Mar 31, 2015
We have audited the attached financial statements of BMB MUSIC &
MAGNETICS LIMITED ("The Company"), which comprise the Balance Sheet as
at March 31, 2015, and the Statement of Profit & Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flow of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditors ' Responsibility:
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10) of the act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company's preparation and
fair presentation of that financial statements in order to design audit
procedures that are appropriate
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the annexure a
statement on the matters Specified in paragraphs 3 and 4 of the Order,
to the extent applicable.
2. As required by Section 143 (3) of the Act, we report that:
a. We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
b. In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
c. The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d. In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e. There are no observations or comments on financial transactions or
matters which have any adverse effect on the functioning of the
company.
f. On the basis of the written representations received by the company
as on 31st March, 2015 taken on record, none of the directors is
disqualified as on 31st March, 2015 from being appointed as a director
in terms of Section 164 (2) of the Act.
g. There are no qualifications, reservations or adverse remarks
relating to the maintenance of accounts and other matters connected
herewith.
h. The company has adequate internal financial control systems in
place and they are operating effectively.
i. 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:
a. The Company has disclosed impact of pending litigations on its
financial position in its financial statements as referred to in point
no. "t" in Note 1 to the financial statements.
b. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
c. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
ANNEXURE TO INDEPENDENT AUDITOR'S REPORT
The Annexure referred to in our report to the members of M/s BMB MUSIC
& MAGNETICS LIMITED for the year Ended on 31.03.2015. We report that:
(i) (a) Whether the company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets;
YES
(b) Whether these fixed assets have been physically verified by the
management at reasonable intervals; whether any material discrepancies
were noticed on such verification and if so, whether the same have been
properly dealt with in the books of account;
YES
(ii) (a) Whether physical verification of inventory has been conducted
at reasonable intervals by the management;
N.A., Company is not having any physical inventory
(b) Are the procedures of physical verification of inventory followed
by the management reasonable and adequate in relation to the size of
the company and the nature of its business. If not, the inadequacies in
such procedures should be reported;
N.A.
(c) Whether the company is maintaining proper records of inventory and
whether any material discrepancies were noticed on physical
verification and if so, whether the same have been properly dealt with
in the books of account;
N.A.
(iii) Whether the company has granted any loans, secured or unsecured
to companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act. If so,
YES
(a) Whether receipt of the principal amount and interest are also
regular; and
YES
(b) If overdue amount is more than rupees one lakh, whether reasonable
steps have been taken by the company for recovery of the principal and
interest;
NO
(iv) Is there an adequate internal control system commensurate with the
size of the company and the nature of its business, for the purchase of
inventory and fixed assets and for the sale of goods and services.
Whether there is a continuing failure to correct major weaknesses in
internal control system.
YES
No any failure in internal control system
(v) In case the company has accepted deposits, whether the directives
issued by the Reserve Bank of India and the provisions of sections 73
to 76 or any other relevant provisions of the Companies Act and the
rules framed there under, where applicable, have been complied with? If
not, the nature of contraventions should be stated; If an order has
been passed by Company Law Board or National Company Law Tribunal or
Reserve Bank of India or any court or any other tribunal, whether the
same has been complied with or not?
Not Applicable. The company has not accepted any deposits
Where maintenance of cost records has been specified by the Central
Government under sub-section (1) of section 148 of the Companies Act,
whether such accounts and records have been made and maintained;
NO
(vii) (a) Is the company regular in depositing 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 with the appropriate
authorities and if not, the extent of the arrears of outstanding
statutory dues as at the last day of the financial year concerned for a
period of more than six months from the date they became payable, shall
be indicated by the auditor.
The following amounts of Undisputed Statutory Dues are outstanding for
more than 6 months.
TDS - Rs. 18062527- VAT & RST - Rs. 1312667-
(b) In case dues of income tax or sales tax or wealth tax or service
tax or duty of customs or duty of excise or value added tax or cess
have not been deposited on account of any dispute, then the amounts
involved and the forum where dispute is pending shall be mentioned. (A
mere representation to the concerned Department shall not constitute a
dispute).
There are no such dues which are not deposited on account of any
dispute
(c) Whether the amount required to be transferred to investor education
and protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules made thereunder has been
transferred to such fund within time.
No amount is required to be transferred
(Viii) Whether in case of a company which has been registered for a
period not less than five years, its accumulated losses at the end of
the financial year are not less than fifty per cent of its net worth
and whether it has incurred cash losses in such financial year and in
the immediately preceding financial year;
Yes, The company has accumulated losses of Rs. 720.05 Lacs which is
more than 50% of the net worth of the company
(ix) Whether the company has defaulted in repayment of dues to a
financial institution or bank or debenture holders? If yes, the period
and amount of default to be reported;
No
(x) Whether the company has given any guarantee for loans taken by
others from bank or financial institutions, the terms and conditions
No
(Xi) Whether term loans were applied for the purpose for which the
loans were obtained;
N.A.
whether any fraud on or by the company has been noticed or reported
during the year; If yes, the nature and the amount involved is to be
indicated.
No
For SardaSoni Associates.
Chartered Accountants
FRN: 117235W
Manoj Kumar Jain
(Partner)
Membership No. : 120788
Place: Mumbai
Date: 30/05/2015
Mar 31, 2014
We have audited the accompanying financial statements of BMB MUSIC &
MAGNETICS LIMITED ("the Company"), which comprise the Balance Sheet as
at March 31, 2014, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, aqd..a.,sujnmaiy.of significant
accounting policies and other explanatory information.
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error in making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements..
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
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 asat March 31, 2014;
b) in the case of the Profit and Loss Account, of the Loss for the year
ended on that date and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
1. required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A)of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a Director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
ANNEXURE TO AUDITOR''S REPORT
Accounting Year: 2013-2014
Report on matters to be included pursuant to order issued under section
227(4A) of the
Companies Act, 1956. ''
1. (a) The Company has maintained proper records showing full
particulars including
quantitative details and situation of fixed assets, but in case of
Plant & Machinery detailed records have not been maintained.
(b) As informed to us the management has conducted physical
verification of fixed assets during the year and no material
discrepancies were noticed on such verification. There is a regular
program of verification which, in our opinion, is reasonable having
regard to the size of the Company and the nature of its assets.
(c) In our opinion and according to information and explanation given
to us, substantial part of fixed asset has not been disposed of by the
Company during the previous year.
2. The Company does not have any inventory and hence the Clause is not
applicable.
3. (a) The Company has not granted or taken any loan, secured or
unsecured to/from the companies, firms or other parties listed in
the register maintained u/s 301 of Companies Act, 1956.
(b) As the Company has not granted any loan, hence the requirement of
rate of interest and other terms and conditions of loans granted by the
Company, secured or unsecured are prejudicial to the interest of the
Company or not is not applicable.
(c) Requirement of regular payment of the principal amount and interest
is not applicable being no loan granted by the Company.
(d) No amount is overdue more than Rs. 1 lakh hence this clause is not
applicable on the company.
(e) The Company has not taken any loans secured or unsecured from
Companies, firm or other parties covered in the register maintained
under section 301 of the Act.
(0 As the''Company has not taken any loan, hence the requirement of rate
of interest and other terms and conditions of loans taken by the
company, secured or unsecured are prejudicial to the interest of the
Company or not is not applicable.
(g) Requirement of regular payment of the principal amount and interest
is not applicable being no loan taken by the Company.
4. In our opinion and according to the information and explanation
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, fixed assets and with
regard to the sale of goods. During the course of our audit we have not
observed any continuing failure to correct major weaknesses in the
internal control.
5. (a) According to the information and explanation given to us, we are
of the opinion that the transaction that are required to be entered into
the Register maintained u/s 301 of the Companies Act 1956 have been so
entered.
(b) In our opinion and according to the information and explanations
given to us, these transactions are made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
6. The Company has not accepted any public deposits under the
provisions of Section 58A and 58AA or any other relevant provisions of
the Act and the rules framed there under.
7. The Company is not having any internal audit system.
8. Maintenance of cost records under section 209(1) (d) of the
Companies Act, 1956 has not been prescribed by the Central Government
for the Company.
9. (a) According to the books and records as produced and examined by
us in accordance with generally accepted auditing practices in India
and also based on Management representations, undisputed statutory dues
in respect of Provident fund, Employee''s state insurance dues, Investor
education and protection fund, Income Tax, Sales tax. Wealth Tax,
Service Tax, Custom duty, Excise duty, cess and other statutory dues
have not been regularly deposited by the company during the year with
the appropriate authorities in India. However following amounts of
statutory dues are outstanding in the Company''s books for more than a
year.
(b) As per explanations given to us and the records of the Company
examined by us, there are no dues of income tax, wealth tax, service
tax, sales tax, custom duty, excise duty and cess which have not been
deposited on account of any disputes as on 31st March, 2014.
10. The Company is having accumulated loss of Rs. 408.48 Lacs and the
accumulated losses of the Company are more than 50 per cent of its net
worth.
The Company has incurred cash losses during the financial year covered
by our audit and also incurred cash losses in the immediately preceding
financial year.
11. The Company has not defaulted in the payment of dues of bank.
12. As per the explanations given by the management, the Company has
not granted loans and advances on the basis of the security by way of
pledge of shares, debentures and other securities hence this clause is
not applicable on the Company.
13. Considering the nature of activities carried on by the Company
during the year, the provisions of any special statute applicable to
chit fund/ Nidhi/ mutual benefit fund/ societies are not applicable to
it.
14. The Company is not dealing in or trading in shares, securities,
debentures and other investments hence this clause is not applicable to
the Company.
15. As per information and explanations given to us, the Company has
not given any guarantees for loans taken by others from banks or
financial institutions.
16. The Company has not taken any term loans hence this clause is not
applicable on the Company.
17. According to the information and explanation given to us and on
overall examination of the Balance Sheet of the Company and as
represented to us by the management, we report that the no funds raised
on short term basis have been utilized for long term investments and no
long term funds have been used to finance the short term assets except
permanent working capital.
18. According to the information and explanation given to us, the
Company has not made any preferential allotment to the persons entered
into the Register maintained u/s 301 of the Act, so this clause is not
applicable.
19. The Company had not issued any debentures hence this clause is not
applicable to the Company.
20. No money has been raised from the public hence this clause is not
applicable to the Company.
21. According to the information and explanation given to us, no fraud
on or by the Company has been noticed or reported during the course of
our audit.
For Sarda Soni Associates.
Chartered Accountants
FRN: 117235W
Manoj Kumar Jain
(Partner)
Membership No.: 120788
Place: Mumbai
Date: 30/05/2014
Mar 31, 2012
We have audited the attached Balance Sheet of the M/s. BMB MUSIC &
MAGNETICS LIMITED (Formerly known as Bokadia Films Ltd) as at 31s''
March 2012 and also Statement of Profit & Loss Account and the Cash
Flow Statement of the Company for the year ended 31s'' March 2012
annexed hereto. These financial statements are the responsibility of
the Company''s management. Our responsibility is to express an opinion
on these financial statements based on our audit.
We conducted our audit in accordance with Auditing Standards generally
accepted in India. Those standards require thd we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatements. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosure in financial statements. An audit also includes assessing
the accounting principles used and significant estimates made by the
management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
ouropinion.
1. As required by the Companies (Auditor''s Report) Order, 2003, as
amended by Companies (Auditor''s Report) (Amendment) Order, 2004
issued by the Central Government in terms of Section 227(4A) of the
Companies Act, 1956 and on the basis of such checks we considered
appropriate and according to the information and explanation given to
us during the course of audit, we enclose in Annexure hereto statement
on the matters specified in paragraphs 4 & 5 of the said Order.
2. Further to our comments in the Annexure referred to in paragraph 1
above, we report that:-
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the 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 appears from our examination of the
books.
c) The Balance Sheet, Statement of Profit & Loss Account and Cash Flow
Statement referred to in this Report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet .Statement of Profit & Loss
Account and Cash Flow Statement dealt with by this report are in
compliance with the mandatory Accounting Standards referred to in
section 211 (3C) of the Companies Act, 1956 to the extent applicable
except reported separately.
e) On the basis of written representations received from the Directors/
Companies as on 31s'' March 2012 and taken on record by the Board of
Directors, we report that none of the Directors are disqualified as on
31si March 2012 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements together
with the 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.
1) In so far as it relates to the Balance Sheet, of the state of
affairs of the Company as at 31st '' March 2012.
2) In so far as it relates to the Statement of Profit & Loss Account,
of the Loss of the Company for the year ended on that date.
3) In the case of Cash Flow Statement, of the cash flows of the Company
for the year ended on that date.
REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE
1. Fixed Assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) As per the information and explanations given to us, the Company has
a system of physical verification of all fixed assets and accordingly
the management has physically verified the fixed assets. In our opinion
the frequency of the verification is reasonable. No material
discrepancies have been noticed on verification.
c) During the year, the Company has not disposed off a substantial part
of fixed assets.
2. Inventory:
a) In our opinion, the procedures of physical verification of stocks
followed by the Management at reasonable intervals is satisfactory.
b) The Company is maintaining proper records of inventory. No material
discrepancies have been noticed on physical verification of stocks as
compared to book record in so far as appears from our examination of
the books.
3. Loans and Advances
a) The Company has not granted any loans to Companies, firms or other
parties listed in the Register maintained under Section 301 of the
Companies Act, 1956. The other sub- clauses 3(b) to 3(d) of the Report
are not applicable.
b) The Company has not taken loans secured or unsecured from Companies,
firms or other parties listed in the Register maintained under Section
301 of the Companies Ac, 1956_ Hence the retirement of rate ef interest
and other termsand oond«ns of such ieans are not prejudicial to the
interest of the Company or not is not applicable. .
4 in our opinion, and according to the information and "he adequate
internal control procedures commensurate with the size ot the company
ana nature of its business.
5 Section 301 of the Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and expiations
time. ''
6 In our opinion and according to the information and f*Planations
Order is not applicable.
I. In oar opinion, and according ,0 information and expiation!given to
has a" internal Audit system commensurate with its size and the nature
of its business.
8 The Central Government has not prescribed maintenance of cost
(1) (d) of the Companies Act, 1956, Accordingly, paragraph 4(vn) of the
Order is no, applicable.
9. (a) According to the books and records as produced and examined by
for more than a year.
EPF Payable 52912.00
Sales Tax Payable 54341.00
Surcharge on RST 85.00
TDS Payable 26775.00
VAT Payable 76840.00
10. As per explanations given to us and records of the company examined
by us, there are no dues of income tax, wealth tax, service tax, sales
tax, customs duty, excise duty and cess which have not been deposited
on account of any disputes as on 31 March, 2012
11. The Company has accumulated losses of Rs. 231.83 Lacks and the
accumulated losses of the Company are not more than 50% of its net
worth.
12. In our opinion and according to the information and explanations
given to us the Company has not granted loans and advances on the basis
of security by way of p debentures and other similar
securities. Accordingly, paragraph 4 ) of the Order is not
applicable.
13. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the payment of dues of
the Bank.
14 The Company has not raised any money by public issue, therefore the
requirement of by the Management on the end use of money
raised by public issues and verification of the same is not applicable.
15 In our opinion and According to the information and explanations
given to us the Company '' has not used any raised on short term
basis for long term investment and vice versa.
16. As per information given to us, special statutes regarding chit
Fund, Nidhi or mutual benefit society are not applicable to the
Company.
17. The Company is not dealing in or trading in shares, securities,
debentures and other investments, hence this clause is not applicable.
18 During the course of our examination of books of accounts and
records of the Company carried out in accordance with the generally
accepted auditing practices in India according to the information and
explanations given to us we have not co ac ss instance of fraud on
or by the Company, noticed or reported during the year, that causes the
financial statements to be materially misstated, nor have we been
informed of such cases y the Management.
19. Other clauses of the Order are not applicable to Company forthe
year.
FOR SARDA SONI ASSOCIATES
Chartered Accountants
(MANOJ KUMAR JAIN)
M.NO: 120788
Place : Mumbai
Date : 4th September, 2012.
Mar 31, 2010
We have audited the attached Balance Sheet of BOKADIA FILMS LIMITED
(Formerly BMB MUSIC & MAGNETICS LTD.) As on 31st March 2010 and Profit
& Loss Account for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Companys
Management, our responsibilities is to express an opinion on these
financial statements.
We have conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditors Report) Order, 2003, issued by
the Central Government of India in terms of section 227(4A) of the
Companies Act, 1956 and on the basis of such checks, as we considered
appropriate, we annex hereto a statement on the matters specified in
paragraph 4 and 5 of the said order.
In accordance with the provision of section 227 of the Companies Act,
1956, we further report as under:
a) We have obtained all the information and explanation, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b) In our opinion proper books of accounts as required by law have been
kept by the company so far as appears from our examination of such
books.
c) The Balance Sheet and Profit & Loss account referred to in this
report are in agreement with the books of accounts.
d) In our opinion, Balance Sheet and Profit & Loss a/c dealt with by
this report comply with the accounting standards referred to in sub
section 3(c) of-Section 211 of Companies Act, 1956 to the extent
applicable except AS-28, regarding Impairment of-Assets.
e) On the basis of 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 31st March,
2010 from being appointed as a director in terms of clause (g) of sub
section (1) of section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanation given to us and subject to the points mentioned in the
Notes on Accounts & Auditors observations attached to the Balance
Sheet, the said accounts 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 the Balance sheet, of the state of affairs of the
Company as at 31st March, 2010, and,
ii) In the case of the Profit & Loss A/c, of the Loss for the year
ended on that date.
iii) In the case of the Cash Flow Statement, of the Cash Flow for the
year ended on that date.
ANNEXURE TO AUDITORS REPORT Accounting Year: 2009-2010 Report on
matters to be included pursuant to order issued under section 227(4A)
of the Companies Act, 1956.
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets, but in case of Plant & Machinery detailed records have not been
maintained.
(b) As informed to us the management has conducted physical
verification of fixed assets during the year and no material
discrepancies were noticed on such verification. There is a regular
program of verification which, in our opinion, is reasonable having
regard to the size of the company and the nature of its assets.
(c) In our opinion and according to information and explanation given
to us. a substantial part of fixed asset has not been disposed of by
the company during the previous year.
2. (a) The inventory has been physically verified by the management.
In our opinion, the frequency of verification is reasonable.
(b) The procedures of physical verification of the inventory followed
by the management are reasonable and adequate in relation to the size
of the Company and nature of its business.
(c) The company is maintaining proper records of the inventory. The
discrepancies noticed by the management on verification between the
physical stocks and the book records were not material.
3. (a) The company has not granted or taken any loan, secured or
unsecured to/from the companies, firms or other parties listed in the
register maintained u/s 301 of Companies Act, 1956.
(b) Rate of interest and other terms and conditions of loan taken by
the company are not prima facie prejudicial to the interest of the
company.
(c) According to the explanations given to us, the company is regular
in repayment of principal and interest.
(d) No amount is overdue more than Rs. 1 lakh hence this clause is not
applicable on the company.
(e) The company has not taken any loans secured or unsecured from
companies, firm or other parties covered in the register maintained
under section 301 of the Act.
(f) As the company has not taken any loan, hence the requirement of
rate of interest and other terms and conditions of loans taken by the
company,secured or unsecured are prejudicial to the interest of the
company or not is not applicable.
(g) Requirement of regular payment of the principal amount and interest
is not applicable being no loan taken by the company.
4. In our opinion and according to the information and explanation
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, fixed assets and with
regard to the sale of goods. During the course of our audit we have not
observed any continuing failure to correct major weaknesses in the
internal control.
5. (a) According to the information and explanation given to us, we
are of the opinion that the transaction that are required to be
entered into the register maintained u/s 301 of the Companies Act 1956
have been so entered.
(b) In our opinion and according to the information and explanations
given to us, these transactions are made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
6. The company has not accepted any public deposits under the
provisions of section 58A and 58AA or any other relevant provisions of
the Act and the rules framed there under.
7. The company is not having any internal audit system 5 Maintenance
of cost records under section 209(1)(d) of the Companies Act, 1956 has
not been prescribed by the Central Government for the Company.
9. (a) According to the books and records as produced and examined by
us in accordance with generally accepted auditing practices in India
and also based on Management representations, undisputed statutory dues
in respect of Provident fund, Employees state insurance dues, Investor
education and protection fund, Income Tax, Sales tax, Wealth Tax,
Service Tax, Custom duty, Excise duty, cess and other statutory dues
have not been regularly deposited by the company during the year with
the appropriate authorities in India. However following amounts of
Statutory dues are outstanding in the companies books for more than a
year.
EPF Payable 52912.00
Sales Tax Payable 54341.00
Surcharge on RST 85.00
TDS Payable 26290.00
VAT Payable 76840.00
TOTAL 210468.00
(b) As per explanations given to us and the records of the company
examined by us, there are no dues of income tax, wealth tax, service
tax, sales tax, custom duty, excise duty and cess which have not been
deposited on account of any disputes as on 31st March, 2010.
9. The company is having accumulated loss of Rs. 76.42 Lacs and the
accumulated losses of the company are not more than 50 per cent of its
net worth.
The company has incurred cash losses during the financial year covered
by our audit and not incurred any cash losses in the immediately
preceding financial year.
10. The company has not defaulted in the payment of dues of bank.
11. As per the explanations given by the management, the company has
not granted loans and advances on the basis of the security by way of
pledge of shares, debentures and other securities hence this clause is
not applicable on the company.
12. Considering the nature of activities carried on by the company
during the year, the provisions of any special statute applicable to
chit fund/ nidhi/ mutual benefit fund/ societies are not applicable to
it.
13. The company is not dealing in or trading in shares, securities,
debentures and other investments hence this clause is not applicable to
the company.
14. As per information and explanations given to us, the company has
not given any guarantees for loans taken by others from banks or
financial institutions.
15. The company has not taken any term loans hence this clause is not
applicable on the company.
16. According to the information and explanation given to us and on
overall examination of the balance sheet of the company and as
represented to us by the management, we report that the no funds raised
on short term basis have been utilized for long term investments and no
long term funds have bee^ jsed to fi"a~ce re s-;" :e"~ assets except
permanent wording capitai.
17. According to the information and explanation given to us, the
company has not made any preferential allotment to the persons entered
into the register maintained u/s 301 of the Act, so this clause is not
applicable.
18. The company had not issued any debentures hence this clause is not
applicable on the company.
19. No money has been raised from the public hence this clause is not
applicable on the company.
20. According to the information and explanation given to us, no fraud
on or by the company has been noticed or reported during the course of
our audit.
For KARNANI & CO.
Chartered Accountants
[P. D. Karnani, FCA]
Partner, M.N. 054422
Place: Jaipur
Dated: 30.05.2010