Mar 31, 2016
TO THE MEMBERS OF CAPITAL TRADE LINKS LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of CAPITAL TRADE LINKS LIMITED ("the Company") which comprise the Balance Sheet as at March 31, 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.
Management''s Responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters specified in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these 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 misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances.
An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 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 (Auditor''s Report) Order, 2016 ("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, a statement on the matters specified in paragraph 3 & 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 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 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, 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 ''Annexure B''; and
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. the Company does not have any pending litigations which would impact its financial position in its financial statements;
ii. the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses; and
iii. there were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
(Referred to in paragraph 1 under ''Report on Other Legal and Regulatory Requirements'' section of our report of even date)
(i) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The fixed assets were physically verified during the year by the Management in accordance with a regular programme of verification which, in our opinion, provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanations given to us, no material discrepancies were noticed on such verification.
(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) As explained to us, the inventories were physically verified during the year by the Management in accordance with a regular programme of verification which, in our opinion, provides for physical verification of inventories at reasonable intervals and no material discrepancies were noticed on such verification.
(iii) The Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the register maintained under Section 189 of the Companies Act, 2013.
(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) The Company has not accepted any deposits from the public during the financial year. Accordingly, provisions of Section 73 to 76 or any other relevant provisions and the Rules framed there under are not applicable to the Company.
(vi) According to the information and explanations given to us, maintenance of cost records has not been prescribed by the Central government under sub-section (1) of Section 148 of the Companies Act, 2013 for any of the activities of the Company.
(vii) According to the information and explanations given to us, in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employees'' State Insurance, Income-tax, Sales Tax, Value Added Tax, Service Tax, Custom Duty, Excise Duty, 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, Value Added Tax, Service Tax, Custom Duty, Excise Duty, 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.
(b) There are no disputed amounts payable in respect of Provident Fund, Employees'' State Insurance, Income-tax, Sales Tax, Value Added Tax, Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues as at March 31, 2016.
(viii) The Company does not have any loans or borrowings from any financial institution, banks, government or debenture holders during the year. Accordingly, the provisions of paragraph 3(viii) of the Order are not applicable to the Company.
(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, provisions of paragraph 3(ix) of the Order are not applicable to the Company.
(x) According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees 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) In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, provisions of paragraph 3(xii) of the Order are not applicable to the Company.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has complied with the requirements of Section 42 of the Companies Act, 2013 with regard to the preferential allotment of shares made during the year. Further, amount raised by the Company through preferential allotment of shares have been used for the purposes for which those were raised.
(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, provisions of paragraph 3(xv) of the Order are not applicable to the Company.
(xvi) According to the information and explanations given to us, we report that the Company has registered, as required, under section 45-IA of the Reserve Bank of India Act, 1934.
(Referred to in paragraph 2 (f) under ''Report on Other Legal and Regulatory Requirements'' section of our report of even date)
Report on the Internal Financial Controls under clause (i) of sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of CAPITAL TRADE LINKS LIMITED ("the Company") as of March 31, 2016 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Management''s 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 ("ICAI"). 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 the 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.
Auditor''s 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 "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under Section 143(10) of the Act, 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 were 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.
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 the 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 March 31, 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 on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India.
For A. C. Gupta & Associates
Chartered Accountants
Firm''s Regn. No. 008079N
Sd/-A. C. Gupta
Partner Membership No. 008565
New Delhi, May 27, 2016
Mar 31, 2015
We have audited the accompanying financial statements of CAPITAL TRADE
LINKS LIMITED ("the Company") which comprise the Balance Sheet as at
31st March 2015, 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.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters
specified in Section 134(5) of the Companies Act, 2013 ("the Act") with
respect to the preparation of these financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes the
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and. detecting the frauds and other irregularities;
selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; and design,
implemenlation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstance for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of. the Company as
at 31st March 2015 and its profit and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of Section 143 of the Act, we give in the Annexure, a
statement on the matters specified in paragraph 3 & 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 financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014;
e) on the basis of the written representations received from the
directors as on 31st March 2015, taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March 2015,
from being appointed as a director in terms of Section 164(2) of the
Act; and
f) with respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and according
to the explanations given to us:
i. the Company does not have any pending litigations which would
impact its financial position in its financial statements; ii. the
Company did not have any long-term contracts including derivative
contracts for which there were any material foreseeable losses; and
iii, there were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
Annexure to the Independent Auditors' Report
(Referred, to in paragraph 1 under 'Report on Other Legal and
Regulatory Requirements' section of our report of even date on the
financial statements for the year ended 31** March 2015 of the Company)
(i) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of the fixed assets.
(b) The fixed assets were physically verified during the year by the
Management in accordance with a regular programme of verification
which, in our opinion, provides for physical verification of all the
fixed assets at reasonable intervals. According to the information and
explanations given to us, no material discrepancies were noticed on
such verification.
(ii) In. respect of its inventories:
(a) As explained to us, the inventories were physically verified during
the year by the Management al reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the Management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
(iii) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties listed in the Register maintained
under Section 189 of the Companies Act, 2013.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system
commensurate with the size of the Company and the nature of its
business with regard to purchase of fixed assets and for the sale of
services and during the course of our audit, we have not observed any
major weakness in such internal control system.
(V) The Company has not accepted any deposits from the public during
the financial year. Accordingly, provisions of Section 73 to 76 or any
other relevant provisions and The Rules framed there under are not
applicable to the company
(vi) According to the information and explanations given to us,
maintenance of cost records has not been prescribed by the Central
government under sub-section (1) of Section 148 of the Companies Act,
2013 for any of the activities of the Company.
(vii) According to the information and explanations given to us in
respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed
dues, including Provident Fund, Employees' State Insurance, Income-tax,
Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and
other material statutory dues applicable to it with the appropriate
authorities.
(b) There were no undisputed amounts payable in respect of Provident
Fund, Employees' State Insurance, Income-tax, Sales Tax, Wealth Tax,
Service Tax, Custom Duty, Excise Duty, Cess and other material
statutory dues in arrears as at 31st March, 2015 for a period of more
than six months from the date they became payable.
(c) There are no disputed amounts payable in respect of Provident Fund,
Employees' State Insurance, Income-tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, . Cess and other material statutory
dues as at 31st March, 2015.
(d) There are no amounts that are due to be transferred to the Investor
Education and Protection Fund by the Company.
(viii) The Company does not have accumulated losses at the end of the
financial year and the Company has not incurred cash losses during the
financial year covered by our audit and in the immediately preceding
financial year.
(ix) According to the information and explanations given to us, there
were no dues payable by the Company to financial institutions, banks
and debenture holders during the year. Therefore, the provisions of
paragraph 3 (ix) of the Order are not applicable to the Company.
(x) According to the information and explanations given to us, the
Company has not given any guarantees for loans taken by others from
banks and financial institutions. Therefore, the provisions of
paragraph 3 (xi of the Order are not applicable to the Company.
(xi) To the best of our knowledge and belief and according to the
information and explanations given to us, there have been no term loans
availed during the year. Hence clause (xi) of paragraph 3 of the Order
is not applicable to the Company.
(xii) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no material fraud
on the Company has been noticed or reported during the year.
For A. C. Gupta & Associates
Chartered/Accountants
Firm's Regn No. 008079N
A. C.Gupta
Partner
Membership No. 008565
New Delhi, 27th May, 2015
Mar 31, 2014
We have audited the accompanying financial statements of Capital Trade
Links Limited ("the Company"), which comprise the Balance Sheet as at
March 31, 2014, the Statement of Profit and Loss for the year then
ended, Cash Flow Statement and a summary of significant accounting
policies and other explanatory information.
2. Management''s Responsibility for the Financial Statement
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.
3. Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
4. 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:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
ii) in the case of the Statement of Profit and Loss Account, of the
profits for the year ended on that date; and iii) in the case of the
Cash Flow Statement, of the cash flow for the year ended on that date.
5. Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c) the Balance Sheet, the Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) Except as stated in point no. 5 above, if any, 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 Independent auditors'' report of even date to the members of
Capital Trade Links Limited on the financial statements for the year
ended March 31, 2014
Based upon the audit procedures performed for the purpose of reporting
the true and fair view of the financial statements and in terms of the
information and explanations given to us and the books and records
examined by us in the normal course of audit, we report that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a regular programme of physical verification of its
fixed assets By which all fixed assets are verified every year. In our
opinion, this periodicity of physical verification is reasonable having
regard to the size of the Company and the nature of its assets. As
informed to us, no material discrepancies were noticed on such
verification.
(c) Fixed asset disposed off during the year were not substantial, and
therefore, do not affect the going concern assumption.
(ii) In respect of inventories: *
(a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
(iii) According to the information and explanations given to us and on
the basis of our examination of the books of account the Company has
given unsecured loan to companies, firms or other parties covered in
the register maintained under section 301 of the Companies Act 1956
(the ''Act'').
(a) The rate of interest and other terms & conditions of such loans
are, in our opinion, prima facie, not prejudicial to the interest of
the company.
(b ) The receipt of principal and interest thereon, if any, are
regular.
(c) There were no overdue amount of loan granted by the company.
According to the information and explanations given to us and on the
basis of our examination of the books of account, the Company has
received unsecured loans from companies, firms or other parties covered
in the register maintained under section 301 of the Companies Act 1956.
(a) The rate of interest and other terms & conditions of such loans
are, in our opinion, prima facie, not prejudicial to the interest of
the company.
(b) The payment of principal and interest thereon, if any, are regular.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the company and the nature of its business with regard
to purchases of inventory and fixed assets and sale of goods and
services. During the course of our audit, we have not observed any
major weakness in such internal control system. In our opinion, there
are adequate internal control procedures commensurate with the size of
the Company and the nature of its business. During the course of our
audit, no major weakness has been noticed in the internal controls in
respect of these areas.
(v) (a) Based on the audit procedures applied by us and according to
the information and explanations provided by the management, the
particulars of contracts or arrangements referred to in Section 301
that needed to be entered in the register have been so entered.
(b) As per information & explanations given to us and in our opinion,
the transactions made in pursuance of contracts or arrangements
referred to in section 301 of the Act are, in our opinion, at prices
which are reasonable having regard to the prevailing market prices at
the relevant time.
(vi) The Company has not accepted any deposits from the public.
Accordingly, the provisions of clause 4(vi) of the Order are not
applicable to the Company.
(vii) The Company has no formal internal audit system due to size and
nature of its business and proper internal control exist in the
company.
(viii) According to the books & records examined by us and according to
the information and explanations given to us by the management & to the
best of our knowledge, the Central Government has not prescribed
maintenance of cost records under clause (d) of sub-section (1) of
section 209 of the Act for the products of the Company. Accordingly,
the provisions of clause 4(viii) of the Order are not applicable to the
company.
(ix) (a) According to the records of the company, Undisputed statutory
dues including provident fund, investor education and protection fund,
or employees'' state insurance, income-tax, sales-tax, wealth-tax,
service-tax, custom duty, excise duty, cess have generally been
regularly deposited with the appropriate authorities. No undisputed
amounts payable in respect of income-tax, wealth-tax, service-tax,
sales-tax, customs duty and excise duty were outstanding, at the year
end for a period of more than six months from the date they became
payable. However during the year, the Company has not complied with the
provisions of Advance Tax as per Income Tax act.
(b) According to the information and explanations given to us, there
are no amounts in respect of sales tax, income tax, customs duty,
wealth tax, service tax, excise duty and cess that have not been
deposited with the appropriate authorities on account of any dispute.
(x) The company does not have accumulated losses at the end of the
financial year. Further the Company has not Incurred Cash losses during
the financial year covered by the audit and immediately preceding
financial year.
(xi) Based on our audit procedures and on the information and
explanations given by the management the Company has not defaulted in
repayment of dues to banks. The Company has not taken any loans from
financial institutions or 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. Accordingly, the provisions of clause 4(xii) of the Order
are not applicable to the Company.
(xiii) The Company is not a chit fund or a nidhi/ mutual benefit fund/
society. Accordingly, the provisions of clause 4(xiii) of the Order are
not applicable to the Company.
(xiv) Based on our Examination of records and evaluation of the related
internal control, we are of the opinion that proper records have been
maintained for the transaction and contracts and timely entries have
been made in those records in respect of dealing or trading in shares,
securities, debentures and other securities in its own name except to
the extent of the exemption granted under section 49 of The Companies
Act,1956.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions. Accordingly, the provisions of clause 4(xv)
of the Order are not applicable to the Company.
(xvi) Based on our audit procedures and on the information given by the
management, we report that the Company has not taken any the term loans
accordingly; the provisions of clause 4(xvi) of the Order are not
applicable to the Company.
(xvii) Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company as at 31st
March, 2014, we report that no funds raised on short- term basis have
been used for long-term investment and vice versa.
(xviii) Based on the audit procedures performed and the information and
explanations given to us by the management, we report that the Company
has not made any preferential allotment of shares to parties or
companies covered in the register maintained under section 301 of the
Act. Accordingly, the provisions of clause 4(xviii) of the Order are
not applicable to the Company.
(xix) The Company did not have any outstanding debentures during the
year. Accordingly, the provisions of clause 4(xix) of the Order are not
applicable to the Company.
(xx) The Company has not raised any money by public issues during the
year. Accordingly, the provisions of clause 4(xx) of the Order are not
applicable to the Company.
(xxi) Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the period covered by our audit.
For Nitin Mittal & Co
Chartered Accountants
Sd/-
Anand Kumar Sharma
Partner
Membership No. 412911
FR No. 017642N
Place: New Delhi
Date: 30-05-2014
Mar 31, 2013
We have audited the accompanying financial statements of M/s. Capital
Trade Link Limited which comprise the Balance Sheet as at March 31,
2013, and the Statement of Profit and Loss for the year then ended, and
a summary 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 facial 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 as at March 31, 2013;
b) in the case of the statement of Profit and Loss, of the profit of
the Company for the year ended on that date.
1. As required by the Companies (Auditor's Report) Order, 2003
("the Order") issued by the Central Government of India in terms of
sub-section (4A)of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c) The Balance Sheet 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 subsection(3C) of
section 211 of the Companies Act, 1956;
e) On the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being,
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
ANNEXURE TO THE AUDITOR'S REPORT
(Referred to para "1" of our report of even date on the accounts for
the year ended 31st March, 2013 of Capital Trade Links Ltd.)
(i) (a) In our opinion, 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 which in our
opinion is reasonable having raged to the size of the company and the
nature of its assets. No material discrepancies with respect to book
recorded wear noticed on such verification.
(C) In our opinion, the company has not "disposed of substantial part of
fixed assets ' during the year and hence, going concern stains of the
company is not affected.
(ii) (a) Inventory has been physically verified by the management to
the extent practicable at reasonable intervals during the year. In our
opinion, the frequency of verification is reasonable.
(b) In our opinion, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the company and nature of its business.
(c) On the basis of our examination of the records of inventory, we are
of the opinion that the company is maintaining proper records of
inventory. Discrepancies noticed on verification of inventory as
compared to book records were not material and these have been properly
dealt with in the books of accounts.
(iii) (a) On the basis of the records of the company ,the Company has
given unsecured interest free loans to companies , firms or other
parties covered in the register maintained under section 301 of the
Companies Act,1956, the number of such parties are one and amount
involve in the transaction is Rs.1,54,95,000/-
(b) In our opinion and based on the explanation , the terms and
condition of loan given are prima facie not prejudicial to the interest
of the company.
c) The receipt of principal to the interest of the company.
d) There is no overdue amount of loan granted by the company.
e)The company has taken unsecured interest free loan from companies ,
firms or other parties covered in the register maintained under
section 301 of the Companies Act,1956, the number of such parties is
three and amount involve in the transaction is Rs.2,98,45,00/-
f)In our opinion and based on the explanation , the terms and condition
of loan taken are prima facie not prejudicial to the interest of the
company.
g)The payment of principal and interest thereon, if any , are regular.
(iv) 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 and fixed assets and for
the sale of goods. During the course of our audit, we have not observed
any continuing failure to correct major weaknesses in internal controls.
(v) (a) Based on the audit procedure applied by us and in our opinion
and according to the information and explanations given to us, we were
of the opinion that the particulars of the contracts, or arrangements
referred to in section 301 of the Act , entered into the register
maintained under section 301 of the companies Act,1956. The
transaction made in pursuance of such contracts or arrangements have
been made at prices which are reasonable having regards to prevailing
market prices at the relevant time.
(vi) According to the information and explanations given to us, the
company has not accepted any deposit from public, consequently the
provisions of section 58A and 58AA of the companies Act, 1956 and the
rules framed there under are not applicable to the company. As per
information and exhalations given to us no order under the aforesaid
sections has been passed by the company Low Board on the company.
(vii) They company has no formal internal audit system due to size and
the nature of its business and proper internal control exist in the
company.
(viii) As maintained of cost records has not been prescribed by the
Central Government under section 209 (1) (d) of the Companies Act,
1956.So clause (viii) of order is not applicable.
(iX) (a) According to information and explanation given to us, the
company is regular in depositing with the appropriate authorities
undisputed statutory dues relating to provident Fund, Investor
Education and Protection Fund, Employees State Insurance, Income Tax,
Wealth Tax, Sales Tax, Custom Duty, Excise Duty, Cuss and other
Statutory dues applicable to it In our opinion no undisputed amounts
payable were outstanding as at 31st March ,2013 Which are outstanding
for a period of more than 6 months from the date they became payable.
(b) According to information and explanation given to us there are no
dues of Sale Tax/Customs Duty/Wealth Tax/Excise Duty/Cess Which have
not been deposited on account of any dispute.
(X) The company does not have any accumulated losses 50% of its net
worth funds as on 31.03.2013.The company has not incurred any cash
losses during the financial year covered by our audit and in
immediately preceding financial year.
(Xi) According to the information and expiations given to us the
company has not defaulted in repayment of dues to any Financial
Institutions/banks during the year.
(xii) Based on our examination of documents and records maintained by
the company, we are of the opinion that since the company has not
granted any loans and advances on the basis of security by way of
pledge of shares, debenture and other securities.
(xiii) The company is neither a chit fund nor niche/mutual benefit
fund/society and hence Para (xiii) of the Companies (Auditor's Report)
order 2003 is not applicable.
(xiv) Based on our examination of the records and evaluation of the
related internal controls, we are of the opinion that proper records
have been maintained for the transaction and contracts and timely
entries have been made in those records in respect of dealing or
trading in shares, securities, debentures and other securities in its
own name except to the extent of the exemption granted under section 49
of the Companies Act, 1956.
(xv) According to the information and explanation given to us, the
company has not given any guarantee for loans taken by others from bank
or financial institutions and hence para 4(xv) of Companies (Auditor's
report) order 2003 is not applicable.
(xvi) According to the information and explanation given to us, no term
loans have been obtained 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
and vice versa.
(xviii) During the year the company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under section 301 of Companies Act, 1956.
(xix) During the year the company had not issued any debentures.
(xx) During the year under review no money was raised by public issue.
(xxi) Based upon the audit procedure performed and information and
explanation given by the management we report that during the year no
fraud on or by the company has been noticed or reported during the year
by the management.
for P.K. GAUR & ASSOCIATES
Chartered Accountants
Place : New Delhi FRN 005311 N
Dated: 02/08/2013
(SHALIN PODDAR)
M.NO. 515616
Mar 31, 2012
We have audited the attached Balance Sheet of M/s. CAPITAL TRADE LINKS
LTD. as at 31st March 2012 and also the annexed Statement of Profit &
Loss for the year ended on that date. These financial statements are
the responsibility of the Company''s Management, our responsibility is
to express an opinion on these financial statements based on our audit.
"We conducted our audit in accordance with Auditing Standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement(s). An audit
includes examining, on a test basis, evidences 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".
We report that: -
1. As required by the Companies (Auditors Report) (Amended) Order,
2003, as amended by Companies (Auditor''s Report) Order (Amendment)
2004 issued by the Central Government of India in terms of Section 227
(4A) of the Companies Act, 1956 we enclose in the annexure a statement
on the matter specified in paragraphs 4 & 5 of the said order.
2. Further to our comments in the annexure referred to in paragraph (1)
above:-
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of
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 Statement of Profit & Loss referred to in this
report are in agreement with the books of account.
d) In our opinion, the Balance Sheet and Statement of Profit & Loss
comply with accounting standard referred to in subsection (3C) of
Section 211 of the Companies Act, 1956.
e) On the basis of the written representations received from the
directors and taken on record by the board of directors, we report that
none of the directors is disqualified at 31st March 2012 from being
appointed as a director in terms of clause (g) of sub- section (1) of
section 274 of the Companies Act, 1956.
f) In our opinion, and to the best of our information and according to
the explanations given to us, the said Balance Sheet and Statement of
Profit & Loss read together with the significant Accounting Policies
and Schedule the information required by Companies Act, 1956 in the
manner so required and give a true and fair view in conformity with the
accounting principle generally accepted in India:-
i) In the case of the Balance Sheet, of the state of affairs of the
company as at 31 st March 2012
ii) In the case of the Statement of Profit & Loss, of the "Profit"
for the year ended on that date.
ANNEXURE TO THE AUDITOR''S REPORT
(Referred to Para "1" of our report of even date on the accounts
for the year ended 31st March, 2012 of Capital Trade Links Ltd.)
(i) (a) In our opinion, 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 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, the company has not disposed off substantial part
of fixed assets during the year and hence, going concern status of the
company is not affected.
(ii) (a) Inventory has been physically verified by the management to
the extent practicable at reasonable intervals during the year. In our
opinion, the frequency of verification is reasonable.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the company and nature of its business.
(c) On the basis of our examination of the records of inventory, we are
of the opinion that the company is maintaining proper records of
inventory. Discrepancies noticed on verification of inventory as
compared to book records were not material and these have been properly
dealt with in the books of accounts.
(iii) (a) On the basis of the records of the company ,the Company has
given unsecured interest free loans to companies ,firms or other
parties covered in the register maintained under section 301 of the
Companies Act,1956,the number of such parties are two and amount
involve in the transaction is Rs. 95,00,000/-
b) In our opinion and based on the explanation ,the terms and condition
of loan given are prima facie not prejudicial to the interest of the
company.
c) The receipt of principal and interest thereon , if any, are regular.
d) There is no overdue amount of loan granted by the company.
e) The company has taken unsecured interest free loan from companies
firms or other parties covered in the register maintained under section
301 of the Companies Act,1956,the number of such parties is nine and
amount involve in the transaction is Rs/. 7,42,90,000/-
f) In our opinion and based on the explanation ,the terms and condition
of loan taken are prima facie not prejudicial to the interest of the
company.
g) The payment of principal and interest thereon , if any, are regular.
(iv) 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 and fixed assets and for
the sale of goods. During the course of our audit, we have not observed
any continuing failure to correct major weaknesses in internal
controls.
(v) (a) Based on the audit procedure applied by us and in our opinion
and according to the information and explanations given to us, we are
of the opinion that the particulars of the contracts , or arrangements
referred to in section 301 of the Act , entered into the register
maintained under section 301 of the Companies Act, 1956The transactions
made in pursuance of such contracts or arrangements have been made at
prices which are reasonable having regards to prevailing market prices
at the relevant time.
(vi) According to the information and explanations given to us, the
company has not accepted any deposit from public, consequently the
provisions of sections 58A and 58AA of the Companies Act, 1956 and the
rules framed there under are not applicable to the company. As per
information and explanations given to us no order under the aforesaid
sections has been passed by the Company Low Board on the Company.
(vii) The company has no formal internal audit system due to size and
the nature of its business and proper internal control exist in the
company.
(viii) As maintenance of cost records has not been prescribed by the
Central Government under section 209 (1) (d) of the Companies Act,
1956. So clause (viii) of order is not applicable.
(ix) (a) According to information and explanation given to us, the
company is regular in depositing with the appropriate authorities
undisputed statutory dues relating to Provident Fund, Investor
Education and Protection Fund, Employees State Insurance, Income Tax,
Wealth Tax, Sales Tax, Custom Duty, Excise Duty, Cess and other
statutory dues applicable to it. In our opinion, no undisputed amounts
payable were outstanding as at 31st March, 2012 which are outstanding
for a period of more than 6 months from the date they became payable.
(b) According to information and explanation given to us there are no
dues of Sale Tax/Income Tax/Customs Duty/Wealth Tax/Excise Duty/Cess
which have not been deposited on account of any dispute.
(x) The company does not have any accumulated losses exceeding 50% of
its net worth funds as on 31.03.2012. The company has not incurred any
cash losses during the financial year covered by our audit and in the
immediately preceding financial year.
(xi) According to the information and explanations given to us the
company has not defaulted in repayment of dues to any Financial
Institutions/Banks during the year.
(xii) Based on our examination of documents and records maintained by
the company, we are of the opinion that since the company has not
granted any loans and advances on the basis of security by way of
pledge of shares, debenture and other securities.
(xiii) The company is neither a chit fund nor nidhi/mutual benefit
fund/society and hence para (xiii) of the Companies (Auditor''s
Report) order 2003 is not applicable.
(xiv) Based on our examination of the records and evaluation of the
related internal controls, we are of the opinion that proper records
have been maintained for the transaction and contracts and timely
entries have been made in those records in respect of dealing or
trading in shares, securities, debentures and other securities in its
own name except to the extent of the exemption granted under section 49
of the Companies Act, 1956.
(xv) According to the information and explanation given to us, the
company has not given any guarantee for loans taken by others from bank
or financial institutions and hence para 4(xv) of Companies
(Auditor''s report) order 2003 is not applicable.
(xvi) According to the information and explanation given to us, no term
loans have been obtained 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
and vice versa.
(xviii) During the year the company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under section 301 of Companies Act, 1956.
(xix) During the year the company had not issued any debentures.
(xx) During the year under review no money was raised by public issue.
(xxi) Based upon the audit procedure performed and information and
explanation given by the management we report that during the year no
fraud on or by the company has been noticed or reported during the year
by the management.
for P.K. GAUR & ASSOCIATES
Chartered Accountants
Place : New Delhi FRN 005311 N
Dated : 03.09.2012 Sd/-
(P.K. GAUR )
M.NO. 084398
Mar 31, 2011
We have audited the attached Balance Sheet of CAPITAL TRADE LINKS
LIMITED as at 31st March 2011 and also annexed Profit & Loss A/c. for
the year ended on that date, annexed hereto and the Cash Flow Statement
for the year ended on that date. These financial statements are the
responsibility of the Company's Management, our responsibility is to
express an opinion on these financial statements based on our audit.
"We conducted our audit in accordance with Auditing Standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement(s). An audit includes
examining, on a test basis, evidences 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".
1. 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.
2. 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
these books.
3. The Balance Sheet and Profit & Loss Account dealt with by the
report are in agreement with the books of account.
4. In our opinion the Profit and Loss Account and Balance Sheet comply
with the mandatory accounting standards referred to in Sub Section (3C)
of Section 211 of Companies Act, 1956.
5. As per the information & explanations given to us, none of the
directors of the company is disqualified from being appointed as a
director under clause (g) of subscription (i) of Section 274 of the
Companies Act, 1956.
6. In our opinion and to the best of our information and according to
the explanations given to us, the accounts read together with the notes
thereon and in particular in few cases closing balance of unquoted
shares have been taken at cost as against cost or break-up value
whichever is lower, 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 31st March, 2011 and
ii) In the case of Profit & Loss Account of the "Profit" for the year
ended on 31st March, 2011
ii) In the case of the Cash Flow Statement of the Cash Flows for the
year ended on that date
As required by the Companies (Auditors' Report) (Amended) 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 further report that :-
(i) (a) In our opinion, 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 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) On the basis of our examination of records and explanations given
to us, none of the fixed assets disposed off during the year.
(ii)(a) As explained to us, physical verification of inventory (shares
and debentures) has been conducted by the management at reasonable
intervals. In our opinion, the frequency of verification is reasonable.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the company and nature of its business.
(c) On the basis of our examination of the records of inventory, we are
of the opinion that the company is maintaining proper records of
inventory. Discrepancies noticed on verification of inventory as
compared to book records were not material and these have been properly
dealt with in the books of accounts.
(iii) (a) As informed and explanation given to us the company has not
taken/or granted any secured/unsecured loans to any company, firm or
any other party listed in the register maintained under section 301 of
the Companies Act, 1956. Therefore clause 4 (iii) of the order are not
applicable to the company.
(iv) In our opinion and according to the information and explanation
given to us, there are adequate internal control system commensurate
with the size of the company and the nature of its business with regard
to purchase of inventory and fixed assets and for the sale of goods.
During the course of our audit, we have not observed or informed any
continuing failure to correct major weakness in the internal control
procedures.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered into
the register maintained under section 301 of the Companies Act, 1956
have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered into the register maintained under section 301 of
the Companies Act 1956 and exceeding the value of five lacs rupees 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) According to the information and explanations given to us, the
company has not accepted any deposit from public, consequently the
provisions of sections 58A and 58AA of the Companies Act, 1956 and the
rules framed thereunder are not applicable to the company. As per
information & explanations given to us no order under the aforesaid
sections has been passed by the Company Law Board or National Company
Law Tribunal or Reserve Bank of India or any Court or any other
Tribunal on the Company.
(vii) In our opinion, the company has an in house internal audit system
commensurate with the size and the nature of its business. However, it
needs to be strengthened.
(viii) As maintenance of cost records has not been prescribed by the
Central Government under section 209 (1) (d) of the Companies Act,
1956. So clause of order is not applicable
(ix)(a) According to information and explanation given to us, the
company is regular in depositing with the appropriate authorities
undisputed statutory dues relating to Provident Fund, Investor
Education and Protection Fund, Employees State Insurance, Income Tax,
Wealth Tax, Sales Tax, Custom Duty, Excise Duty, Cess, Service Tax and
other statutory dues applicable to it. In our opinion, no undisputed
amounts payable were outstanding as at 31st March, 2011 which are
outstanding for a period of more than 6 months from the date they
became payable.
(b) According to information and explanation given to us and record of
the company examined by us there were no dues of Sale Tax/Income
Tax/Customs Duty/Wealth Tax/Excise Duty/Cess, Service Tax outstanding
which have not been deposited on account of any disport.
(x) The accumulated losses of the company are not more than fifty
percent of its net worth. The company has not incurred any cash losses
during the financial year covered by our audit and in the immediately
preceding financial year.
(xi) According to records of the company no dues of Financial
Institutions/Banks have been defaulted.
(xii) According to the information and explanations given to us and
according to the books and records of the company, we are of the
opinion that since the company has not granted any loan and advance on
the basis of security by way of pledge of shares, debenture and other
securities, it is not required to maintain records in respect thereof.
(xiii) The company is neither a chit fund nor nidhi/mutual benefit
fund/society and hence para (xiii) of the Companies (Auditor's Report)
order 2003 is not applicable.
(xiv) Based on our examination of the records and evaluation of the
related internal controls, we are of the opinion that proper records
have been maintained for the transaction and contracts and timely
entries have been made in those records in respect of dealing or
trading in shares, securities, debentures and other securities and
investments, they have been held in its own name except to the extent
of the exemption granted under section 49 of the Companies Act, 1956.
(xv) In our opinion and according to the information and explanation
given to us, the company has not given any guarantee for loans taken by
others from bank or financial institutions and hence para 4(xv) of
Companies (Auditor's report) order 2003 is not applicable.
(xvi) In our opinion and according to the information and explanation
given to us, no term loans have been obtained during the year.
(xvii) According to the information and explanations given to us and an
overall examination of the balance sheet of the company as at
31.03.2011, we report that no funds raised on short term basis have
been used for long term.
(xviii) During the year the company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under section 301 of Companies Act, 1956.
(xix) The company had not issued any debentures.
(xx) During the year under review no money was raised by public issue.
(xxi) Based upon the audit procedure performed and information and
explanation given by the management we report that during the year no
fraud on or by the company has been noticed or reported during the year
by the management.
For P.K. GAUR & ASSOCIATES
Chartered Accountants
Place : New Delhi SdV-
Dated : 02.09.2011 (P.K.GAUR)
Partner
M.No.084398