Mar 31, 2015
We have audited the accompanying standalone financial statements of
ATLANTA INFRASTRUCTURE AND FINANCE 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 the significant accounting policies and other explanatory
information.
Management's Responsibility for the Standalone 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 standalone 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 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 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.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
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 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 standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone 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/loss and its cash flows for the
year ended on that date.
Emphasis of Matters
We draw attention to the following matters in the Notes to the
financial statements:
a) Note 30.2 to the financial statements which describes suspension of
trading in the script of the company by BSE with effect from. January
07, 2015 vide BSE notice no.20150101-24 dated 01.01.2015 and follow up
letter no. L/DOSS/1NV/RS/2014-15/SUSP/4 dated 05.02.2015.
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 the paragraph 3 and 4 of the
Order,to the extent applicable.
2. As required by Section 143 (3) ofthe 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
purposes 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 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 the 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; and
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 does not have any pending litigations which would
impact its financial position;
ii, the Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.; and
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 the Independent Auditors' Report
The Annexure referred to in our Independent Auditors' Report to the
members of the Company on the standalone financial statements for the
year ended 31 March 2015, we report that:
[ij (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, all the fixed assets have been physically
verified by the , management 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.
(if) (a) The inventory of the company comprise of equity shares of
listed companies held generally in dematerialized form in demat
accounts with Depository participants. Having regard to the nature of
the inventories, the physical verification of the Demat account
statements of inventories has been conducted at reasonable intervals by
the management. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion and according to the information & explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and according to the information & explanations
given to us, the company has maintained proper records of inventory and
in cases, if any, where any material discrepancies were noticed on
physical verification, the same have been properly dealt with in the
books of account.
[hi) In respect of the loans, secured or unsecured, granted by the
Company to companies, firms or other parties covered in the register
maintained under Section 189 of the Companies Act 2013:
(a) The principal amounts are repayable over varying periods up to five
years, while the interest is payable annually, both at the discretion
of the Company.
(b) In respect of the said loans and interest thereon, there are no
overdue amounts.
[iv) In our opinion and according to the information and explanations
given to us, the Company has an adequate internal control system
commensurate with its size and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in such internal control
system.
(v) According to the information and explanations given to us, the
Company has not accepted any deposit from the public. Therefore, the
provisions of Clause (v) of paragraph 3 of the CARO 2015 are not
applicable to the Company.
(vi) The Central Government has not prescribed the maintenance of cost
records under section 148(1) of the Act, for any of the products of the
Company,
(vii) (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, amounts
deducted/ accrued in the books of account in respect of undisputed
statutory dues including provident fund, income tax, sales tax, wealth
tax, service tax, duty of customs, value added tax, cess and other
material ' statutory dues have been regularly deposited during the year
by the Company with the appropriate authorities. As explained to us,
the Company did not have any dues on account of employees 'state
insurance and duty of excise.
According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, income tax,
sales tax, wealth tax, service tax, duty of customs, value added tax,
cess and other material statutory dues were in arrears as at 31 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, there
are no material dues of wealth tax, duty of customs and cess which have
not been deposited with the appropriate authorities on account of any
dispute.
(c) According to the information and explanations given to us the
amounts which were required to be transferred to the investor education
and protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956] and rules there under has - . been
transferred to such fund within time.
(viii) In our opinion and according to the information and explanations
given to us, the accumulated losses at the end of the financial year
are less than fifty per cent of its net worth. The Company has
incurred cash losses of Rs.10,23,443 during the financial year covered
by the audit but not in the immediately preceding financial year.
(ix) Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to financial institutions, banks and
debenture holders.
(x) In our opinion and according to the information and the
explanations given to us, the Company has not given any guarantee for
loans taken by others from banks or financial institutions.
(xi] The Company did not have any term loans outstanding during the
year.
(xii) In our opinion and according to the information and explanations
given to us, no fraud by the Company and no material fraud on the
Company has been noticed or reported during the year.
For SUMIT MEHTA & CO.
Place : Rajkot. Chartered Accountants
FRN.126680W
Date : 30.05.2015 Sumit M. Mehta
Proprietor
Membership No. 120830
Mar 31, 2014
We have audited the accompanying financial statements of ATLANTA
INFRASTRUCTURE AND FINANCE LIMITED (FORMERLY KNOWN AS KADVANI
SECURITIES 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 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. 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 31st, 2014;
b. in the case of the Statement of Orofit 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 the date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued 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, the Statement of Profit and Loss,
and the 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 274 of
the Companies Act, 1956.
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)
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, the fixed assets have been physically verified
by the management in a phased periodical manner which, in our opinion,
is reasonable having regard to the size of the company and the nature
of its assets. No material discrepancies were noticed on such
verification.
(c) In our opinion, the company has not disposed off any
substantial/major part of its fixed assets during the year and the
going concern status of the company is not affected.
(ii) (a) The inventory of the company comprise of equity shares of
listed companies held generally in dematerialized form in demat
accounts with Depository participants. Having regard to the nature of
the inventories, the physical verification of the Demat account
statements of inventories has been conducted at reasonable intervals by
the management.
(b) In our opinion and according to the information & explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and according to the information & explanations
given to us, the company is maintaining proper records of inventory and
in cases, if any, where any material discrepancies were noticed on
physical verification, the same have been properly dealt with in the
books of account.
(iii) (a) The company has granted loans, secured or unsecured, to the
parties covered in the Register maintained under section 301 of the
Companies Act, 1956.
(b) In our opinion and according to the information & explanations
given to us, aforesaid loans involve interest bearing as well as
interest free loan and advances given in normal course of business
activities and are unsecured.
(c) The parties have generally repaid the principal amounts as
stipulated and have also been regular in payment of interest, if any,
to the company.
(d) There is no overdue amount in excess of Rs. 1 Lakh in respect of
loans granted to companies, firms or other parties listed in the
register maintained under section 301 of the Companies Act, 1956.
(e) The company has not taken loans, secured or unsecured from the
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956 during the year.
(f) In our opinion, the company has not taken loans, secured or
unsecured, during the year. Therefore, the provisions of clause 4 (iii)
(f) of the Companies (Auditor''s Report) Order, 2003 are not applicable
to the company.
(g) In our opinion, the company has not taken loans, secured or
unsecured, during the year. Therefore, the provisions of clause 4 (iii)
(g) of the Companies (Auditor''s Report) Order, 2003 are not applicable
to the company.
(iv) In our opinion and according to the information and explanations
given to us, there exists adequate internal control system commensurate
with the size of the company and the nature of its business with regard
to purchases of inventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
control system of the company.
(v) In respect of transactions covered under Section 301 of the
Companies Act, 1956;
(a) According to the information and explanations given to us, we are
of the opinion that the particulars of all contracts or arrangements
that need to be entered into the register maintained under section 301
of the Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the Public.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) The Central Government has not prescribed maintenance of cost
records under section 209(1)(d) of the Companies Act, 1956 for any of
the products of the company.
(ix) In respect of Statutory dues;
(a) The company is generally regular in depositing with appropriate
authorities undisputed statutory dues including income tax, sales tax,
wealth tax, custom duty, excise duty, service tax and other material
statutory dues applicable to it though there has been a slight delay in
few cases.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax,
customs duty and excise duty were in arrears, as at March 31st, 2014
for a period of more than six months from the date they became payable.
(c) According to the information and explanations given to us, there
are no dues in respect of income tax, sales tax, wealth tax, service
tax, customs duty, and excise duty which have not been deposited with
the appropriate authorities on account of any dispute.
(x) In our opinion and according to the information and explanations
given to us, the accumulated losses at the end of the financial year
are less than fifty per cent of its net worth. The Company has not
incurred cash losses during the financial year covered by the audit and
in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution or a bank.
(xii) In our opinion and according to the information a 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.
(xiii) In our opinion, the company is not a chit fund or a nidhi mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
company.
(xiv) The company has maintained proper records of the transactions and
contracts in respect of dealing or trading in shares, securities,
debentures and other investments and timely entries have been made
therein. All the shares, securities, debentures and other investments
have been held by the company, in its own name except to the extent of
the exemption, if any, granted under section 49 of the Act.
(xv) In our opinion and according to the information and explanations
given to us, the company has not given guarantee for loans taken by
others from banks or financial institutions. Accordingly, the provision
of clause 4(xv) of the Companies (Auditor''s Report) Order, 2003 is not
applicable to the company.
(xvi) The Company has not obtained any term loans. Accordingly, the
provision of Clause 4 (xvi) of the Companies (Auditor''s Report) Order,
2003 is not applicable to the company.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that the funds raised on short-term basis have not been used for
long-term investment.
(xviii) The company has made allotment of equity shares during the
reporting period by conversion of warrants issued in the immediately
preceding financial year to parties or companies covered in the
Register maintained under section 301 of the Companies Act, 1956, at
the price which is not prejudicial to the interest of the company.
(xix) The company has not issued any debentures. Accordingly, the
provisions of clause 4(xix) of the Companies (Auditor''s Report) Order,
2003 are not applicable to the company.
(xx) The company has not raised any money by public issues during the
year. Accordingly, the provisions of clause 4(xx) of the Companies
(Auditor''s Report) Order, 2003 are not applicable to the company.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For SUMITMEHTA & CO.
Place : Rajkot. Chartered Accountants
FRN : 126680W
Date : 29.05.2014
Sumit M. Mehta
Proprietor
Membership No. 120830
Mar 31, 2013
We have audited the attached Balance Sheet of KADVANI SECURITIES
LIMITED as at March 31st, 2013, the Statement of Profit and Loss and
the Cash Flow Statement 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 the 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 issued by
the Central Government of India in terms of sub-section (4A) of section
227 of the Companies Act, 1956, we enclose in the Annexure a statement
on the matters specified in paragraphs 4 and 5 of the said Order.
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, Statement of Profit and Loss
and Cash Flow Statement dealt with by this report are in compliance
with the Accounting Standards referred to in sub-section (3C) of
section 211 of the Companies Act, 1956;
(v) On the basis of written representations received from the
directors, as on March 31st, 2013 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
March 31st, 2013 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 the
Significant Accounting Policy 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 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.
Referred to in paragraph 3 of our report of even date,
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) All the assets have been physically verified by the management in a
phased periodical manner which, in our opinion, is reasonable having
regard to the size of the company and the nature of its assets. No
material discrepancies were noticed on such verification.
(c) During the year, the company has disposed off some of the fixed
assets and rights in the investment properties but the going concern
status of the company is not affected.
(ii) (a) The inventory of the company comprise of equity shares of
listed companies held generally in dematerialized form in demat
accounts with Depository participants. Having regard to the nature of
the inventories, the physical verification of the Demat account
statements of inventories has been conducted at reasonable intervals by
the management.
(b) In our opinion and according to the information & explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and according to the information & explanations
given to us, the company is maintaining proper records of inventory and
in cases, if any, where any material discrepancies were noticed on
physical verification, the same have been properly dealt with in the
books of account.
(iii) (a) The company has granted loans, secured or unsecured, to the
parties covered in the Register maintained under section 301 of the
Companies Act, 1956.
(b) In our opinion and according to the information & explanations
given to us, aforesaid loans involve interest bearing as well as
interest free loan and advances given in normal course of business
activities and are unsecured.
(c) The parties have generally repaid the principal amounts as
stipulated and have also been regular in payment of interest, if any,
to the company.
(d) There is no overdue amount in excess of Rs. 1 Lakh in respect of
loans granted to companies, firms or other parties listed in the
register maintained under section 301 of the Companies Act, 1956.
(e) The company has not taken loans, secured or unsecured from the
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956 during the year.
(f) In our opinion, the company has not taken loans, secured or
unsecured, during the year. Therefore, the provisions of clause 4(iii)
(f) of the Companies (Auditor''s Report) Order, 2003 are not applicable
to the company.
(g) In our opinion, the company has not taken loans, secured or
unsecured, during the year. Therefore, the provisions of clause 4(iii)
(g) of the Companies (Auditor''s Report) Order, 2003 are not applicable
to the company.
(iv) In our opinion and according to the information and explanations
given to us, there exists adequate internal control system commensurate
with the size of the company and the nature of its business with regard
to purchases of inventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
control system of the company.
(v) In respect of transactions covered under Section 301 of the
Companies Act, 1956;
(a) According to the information and explanations given to us, we are
of the opinion that the particulars of all contracts or arrangements
that need to be entered into the register maintained under section 301
of the Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the Public.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) The Central Government has not prescribed maintenance of cost
records under section 209(l)(d) of the Companies Act, 1956 for any of
the products of the company.
(ix) In respect of Statutory dues;
(a) The company is generally regular in depositing with appropriate
authorities undisputed statutory dues including income tax, sales tax,
wealth tax, custom duty, excise duty, service tax and other material
statutory dues applicable to it though there has been a slight delay in
few cases.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax,
customs duty and excise duty were in arrears, as at March 31st, 2013
for a period of more than six months from the date they became payable.
(c) According to the information and explanations given to us, there
are no dues in respect of income tax, sales tax, wealth tax, service
tax, customs duty, and excise duty which have not been deposited with
the appropriate authorities on account of any dispute.
(x) In our opinion and according to the information and explanations
given to us, the accumulated losses at the end of the financial year
are less than fifty per cent of its net worth and it has not incurred
cash losses in the current financial year but had incurred cash losses
of Rs.17,17,309/- in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution or a bank.
(xii) In our opinion and according to the information & 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.
(xiii) In our opinion, the company is not a chit fund or a nidhi mutual
benefit fund/ society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
company.
(xiv) The company has maintained proper records of the transactions and
contracts in respect of dealing or trading in shares, securities,
debentures and other investments and timely entries have been made
therein. All the shares, securities, debentures and other investments
have been held by the company, in its own name except to the extent of
the exemption, if any, granted under section 49 of the Act.
(xv) In our opinion and according to the information and explanations
given to us, the company has not given guarantee for loans taken by
others from banks or financial institutions. Accordingly, the provision
of clause 4(xv) of the Companies (Auditor''s Report) Order, 2003 is not
applicable to the company.
(xvi) The Company has not obtained any term loans. Accordingly, the
provision of Clause 4 (xvi) of the Companies (Auditor''s Report) Order,
2003 is not applicable to the company.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that the funds raised on short-term basis have not been used for
long-term investment.
(xviii) The company has made preferential allotment of shares and
warrants to parties or companies covered in the Register maintained
under section 301 of the Companies Act, 1956, at the price which is not
prejudicial to the interest of the company.
(xix) The company has not issued any debentures. Accordingly, the
provisions of clause 4(xix) of the Companies (Auditor''s Report) Order,
2003 are not applicable to the company.
(xx) The company has not raised any money by public issues during the
year. Accordingly, the provisions of clause 4(xx) of the Companies
(Auditor''s Report) Order, 2003 are not applicable to the company.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
Place : Rajkot. For SUMIT MEHTA & CO.
Chartered Accountants
Date : 13.05.2013 Sumit M. Mehta
Proprietor
Membership No. 120830
FRN. 126680W
Mar 31, 2012
We have audited the attached Balance Sheet of KADVANI SECURITIES
LIMITED as at March 31st, 2012, the Statement of Profit and Loss and
the Cash Flow Statement 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 the 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 issued by
the Central Government of India in terms of sub-section (4A) of section
227 of the Companies Act, 1956, we enclose in the Annexure a statement
on the matters specified in paragraphs 4 and 5 of the said Order.
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, Statement of Profit and Loss
and Cash Flow Statement dealt with by this report are in compliance
with the Accounting Standards referred to in sub-section (3C) of
section 211 of the Companies Act, 1956;
(v) On the basis of written representations received from the
directors, as on March 31st 2012 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
March 31st 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 the
Significant Accounting Policy 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 March 31st, 2012;
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.
Statement on the Companies (Auditor's Report) Order, 2003
Re : KADVANI SECURITIES LIMITED
Referred to in paragraph 3 of our report of even date,
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) All the assets have been physically verified by the management in a
phased periodical manner which, in our opinion, is reasonable having
regard to the size of the company and the nature of its assets. No
material discrepancies were noticed on such verification.
(c) During the year, the company has disposed off some of the fixed
assets and rights in the investment properties but the going concern
status of the company is not affected.
(ii) (a) The inventory of the company comprise of equity shares of
listed companies held generally in dematerialized form in demat
accounts with Depository participants. Having regard to the nature of
the inventories, the physical verification of the Demat account
statements of inventories has been conducted at reasonable intervals by
the management.
(b) In our opinion and according to the information & explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and according to the information & explanations
given to us, the company is maintaining proper records of inventory and
in cases, if any, where any material discrepancies were noticed on
physical verification, the same have been properly dealt with in the
books of account.
(iii) (a) The company has granted loans, secured or unsecured, to the
parties covered in the Register maintained under section 301 of the
Companies Act, 1956.
(b) In our opinion and according to the information & explanations
given to us, aforesaid loans involve interest bearing as well as
interest free loan and advances given in normal course of business
activities and are unsecured.
(c) The parties have generally repaid the principal amounts as
stipulated and have also been regular in payment of interest, if any,
to the company.
(d) There is no overdue amount in excess of Rs. 1 Lakh in respect of
loans granted to companies, firms or other parties listed in the
register maintained under section 301 of the Companies Act, 1956.
(e) The company has not taken loans, secured or unsecured from the
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956 during the year.
(f) In our opinion, the company has not taken loans, secured or
unsecured, during the year. Therefore, the provisions of clause 4{iii)
(f) of the Companies (Auditor's Report) Order, 2003 are not applicable
to the company.
(g) In our opinion, the company has not taken loans, secured or
unsecured, during the year. Therefore, the provisions of clause 4(iii)
(g) of the Companies (Auditor's Report) Order, 2003 are not applicable
to the company.
(iv) In our opinion and according to the information and explanations
given to us there exists adequate internal control system commensurate
with the size of the company and the nature of its business with regard
to purchases of inventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
control system of the company.
(v) In respect of transactions covered under Section 301 of the
Companies Act, 1956;
(a) According to the information and explanations given to us, we are
of the opinion that the particulars of all contracts or arrangements
that need to be entered into the register maintained under section 301
of the Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in' the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
(vi) In our opinion and according to the information and explanations
given to us the Company has not accepted any deposits from the Public.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) The Central Government has not Prescribed maintenance of cost
records under section 209(l)(d) of the Companies Act, 1956 for any of
the products of the company.
(ix) In respect of Statutory dues;
(a) The company is generally regular in depositing with appropriate
authorities undisputed statutory dues including income tax, sales tax,
wealth tax, custom duty, excise duty, service tax and other material
statutory dues applicable to it though there has been a slight delay in
few cases.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax,
customs duty and excise duty were in arrears, as at March 31s1, 2012
for a period of more than six months from the date they became payable.
(c) According to the information and explanations given to us, there
are no dues in respect of income tax, sales tax, wealth tax, service
tax, customs duty, and excise duty which have not been deposited with
the appropriate authorities on account of any dispute.
(x) In our opinion and according to the information and explanations
given to us, the accumulated losses at the end of the financial year
are less than fifty per cent of its net worth and it has incurred cash
losses to the tune of Rs.17,17,309/- in the current financial year but
not in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution or a bank.
(xii) In our opinion and according to the information & 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.
(xiii) In our opinion, the company is not a chit fund or a nidhi mutual
benefit fund/ society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor's Report) Order, 2003 are not applicable to the
company.
(xiv) The company has maintained proper records of the transactions and
contracts in respect of dealing or trading in shares, securities,
debentures and other investments and timely entries have been made
therein. All the shares, securities, debentures and other investments
have been held by the company, in its own name except to the extent of
the exemption, if any, granted under section 49 of the Act.
(xv) In our opinion and according to the information and explanations
given to us, the company has not given guarantee for loans taken by
others from banks or financial institutions. Accordingly, the provision
of clause 4(xv) of the Companies {Auditor's Report) Order, 2003 is not
applicable to the company.
(xvi) The Company has not obtained any term loans. Accordingly, the
provision of Clause 4 (xvi) of the Companies (Auditor's Report) Order,
2003 is not applicable to the company.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that the funds raised on short-term basis have not been used for
long-term investment.
(xviii) The company has not made preferential allotment of shares to
parties or companies covered in the Register maintained under section
301 of the Companies Act, 1956, at the price which is not prejudicial
to the interest of the company.
(xix) The company has not issued any debentures. Accordingly, the
provisions of clause 4(xix) of the Companies (Auditor's Report) Order,
2003 are not applicable to the company.
(xx) The company has not raised any money by public issues during the
year. Accordingly, the provisions of clause 4(xx) of the Companies
(Auditor's Report) Order, 2003 are not applicable to the company.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
Place : Rajkot. For SUMIT MEHTA & CO.
Chartered Accountants
Date : 11.06.2012 Sumit M. Mehta
Proprietor
Membership No. 120830
FRN. 126680W
Mar 31, 2010
We have audited the attached Balance Sheet of KADVANI SECURITIES
LIMITED as at March 31st, 2010, the Profit and Loss Account and the
Cash Flow Statement 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 the 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 issued by
the Central Government of India in terms of sub-section (4A) of section
227 of the Companies Act, 1956, we enclose in the Annexure a statement
on the matters specified in paragraphs 4 and 5 of the said Order.
Further to our comments in the Annexure referred to above and subject
to our observations in Schedule -10 Notes on Accounts forming part of
balance sheet, 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, Profit and Loss Account and
Cash Flow Statement dealt with by this report are in compliance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956;
(v) On the basis of written representations received from the
directors, as on March 31st, 2010 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
March 31st, 2010 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956;
(i) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
Significant Accounting Policy 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 March 31st, 2010;
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.
Statement on the Companies (Auditors Report) Order, 2003
Re : KADVANI SECURITIES LIMITED
Referred to in paragraph 3 of our report of even date,
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed assets.
(b) All the assets have been physically verified by the management in a
phased periodical manner which, in our opinion, is reasonable having
regard to the size of the company and the nature of its assets. No
material discrepancies were noticed on such verification.
(c) During the year, the company has not disposed off substantial part
of fixed assets and the going concern status of the company is not
affected.
(ii) (a) The inventory of the company comprise of equity shares of
listed companies held generally in dematerialized form in demat
accounts with Depository participants. Having regard to the nature of
the inventories, the physical verification of the Demat account
statements of inventories has been conducted at reasonable intervals by
the management.
(b) In our opinion and according to the information & explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and according to the information & explanations
given to us, the company is maintaining proper records of inventory and
in cases, if any, where any material discrepancies were noticed on
physical verification, the same have been properly dealt with in the
books of account.
(iii) (a) The company has granted loans, secured or unsecured, to the
parties covered in the Register maintained under section 301 of the
Companies Act, 1956.
(b) In our opinion and according to the information & explanations
given to us, aforesaid loans involve interest bearing as well as
interest free loan and advances given in normal course of business
activities and are unsecured.
(c) The parties have generally repaid the principal amounts as
stipulated and have also been regular in payment of interest, if any,
to the company.
(d) There is no overdue amount in excess of Rs. 1 Lakh in respect of
loans granted to companies, firms or other parties listed in the
register maintained under section 301 of the Companies Act, 1956.
(e) The company has not taken loans, secured or unsecured from the
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956 during the year.
(f) In our opinion, the company has not taken loans, secured or
unsecured, during the year. Therefore, the provisions of clause 4(iii)
(f) of the Companies (Auditors Report) Order, 2003 are not applicable
to the company.
(g) In our opinion, the company has not taken loans, secured or
unsecured, during the year. Therefore, the provisions of clause 4(iii)
(g) of the Companies (Auditors Report) Order, 2003 are not applicable
to the company.
(iv) In our opinion and according to the information and explanations
given to us, there exists adequate internal control system commensurate
with the size of the company and the nature of its business with regard
to purchases of inventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
control system of the company.
(v) In respect of transactions covered under Section 301 of the
Companies Act, 1956;
(a) According to the information and explanations given to us, we are
of the opinion that the particulars of all contracts or arrangements
that need to be entered into the register maintained under section 301
of the Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the Public.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) The Central Government has not prescribed maintenance of cost
records under section 209(1 )(d) of the Companies Act, 1956 for any of
the products of the company.
(ix) In respect of Statutory dues;
(a) The company is generally regular in depositing with appropriate
authorities undisputed statutory dues including income tax, sales tax,
wealth tax, custom duty, excise duty, service tax and other material
statutory dues applicable to it though there has been a slight delay in
few cases.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax,
customs duty and excise duty were in arrears, as at March 31st, 2010
for a period of more than six months from the date they became payable.
(c) According to the information and explanations given to us, there
are no dues in respect of income tax, sales tax, wealth tax, service
tax, customs duty, and excise duty which have not been deposited with
the appropriate authorities on account of any dispute.
(x) In our opinion and according to the information and explanations
given to us, the accumulated losses at the end of the financial year
are less than fifty per cent of its net worth and it has not incurred
cash losses in the current financial year and in the immediately
preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution or a bank.
(xii) In our opinion and according to the information & 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.
(xiii) In our opinion, the company is not a chit fund or a nidhi mutual
benefit fund/ society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditors Report) Order, 2003 are not applicable to the
company.
(xiv) The company has maintained proper records of the transactions and
contracts in respect of dealing or trading in shares, securities,
debentures and other investments and timely entries have been made
therein. All the shares, securities, debentures and other investments
have been held by the company, in its own name except to the extent of
the exemption, if any, granted under section 49 of the Act.
(xv) In our opinion and according to the information and explanations
given to us, the company has not given guarantee for loans taken by
others from banks or financial institutions. Accordingly, the provision
of clause 4(xv) of the Companies (Auditors Report) Order, 2003 is not
applicable to the company.
(xvi) The Company has not obtained any term loans. Accordingly, the
provision of Clause 4 (xvi) of the Companies (Auditors Report) Order,
2003 is not applicable to the company.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that the funds raised on short-term basis have not been used for
long-term investment.
(xviii) According to the information and explanations given to us, the
company has not made any preferential allotment of shares to parties or
companies covered in the Register maintained under section 301 of the
Companies Act, 1956. Accordingly, the provision.
(xix) The company has not issued any debentures. Accordingly, the
provisions of clause 4(xix) of the Companies (Auditors Report) Order,
2003 are not applicable to the company.
(xx) The company has not raised any money by public issues during the
year. Accordingly, the provisions of clause 4(xx) of the Companies
(Auditors Report) Order, 2003 are not applicable to the company.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
Place : Rajkot. For SUMIT MEHTA a CO.
Chartered Accountants
Date : 15.05.2010
Sd/-
Sumit M. Mehta
Proprietor
Membership No. 120830
FRN. 126680W
Mar 31, 2009
We have audited the attached Balance Sheet of KADVANI SECURITIES
LIMITED as at March 31st, 2009, the Profit and Loss Account and the
Cash Flow Statement 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 the 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 issued by
the Central Government of India in terms of sub-section (4A) of section
227 of the Companies Act, 1956, we enclose in the Annexure a statement
on the matters specified in paragraphs 4 and 5 of the said Order.
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, Profit and Loss Account and
Cash Flow Statement dealt with by this report are in compliance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956;
(v) On the basis of written representations received from the
directors, as on March 31st, 2009 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
March 31st, 2009 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 the
Significant Accounting Policy 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 March 31st, 2009;
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. Statement on the Companies (Auditors Report)
Order, 2003 Re : KADVANI SECURITIES LIMITED Referred to in paragraph 3
of our report of even date,
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) All the assets have been physically verified by the management in a
phased periodical manner which, in our opinion, is reasonable having
regard to the size of the company and the nature of its assets. No
material discrepancies were noticed on such verification.
(c) During the year, the company has not disposed off substantial part
of fixed assets and the going concern status of the company is not
affected.
(ii) (a) As the company is a Non-banking finance company and is engaged
in the business of finance and investments, there were not items of
inventory held by the company during the year as certified by the
management. Accordingly, the provision of Clause 4(ii)(a) of the
Companies (Auditors Report) Order, 2003 is not applicable to the
company.
(b) There were not items of inventory held by the company during the
year as certified by the management. Accordingly, the provision of
Clause 4(ii)(b) of the Companies (Auditors Report) Order, 2003 is not
applicable to the company.
(c) There were not items of inventory held by the company during the
year as certified by the management. Accordingly, the provision of
Clause 4(ii)(c) of the Companies (Auditors Report) Order, 2003 is not
applicable to the company.
(iii) (a) The company has granted loans, secured or unsecured, to the
parties covered in the Register maintained under section 301 of the
Companies Act, 1956.
(b) In our opinion and according to the information & explanations
given to us, aforesaid loans involve interest bearing as well as
interest free loan and advances given in normal course of business
activities and are unsecured.
(c) The parties have repaid the principal amounts as stipulated and
have also been regular in payment of interest, if any, to the company.
(d) There is no overdue amount in excess of Rs. 1 Lakh in respect of
loans granted to companies, firms or other parties listed in the
register maintained under section 301 of the Companies Act, 1956.
(e) The company has taken loans, secured or unsecured from the
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956 during the year.
(f) In our opinion, the rate of interest, if any, and other terms &
conditions on which loans have been taken from companies, firms or
other parties listed in the register maintained under section 301 of
the Companies Act, 1956 are not, prima facie, prejudicial to the
interest of the company.
(g) The company is regular in repaying the principal amounts as
stipulated and has been regular in the payment of interest.
(iv) In our opinion and according to the information and explanations
given to us, there exists adequate internal control system commensurate
with the size of the company and the nature of its business with regard
to purchases of inventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
control system of the company.
(v) In respect of transactions covered under Section 301 of the
Companies Act, 1956;
(a) According to the information and explanations given to us, we are
of the opinion that the particulars of all contracts or arrangements
that need to be entered into the register maintained under section 301
of the Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the Public.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) The Central Government has not prescribed maintenance of cost
records under section 209(l)(d) of the Companies Act, 1956 for any of
the products of the company.
(ix) In respect of Statutory dues;
(a) The company is generally regular in depositing with appropriate
authorities undisputed statutory dues including income tax, sales tax,
wealth tax, custom duty, excise duty, service tax and other material
statutory dues applicable to it though there has been a slight delay in
few cases.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax,
customs duty and excise duty were in arrears, as at March 31st, 2009
for a period of more than six months from the date they became payable.
(c) According to the information and explanations given to us, there
are no dues in respect of income tax, sales tax, wealth tax, service
tax, customs duty, and excise duty which have not been deposited with
the appropriate authorities on account of any dispute.
(x) In our opinion and according to the information and explanations
given to us, the accumulated losses at the end of the financial year
are less than fifty per cent of its net worth and it has not incurred
cash losses in the current financial year and in the immediately
preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution or a bank.
(xii) In our opinion and according to the information & 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.
(xiii) In our opinion, the company is not a chit fund or a nidhi mutual
benefit fund/ society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditors Report) Order, 2003 are not applicable to the
company.
(xiv) The company has maintained proper records of the transactions and
contracts in respect of dealing or trading in shares, securities,
debentures and other investments and timely entries have been made
therein. All the shares, securities, debentures and other investments
have been held by the company, in its own name except to the extent of
the exemption, if any, granted under section 49 of the Act.
(xv) In our opinion and according to the information and explanations
given to us, the company has not given guarantee for loans taken by
others from banks or financial institutions. Accordingly, the provision
of clause 4(xv) of the Companies (Auditors Report) Order, 2003 is not
applicable to the company.
(xvi) The Company has not obtained any term loans. Accordingly, the
provision of Clause 4 (xvi) of the Companies (Auditors Report) Order,
2003 is not applicable to the company.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that the funds raised on short-term basis have not been used for
long-term investment.
(xviii) According to the information and explanations given to us, the
company has not made any preferential allotment of shares to parties or
companies covered in the Register maintained under section 301 of the
Companies Act, 1956. Accordingly, the provision Clause 4 (xviii) of the
Companies (Auditors Report) Order, 2003 is not applicable to the
company.
(xix) The company has not issued any debentures. Accordingly, the
provisions of clause 4(xix) of the Companies (Auditors Report) Order,
2003 are not applicable to the company.
(xx) The company has not raised any money by public issues during the
year. Accordingly, the provisions of clause 4(xx) of the Companies
(Auditors Report) Order, 2003 are not applicable to the company.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For SUMIT MEHTA & CO.
Chartered Accountants
Sumit M. Mehta
Proprietor
Membership No. 120830
Place : Rajkot.
Date : 15.06.2009