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Auditor Report of Elder Projects Ltd.

Jun 30, 2013

Report on the Financial Statements

We have audited the accompanying statements of ELDER PROJECTS LIMITED ("the Company") which comprises the Balance Sheet as at 30th June, 2013, the Statement of Profit and Loss Account and the cash flow statement of the Company for the period ended on that date and a summary of the significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

The company''s Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956 (''the Act'') and in accordance with the accounting principles generally accepted in India. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the said financial statements give the'' information required by the Act, in the manner so required and give a true and fair view in conformity with accounting principles generally accepted in India:

(a) In the case of the Balance Sheet, of the state of affairs of the Company as at 30th June 2013:

(b) In the case of the Statement of Profit and Loss, of the Profit of the Company for the period on that date; and

(c) In the case of the Cash Flow Statement, of the cash flows of the Company for the period ended on that date. Emphasis of Matter

The Company has not made any provision for non moving inventories having book value of Rs. 33.38 Lacs. Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors'' Report) Order, 2003 (''the said order'') issued by the Central Government in terms of Section 227(4A) of the Act, we give the Annexure, a statement on the matters specified in Paragraphs of the said 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 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 Statement of Profit and Loss and the Cash Flow Statement comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Act; and

(e) On the basis of written representations received from the directors as on 30th June 2013, and taken on record by the Board of Directors, none of the directors is disqualified as on 30th June 2013, from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Act.

ANNEXURE TO THE AUDITORS'' REPORT

(Referred to in paragraph 2 of our report of even date)

1. (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(b) The fixed assets are physically verified by the management in a phased manner which in our opinion is reasonable having regard to the size of the Company and the nature of its assets. No material-discrepancies were noticed on such verification.

(c) The Company has not disposed of a substantial part of fixed assets during the period and accordingly going concern is not affected. However the Company has sold Its restaurant business on slump sale basis during me period.

2 (a) As explained to us, physical verification of the inventory was carried out at reasonable intervals by the management.

(b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation the size of the Company and 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 inventory, and the discrepancies noticed on physical verification of inventory as compared to book records were not material and have been properly dealt with in the books of account.

3 (a) The Company has granted loans and/ or advances to persons covered in the register maintained under Section 301 of the Companies Act 1956. The maximum balance during the period and the amount outstanding at the end of the period was Rs. 466.20 lacs.

(b) In our opinion the rate of interest and other terms and conditions on which the loan was granted to the Company listed in the register maintained under section 301 of the Companies Act, 1956 are not, prima facie, prejudicial to the interest of the Company.

(c) The Company has recovered the principal amount and interest thereon regularly wherever stipulated.

(d) However the amounts given to the said parties on current account has not been considered as loans and/ or advances and therefore not considered by us for the purpose of reporting under this clause.

(e) According to the information and explanations given to us, the Company has not taken loans from the parties listed in the register maintained under section 301 of the Companies Act, 1956.

4) In our opinion and according to the information and explanations given to us, the Company has adequate internal control procedures commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets and for sale of goods. Further, based on our examination and according to the information and explanations given to us, we have not noted any continuing failure to correct major weakness in internal controls.

5) 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 the contracts or agreements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of Rs. 5 Lakhs in respect of any party during the period have been made at prices which are reasonable, having regard to the prevailing market price at the relevant time.

6) The Company has not accepted any deposits from public to which directives issued by Reserve Bank of India and the provisions of sections 58A and 58AA of the Companies Act, 1956 and Rules made there under are applicable.

7) In our opinion the Company has an internal audit system commensurate with the size and the nature of its business.

8) We have been informed that the Central Government has not prescribed maintenance of Cost Records under Section 209(1 )(d) of the Companies Act, 1956 in respect of Company''s activities.

9) According to the information and explanations given to us, the Company is regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Customs Duty, Excise Duty, Cess and other statutory dues with the appropriate authorities during the period. However there were delays in payment of tax deducted at source and employees'' professional tax.

10) According to information and explanations given to us, the Company has accumulated losses at the end of the financial period, which does not exceed fifty percent of its networth. The Company has also incurred Cash Losses during the period.

11) On the basis of our examination and according to the information and explanations given to us, the Company has defaulted in repayment of dues to a financial institution. The Company has not obtained any borrowings by way of debentures.

12) As the Company has not granted any loans or advances on the basis of security by way of pledge of shares, debentures and other securities, clause (xii) of the said order is not applicable.

13) The Company is engaged in manufacturing activity, and therefore, the provisions of clause (xiii) of the said order relating to chit fund or nidhi / mutual fund / society are not applicable to the Company.

14) In respect of Company''s investment, proper records have been maintained of transactions and contracts and timely entries have been made. The investments have been held by the Company in its own name.

15) 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.

16) The Company has not taken any term loan during the period. Accordingly, clause (xvi) of the said order is not applicable.

17) According to the Cash Flow Statement and other records examined by us and according to information and explanations given to us and on an overall examination of the Balance Sheet of the Company, we report that the funds raised on short term basis have, prima facie not been used during the period for long term investments. No long term funds have been used to finance short term assets except for permanent working capital and / or temporary deployment pending application.

18) The Company has not made any preferential allotment of shares or issued debentures or made any public issue during the period, and accordingly, clauses (xviii), (xix) and (xx) of the said order are not applicable to the Company.

19) To the best of our knowledge and belief, and according to the information and explanations given to us, there have been no cases of fraud on or by the Company noticed or reported during the period.

For Jayesh Sutaria Associates

Chartered Accountants

FirmRegn. No.: 104187W

(Jayesh Sutaria)

Proprietor M.No.39696

Place: Mumbai

Date: 29th August 2013


Mar 31, 2010

1. We have audited the attached Balance Sheet of ELDER PROJECTS LIMITED (the Company) as at 31st March, 2010 and also the Proft and Loss Account and the cash fow statement of the Company for the year ended on that date (together referred to as financial statements). These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material mis-statement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the 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 said order) issued by the Central Government in terms of Section 227(4A) of the Companies Act, 1956 (the Act), and on the basis of such checks as we considered appropriate and according to the information and explanations given to us during the course of audit, we enclose in the Annexure, a statement on the matters specified in Paragraphs 4 of the said order.

4. i. We have obtained all the information and explanations which, to the best of our knowledge and belief were necessary for the purposes of our Audit;

ii. In our opinion, proper books of accounts as required by law, have been kept by the Company, so far as appears from our examination of those books;

iii. The Balance Sheet and Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account;

iv. In our opinion, Balance Sheet, the Profit and Loss Account and Cash Flow Statement comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Act :

v. On the basis of written representations received from the Directors as on 31st March, 2010 and taken on record by the board of Directors we report that non of the Directors are disqualified as on 31st March, 2010from being appointed as a Director under clause (g) of sub-section 1 of Section 274 of the Act.

vi. In our opinion and to the best of our information and according to the explanations given to us, the said financial statements subject to our remarks in paragraph 4 above and read with notes thereon, 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 Balance Sheet, of the state of affairs of the Company as on 31st March, 2010;

b. in the case of Profit & Loss Account, of the loss of the Company for the year ended on the date; and

c. in case of the Cash Flow Statement, of the cash flows of the Company for the year ended on that date.

ANNEXURE REFERRED TO IN PARAGRAPH 2 OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF ELDER PROJECTS LIMITED ON THE ACCOUNTS AS AT AND FOR THE YEAR ENDED MARCH 31, 2010



1. (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(b) The fixed assets are physically verified by the management in a phased manner which in our opinion , is reasonable having regard to the size of the Company and the nature of its assets. No material disdcrepancies were noticed on such verifcation.

(c) The Company has not disposed of a substantial part of fixed assets during the year and accordingly going concern is not affected.

2 (a) As explained to us , physical verification of the inventory was carried out at reasonable intervals by the management.

(b) In our opinion and according to the information and explanations given to us, the procedures of physical verifcation of inventory followed by the management are reasonable and adequate in relation to the size of the Company and 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 inventory,and the discrepancies noticed on physical verifcation of inventory as compared to book records were not material and have been properly dealt with in the books of account.

3 (a) The Company has granted loans and/ or advances to persons covered in the register maintained under Section 301 of the Companies Act 1956. The maximum balance during the year and the amount outstanding at the end of the year was Rs. 309.24 lacs.

(b) In our opinion the rate of interest and other terms and conditons on which the loan was granted to the Company listed in the register maintained under section 301 of the Companies Act, 1956 are not, prima facie, prejudicial to the interest of the Company.

(c) The Company has recovered the principal amount and interest thereon regularly wherever stipulated.

(d) However the amounts given to the said parties on current account has not been considered as loans and/ or advances and therefore not considered by us for the purpose of reporting under this clause.

(e) The Company has received amounts from a Company on current account in the register maintained under Section 301 of the Companies Act 1956. The maximum balance during the year and the outstanding balance at the end of the year was Rs.1189 lacs and Nil respectively.

(f) In our opinion the rate of interest where ever applicable and other terms and conditons on which the loan was loans taken from the Companies listed in the register maintained under section 301 of the Companies Act, 1956 are not, prima facie, prejudicial to the interest of the Company.

(g) The Company was regular in repaying the principal amount of such loans and was also regular in payment of interest where ever applicable.

(h) However the amounts received from said parties on current account and / or deposits have not been considered as loans received and therefore not considered by us for the purpose of reporting under this clause.

4) In our opinion and according to the information and explanations given to us, the Company has adequate internal control procedures commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets and for sale of goods. Further, based on our examination and according to the information and explanations given to us, we have not noted any continuing failure to correct major weakness in internal controls.

5) 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 the contracts or agreements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the vale of Rs.5 lakhs in respect of any party during the year have been made at prices which are reasonable, having regard to the prevailing market price at the relevant time.

6) The Company has not accepted any deposits from public to which directives issued by Reserve Bank of India and the provisions of sections 58A and 58AA of the Companies Act, 1956 and Rules made there under are applicable.

7) In our opinion the Company has an internal audit system commensurate with the size and the nature of its business.

8) We have been informed that the Central Government has not prescribed maintenance of Cost Records under Section 209(1)(d) of the Companies Act, 1956 in respect of Companys activities.

9) a) According to the information and expanations given to us, the Company is regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Customs Duty, Excise Duty, Cess and other statutory dues with the appropriate authorities during the year, except liabilities in the respect of deferred sales tax amounting to Rs. 18.08 Lacs.

b) According to the information and expanations given to us, no undisputed amounts payable in respect of Income Tax, Sales Tax, Customs Duty, Excise Duty were outstanding as at 31st March, 2010 for a period of more than 6 months from the date they became payable except the following.



Sr. No. Name of the Statute Forum where dispute is pending Amount

(Rs. Lacs)

1 Central Excise Appelate Authorities 10.34





10) According to information and explanations given to us , the Company has accumulated losses at the end of the financial year .However it does not exceed fifty percent of its networth.It has also incurred cash losses in the current year as well as in the previous financial year.

11) On the basis of our examination and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to any bank or financial institution. The Company has not obtained any borrowings by way of debentures.

12) As the Company has not granted any loans or advances on the basis of security by way of pledge of shares, debentures and other securities, clause (xii) of the said order is not applicable.

13) The Company is engaged in manufacturing activity, and therefore, the provisions of clause (xiii) of the said order relating to chit fnd or nidhi / mutual fund / society are not applicable to the Company.

14) In respect of Companys investment, proper records have been maintained of transactions and contracts and timely entries have been made. The investments have been held by the Company in its own name.

15) 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.

16) The Company has not taken any term loan during the year. Accordingly, clause (xvi) of the said order is not applicable.

17) According to the Cash Flow Statement and other records examined by us and according to information and explanations given to us and on an overall examination of the Balance Sheet of the Company, we report that the funds raised on short term basis have, prima facie not been used during the year for long term investments. No long term funds have been used to finance short term assets except for permanent working capital and / or temporary deployment pending application.

18) The Company has not made any preferential allotment of shares or issued debentures or made any public issue during the year, and accordingly, clauses (xviii), (xix) and (xx) of the said order are not applicable to the Company.

19) To the best of our knowledge and belief, and according to the information and explanations given to us, there have been no cases of fraud on or by the Company noticed or reported during the year.

For Jayesh Sutaria Associates

Chartered Accountants

Jayesh Sutaria

Proprietor

Membership No. 39696

Firm Regd. No. 104187W

Mumbai.

Date : 31st August, 2010.



 
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