Mar 31, 2015
1. Report on the Financial Statements
We have audited the accompanying financial statements of CREATIVE EYE
LIMITED ("the Company"), which comprise the Balance Sheet as at March
31,2015, and the Statement of Profit and Loss and Cash Flow Statement
for the year then ended, and a summary of significant accounting
policies and other explanatory information.
2. 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 financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014.
This responsibility also includes maintenance of adequate accounting
records in accordance with the provisions of the Act for safeguarding
the assets of the Company and for preventing and detecting frauds and
other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that are reasonable
and prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
3. 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 misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
4. Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India,
a. in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2015;
b. in the case of 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
5. Report on Other Legal and Regulatory Requirements
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 Companies Act,2013 we give in
the Annexure a statement on the matters specified in paragraphs 3 and 4
of the Order.
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 31,2015 taken on record by the Board of
Directors, none of the directors is disqualified as on March 31,2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) With respect to the other matters to be included in 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 has disclosed the impact of pending litigations on its
financial position in its financial statements.
ii. The Company does not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii. The Company does not have any pending amount, required to be
transferred, to the Investor Education and Protection Fund.
ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT
(Referred to in Paragraph 5 of our report of even date to the members
of CREATIVE EYE LIMITED on the accounts for the year ended March
31,2015)
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
assets.
(b) As explained by the Management, fixed assets have been physically
verified by the management at regular intervals. In our opinion, the
frequency of physical verification of fixed assets is reasonable having
regard to the size of the company and nature of its assets. No material
discrepancies were noticed on such verification.
ii) (a) As explained by the Management, physical verification of
inventory has been conducted at reasonable intervals.
(b) In our opinion, the procedures of physical verification of
inventory followed by the Management are reasonable and adequate in
relation to the size and nature of its business.
(c) The company is maintaining proper records of inventory and no
material discrepancies were noticed on such verification.
iii) Based on the audit procedures applied by us and according to the
information and explanations given to us the company has not granted or
taken any loans secured or unsecured to / from companies, firms or
other parties listed in the register maintained under Section 189 of
the Companies Act . Therefore, the provisions of clause (iii) (a) (b)
and (c) of Para 3 of the Order are not applicable to the Company.
iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control procedure
commensurate with the size of the Company and the nature of its
business for purchase of fixed assets and for the sale of services.
During the course of our audit, we have not observed any continuing
failure to correct major weakness in the internal control system.
v) In our opinion and according to the information and explanation
given to us the Company has not accepted any deposit from public within
the provision of Section 73 to 76 and other relevant provisions of the
Companies Act, 2013 and the rules framed there under.
vi) As explained to us, the maintenance of cost records has not been
prescribed by the Central Government under section (1) of section 148
of the Companies Act, 2013.
vii) (a) In our opinion and according to the records of the company,
undisputed statutory dues including Provident Fund, Employees' State
Insurance, Income-tax, Sales-tax, Service Tax, cess to the extent
applicable and any other statutory dues have been regularly deposited
with the appropriate authorities. According to the information and
explanations given to us there were no outstanding statutory dues as on
March 31, 2015 for a period of more than six months from the date they
became payable.
(b) According to the information and explanations given to us, there
are no amounts payable in respect of income tax, wealth tax, service
tax, sales tax, customs duty and excise duty which have not been
deposited on account of any disputes.
(c) The company does not have any pending amount required to be
transferred to Investor Education and Protection Fund in accordance
with the relevant provisions of the Companies Act, and rules made
thereof.
viii) The company has accumulated losses of Rs. 724.70 lacs, which is
less than 50% of its net worth as at March 31,2015 and the company has
incurred cash losses of Rs. 307.00 Lacs during the current financial
year but has not incurred any cash losses in the immediately preceding
financial year.
ix) On the basis of verification of records and according to the
information and explanations given to us and based on the records made
available to us, the Company has not defaulted in repayment of any
loans from Financial Institutions or Bank or on Debentures.
x) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
Banks or financial institutions.
xi) According to the information and explanations given to us, the
Company has applied loans for the purpose for which they were obtained.
xii) 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 year, nor have we been informed
of such case by the management.
For Uttam Abuwala & Co.
Chartered Accountants
Sd/-
CA. Prerak Agarwal
(Partner)
Membership No. 158844
Firm No. 111184W
Date: May 25, 2015
Place: Mumbai
Mar 31, 2014
We have audited the accompanying financial statements of Creative Eye
Limited (''the Company''Â), which comprise the Balance Sheet as at
March 31,2014, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
2. Management''s responsibility for the financial statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in subsection (3C) of section 211
of the Companies Act, 1956 (''the Act''Â) read with General Circular
15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs
in respect of section 133 of the Companies Act, 2013. This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
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:
a. in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2014;
b. in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c. in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
5. Report on other legal and regulatory requirements
As required by the Companies (Auditor''s Report) Order, 2003 (''the
Order''Â), as amended, 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.
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; read
with General circular 15/2013 dated 13th September 2013 of the
Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act; and
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.
ANNEXURE TO THE AUDITOR''S REPORT
(Referred to in paragraph 5 of Our Report of even date to the members
of Creative Eye Limited on the accounts of the company for the year
ended March 31,2014)
We report that:
i. a. The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b. As explained to us, fixed assets have been physically verified by
the management at regular intervals; no material discrepancies were
noticed on such verification.
c. In our opinion and according to the information and explanations
given to us, no fixed asset has been disposed during the year and
therefore does not affect the going concern assumption.
ii. a. As explained to us, inventories have been physically verified
during the year by the management at yearly 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 are reasonable and adequate in relation to
the size of the company and the nature of its business.
c. In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its
inventories. No material discrepancies were noticed.
iii. a. According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company
has not granted any loans, secured or unsecured, to companies, firms
or other parties listed in the register maintained under Section 301
of the Companies Act, 1956. Consequently, the provisions of clauses
iii(b), iii(c) and iii(d) of the order are not applicable to the
Company.
b. According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
not taken loans from companies, firms or other parties listed in the
register maintained under Section 301 of the Companies Act, 1956. Thus
sub clauses iii(f) and iii(g) are not applicable to the company.
iv. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories and fixed assets and payment
for expenses and for sale of goods. During the course of our audit, no
major instance of continuing failure to correct any weaknesses in the
internal controls has been noticed.
v. a. According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
that need to be entered in 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, there are no transactions made in pursuance of such
contracts or arrangements entered in the register maintained under
Section 301 of the Companies Act, 1956 exceeding the value of Rupees
Five lakhs in respect of any party during the year, and accordingly
the provisions of clause 4(v)(b) of the Order is not applicable to the
company.
vi. The Company has not accepted any deposits from the public covered
under section 58A and 58AA of the Companies Act, 1956.
vii. In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
viii. As explained to us, the maintenance of cost records has not been
prescribed by the Central Government under clause (d) of sub-section
(1) of section 209 of the Companies Act, 1956, for any products of the
company.
ix. a. In our opinion and according to the records of the company,
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees'' State Insurance, Income-tax,
Sales-tax, Wealth Tax, Service Tax, Custom Duty, cess to the extent
applicable and any other statutory dues have been regularly deposited
with the appropriate authorities. According to the information and
explanations given to us there were no outstanding statutory dues as
on March 31,2014 for a period of more than six months from the date
they became payable.
b. According to the information and explanations given to us, there is
no amounts payable in respect of income tax, wealth tax, service tax,
sales tax, customs duty and excise duty which have not been deposited
on account of any disputes.
x. The Company had accumulated loss amounting to'' 380.74 Lacs, which
is less than 50% of its net worth as at March 31,2014 and has not
incurred cash loss during the financial year covered by our audit and
in the immediately preceding financial year.
xi. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
xii. According to the information and explanations given to us and
records examined by us, the Company has not granted loans and advances
on the basis of security by way of pledge of shares, debentures and
other securities.
xiii. The Company is not a chit fund or a nidhi /mutual benefit
fund/society. Therefore, the provision of clause 4(xiii) of the Order
is not applicable to the Company.
xiv. According to the information and explanations given to us and
records examined by us, the Company is not trading in Shares, Mutual
funds and other Investments. However the company has invested in
shares and the same is closely monitored and proper records are being
maintained. All the shares and funds have been held in its own name.
Therefore the provision of clause 4 (xiv) of the Order are not
applicable to the Company.
xv. According to the information and explanations given to us and
records examined by us, the Company has not given any guarantees for
loan taken by others from a bank or financial institution.
xvi. Based on our audit procedures and on the information and
explanation given to us and records examined by us, we report that the
term loans have been applied for the purpose for which they were
obtained.
xvii. Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company as at March
31,2014, we report that no funds raised on short-term basis have been
used for long-term investment by the Company.
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 during the year.
xix. The Company has no outstanding debentures during the period under
audit.
xx. The Company has not raised any money by public issue during the
year.
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 year, nor have we been
informed of such case by the management.
For Uttam Abuwala and Co.
Chartered Accountants
Firm Regn. No. 111184W
Sd/-
CA. Urmish Mehta
Partner
M.No.137150
Place : Mumbai
Dated : 30th May, 2014
Mar 31, 2012
1. We have audited the attached Balance Sheet of Creative Eye Limited
as at 31st March 2012 and also the Profit & Loss Account and Cash Flow
Statement for the year ended on that date, annexed thereto. These
financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principals used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the companies (Auditor's Report) Order, 2003
("the order") issued by the central government of India in term of
section 227(4A) of the Companies Act 1956, we annex hereto a statement
on the matters specified in paragraphs 4 and 5 of the said Order, to
the extent applicable to the Company.
4. On the basis of written representation received on 31st March, 2012
from the directors of the company and taken on record by the Board of
directors, we report that none of the directors is disqualified as on
31st March, 2012 from being appointed as a director in term of clause
(g) of sub section (1) of section 274 of Companies Act, 1956.
5. Further to our comments in the Annexure to in paragraph 3 above, we
report that:
a. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the 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 Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d. In our opinion, the Balance Sheet, the profit and Loss Account and
the Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub section (3C) of section 211 of
the Companies Act, 1956;
e. In our opinion, and to the best of our information and according to
the explanations given to us, the said account, read together with the
Significant Accounting Policies and the Notes to account 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 2012;
ii) in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
iii) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Annexure to the Auditor's Report
(Referred to in paragraph 3 of our report of even date to the members
of CREATIVE EYE LIMITED on the accounts for the year ended 31st March,
2012)
In terms of the information and explanations given to us and on the
basis of the books and records examined by us in the normal course of
audit and to the best of our knowledge and belief we state that:-
i. a. The Company has maintained proper records showing full
particulars including quantities, details and situation of fixed
assets.
b. Fixed Assets have been physically verified by the management
according to the regular programme of periodical verification in phased
manner which in our opinion is reasonable, considering the size of the
Company and nature of its assets. No material discrepancies were
noticed on such verification.
c. The Company has not disposed off any substantial part of its fixed
assets during the year, so as to affect its going concern status.
ii. a. As explained to us, the inventories have been physically
verified by the management during the year. In our opinion, the
frequency of such verification is reasonable.
b. As per the information given to us, the procedures of physical
verification of inventory followed by the management are, in our
opinion, reasonable and adequate in relation to the size of the Company
and the nature of its business.
c. The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
iii. a. According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured, to companies,
firms and other parties covered in the register maintained under
section 301 of the Companies Act, 1956. b. Accordingly, paragraphs 4
(iii) (b), (c) & (d) of the Order are not applicable to the Company.
According to the information and explanations given to us, the Company
has not taken any loans, secured or unsecured, from companies, firms
and other parties covered in the register maintained under section 301
of the Companies Act, 1956. Accordingly, paragraphs 4 (iii) (f) & (g)
of the Order are not applicable to the Company.
iv. In our opinion, and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and nature of its business, for purchases
of inventory and fixed assets and for the sale of goods and services.
During the course of audit, we have neither come across nor have been
informed of any continuing failure to correct major weakness in the
aforesaid internal control system.
v. a. According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
that need to be entered in 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 such contracts or arrangements
entered in the register maintained under Section 301 of the Companies
Act, 1956 and exceeding the value of Rupees Five lakhs in respect of
any party during the year, have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
vi. The Company has not accepted any deposits from the public within
the meaning of Section 58A and 58AA of the Companies Act, 1956.
vii. In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of its business.
viii. As explained to us, the Central Government has not prescribed
the maintenance of cost records under section 209(1)(d) of the
Companies Act, 1956, for any products of the Company.
ix. In our opinion according to the information and explanations given
to us in respect of statutory and other dues.
a. The Company is regular in depositing Provident Fund and
Employees' State Insurance Dues with the appropriate authorities and
there were no arrears outstanding for a period of more than 6 months as
at 31st March 2012.
b. The Company has been regular in making payment of its income tax,
wealth tax, service tax, sales tax (CST & MVAT), customs duty and
excise duty dues during the year, there were no undisputed amounts
payable in respect of income tax, wealth tax, service tax, sales tax
(CST & MVAT), customs duty and excise duty that were outstanding, as at
31st March 2012 for a period of more than six months from the date they
became payable.
x. The Company had accumulated losses of Rs. 973.35 Lacs as at the end
of the financial year which is less than 50% of its net worth as on
31st March 2012. The Company has not incurred cash losses in the
current financial year however there was cash loss of Rs.131.93 Lacs
during the immediately preceding financial year.
xi. The company has not defaulted in payment of any dues to financial
institution or banks.
xii. According to the information and explanations given to us and the
records examined by us, 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 not a chit fund or a nidhi/mutual fund/society,
therefore clause (xiii) of paragraph 4 of the Companies (Auditor's
Report) Order, 2003(the Order) is not applicable to the Company.
xiv. According to the information and explanations given to us and the
records examined by us, the Company is not dealing or trading in
shares, securities, debentures and other investment. However the
company has invested in shares and the same is closely monitored and
proper records are being maintained. All the shares and funds have been
held in its own name. Therefore the provision of clause 4 (xiv) of the
Order are not applicable to the Company.
xv. According to the information and explanations given to us and the
records examined by us, the Company has not given any guarantee for
loans taken by others from banks or financial institutions.
xvi. According to the information and explanations given to us and the
records examined by us, the Company has not availed any term loan
during the year.
xvii. According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short term basis have been used for long term
investment by company.
xviii.According to the information and explanations given to us and the
records examined by us, the Company has not made any preferential
allotment of shares to any parties or companies covered in register
maintained under Section 301 of the Companies Act, 1956 during the
year.
xix. According to the information and explanations given to us and the
records examined by us, the Company has not issued any debentures that
were outstanding at any time during the year.
xx. According to the information and explanations given to us and the
records examined by us the Company has not raised any money through a
public issue during the year.
xxi. Based upon the audit procedure performed and on the basis of
information and explanation provided by the management, we report that
no frauds on or by the company has been noticed or reported during the
course of the audit.
For Uttam Abuwala &Co.
Chartered Accountants
Firm Regn. No. 111184W
Sd/-
CA M.B.Agarwal
Place : Mumbai (Partner)
Date : 30th May, 2012 M.No.109143
Mar 31, 2010
1. We have audited the attached Balance Sheet of Creative Eye Limited
as at 31st March 2010 and also the Profits Loss Account and Cash Flow
Statement for the year ended on that date, annexed thereto. These
financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on ouraudit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principals used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the companies (Auditors Report) Order, 2003 ("the
order") issued by the central government of India in term of section
227(4A) of the Companies Act 1956, we annex hereto a statement on the
matters specified in paragraphs 4 and 5 of the said Order, to the
extent applicable to the Company.
4. On the basis of written representation received on 31st March, 2010
from the directors of the company 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 term of clause
(g) of sub section (1) of section 274 of Companies Act, 1956.
5. Further to our comments in the Annexure to in paragraph 3 above, we
report that:
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of
ouraudit;
(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 Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(d) In our opinion, the Balance Sheet, the profit and Loss Account and
the Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in subsection (3C) of section 211 of
the Companies Act, 1956;
(e) In our opinion, and to the best of our information and according to
the explanations given to us, the said account, read together with the
Significant Accounting Policies and the Notes to account 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 31 st March 2010; ii) in the case ofthe Profit and Loss
Account, of the loss for the year ended on that date; and iii) in the
case of Cash Flow Statement, ofthe cash flows for the year ended on
that date.
ANNEXURE TO THE AUDITORS REPORT
(Referred to in paragraph 3 of our report of even date to the members
of CREATIVE EYE LIMITED on the accounts for the year ended 31 st March,
2010)
In terms of the information and explanations given to us and on the
basis of the books and records examined by us in the normal course of
audit and to the best of our knowledge and belief we state that:-
i. a. The Company has maintained proper records showing full
particulars including quantities, details and situation of fixed
assets.
b. Fixed Assets have been physically verified by the management
according to the regular programme of periodical verification in phased
manner which in our opinion is reasonable, considering the size of the
Company and nature of its assets. No material discrepancies were
noticed on such verification.
c. The Company has not disposed off any substantial part of its fixed
assets during the year, so as to affect its going concern status.
ii. a. As explained to us, the inventories have been physically
verified by the management during the year. In our opinion, the
frequency of such verification is reasonable.
b. As per the information given to us, the procedures of physical
verification of inventory followed by the management are, in our
opinion, reasonable and adequate in relation to the size of the Company
and the nature of its business.
c. The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
iii. a. According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured, to companies,
firms and other parties covered in the register maintained under
section 301 of the Companies Act, 1956. Accordingly, paragraphs 4 (iii)
(b), (c) & (d) of the Order are not applicable to the Company.
b. According to the information and explanations given to us, the
Company has not taken any loans, secured or unsecured, from companies,
firms and other parties covered in the register maintained under
section 301 of the Companies Act, 1956. Accordingly, paragraphs 4 (iii)
(f) & (g) of the Order are not applicable to the Company.
iv. In our opinion, and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and nature of its business, for purchases
of inventory and fixed assets and for the sale of goods and services.
During the course of audit, we have neither come across nor have been
informed of any continuing failure to correct major weakness in the
aforesaid internal control system.
v. a. According to the information and explanations given to us, we are
of the opinion that the particulars of contracts or arrangements that
need to be entered in 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 such contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of Rupees Five lakhs in
respect of any party during the year, have been made at prices which
are reasonable having regard to the prevailing market prices at the
relevant time.
vi. The Company has not accepted any deposits from the public within
the meaning of Section 58A and 58AA of the Companies Act, 1956.
vii. In our opinion, the Company has an internal audit system
commensurate with the size of the company and nature of its business.
viii. As explained to us, the Central Government has not prescribed the
maintenance of cost records under section 209(1 )(d) of the Companies
Act, 1956, for any products of the Company.
ix. In our opinion according to the information and explanations given
to us in respect of statutory and other dues
a. The Company is regular in depositing Provident Fund and Employees
State Insurance Dues with the appropriate authorities and there were no
arrears outstanding for a period of more than 6 months as at 31 st
March 2010.
b. The Company has been regular in making payment of its income tax,
wealth tax, service tax, sales tax (CST & MVAT), customs duty and
excise duty dues during the year, there were no undisputed amounts
payable in respect of income tax, wealth tax, service tax, sales tax
(CST & MVAT), customs duty and excise duty that were outstanding, as at
31 st March 2010 for a period of more than six months from the date
they became payable.
x. The Company had accumulated losses of Rs. 842.90 Lacs as at the end
of the financial year which is less than 50% of its net worth as on 31
st March 2010. The Company has incurred cash losses of Rs. 158.81 Lacs
in the current financial year however there was cash loss of Rs.222.77
Lacs during the immediately preceding financial year.
xi. The company has not defaulted in payment of any dues to financial
institution or banks.
xii. According to the information and explanations given to us and the
records examined by us, 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 not a chit fund or a nidhi/mutual fund/society,
therefore clause (xiii) of paragraph 4 of the Companies (Auditors
Report) Order, 2003(the Order) is not applicable to the Company.
xiv. According to the information and explanations given to us and the
records examined by us, the Company is not dealing or trading in
shares, securities, debentures and other investment. However the
company has invested in Mutual funds and shares and the same is closely
monitored and proper records are being maintained. All the shares and
units of mutual funds have been held in its own name. Therefore the
provision of clause 4 (xiv) of the Order are not applicable to the
Company.
xv. According to the information and explanations given to us and the
records examined by us, the Company has not given any guarantee for
loans taken by others from banks or financial institutions.
xvi. According to the information and explanations given to us and the
records examined by us, the Company has not availed any term loan
during the year.
xvii. According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short term basis have been used for long term
investment by company.
xviii.According to the information and explanations given to us and the
records examined by us, the Company has not made any preferential
allotment of shares to any parties or companies covered in register
maintained under Section 301 of the Companies Act, 1956 during the
year.
xix. According to the information and explanations given to us and the
records examined by us, the Company has not issued any debentures that
were outstanding at any time during the year.
xx. According to the information and explanations given to us and the
records examined by us the Company has not raised any money through a
public issue during the year.
xxi. Based upon the audit procedure performed and on the basis of
information and explanation provided by the management, we report that
no frauds on or by the company has been noticed or reported during the
course of the audit.
For Uttam Abuwala & Co.
Chartered Accountants
Firm Regn. No.: 111184W
CA. Gouri Arora
Place: Mumbai (Partner)
Date: 24th May 2010 M.No. 510291