Mar 31, 2018
Report on the Standalone financial statements
We have audited the accompanying standalone financial statements of M/s AVONMORE CAPITAL & MANAGEMENT SERVICES LIMITED (âthe companyâ), which comprises the Balance Sheet as at March 31, 2018, 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.
Managementâs 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 (âthe Actâ) with respect to the preparation and presentation of these standalone financial statements that give a true and fair view of the financial position, cash flow and financial performance 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 standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs 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 standalone financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone 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 standalone 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 standalone 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 March 31, 2018 cash flow and its Profit for the year ended on that date.
Emphasis of matter
Revenue from operations includes Rs 279 lacs as profit on sale of investments which has resulted from change of accounting policy of carrying partial disposal of investments at average carrying cost which is in line with AS-13.
The comparative financial information of the company for the year ended March 31, 2017 was audited by the predecessor auditor, who expressed an unmodified opinion on those financial information/ financial statement.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the âAnnexure Aâ 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) of the Act, we report that:
a. We have sought & 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 as at March 31, 2018, 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 March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of Section 164 (2) of the Act.
f. with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ.
g. 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) There are no pending litigations affecting financial position hence no disclosure is required to be made.
(ii) The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, and as required on longterm contracts including derivative contracts.
(iii) There were no amount which were required to be transferred to the Investor Education and Protection Fund by the Company during the year.
The Annexure referred to in our Independent Auditors'' Report to the members of the Company on the standalone financial statements for the year ended March 31, 2018, we report that:
1. a) In our opinion, the Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets;
1. b) According to the information and explanations given to us, fixed Assets have been physically verified by the management in a phased manner, designed to cover all the items, which in our opinion, is reasonable having regard to the size of the company and nature of its business. Pursuant to the program, a portion of the fixed asset has been physically verified by the management during the year and no material discrepancies between the books records and the physical fixed assets have been noticed.
1. c) According to the information and explanations given to us and on the basis of our examination of the records of the company, the immovable properties are not held by the company.
2. The inventory (consisting shares and securities) has been verified during the year by the management. In our opinion, the frequency of verification is reasonable. There is no material discrepancy was noticed on verification. The shares held as stock in trade have been confirmed with the statement of holding of depository at the end of the year by the management. In case of securities acquired during the year for which settlement of delivery as per stock exchanges regulations has happened post March 31, 2018, the holding has been confirmed with statement of holding of depository for the period subsequent to March 31, 2018. In our opinion, the frequency of verification of holding is reasonable. No discrepancies have been noticed on verification between securities held as stock in trade as per the statement of holding and as per books of account.
3. The Company has granted unsecured loans to companies, firms, Limited Liability partnerships or other parties covered in the Register maintained under section 189 of the Act. Accordingly, the provisions of clause 3 (iii) (a) to (C) of the Order are applicable to the Company.
(Amount in Rs.)
S. No. |
Name of Parties |
Opening Balance |
Loan Given During the year |
Repayment of Loan Given |
Maximum Amount Outstanding |
Closing Balance as on 31/03/2018 |
1 |
Yug Infrastructure Private Limited |
- |
62,00,000 |
22,00,000 |
40,00,000 |
40,00,000 |
2 |
North Square Projects Private Limited |
- |
1,50,00,000 |
- |
1,50,00,000 |
1,50,00,000 |
3 |
Almondz Global Infra-Consultant Limited |
- |
9,49,50,000 |
- |
9,49,50,000 |
9,49,50,000 |
4 |
Almondz Global Securities Limited |
- |
19,27,00,000 |
19,26,50,000 |
10,00,00,000 |
50,000 |
5 |
Apricot Infosoft Private Limited |
- |
1,00,00,000 |
- |
1,00,00,000 |
1,00,00,000 |
(a) In our opinion, the rate of interest and other terms and conditions on which the loan had been granted to the bodies corporate listed in the register maintained under section 189 of the act were not, prejudicial to the company.
(b) In the case of the loans granted to the bodies corporate listed in the register maintained under section 189 of the act, the borrowers have been regular in the payment of the principal and interest as stipulated.
(c) There are no overdue amounts for more than ninety days in respect of the loan granted to a body corporate listed in the register maintained under section 189 of the act.
4. In our opinion and according to the information and explanations given to us, the company has given loan to its wholly owned subsidiaries to which provisions of section 185 and 186 of the Act are not applicable. The company has not provided any guarantee and security and it has complied with the provisions of section 186 of the Act to the extent applicable to it, with respect to the investments made.
5. According to the information and explanations given to us, the company has not accepted any deposits within the meaning of section 73 to 76 of the Act and the rules framed there under to the extent notified. Accordingly, paragraph 3(v) of the order is not applicable to the company.
6. In our opinion, the maintenance of Cost Records has not been specified by the Central Government under sub-section (1) of Section 148 of the Act, in respect of the activities carried on by the company. Accordingly, paragraph 3(vi) of the order is not applicable to the company.
7 a). According to the information''s and explanations given to us and the records of the company examined by us, the Company has been generally regular in depositing with appropriate authorities undisputed statutory dues including employees'' state insurance, sales tax, service tax, goods & services tax, value added tax, cess and other statutory dues with appropriate authorities and no statutory dues are outstanding for a period exceeding six months from the date they became payable.
7 b). According to the information''s and explanations given to us and the records of the Company examined by us, there are no dues of income-tax, sales tax, service tax, goods & services tax, value added tax or cess which have not been deposited on account of any dispute.
8. In our opinion and according to the information and explanations given to us, the Company has not obtained any loan or borrowings from PFI and Banks. The company has not obtained any loan or borrowings from governments. Further the company does not have any debentures issued/outstanding at any time during the year.
9. Based upon the audit procedures performed and the information and explanations given by the management, the company has not raised moneys by way of initial public offer or further public offer including debt instruments and term Loans. Accordingly, the provisions of clause 3 (ix) of the Order is not applicable to the Company.
10. In our opinion and according to the information and explanation given to us, no fraud by the company or any fraud on the Company by its officers/ employees has been noticed or reported during the year.
11. Based upon the audit procedures performed and the information and explanations given by the management, the managerial remuneration has paid or provided during the year in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act.
12. In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause 3 (xii) of the Order is not applicable to the Company.
13. According to the information''s and explanations given to us and the records of the company examined by us, the company has complied all the provision of section 177 and 188 of the Companies Act, 2013 regarding the transaction with related parties. The company has disclosed all the transaction with related parties in financial statement.
14. Based upon the audit procedures performed and the information and explanations given by the 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. According to the audit procedures performed and the information and explanations given by the management, the company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, the provisions of clause 3 (xv) of the Order is not applicable to the Company and hence not commented upon.
16. The Company is already registered under section 45-IA of the Reserve Bank of India Act, 1934
Report on the Internal Financial Controls under Clause (i) of Subsection 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of AVONMORE CAPITAL & MANAGEMENT SERVICES LIMITED (âthe Companyâ) as of 31 March 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls 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 issued by the Institute of Chartered Accountants of India (âICAI''). 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 of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ 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 on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. 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 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 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 standalone financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and 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 over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of standalone 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 transactions are recorded as necessary to permit preparation of standalone financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures 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 standalone 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.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, 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 issued by the Institute of Chartered Accountants of India.
For Mohan Gupta & Company
Chartered Accountants
Firm''s Registration Number:-006519N
CA Mohan Gupta
Place : New Delhi Partner
Date : 30.05.2018 Membership Number-082466
Mar 31, 2016
To the Members of
INDEPENDENT AUDITORSâ REPORT
Avonmore Capital & Management Services Limited
Report on Standalone Financial Statements
We have audited the accompanying standalone financial statements of Avonmore Capital & Management Services Limited (âthe companyâ), which comprises the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managementâs 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 (âthe Act'') with respect to the preparation and presentation 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 responsibilities 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.
Auditorsâ Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit. We have taken into account the provision of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provision of the Act and Rules made thereunder and the Order under Section 143(11) of the Act.
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 standalone financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the standalone financial statements. The procedures selected depend on the auditors'' 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 standalone financial statement that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. 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 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, 2016 and its profit and its cash flows for the year ended on that date.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditors'' Report) Order, 2016 (âthe Order'') issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the âAnnexure - A'' a statement on the matters specified in the paragraph 3 and 4 of the Order.
2. As required by section 143 (3) of the Act, we report that:
(a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
(b) in our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
(c) the Balance Sheet, the Cash Flow Statement and the Statement of Profit and Loss dealt with by this Report are in agreement with the books of account;
(d) in our opinion, the aforesaid financial statement comply with the Accounting Standards specified under Section 133 of the Act, read with the Rule 7 of the Companies (Accounts) Rules, 2014;
(e) on the basis of written representations received from the directors as on March 31, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2016, from being appointed as a director in terms of Section 164(2) of the Act.
(f) with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure B''; and
(g) With respect to the other matters to be included in Auditors'' 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 explanation given to us :
(i) There are no pending litigations affecting financial position hence no disclosure is required to be made.
(ii) There are no long term contracts including derivatives contracts hence no provision is required to be made.
(iii) The clause is not applicable as there is no amount required to be transferred to the Investor Education and Protection Fund by the Company.
The Annexure referred to an Independent Auditors'' Report to the members of the Company on the Standalone Financial Statements for the year ended March 31, 2016, we report that:
(i) (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 accordance with a regular program, which, in our opinion, is reasonable having regards to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification with respect records of books.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
(ii) The Company has conducted verification of stock-in-trade comprising shares, bonds and other securities at reasonable intervals. As informed to us by management no material discrepancies were noted on such verification.
(iii) The Company has granted loans to four bodies corporate (details of which given here-in-under) which are covered in the registered maintained under section 189 of the Companies Act, 2013:
(Amount in Rs.)
S.No. |
Name of Parties |
Opening Balance |
Loan Given During the year |
Maximum Amount Outstanding |
Closing Balance as on 31/03/2016 |
1 |
Red Solutions Private Limited |
20,00,000 |
9,18,00,000 |
9,05,00,000 |
8,59,00,000 |
2 |
Glow Apparels Private Limited |
â |
63,00,000 |
63,00,000 |
63,00,000 |
3 |
Almondz Infosystem Private Limited |
â |
1,10,00,000 |
1,10,00,000 |
â |
4 |
Express Infra Financial Consultancy Private Limited |
â |
45,00,000 |
45,00,000 |
â |
(a) In our opinion, the rate of interest and other terms and conditions on which the loan had been granted to the bodies corporate listed in the register maintained under Section 189 of the Act were not, prima facie, prejudicial to the Company.
(b) In the case of the loans granted to the bodies corporate listed in the register maintained under section 189 of the Act, the borrowers have been regular in the payment of the principal and interest as stipulated.
(c) There are no overdue amounts in respect of the loan granted to a body corporate listed in the register maintained under section 189 of the Act.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments made.
(v) According to the information given to us, the Company has not accepted any deposits from the public.
(vi) The provisions of Section 148(1) of the Companies Act, 2013 regarding maintenance of cost records are not applicable to the Company.
(vii) (a) According to the information and explanations given to us, in respect of statutory dues :
The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employees'' State Insurance, Income Tax, Sales Tax, Service Tax, Value Added Tax, duty of Customs, duty of Excise, Cess and other material statutory dues applicable to it with the appropriate authorities.
There were no undisputed amounts payable in respect of Provident Fund, Employees'' State Insurance, Income Tax, Sales Tax, Service Tax, Value Added Tax, duty of Customs, duty of Excise, Cess and other material statutory dues in arrears as at March 31, 2016 for a period of more than six months from the date they became payable.
(viii) According to information and explanations given to us, the Company has not defaulted in repayment of dues to bank and financial institutions.
(ix) The clause is not applicable, since the company has not raised any money by way of initial public offer or further public offer or by way of term loan during the year.
(x) Based on the audit procedures performed and according to the information and explanations given to us, no fraud by the company or any fraud on the Company by its officer or employee has been noticed or reported during the course of our audit.
(xi) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
(xii) This clause is not applicable, since Company is not a Nidhi Company.
(xiii) According to information and explanations given to us, all transactions with the related parties are in compliance with sections 177 and 188 of Companies Act, 2013, where applicable, and the details have been disclosed in the Financial Statements etc., as required by the applicable accounting standards.
(xiv) This clause is not applicable, since company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review.
We have audited the internal financial controls over financial reporting of Avonmore Capital & Management Services Limited
(âthe Company'') as at 31 March 2016 in conjunction with our audit of financial statements of the company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The management of the company is responsible for establishing and maintaining internal financial controls 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 (âthe Guidance Note'') issued by the Institute of Chartered Accountants of India (âthe ICAI'')â. 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 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 of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the 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 (âthe Standards''), and deemed to be prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, both issued by the ICAI. 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 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 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 appropriate to provide a basis for our audit opinion on the company''s internal financial controls system over financial reporting.
(xv) According to information and explanations given to us, company has not entered into any non-cash transactions with directors or persons connected with him.
Meaning of Internal Financial Controls Over Financial Reporting
A company''s Internal financial control over 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 transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures 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.
Opinion
In our opinion, the company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2016, 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.
For H. K. CHHABRA & Co.,
Chartered Accountants
Firm Registration No. 010917N
H. K. CHHABRA
Place : New Delhi Proprietor
Date : 28th May, 2016 (FCA - Membership No. 089616)
Mar 31, 2015
We have audited the accompanying financial statements of M/s. Avonmore
Capital & Management Services Limited ("the company"), which comprise
the Balance Sheet as at 31st March, 2015 and the Statement of Profit
and Loss for the year then ended, 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 Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 with respect to the
preparation and presentation 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 responsibilities 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.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the provision
of the Act, the accounting and auditing standards and matters which are
required to be included in the audit report under the provision of the
Act and 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 statement 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 financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015 and its profit and its cash flows for the year
ended on that date.
Report on other Legal and Regulatory Matters
1. As required by the Companies (Auditors' Report) Order, 2015 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) of the Act, We report that:
(a) we have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit;
(b) in our opinion proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books;
(c) the Balance Sheet and the Statement of Profit and Loss and the Cash
Flows Statement dealt with by this Report are in agreement with the
books of account;
(d) in our opinion, the aforesaid financial statement comply with the
Accounting Standards specified under Section 133 of the Act, read with
the Rule 7 of the Companies (Accounts) Rules, 2014;
(e) on the basis of written representations received from the directors
as on March 31, 2015 taken on record by the Board of Directors, 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.
(f) With respect to the other matters to be included in 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 explanation given to us :
(i) There are no pending litigation affecting financial position hence
no disclosure is required to be made.
(ii) There are no long term contracts including derivatives contracts
hence no provision is required to be made.
(iii) The clause is not applicable as there is no amount required to be
transferred to the Investor Education and Protection Fund by the
Company.
ANNEXURE REFERRED TO THE AUDITORS' REPORT
(Referred to in paragraph 1 under 'Report on other Legal and Regulatory
Requirements' section 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, all the fixed assets have been physically
verified by the management according to a regular program in a phased
manner, which, in our opinion, is reasonable having regard to the size
of the company and the nature of its assets. No material discrepancies
with respect to book records were noticed on such verification.
ii) (a) The Company has conducted verification of stock-in- trade
comprising shares, bonds and other securities at reasonable intervals.
As informed to us management no material discrepancies were noted on
such verification.
(b) The procedures for verification of stock-in-trade 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 is maintaining proper records in respect of
stock-in-trade.
iii) The Company has granted loans amounting to Rs. 1,70,00,000/- to
two number of parties which are covered in the registered maintained
under section 189 of the Companies Act, 2013. Balance outstanding as on
31st March, 2015 is amounting to Rs. 5,93,044/- and the maximum
outstanding during the year is amounting to Rs. 35,21,365/-.
(a) According to the information and explanation given to us, parties
to whom loans have been granted have repaid the principal amount as per
stipulation, wherever applicable.
(b) According to the information and explanation given to us and on the
basis of examination of records of the company, company has taken
reasonable steps for recovery of principal and interest where overdue
amount is more than rupees one lakh.
(iv) According to the information and explanations given to us, there
are adequate internal control procedures commensurate with the size of
the Company and the nature of its business with regard to purchase of
fixed assets and for rendering of services. During the course of our
audit, no major weakness has been noticed in the internal controls.
(v) According to the information given to us, the Company has not
accepted any deposits from the public.
(vi) The provisions of Section 148(1) of the Companies Act, 2013
regarding maintenance of cost records are not applicable to the
Company.
(vii) (a) According to the information and explanations given to us and
on the basis of our examination of records of the Company, amounts
deducted/accrued in the books of account in respect of undisputed
statutory dues including Provident Fund, Employees State Insurance,
Income Tax, Sales Tax, Wealth Tax, Service Tax, Duty of Customs, Duty of
Excise, Value Added Tax, Cess and any other statutory dues to the extent
applicable, have generally been regularly deposited.
(b) According to the information and explanations given to us, the
Company does not have any Provident Fund, Employees State Insurance,
Income Tax, Sales Tax, Wealth Tax, Service Tax, Duty of Customs, Duty
of Excise, Value Added Tax, Cess which have not been deposited with the
appropriate authority on account of any dispute.
(c) According to the information and explanation given to us and based
on our examination of records of the company, there is no amount which
required to be transferred to Investor Education and Protection Fund.
(viii) The Company does not have any accumulated losses at the end of
the financial year. The Company has not incurred any cash losses during
the current financial year and in the immediate preceding financial
year.
(ix) The Company has not defaulted in repayment of dues to bank and
financial institutions.
(x) The Company has given guarantee for loans taken by others from
banks. According to the information and explanation given to us, we are
of the opinion that the terms and conditions are not prima facie
prejudicial to the interest of the company.
(xi) The company has raised new term loans during the year. The term
loans outstanding at the beginning of the year and those raised during
the year have been applied for the purpose for which they were raised.
(xii) To the best of our knowledge and belief and according to the
information and explanations given to us and based on the audit
procedures performed, no fraud on or by the Company has been noticed or
reported during the course of our audit.
For H. K. CHHABRA & Co.,
Chartered Accountants
Firm Registration No. 010917N
H. K. CHHABRA
Place : New Delhi Proprietor
Date : 29th May, 2015 (FCA - Membership No. 089616)
Mar 31, 2014
We have audited the accompanying financial statements of M/s Avonmore
Capital & Management Services Limited, (formerly Almondz Capital &
Management Services Limited) which comprise the Balance Sheet as at
31st March, 2014, the Statement of Profit and Loss and 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 Financial Statements
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position and financial performance of the Company in accordance with
the Accounting Standards referred to in subsection (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.
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 the
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 the 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 the 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 31st March, 2014, and
(b) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date; and
(c) in the case of Cash Flow Statement, of the cash flows 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 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 and Statement of Profit and Loss dealt with by
this Report are in agreement with the books of account.
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
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 the written representations received from the
directors as on 31st March, 2014 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2014
from being appointed as a director in terms of clause (g) of subsection
(1) of Section 274 of the Act.
ANNEXURE 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) As explained to us, all the fixed assets have been physically
verified by the management according to a regular program in a phased
manner, which, in our opinion, is reasonable having regard to the size
of the company and the nature of its assets. No material discrepancies
with respect to book records were noticed on such verification.
(c) Fixed assets disposed off during the year were not substantial, and
therefore, do not affect the going concern assumptions.
ii) (a) As explained to us, physical verification of inventory of
shares and securities has been conducted by the management at
reasonable intervals.
(b) In our opinion, the procedures of physical verification of
inventory of shares and securities followed by the management are
reasonable and adequate in relation to the size of the company and
nature of its business.
iii) (a) During the year company has not taken unsecured loans from
companies covered in the register maintained under Section 301 of the
Companies Act, 1956.
(b) During the year company has granted unsecured loans to companies
covered in the register maintained under Section 301 of the Companies
Act, 1956. The details thereof is furnished hereunder :
S. Name of the Party Amount Year-end Maximum
No. (Rs. in Lacs) Balance Balance
(Rs. in Lacs) (Rs. in Lacs)
1 North Square 0.50 55.15 55.15
Projects Private
Limited (Subsidiary
Company)
2. Almondz 60.50 10.92 60.50
Commodities Private
Limited (Associate
Company)
The interest charged and other terms and conditions of the loans
granted are prima facie not prejudicial to the interest of the company.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory and fixed assets etc.
During the course of our audit, no major weakness has been noticed in
the internal controls.
v) In respect of transactions entered in the register maintained in
pursuance of Section 301 of the Companies Act 1956;
(a) To the best of our knowledge and belief and according to the
information and explanations given to us, transactions that needed to
be entered into the register 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 the prevailing market prices at the
relevant time.
vi) In our opinion and according to the information given to us, the
company has not accepted any deposits from the public during the year
within the meaning of Sections 58A and 58AA of the Companies Act, 1956
and the Companies (Acceptance of Deposit) Rules, 1975.
vii) In our opinion, the company has an adequate internal audit system
commensurate with the size and the nature of its business.
viii) We were informed that the Central Government has not prescribed
the maintenance of Cost records under Section 209(1 )(d) of the
Companies Act, 1956.
ix) According to the information and explanations given to us in
respect of statutory and other dues :
(a) The Company has been regular in depositing undisputed statutory
dues, including Provident Fund, Employees State Insurance, Income-tax,
Sales-tax, Wealth Tax, Service Tax, Cess and any other statutory dues
with the appropriate authorities during the year.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax,
customs duty, excise duty and cess were outstanding as at 31.03.2014
for a period of more than six months from the date they became payable.
x) The company has no accumulated losses as on the balance sheet date.
The company has not incurred any cash losses during the financial year
covered by our audit or the immediately preceding financial year.
xi) Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
company has not defaulted in the repayment of dues to financial
institutions, banks and debenture holders.
xii) The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
The provision of clause 4 (xii) of CARO 2003 are not applicable.
xiii) In our opinion, the company is neither a chit fund nor
nidhi/mutual benefit fund/society and hence clause 4 (xii) of the Order
is not applicable to the company.
xiv) The Company has maintained proper records of transaction and
contracts in respect of all shares, debentures and other securities,
which have been held by the Company in its own name and timely entries
have been made therein.
xv) In our opinion, the terms and conditions on which the company has
given guarantees for loans taken by others from banks or financial
institutions are not prejudicial to the interest of the company.
xvi) In our opinion and according to the information and explanations
given to us, the company has not applied for any term loan during the
year.
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 no funds raised on short-term basis have been used for long-term
investment. No long-term funds have been used to finance short-term
assets except permanent working capital.
xviii)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.
xix) During the year the company has not issued any debentures.
xx) The company has not raised any money by public issue during the
year.
xxi) According to the information and explanations given to us, we
report that no fraud on or by the company has been noticed or reported
during the course of our audit.
For H. K. CHHABRA & Co.,
Chartered Accountants
Firm Registration No. 010917N
H. K. CHHABRA
Place : New Delhi Partner
Date : 28th May, 2014 (FCA - Membership No. 089616)
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Avonmore
Capital & Management Services Limited, which comprise of the Balance
Sheet as at 31st March, 2013, the Statement of Profit and Loss and the
Cash Flow Statement of the Company for the year ended on that date, and
a summary of the significant accounting policies and other explanatory
information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position and 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"). 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 the
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 the internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by the 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 31st March, 2013, and
(b) in the case of the Statement of Profit and Loss, of the loss of the
Company 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 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 and Statement of Profit and Loss dealt with by
this Report are in agreement with the books of account.
(d) In our opinion, the Balance Sheet and Statement of Profit and Loss
comply with the Accounting Standards referred to in sub-section (3C) of
section 211 of the Act.
(e) On the basis of the written representations received from the
directors as on 31st March, 2013 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2013
from being appointed as a director in terms of clause (g) of subsection
(1) of Section 274 of the Act.
ANNEXURE REFERRED TO IN PARAGRAPH 1 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, all the fixed assets have been physically
verified by the management according to a regular program in a phased
manner, which, in our opinion, is reasonable having regard to the size
of the Company and the nature of its assets. No material discrepancies
with respect to book records were noticed on such verification.
(c) Fixed assets disposed off during the year were not substantial, and
therefore, do not affect the going concern assumptions.
ii) (a) As explained to us, physical verification of inventory of
shares and securities has been conducted by the management at
reasonable intervals.
(b) In our opinion, the procedures of physical verification of
inventory of shares and securities followed by the management are
reasonable and adequate in relation to the size of the Company and
nature of its business.
iii) (a) During the year Company has taken unsecured loans from
companies covered in the register maintained under Section 301 of the
Companies Act, 1956. The details thereof is furnished hereunder :
S. Name of the Party Amount Year-end Maximum
No. (Rs. in Lacs) Balance Balance
(Rs. in Lacs) (Rs. in Lacs)
1 Almondz Global 383.19 NIL 325.00
Securities Limited
(Associate Company)
2. Almondz Finanz 419.36 NIL 480.77
Limited (Associate
Company)
The interest charged and other terms and conditions of the loan taken
are prima facie not prejudicial to the interest of the Company.
(b) During the year company has granted unsecured loans to companies
covered in the register maintained under Section 301 of the Companies
Act, 1956. The details thereof is furnished hereunder :
S. Name of the Party Amount Year-end Maximum
No. (Rs. in Lacs) Balance Balance
(Rs. in
Lacs) (Rs. in Lacs)
1 North Square 54.65 54.65 54.65
Projects Private
Limited
(Subsidiary
Company)
2. Almondz 375.40 NIL 325.00
Commodities
Private Limited
(Associate
Company)
The interest charged and other terms and conditions of the loan taken
are prima facie not prejudicial to the interest of the company.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory and fixed assets etc.,
During the course of our audit, no major weakness has been noticed in
the internal controls.
v) In respect of transactions entered in the register maintained in
pursuance of Section 301 of the Companies Act, 1956;
(a) To the best of our knowledge and belief and according to the
information and explanations given to us, transactions that needed to
be entered into the register 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 the prevailing market prices at the
relevant time.
vi) In our opinion and according to the information given to us, the
Company has not accepted any deposits from the public during the year
within the meaning of Sections 58A and 58AA of the Companies Act, 1956
and the Companies (Acceptance of Deposit) Rules, 1975.
vii) In our opinion, the Company has an adequate internal audit system
commensurate with the size and the nature of its business.
viii) We were informed that the Central Government has not prescribed
the maintenance of Cost records under Section 209(1 )(d) of the
Companies Act, 1956.
ix) According to the information and explanations given to us in
respect of statutory and other dues :
(a) The Company has been regular in depositing undisputed statutory
dues, including Provident Fund, Employees State Insurance, Income-tax,
Sales-tax, Wealth Tax, Service Tax, Cess and any other statutory dues
with the appropriate authorities.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax,
customs duty, excise duty and cess were outstanding as at 31st March,
2013 for a period of more than six months from the date they became
payable.
x) The Company has no accumulated losses as on the balance sheet date.
The Company incurred cash losses during the current financial year and
in the immediately preceding financial year.
xi) Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in the repayment of dues to financial
institutions, banks and debenture holders.
xii) We are of the opinion that the Company has maintained adequate
records where the Company has 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 neither a chit fund nor nidhi
/mutual benefit fund/society and hence Clause 4 (xii) of the Order is
not applicable to the Company.
xiv) The Company has maintained proper records of transaction and
contracts in respect of all shares, debentures and other securities,
which have been held by the Company in its own name and timely entries
have been made therein.
xv) In our opinion, the terms and conditions on which the Company has
given guarantees for loans taken by others from banks or financial
institutions are not prejudicial to the interest of the Company.
xvi) In our opinion and according to the information and explanations
given to us, the Company has not applied for any term loan during the
year.
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 no funds raised on short-term basis have been used for long-term
investment. No long-term funds have been used to finance short-term
assets except permanent working capital.
xviii) 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.
xix) During the year the Company has not issued any debentures.
xx) The Company has not raised any money by public issue during the
year.
xxi) According to the information and explanations given to us, we
report that no fraud on or by the Company has been noticed or reported
during the course of our audit.
For H. K. Chhabra & Co.,
Chartered Accountants
Firm Registration No. 010917N
H. K. Chhabra
New Delhi Partner
28th May, 2013 (FCA - Membership No. 089616)
Mar 31, 2012
1. We have audited the attached Balance Sheet of ALMONDZ CAPITAL &
MANAGEMENT SERVICES LTD., New Delhi as at 31st March 2012 and the
Statement of Profit and Loss and the cash flow statement 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.
2. We conducted our audit in accordance with auditing stan- dards
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.
3. 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.
4. Further to our comments in the Annexure referred to in paragraph
(3) 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 purposes 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 our examination of such
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
accounts;
d) In our opinion, the Balance Sheet, Statement of Profit & Loss and
cash flow statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956.
e) On the basis of the written representations received from the
Directors as on 31st March 2012 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
March 31, 2012 from being appointed as a director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956.
5. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with significant
accounting policies and other 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:
i) In the case of Balance Sheet, of the State of affairs of the Company
as at March 31, 2012; and
ii) In the case of Statement of Profit and Loss of the Profit of the
Company for the year ended on that date; and
iii) In the case of cash flow statement, of the cash flows for the year
ended on that date.
ANNEXURE 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) As explained to us, all the fixed assets have been physically
verified by the management according to a regular program in a phased
manner, which, in our opinion, is reasonable having regard to the size
of the Company and the nature of its assets. No material discrepancies
with respect to book records were noticed on such verification.
(c) Fixed assets disposed off during the year were not substantial, and
therefore, do not affect the going concern assumptions.
ii) (a) As explained to us, physical verification of inventory of
shares and securities has been conducted by the management at
reasonable intervals.
(b) In our opinion, the procedures of physical verification of
inventory of shares and securities followed by the management are
reasonable and adequate in relation to the size of the Company and
nature of its business.
iii) (a) During the year Company has taken unsecured loans from
companies covered in the register maintained under Section 301 of the
Companies Act, 1956. The details thereof is furnished hereunder :
S. Name of the Party Amount Year-end Maximum
No. (Rs. in
Lacs) Balance Balance
(Rs. in
Lacs) (Rs. in Lacs)
1. Almondz Global NIL NIL NIL
Securities Limited
(Associate Company)
2. Almondz Finanz 1184.00 604.81 604.81
Limited (Associate
Company)
The interest charged and other terms and conditions of the loan taken
are prima facie not prejudicial to the interest of the Company.
(b) During the year company has granted unsecured loans to companies
covered in the register maintained under Section 301 of the Companies
Act, 1956. The details thereof is furnished hereunder :
S. Name of the Party Amount Year-end Maximum
No. (Rs. in Lacs) Balance Balance
(Rs. in Lacs) (Rs.in Lacs)
1 Almondz Global NIL NIL NIL
Securities Limited
(Associate Company)
2. Almondz Finanz 784.50 NIL 167.00
Limited (Associate Company)
The interest charged and other terms and conditions of the loan taken
are prima facie not prejudicial to the interest of the company.
iv) In our opinion and according to the information and expla- nations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory and fixed assets etc.,
During the course of our audit, no major weakness has been noticed in
the internal controls.
v) In respect of transactions entered in the register maintained in
pursuance of Section 301 of the Companies Act, 1956;
(a) To the best of our knowledge and belief and according to the
information and explanations given to us, transactions that needed to
be entered into the register 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 the prevailing market prices at the
relevant time.
vi) In our opinion and according to the information given to us, the
Company has not accepted any deposits from the public during the year
within the meaning of Sections 58A and 58AA of the Companies Act, 1956
and the Companies (Acceptance of Deposit) Rules, 1975.
vii) In our opinion, the Company has an adequate internal audit system
commensurate with the size and the nature of its business.
viii) We were informed that the Central Government has not prescribed
the maintenance of Cost records under Section 209(1 )(d) of the
Companies Act, 1956.
ix) According to the information and explanations given to us in
respect of statutory and other dues :
(a) The Company has been regular in depositing undisputed statutory
dues, including Provident Fund, Employees State Insurance, Income-tax,
Sales-tax, Wealth Tax, Service Tax, Cess and any other statutory dues
with the appropriate authorities during the year.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax,
customs duty, excise duty and cess were outstanding as at 31.03.2012
for a period of more than six months from the date they became payable.
x) The Company has no accumulated losses as on the balance sheet date.
The Company has not incurred any cash losses during the financial year
covered by our audit or the immediately preceding financial year.
xi) Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in the repayment of dues to financial
institutions, banks and debenture holders.
xii) We are of the opinion that the Company has maintained adequate
records where the Company has 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 neither a chit fund nor nidhi /
mutual benefit fund /society and hence Clause 4 (xii) of the Order is
not applicable to the Company.
xiv) The Company has maintained proper records of transaction and
contracts in respect of all shares, debentures and other securities,
which have been held by the Company in its own name and timely entries
have been made therein.
xv) In our opinion, the terms and conditions on which the Company has
given guarantees for loans taken by others from banks or financial
institutions are not prejudicial to the interest of the Company.
xvi) In our opinion and according to the information and explanations
given to us, the Company has not applied for any term loan during the
year.
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 no funds raised on short-term basis have been used for long-term
investment. No long- term funds have been used to finance short-term
assets except permanent working capital.
xviii) 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.
xix) During the year the company has not issued any deben- tures.
xx) The Company has not raised any money by public issue during the
year.
xxi) According to the information and explanations given to us, we
report that no fraud on or by the Company has been noticed or reported
during the course of our audit.
For H. K. Chhabra & Co.,
Chartered Accountants
Firm Registration No. 010917N
H.K. Chhabra
New Delhi Partner
May 30, 2012 (FCA - Membership No. 089616)
Mar 31, 2011
1. We have audited the attached Balance Sheet of ALMONDZ CAPITAL &
MANAGEMENT SERVICES LTD., New Delhi as at 31st March 2011 and the
Profit and Loss Account and the Cash Flow Statement 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.
2. 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 state- ments 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.
3. 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.
4. Further to our comments in the Annexure referred to in paragraph
(3) 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 purposes 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 our examination of such
books;
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agree- ment with the books of
accounts;
d) In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in Sub-section (3C) of Section 211 of the
Companies Act, 1956;
e) On the basis of the written representations received from the
Directors as on 31st March 2011 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
March 31, 2011 from being appointed as a director in terms of clause
(g) of Sub-section(1) of Section 274 of the Companies Act, 1956.
5. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with significant
accounting policies and other 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 :
i) In the case of Balance Sheet, of the State of Affairs of the Company
as at March 31, 2011 ; and
ii) In the case of Profit and Loss Account of the Profit of the Company
for the year ended on that date; and
iii) In the case of Cash Flow Statement, of the Cash Flows for the year
ended on that date.
ANNEXURE 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) As explained to us, all the fixed assets have been physically
verified by the management according to a regular program in a phased
manner, which, in our opinion, is reasonable having regard to the size
of the Company and the nature of its assets. No material discrepancies
with respect to book records were noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, the Company has not made any substantial disposals during
the year.
ii) (a) As explained to us, physical verification of inventory of
shares and securities has been conducted by the management at
reasonable intervals.
(b) In our opinion, the procedures of physical verification of
inventory of shares and securities followed by the management are
reasonable and adequate in relation to the size of the Company and
nature of its business.
iii) (a) During the year Company has taken unsecured loans from
companies covered in the register maintained under Section 301 of the
Companies Act, 1956. The details thereof is furnished hereunder :
S. Name of the Party Amount Year-end Maximum
No. (Rs.in Balance Balance
Lacs) (Rs. in (Rs. in
Lacs) Lacs)
1 Almondz Global 4300.00 1000.00 1600.00
Securities
Limited
(Associate
Company)
2. Almondz Finanz 61.50 NIL 27.00
Limited
(Associate
Company)
The interest charged and other terms and conditions of the loan taken
are prima facie not prejudicial to the interest of the Company.
(b) During the year company has granted unsecured loans to companies
covered in the register maintained under Section 301 of the Companies
Act, 1956. The details thereof is furnished hereunder :
S. Name of the Party Amount Year-end Maximum
No. (Rs.in Balance Balance
Lacs) (Rs. in (Rs. in
Lacs) Lacs)
1 Almondz Global 262.00 NIL 168.00
Securities
Limited
(Associate
Company)
2. Almondz Finanz 61.50 NIL 27.00
Limited
(Associate
Company)
The interest charged and other terms and conditions of the loan taken
are prima facie not prejudicial to the interest of the company.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory and fixed assets etc.,
During the course of our audit, no major weakness has been noticed in
the internal controls.
v) In respect of transactions entered in the register maintained in
pursuance of Section 301 of the Companies Act, 1956 ;
(a) To the best of our knowledge and belief and according to the
information and explanations given to us, transactions that needed to
be entered into the register 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 the prevailing market prices at the
relevant time.
vi) In our opinion and according to the information given to us, the
Company has not accepted any deposits from the public during the year
within the meaning of Sections 58A and 58AA of the Companies Act, 1956
and the Companies (Acceptance of Deposit) Rules, 1975.
vii) In our opinion, the Company has an adequate internal audit system
commensurate with the size and the nature of its business.
viii) We were informed that the Central Government has not prescribed
the maintenance of Cost records under Section 209(1)(d) of the
Companies Act, 1956.
ix) According to the information and explanations given to us in
respect of statutory and other dues :
(a) The Company has been regular in depositing undisputed statutory
dues, including Provident Fund, Employees State Insurance, Income-tax,
Sales-tax, Wealth Tax, Service Tax, Cess and any other statutory dues
with the appropriate authorities during the year.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax,
customs duty, excise duty and cess were outstanding as at 31.03.2010
for a period of more than six months from the date they became payable.
x) The Company has no accumulated losses as on the balance sheet date.
The Company has not incurred any cash losses during the financial year
covered by our audit or the immediately preceding financial year.
xi) Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in the repayment of dues to financial
institutions, banks and debenture holders.
xii) We are of the opinion that the Company has maintained adequate
records where the Company has 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 neither a chit fund nor nidhi /
mutual benefit fund / society and hence Clause 4 (xii) of the Order is
not applicable to the Company.
xiv) The Company has maintained proper records of transaction and
contracts in respect of all shares, debentures and other securities,
which have been held by the Company in its own name and timely entries
have been made therein.
xv) In our opinion, the terms and conditions on which the Company has
given guarantees for loans taken by others from banks or financial
institutions are not prejudicial to the interest of the Company.
xvi) In our opinion and according to the information and explanations
given to us, the Company has not applied for any term loan during the
year.
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 no funds raised on short-term basis have been used for long-term
investment. No long- term funds have been used to finance short-term
assets except permanent working capital.
xviii) 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.
xix) During the year the company has not issued any deben- tures.
xx) The Company has not raised any money by public issue during the
year.
xxi) According to the information and explanations given to us, we
report that no fraud on or by the Company has been noticed or reported
during the course of our audit.
For H. V. & Associates
Chartered Accountants
Firm Registration No. 010917N
H. K. Chhabra
Proprietor (FCA Ã Membership No. 089616)
New Delhi
May 30, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of ALMONDZ CAPITAL &
MANAGEMENT SERVICES LTD., New Delhi as at 31st March 2010 and the
Profit and Loss Account and the Cash Flow Statement 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.
2. 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 state- ments 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.
3. 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.
4. Further to our comments in the Annexure referred to in paragraph
(3) 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 purposes 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 our examination of such
books;
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agree- ment with the books of
accounts;
d) In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in Sub-section (3C) of Section 211 of the
Companies Act, 1956;
e) On the basis of the written representations received from the
Directors as on 31st March 2010 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
March 31, 2010 from being appointed as a director in terms of clause
(g) of Sub-section(1) of Section 274 of the Companies Act, 1956.
5. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with significant
accounting policies and other 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 :
i) In the case of Balance Sheet, of the State of Affairs of the Company
as at March 31, 2010 ; and
ii) In the case of Profit and Loss Account of the Profit of the Company
for the year ended on that date; and
iii) In the case of Cash Flow Statement, of the Cash Flows for the year
ended on that date.
ANNEXURE 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) As explained to us, all the fixed assets have been physically
verified by the management according to a regular program in a phased
manner, which, in our opinion, is reasonable having regard to the size
of the Company and the nature of its assets. No material discrepancies
with respect to book records were noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, the Company has not made any substantial disposals during
the year.
ii) (a) As explained to us, physical verification of inventory of
shares and securities has been conducted by the management at
reasonable intervals.
(b) In our opinion, the procedures of physical verification of
inventory of shares and securities followed by the management are
reasonable and adequate in relation to the size of the Company and
nature of its business.
iii) (a) During the year Company has taken unsecured loans from a
company covered in the register maintained under Section 301 of the
Companies Act, 1956. The details thereof is furnished hereunder :
S. Name of the Party Amount Year-end Maximum
No. (Rs.in
Lacs) Balance Balance
(Rs. in
Lacs) (Rs. in
Lacs)
1 Almondz Global 4150.00 803.00 2150.00
Securities Limited
(Subsidiary Company)
The interest charged and other terms and conditions of the loan taken
are prima facie not prejudicial to the interest of the Company.
(b) In respect of loans, secured or unsecured, granted by the Company
to companies, firms or other parties covered in the Register maintained
u/s 301 of the Companies Act, 1956, we wish to state that there was no
loan outstanding (P. Y. One Company) and whose name is appearing in the
register maintained u/s 301 of the Companies Act, 1956. The maximum
amount outstanding during the year was Rs. 1769.98 Lacs (P. Y. Rs.
144.26 Lacs) and Rs. Nil (P. Y. Rs. 144.26) was outstanding as on
31.03.2010. According to the information and explanations given to us
we are of the opinion that the rate of interest and other terms and
conditions of such loan were prima facie not prejudicial to the
interest of the Company.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory and fixed assets etc.
During the course of our audit, no major weakness has been noticed in
the internal controls.
v) In respect of transactions entered in the register maintained in
pursuance of Section 301 of the Companies Act, 1956 :
(a) To the best of our knowledge and belief and according to the
information and explanations given to us, transactions that needed to
be entered into the register 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 the prevailing market prices at the
relevant time.
vi) In our opinion and according to the information given to us, the
Company has not accepted any deposits from the public during the year
within the meaning of Sections 58A and 58AA of the Companies Act, 1956
and the Companies (Acceptance of Deposit) Rules, 1975.
vii) In our opinion, the Company has an adequate internal audit system
commensurate with the size and the nature of its business.
viii) We were informed that the Central Government has not prescribed
the maintenance of Cost records under Section 209(1)(d) of the
Companies Act, 1956.
ix) According to the information and explanations given to us in
respect of statutory and other dues :
(a) The Company has been regular in depositing undisputed statutory
dues, including Provident Fund, Employees State Insurance, Income-tax,
Sales-tax, Wealth Tax, Service Tax, Cess and any other statutory dues
with the appropriate authorities during the year.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax,
customs duty, excise duty and cess were outstanding as at 31.03.2010
for a period of more than six months from the date they became payable.
x) The Company has no accumulated losses as on the balance sheet date.
The Company has not incurred any cash losses during the financial year
covered by our audit or the immediately preceding financial year.
xi) Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in the repayment of dues to financial
institutions, banks and debenture holders.
xii) We are of the opinion that the Company has maintained adequate
records where the Company has 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 neither a chit fund nor nidhi /
mutual benefit fund / society and hence Clause 4 (xii) of the Order is
not applicable to the Company.
xiv) The Company has maintained proper records of transaction and
contracts in respect of all shares, debentures and other securities,
which have been held by the Company in its own name and timely entries
have been made therein.
xv) In our opinion, the terms and conditions on which the Company has
given guarantees for loans taken by others from banks or financial
institutions are not prejudicial to the interest of the Company.
xvi) In our opinion and according to the information and explanations
given to us, the Company has not applied for any term loan during the
year.
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 no funds raised on short-term basis have been used for long-term
investment. No long- term funds have been used to finance short-term
assets except permanent working capital.
xviii) 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.
xix) According to the information and explanations given to us, during
the period covered by our audit report, the company had issued
35,00,000 debentures of Rs. 100/- each. The Company has created
security in respect of debentures issued.
xx) The Company has not raised any money by public issue during the
year.
xxi) According to the information and explanations given to us, we
report that no fraud on or by the Company has been noticed or reported
during the course of our audit.
For H. V. & Associates
Chartered Accountants
H. K. Chhabra
New Delhi Partner
May 29, 2010 (FCA Ã Membership No. 089616)