDITORS REPORT

(Referred to in paragraph 1 of our Report of even date)

1. In respect of its assets

a) The Company has maintained records showing full particulars including quantitative details of Fixed Assets. One of the Cars still stands registered in the name of erstwhile directors of the company.

b) As explained to us, fixed assets have been physically verified by the management during the year, which in our opinion is reasonable, having regard to the size of the Company and nature of the assets. N o m a t e r i a l discrepan cies were noticed in such physical verification.

2. In respect of Inventories :

a) As explained to us, Inventories have been physically verified by the management at regular intervals during the year.

b) In our opinion, and according to inform at ion a nd explanation given to us, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its usiness.

c) The Company has maintained proper records of inventories. As explained to us, there were no material discrepancies noticed on physical verification of inventory as compared to the book records.

3. The Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the registered maintained under Section 189 of the Companies Act, 2013.

4. In our opinion and according to our information and explanation given to us, there are adequate internal control procedure commensurate with the size of the Company and the nature of its business for the purchase of inventory, fixed assets and also for the sale of the goods. During the course of our audit, we have not observed any major weaknesses in internal controls.

5. The Company has not accepted any deposits from the public.

6. The Central Government has not prescribed maintenance of Cost Records under Section 209, (1) (d) of the Companies Act, 1956 for the company.

7. In respect of statutory dues :

a) According to the records of the Company undisputed statutory dues including Income-Tax, sales tax and other statutory dues have been generally regularly

7. In respect of statutory dues :

a) According to the records of the Company undisputed statutory dues including Income-Tax, sales tax and other statutory dues have been generally regularly deposited with the appropriate authorities. However there are some major delays in depositing TDS. According to the information and explanation given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31 March, 2015 for a period of more than six months form the date of becoming payable. The company is not liable to Provident fund, Investor Education and Protection Fund, ESI, Wealth Tax, Custom Duty and Cess as certified by the company.

b) The disputed dues of the company which are outstanding are as under:

Vat Liability for 2009-10 and 2010-11 Rs.3,44,283/- 8. The accumulated losses of the company are not more than fifty percent of its worth Company at the end of the financial year under report and has not incurred any cash losses during the financial year covered by our audit or in the immediately preceding financial year.

9. The company has not defaulted in repayment of dues to banks. It does not have any liabilities towards financial institution or debenture holders.

10. Based on our audit procedures and as per information given to us the Company has not given guarantees for loans taken by others from banks or financial institutions.

11. Based on our audit procedures and as per information given to us the company has not raised any term loans during the year.

12. In our opinion and according to the information and explanation given to us, no fraud on /or by the Company has been noticed or reported during the year , that causes the financial statement to be materially misstated.

For and on behalf of SANJAY VHANBATTE & CO. Chartered Accountants FRN: 112996 W

Place: Kolhapur

Date : 29.05.2015 Sanjay M. Vhanbatte Proprietor M.NO.044808


Mar 31, 2014

We have audited the accompanying financial statements of ATHARV ENTERPIRSES 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 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") 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 and in accordance with the accounting principles generally accepted in India. 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.

Auditors 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 Company''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 qualified audit opinion.

Qualified 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 Profit and Loss Account, 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 and the profit & Loss Account dealt with by this report are in compliance with the Accounting Standards notified under 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.

e) On the basis of written representations received from the directors concerned 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 Act.

f) Since the Central Government has not issued any notification as to the rate at which the cess is to be paid under section 441A of the Companies Act, 1956 nor has it issued any Rules under the said section, prescribing the manner in which such cess is to be paid, no cess is due and payable by the Company

FINANCIAL YEAR ENDING 31ST MARCH, 2014 ANNEXURE TO THE AUDITORS REPORT (Referred to in paragraph 1 of our Report of even date)

1. In respect of its assets

a) The Company has maintained records showing full particulars including quantitative details of Fixed Assets. Cars and the loans taken in respect there of are in the individual names of the directors.

b) As explained to us, fixed assets have been physically verified by the management during the year, which in our opinion is reasonable, having regard to the size of the Company and nature of the assets. No material discrepancies were noticed in such physical verification.

c) In our opinion, the Company has not disposed of substantial part of fixed assets during the year and the going concern status of the Company is not affected.

2. In respect of Inventories :

a) As explained to us, Inventories have been physically verified by the management at regular intervals during the year.

b) In our opinion, and according to information and explanation given to us, the procedures of physical v e r i f i c a t i o n o f i n v e n t o r i e s f o llowed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

c) The Company has maintained proper records of inventories. As explained to us, there were no material discrepancies noticed on physical verification of inventory as compared to the book records.

3. In respect of loans, secured or unsecured, granted by the Company to /from companies, firms or other parties covered in the registered maintained under Section 301 of the Companies Act,1956 :

a) The Company has not given any loans to parties listed in the register maintained under Section 301.

b) The Company has not taken any loans from parties listed in the register maintained under Section 301.

4. In our opinion and according to our information and explanation given to us, there are adequate internal control procedure commensurate with the size of the Company and the nature of its business for the purchase of inventory, fixed assets and also for the sale of the goods. During the course of our audit, we have not observed any major weaknesses in internal controls.

5. In respect of transactions covered under Section 301 of the Companies Act,1956 :

a) In our opinion and according to the information and explanation given to us, the transactions made in purchase of contracts on arrangements, that under Section 301 of the Companies Act, 1956 have been so entered.

b) In our opinion and to the best of our information and knowledge the transactions have been made at prices which appear as per information available with the company.

6. The Company has not accepted any deposits from the public.

7. In our opinion, the Company has an internal audit system commensurate with the size and nature of its business.

8. The Central Government has not prescribed maintenance of Cost Records under Section 209, (1) (d) of the Companies Act, 1956 for the company.

9. In respect of statutory dues :

a) According to the records of the Company undisputed statutory dues including Income-Tax, sales tax and other statutory dues have been generally regularly deposited with the appropriate authorities except for some minor delays in depositing TDS. According to the information and explanation given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31 March, 2014 for a period of more than six months form the date of becoming payable. The company is not liable to Provident fund, Investor Education and Protection Fund, ESI, Wealth Tax, Custom Duty and Cess as certified by the company.

10. The accumulated losses of the company are not more than fifty percent of its worth Company at the end of the financial year under report and has not incurred any cash losses during the financial year covered by our audit or in the immediately preceding financial year.

11. The company has not defaulted in repayment of dues to banks. It does not have any liabilities towards financial institution or debenture holders.

12. In our opinion and according to the information and explanation give to us, no loans and advances have been granted by the company on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opinion, 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 maintained proper records of the transactions and contracts of dealing in shares, securities, debenture and other investments with timely entries having been made therein.

15. Based on our audit procedures and as per information given to us the Company has not given guarantees for loans taken by others from banks or financial institutions.

16. Based on our audit procedures and as per information given to us the company has not raised any term loans during the year.

17. According to the information and explanations given to us and on overall examination of the Balance Sheet of the Company, we are of the opinion that the company has not utilized any short term resources for investment in long term assets.

18. In our opinion and to the best of our information and knowledge, the company has not made any preferential allotment of shares during the year.

19. The Company has not issued any debentures.

20. The Company has not raised any money by way of public issue during the year.

21. In our opinion and according to the information and explanation given to us, no fraud on /or by the Company has been noticed or reported during the year, that causes the financial statement to be materially misstated.

For and on behalf of

SANJAY VHANBATTE & CO. Chartered Accountants FRN: 112996 W

Place: Kolhapur Date : 27.05.2014

Sanjay M. Vhanbatte Proprietor M.No. 044808


Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying financial statements of ATHARV ENTERPRISES LIMITED (the Company"), which comprise the Balance Sheet as at March 31,2913, 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 ami 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 fair presentation of the financial statements that 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 ihe 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 poBdes 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 qualified audit opinion.

Basis for Qualified Opinion

The Company has invested in the shares of a company incorporated in Srilanka M/s. Sunchemie Industries P Ltd at Rs..9,17,421.24. No provision has been made in respect of this investment though recovery in respect of this investment is uncertain.

Qualified Opinion

In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, 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. m the case of the Balance Sheet of the state of affairs of the Company as at March 31,2013;

b. in the case of the Profit and Loss Account 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 Oder") 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 mat

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) Exceptfbrtheeffectsofthematterdescribedin the Basis for Qualified Opinion paragraph, in our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Row Statement comply with the accounting standards referred to in sub-section (3C) of section 211 oftheAct;

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 274of the Act

f) Since the Central Government has not issued any notification as to the rate at which the cess is to be paid under section 441A of the Companies Act, 1956 nor has it issued any Rules under the said section, prescribing the manner in which such cess is to be paid, no cess is due and payable by the Company

ANNEXURE TO THE AUDITORS REPORT

(Referred to in paragraph 1 of our Report of even date)

1. in respect of its assets

a) The Company has maintained records showing fuli particulars including quantitative details of Fixed Assets. One Car in the individual name of the director.

b) As explained to us, fixed assets have been physically verified by the management during toe year, which in our opinion is reasonable, having regard to the size of the Company and nature of the assets. No material discrepancies were noticed in such physical verification.

c) In our opinion, the Company has not disposed of substantial part of fixed assets during the year and the going concern status of the Company is not affected.

2. in respect of Inventories:

a) As explained to us, Inventories have been physically verified by the management at regular intervals during the year.

b) In our opinion, and according to information and explanation given to us, toe procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to toe size of the Company and the nature of its business.

c) The Company has maintained proper records of inventories. As explained to us, there were no material discrepancies noticed on physical verification of inventory as compared to the book records.

3. In respect of loans, secured or unsecured, granted by the Company to /from companies, firms or other parties covered in the registered maintained under Section 301 of the CompaniesAct,1956:

a) The Company has not given any loans to parties listed in the register maintained under Section 301.

b) The Company has not taken any loans from parries listed in the register maintained under Section 301.

4. In our opinion and according to our inforrnation and explanation given to us, there are adequate internal control procedure commensurate with the size of the Company and the nature of its business for the purchase of inventory, fixed assets and also for the sale of the goods. During the course of our audit, we have not observed any major weaknesses in internal controls.

5. in respedoffransadtors covered uriderSed^ 301 of the Companies Act.1956:

a) in our optoion and according to the inforrnation and explanation given to us, the transactions made in purchase of contracts on arrangements, that under Section 301 of the Companies Act, 1956 have been so entered.

b) In our opinion and to the best of our irjfctmafion and knowledge the transactions have been made at prices which appear as per irrrbrmafjon available with the company.

6. The Company has not accepted any deposits from the public.

7. In our opinion, the Company has an internal audit system commensurate with the size and nature of its business.

8. The Central Government has not prescribed maintenance of Cost Records under Section 209,(1) (d) of the Compantes Act, 1956 for the company.

9. In respect of statutory dues:

a} According to the records of the Company undisputed statutory dues including Income- Tax, sales tax and other statutory dues have been generally regularly deposited with the appropriate authorities except for some minor delays in depositing TDS. According to the irrformatjon and explanation given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31 March, 2013 for a period of more than six months form the date of becoming payable. The company is not liable to Provident fund, Investor Education and Protection Fund, ESI, Wealth Tax, Custom Duty and Cess as certified by the company.

10. The accumulated losses of the company are not more than fifty percent of its worth Company at the end of the finance year under report and has not incurred any cash losses during the financial year covered by our audit or in the immediately preceding financial year.

11. Thea>mpanyhasrx>tdetauitedinrepaymentofdues to banks. It does not have any liabilities towards financial institution or debenture holders.

12. In our opinion and according to toe information and explanation give to us, no loans and advances have been granted by the company on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opwon, the Company is not a chit fund or a nidhi / mutual benefit fund / Society. Therefore clause 4 (xfii) of ihe Companies (Auditors Report) Order 2003 is not applkatotetothe Company.

14. TheCompany hasmaintained properrecordsofthe transactions and contracts of dealing in shares, securities, debenture and other investments with timely entries having been made therein.

15. Based on our audit procedures and as per information given to us the Company has not given guarantees for loans taken by others from banks or financial institutions.

16. Based on our audit procedures and as per information given to us the company has not raised any term loans during the year.

17. According to the information and explanations given to us and on overall examination of the Balance Sheet of the Company, we are of the opinion that the company has not utilized any short term resources forinvestment in long term assets.

18. InowopinicflarKltothebestofourinformatkMiand knowledge, the prices at which the Company has made preferential allotment of shares to parties and companies covered in the Register maintained under section 301 of the Companies Act,1956 are not prejudicial to the interest of the company.

19. The Company has not issued any debentures.

20. The Company has not raised any money by way of public issue during theyear.

21. In our opinion and according to the information and explanation given to us, no fraud on /or by the Company has been noticed or reported during the year, that causes the financial statement to be materially misstated.

For and on behalf of

SANJAY VHANBATTE & CO.

Chartered Accountants

FRN: 112996 W

Sd/-

Sanjay M. Vhanbatte

Proprietor

M. No. 044808

Place: Kothapur

Date: 14th June, 2013


Mar 31, 2012

We have audited the attached Balance Sheet of ATHARV ENTERPRISES LIMITED as at March 31,2012 and also the Profit and Loss Account of the Company for the year ended on that date, annexed thereto. 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 amount 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.

1. As required by the Companies (Auditor's Report) Order, 2003 issued by the Central Government in terms of Section 227 (4A) of the Companies Act, 1956, we give in the Annexure a statement on the matters specified in 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 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 appears from examination of the books.

c) The Balance Sheet and Profit and Loss account dealt with by this report are in agreement with the books of account.

d) In our opinion, the Balance Sheet and Profit and Loss Account dealt with by this report comply with the Accounting standards referred to in sub-section (3 C) of Section 211 of the Companies Act, 1956 as are applicable to the company.

e) On the basis of confirmations received from the directors concerned 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 under clause (g) of Sub-section (1) of Section 274 of the Companies Act, 1956.

f) i. No provision has been made in respect of the following receivables/investments recovery in respect of which is highly irregular and uncertain:

1. Sunchemie Industries P Ltd Rs. 9,17,421.24

ii. Attention is invited to Note No.14 in respect of Employee Benefits.

Subject to the comments there in, in our opinion and to the best of our information and according to the explanation given to us, the said accounts read together with Notes thereon, give the information required by the Companies Act, 1956 in the manner so required and give a true fair view in conformity with the accounting principles generally accepted in India.

iii. In the case of the Balance Sheet, of the state of affairs of the Company as at March 31,2012.

iv. In the case of Profit and Loss Accounts, of the Profit for the year ended on the date and

v. In so far as it relates to the Cash Flow Statement of the Cash Flow of the Company for the year ended on that date.

ANNEXURE TO THE AUDITORS REPORT

(Referred to in paragraph 1 of our Report of even date)

1. In respect of its assets

a) The Company has maintained records showing full particulars including quantitative details of Fixed Assets. Cars and the loans taken in respect there of are in the individual names of the directors.

b) As explained to us, fixed assets have been physically verified by the management during the year, which in our opinion is reasonable, having regard to the size of the Company and nature of the assets. No material discrepancies were noticed in such physical verification.

c) In our opinion, the Company has not disposed of substantial part of fixed assets during the year and the going concern status of the Company is not affected.

2. In respect of Inventories:

a) As explained to us, Inventories have been physically verified by the management at regular intervals during the year.

b) In our opinion, and according to information and explanation given to us, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

c) The Company has maintained proper records of inventories. As explained to us, there were no material discrepancies noticed on physical verification of inventory as compared to the book records.

3. In respect of loans, secured or unsecured, granted by the Company to/from companies, firms or other parties covered in the registered maintained under Section 301 of the Companies Act,1956:

a) The Company has not given any loans to parties listed in the register maintained under Section 301.

b) The Company has taken following loans from parties listed in the register maintained under Section 301. However no interest is paid to these parties.

Balance Maximum Outstanding Balance As at 31-03-2012 outstanding during the year

J C Gadia (Director) 4,25,000 4,25,000

Green Fuel Tech 19,28,606 19,28,606

(Partnership Concern where Company is Partner)

c) In our opinion and according to our information and explanation given to us, the terms and conditions on which the loans are taken are not, prima facie, prejudicial to the interest of the Company.

d) Since the said loans being payable on demand and being interest free the question of regularity of payment of interest/principle does not arise.

e) There are no overdue amounts in respect of loans taken by the Company.

4. In our opinion and according to our information and explanation given to us, there are adequate internal control procedure commensurate with the size of the Company and the nature of its business for the purchase of inventory, fixed assets and also for the sale of the goods. During the course of our audit, we have not observed any major weaknesses in internal controls.

5. In respect of transactions covered under Section 301 of the Companies Act, 1956:

a) In our opinion and according to the information and explanation given to us, the transactions made in purchase of contracts on arrangements, that under Section 301 of the Companies Act, 1956 have been so entered.

b) In our opinion and to the best of our information and knowledge the transactions have been made at prices which appear as per information available with the company.

6. The Company has not accepted any deposits from the public.

7. In our opinion, the Company has an internal audit system commensurate with the size and nature of its business.

8. The Central Government has not prescribed maintenance of Cost Records under Section 209, (1) (d) of the Companies Act, 1956 for the company.

9. In respect of statutory dues:

a) According to the records of the Company undisputed statutory dues including Income-Tax, sales tax and other statutory dues have been generally regularly deposited with the appropriate authorities except for some minor delays in depositing TDS. According to the information and explanation given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31 March, 2012 for a period of more than six months form the date of becoming payable. The company is not liable to Provident fund, Investor Education and Protection Fund, ESI, Wealth Tax, Custom Duty and Cess as certified by the company.

10. The accumulated losses of the company are not more than fifty percent of its worth Company at the end of the financial year under report and has not incurred any cash losses during the financial year covered by our audit or in the immediately preceding financial year.

11. The company has not defaulted in repayment of dues to banks. It does not have any liabilities towards financial institution or debenture holders.

12. In our opinion and according to the information and explanation give to us, no loans and advances have been granted by the company on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opinion, 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 maintained proper records of the transactions and contracts of dealing in shares, securities, debenture and other investments with timely entries having been made therein. Certain shares are not in the name of the company inasmuch as they stand given as a security for financial facilities/credit trade facilities.

15. Based on our audit procedures and as per information given to us the Company has not given guarantees for loans taken by others from banks or financial institutions.

16. Based on our audit procedures and as per information given to us the company has not raised any term loans during the year.

17. According to the information and explanations given to us and on overall examination of the Balance Sheet of the Company, we are of the opinion that the company has not utilized any short term resources for investment in long term assets.

18. In our opinion and to the best of our information and knowledge, the prices at which the Company has made preferential allotment of shares to parties and companies covered in the Register maintained under section 301 of the Companies Act, 1956 are not prejudicial to the interest of the company.

19. The Company has not issued any debentures.

20. The Company has not raised any money by way of public issue during the year.

21. In our opinion and according to the information and explanation given to us, no fraud on /or by the Company has been noticed or reported during the year, that causes the financial statement to be materially misstated.



For and on behalf of SANJAY VHANBATTE & CO. Chartered Accountants FRN: 112996 W

Sanjay M. Vhanbatte Proprietor M.NO. 044808

Place: Kolhapur Date : 14.06.2012


Mar 31, 2010

We have audited the attached Balance Sheet of ATHARV ENTERPRISES LIMITED as at March,31, 2010 and also the Profit and Loss Account of the Company for the year ended on that date, 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 misstatement. An audit includes examining, on a test basis, evidence supporting the amount 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.

1. As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government in terms of Section 227 (4A) of the Companies Act, 1956, we give in the annexure a statement on the matters specified in 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 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 appears from examination of the books.

c) The Balance Sheet and Profit and Loss account dealt with by this report are in agreement with the books of account.

d) In our opinion, the Balance Sheet and Profit and Loss Account dealt with by this report comply with the Accounting standards referred to in sub-section (3 C) of Section 211 of the Companies Act,1956 as are applicable to the company.

e) On the basis of confirmations received from the directors concerned and taken on record by the Board of Directors, we report that none of the directors is disqualified as on March,31s1 March,2010 from being appointed as a Director under clause (g) of Sub-section (1) of Section 274 of the Companies Act,1956.

f) Attention is invited to Note No.14 in respect of Employee Benefits and to Note No. B (4) Subject to the comments there in, in our opinion and to the best of our information and according to the explanation given to us, the said accounts read together with Notes thereon, give the information required by the Companies Act, 1956 in the manner so required and give a true fair view in conformity with the accounting principles generally accepted in India. i. In the case of the Balance Sheet, of the state of affairs of the Company as at March,31,2010. ii. In the case of Profit and Loss Accounts, of the Profit for the year ended on the date and iii. In so far as it relates to the Cash Flow Statement of the Cash Flow of the Company for the year ended on that date.

FINANCIAL YEAR ENDING 31st MARCH,2010 ANNEXURE TO THE AUDITORS REPORT (Referred to in paragiaph 1 of our Report of even date)

1. In respect of its assets

a) The Company has maintained records showing full particulars including quantitative details of Fixed Assets. Cars and the loans taken in respect there of are held in the individual names of the directors.

b) As explained to us, fixed assets have been physically verified by the management during the year, which in our opinion is reasonable, having regard to the size of the Company and nature of the assets. No material discrepancies were noticed in such physical verification.

c) In our opinion, the Company has not disposed of substantial part of fixed assets during the year and the going concern status of the Company is not affected.

2. In respect of Inventories :

a) As explained to us, Inventories have been physically verified by the management at regular intervals during the year.

b) In our opinion, and according to information and explanation given to us, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

c) The Company has maintained proper records of inventories. As explained to us, there were no material discrepancies noticed on physical verification of inventory as compared to the book records.

3. In respect of loans, secured or unsecured, granted by the Company to /from companies, firms or other parties covered in the registered maintained under Section 301 of the Companies Act,1956 : J

a) The Company has not given loans to parties listed in the register maintained under Section 301.

b) The Company has taken following loans from parties listed in the register maintained under Section 301.

Balance Maximum Outstanding Balance As at 31-03-2010 outstanding during year

Jai Enterprises 39,57,024.97 39,57,024.97

c) In our opinion and according to our information and explanation given to us, the terms and conditions on which the loans are taken are not, prima facie, prejudicial to the interest of the Company.

d) Since the said loans being payable on demand and being interest free the question of regularity of payment of interest / principle does not arise.

e) There are no overdue amounts in respect of loans taken by the Company.

4. In our opinion and according to our information and explanation given to us, there are adequate internal control procedure commensurate with the size of the Company and the nature of its business for the purchase of inventory, fixed assets and also for the sale of the goods. During the course of our audit, we have not observed any major weaknesses in internal controls.

5. In respect of transactions covered under Section 301 of the Companies Act, 1956 :

a) In our opinion and according to the information and explanation given to us, the transactions made in purchase of contracts on arrangements, that under Section 301 of the Companies Act, 1956 have been so entered.

b) In our opinion and to the best of our information and knowledge the transactions have been made at prices which are reasonable having regard to the prevailing market prices at relevant times.

6. The Company has not accepted any deposits from the public.

7. In our opinion, the Company has an internal audit system commensurate with the size and nature of its business.

8. The Central Government has not prescribed maintenance of Cost Records under Section 209, ( 1 ) ( d) of the Companies Act,1956 for the company.

9. In respect of statutory dues :

a) According to the records of the Company undisputed statutory dues including Income-Tax, sales tax and other statutory dues have been generally regularly deposited with the appropriate authorities except for some minor delays in depositing TDS. According to the information and explanation given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31 March, 2010 for a period of ^ more than six months form the date of becoming payable. The company is not liable to Provident fund, Investor Education and Protection Fund, ESI, Wealth Tax, Custom Duty and Cess as certified by the company.

10. The accumulated losses of the company are not more than fifty percent of its worth Company at the end of the financial year under report and has not incurred any cash losses during the financial year covered by our audit or in the immediately preceding financial year.

11. The company has not defaulted in repayment of dues to banks. It does not have any liabilities towards financial institution of debenture holders.

12. In our opinion and according to the information and explanation give to us, no loans and advances have been granted by the company on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opinion, the Company is not a chit fund or a nidhi / mutual benefit fund / Society. Therefore clause 4 (xiii) of the Companies (Auditors Report) Order.2003 is not applicable to the Company.

14. The Company has maintained proper records of the transactions and contracts of dealing in shares, securities, debenture and other investments with timely entries having been made therein.

15. Based on our audit procedures and as per information given to us the Company has not given guarantees for loans taken by others from banks or financial institutions.

16. Based on our audit procedures and as per information given to us the company has not raised any term loans during the year.

17. According to the information and explanations given to us and on overall examination of the Balance Sheet of the Company, we are of the opinion that the company has not utilized any short term resources for investment in long term assets.

18. During the year, 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.

20. The Company has not raised any money by way of public issue during the year.

21. In our opinion and according to the information and explanation given to us, no fraud on /or by the Company has been noticed or reported during the year , that causes the financial statement to be materially misstated.



For and on behalf of

SANJAY VHANBATTE &CO.

Place:Kolhapur Chartered Accountants

Date: 31.07.2010

Sanjay M. Vhanbatte

Proprietor

M.NO.044808

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