Mar 31, 2015
We have audited the accompanying standalone financial statements of
KJMC Financial Services Limited (''the Company''), which comprise the
Balance Sheet as at March 31, 2015, the Statement of Profit and Loss,
the Cash Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 (''the Act'') with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash 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.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
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 standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at March 31,2015 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 paragraphs 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) 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 - Refer note 23.
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii. There were no amounts that were required to be transferred to the
Investor Education and Protection Fund by the Company during the year.
ANNEXURE TO THE AUDITOR''S REPORT
(Referred to in paragraph 1 under the heading ''Report on Other Legal
and Regulatory Requirements'' of our Report of even date on the
standalone financial statements for the year ended on March 31, 2015,
of KJMC Financial Services Limited)
(i) (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets;
(b) These fixed assets have been physically verified by the management
at reasonable intervals during the year. No material discrepancies were
noticed on such verification.
(ii) The Company does not have inventory. Accordingly, clause 3 (ii)
(a), (b) and (c) of the Order are not applicable.
(iii) (a) The Company has granted unsecured loan to companies covered in
the register maintained under section 189 of the Companies Act, 2013.
(b) The receipt of the principal amount and interest from the said
companies are regular.
(c) There are no overdue amounts more than rupees one lakh.
(iv) There is an adequate internal control system commensurate with the
size of the company and the nature of its business, for the purchase of
fixed assets and for the sale of services. There is a no continuing
failure to correct major weaknesses in internal control system.
(v) The Company has not accepted any deposit from the public and
consequently the directives issued by the Reserve Bank of India,
provisions of section 73 to 76 or any other relevant provisions of the
Companies Act, 2013 and the rules framed thereunder, with regard to the
deposits accepted from the public are not applicable to the Company.
(vi) We are informed that the Company is not required to maintain cost
records under sub-section (1) of section 148 of the Companies Act,
2013, which has been relied upon.
(vii) (a) According to the records of the Company, it is generally
regular in depositing with the appropriate authorities undisputed
statutory dues applicable to it, including Provident Fund, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and
other material statutory dues applicable to it.
According to the information and explanations given to us, no
undisputed amounts payable in respect of above which were outstanding,
as at March 31, 2015 for a period of more than six months from the date
on which they became payable.
(b) According to the information and explanations given to us, dues in
respect of income tax which have not been deposited with appropriate
authorities on account of disputes are as under:
Name of the Nature of Amount not Assessment Forum
Statute dues deposited Year to which where
(Rs. in thousands) it relates dispute is
pending
Income Tax Act Income Tax 400 2012-13 CIT(A)
(c) There is no amount required to be transferred to Investor Education
and Protection Fund in accordance with the relevant provisions of the
Companies Act,1956 (1 of 1956) and rules made thereunder.
(viii) The Company does not have any accumulated losses at the end of
the financial year and has not incurred cash losses during the
financial year covered by our audit and in the immediately preceding
financial year.
(ix) Based on our audit procedure and according to the information and
explanations given to us by the management, we are of the opinion that
the Company has not defaulted in repayment of dues to financial
institution or bank. The Company does not have any outstanding
debentures.
(x) According to the information and explanations given to us, the
Company has not given guarantee for loans taken by others from bank or
financial institutions.
(xi) In our opinion and according to the information and explanations
given to us, on an overall basis, the term loans were applied for the
purpose for which the loans were obtained.
(xii) According to the information and explanations furnished by the
management, which has been relied upon by us, there were no frauds on
or by the Company noticed or reported during the year.
For K. S. Aiyar & Co,
Chartered Accountants
ICAI Firm Registration No: 100186W
Sachin A. Negandhi
Place: Mumbai Partner
Date : May 27, 2015 Membership No.: 112888
Mar 31, 2014
We have audited the accompanying financial statements of KJMC FINANCIAL
SERVICES LIMITED ("the Company"), which comprise the Balance Sheet as
at March 31, 2014, and 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
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'') which shall continue to apply in
respect of section 133 of the Companies Act, 2013 in terms of General
Circular 15/2013 dated September 13, 2013 issued by the Ministry of
Corporate Affairs. 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 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.
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, of the profit for
the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1) As required by the Companies (Auditor''s Report) Order, 2003 (as
amended) ("the Order") issued by the Central Government of India in
terms of sub-section (4A) of Section 227 of the Act, we enclose in the
annexure a statement on the matters specified in paragraphs 4 and 5 of
the Order.
2) As required under provisions of section 227(3) of the Companies Act,
1956, 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
sub section (3C) of section 211 of the Companies Act, 1956 which shall
continue to apply in respect of section 133 of the Companies Act, 2013
in terms of General Circular 15/2013 dated September 13, 2013 issued by
the Ministry of Corporate Affairs;
e) on the basis of the written representations received from the
directors as on March 31, 2014, and taken on record by the Board of
Directors, none of the directors of the Company 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 Act.
Annexure to the Auditors'' Report
The Annexure referred to in our report to the members of KJMC FINANCIAL
SERVICES LIMITED (''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) These fixed assets have been physically verified by the management
at reasonable intervals. No material discrepancies were noticed on such
verification.
(c) According to the information and explanations given to us, no fixed
assets were disposed off during the year.
(ii) The Company does not have inventory. Accordingly, clause 4 (ii)
(a), (b)
& (c) of the Order are not applicable. (iii) (a) As informed, Company
has not granted any loans, secured or unsecured to the companies, firms
and other parties covered in the register maintained under section 301
of the Companies Act, 1956. Accordingly sub  clause (b), (c) & (d)
are not applicable. (e) As informed, Company has not taken any loans,
secured or unsecured from the companies, firms or parties covered in
the register maintained under Section 301 of the Act. Accordingly, sub-
clauses (f) and (g) are not applicable. (iv) In our opinion and
according to the information and explanations given to us, there are
adequate internal control procedures commensurate with the size of the
Company and the nature of its business with regard to purchases of
fixed assets. During the course of our audit, no major weakness has
been noticed in the internal control system in respect of these areas.
(v) (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
referred to in Section 301 of the Act have been entered in the register
required to be maintained under that section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements referred to in (v)(a) 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 deposits from the public during the period
covered by our audit report. According to the information and
explanations given to us, no order has been passed by the Company Law
Board or the National Company Law Tribunal or the Reserve Bank of India
or any court or any other Tribunal in this regard in the case of the
Company.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have been informed that the Company is not required to
maintain cost records under clause (d) of sub-section (1) of section
209 of the Companies Ac, 1956, which has been relied upon.
(ix) (a) According to the records of the Company, Provident Fund,
Investor Education and Protection Fund, Employees'' State Insurance,
Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise
Duty, Cess and other material statutory dues applicable to it have been
generally regularly deposited during the period with the appropriate
authorities. According to the information and explanations given to
us, there are no undisputed dues in respect of Provident Fund, Investor
Education and Protection Fund, Employees'' State Insurance, Income Tax,
Wealth Tax, Service Tax, Sales Tax, Customs Duty, Excise Duty, Cess and
other material statutory dues were in arrears as at March 31, 2014 for
a period of more than six months from the date they became payable.
(b) According to the information & explanations given to us, dues in
respect of income tax which have not been deposited with appropriate
authorities on account of disputes are mentioned below:
Name of the Nature of Amount(Rs. Assessment Forum where
Statute dues in thousands) Year to it dispute is
relates pending
Income Income Tax 157 2009-10 ITAT- Mumbai
Tax Act
(x) The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses during the financial
year covered by our audit and in the immediately preceding financial
year.
(xi) Based on our audit procedure and according to the information and
explanations given to us by the management, we are of the opinion that
the Company has not defaulted in repayment of dues to any financial
institution, bank. The Company does not have any outstanding
debentures.
(xii) Based on our examination of the records and the information and
explanations given to us, we are of the opinion that the company has
maintained adequate records where thecompany has granted loans and
advances on the basis of security by way of pledge of shares and other
securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/
mutual benefit fund/ society. Therefore, the provisions of clause
4(xiii) of the Order are not applicable to the Company.
(xiv) On the basis of our examination of books and records of the
Company, and according to the information and explanations given to us,
in our opinion, the Company has maintained proper records of
transactions and contracts in respect of dealing or trading in shares
and securities entered into, in which entries were made on a timely
basis. As at the Balance Sheet date, the shares, securities and other
investments were held in the Company''s own name.
(xv) According to the information and explanations given to us, the
Company has not given guarantee for loans taken by others from bank or
financial institutions.
(xvi) In our opinion and according to the information and explanation
given to us, on an overall basis, the term loans have been applied for
the purpose for which they were obtained.
(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 funds raised on short-term basis aggregating to Rs. 28715 (''000''s)
have been used for long-term investment in fixed assets, non-current
investment and other assets of the Company.
(xviii) The Company has made preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act and in our opinion and according to the information and
explanation given to us , the price at which shares have been issued is
not prejudicial to the interest of the Company.
(xix) According to the information and explanations given to us, no
debentures were issued during the period.
(xx) The Company has not raised any money by way of public issue during
the period. Therefore, the provision of clause (xx) of the order is not
applicable to the Company.
(xxi) According to the information and explanations furnished by the
management, which has been relied upon by us, there were no frauds on
or by the Company noticed or reported during the course of our audit.
For K. S. AIYAR & CO.
Chartered Accountants
ICAI Firm Registration No.100186W
Sachin A. Negandhi
Partner
(Membership No. 112888)
Place: Mumbai
Date: May 29, 2014
Mar 31, 2012
1. We have audited the attached Balance Sheet of KJMC FINANCIAL
SERVICES LIMITED, as at March 31, 2012, and also the Statement of
Profit and Loss and the 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 a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 (as
amended) ('the Order') issued by the Central Government of India in
terms of sub-section (4A) of Section 227 of the Companies Act, 1956, we
enclose in the annexure a statement on the matters specified in
paragraphs 4 and 5 of the said Order,
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
a. we have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit,
b. in our opinion, proper books of account as required by law have
been kept by the Company, so far as appears from our examination of the
books;
c. the Balance Sheet, Statement of Profit 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 dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956,
e. on the basis of the written representations received from the
directors, as on March 31, 2012, and taken on record by the Board of
Directors, we report that none of the directors of the Company is
disqualified as on March 31, 2012 from being appointed as a director,
in terms of clause (g) of sub-section (1) of Section 274 of the
Companies Act, 1956;
f in our opinion and to the best of our information and according to
the explanations given to us, they said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2012;
ii) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date; and
iii) in the case of the Cash Flow Statement, of the 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 on the Accounts
for the year ended on March 31, 2012, of KJMC Financial Services
Limited)
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) These fixed assets have been physically verified by the management
at reasonable intervals. No material discrepancies were noticed on such
verification.
(c) According to the information and explanation given to us, no fixed
assets are disposed off during the year.
(ii) The Company does not have any inventory. Accordingly, clause 4
(ii)(a), (b) & (c) of the Order are not applicable.
(iii) (a) As informed, the Company has not granted any loans, secured
or unsecured to companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
Accordingly, sub-clause (b), (c) and (d) are not applicable,
(b) As informed, the Company has not taken any loans, secured or
unsecured from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956
Accordingly, sub-clause (f) and (g) are not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of fixed assets. During the course of
our audit, no major weakness has been noticed in the internal control
system in respect of these areas.
(v) (a) The particulars of contracts or arrangements referred to in
section 301 of the Companies Act, 1956 have been entered into a
register required to be maintained under that section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements 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 to which
the provisions of section 58A, 58AA or any other relevant provisions of
the Companies Act, 1956 and the Companies (Acceptance of Deposit)
Rules, 1975 apply.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have been informed that the Company is not required to
maintain cost records under clause (d) of sub-section (1) of section
209 of the Companies Act, 1956, which has been relied upon.
(ix) (a) According to the records of the Company, Provident Fund,
Investor Education and Protection 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 have been
generally regularly deposited during the period with the appropriate
authorities.
According to the information and explanations given to us, there are no
undisputed dues in respect of provident fund, investor education and
protection fund, employees' state insurance, income-tax, wealth-tax,
service tax, sales-tax, customs duty, excise duty, cess and other
statutory dues which were outstanding, at the period end for a period
of more than six months from the date they became payable.
(b) According to the records of the Company, there are no dues of
Income tax, Sales tax, Wealth tax, Service tax. Custom duty, Excise
duty and cess which have not been deposited on account of any dispute.
(x) The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses during the financial
year covered by our audit and in the immediately preceding financial
year.
(xi) Based on our audit procedure and according to the information and
explanations given to us by the management, we are of the opinion that
the Company has not defaulted in repayment of dues to any financial
institution / bank. The Company does not have any outstanding
debentures.
(xii) Based on our examination of the records and the information and
explanations given to us, the Company has not granted any loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause 4
(xiii) of the Order are not applicable to the Company.
(xiv) On the basis of our examination of books and records of the
Company, and according to the information and explanations given to us,
in our opinion, the Company has maintained proper records of
transactions and contracts in respect of dealing or trading in shares
and securities entered into, in which entries were made on a timely
basis. As at the balance sheet date the shares, securities and other
investments were held in the Company's own name.
(xv) According to the information and explanations given to us, the
Company has not given guarantee for loans taken by others from bank or
financial institutions.
(xvi) The Company did not have any term loans outstanding during the
year under report, accordingly, the provision of Clause (xvi) of
paragraph 4 of the Order are not applicable.
(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.
(xviii) The Company has not made any preferential allotment of shares
to parties and companies covered in the register maintained under
Section 301 of the Companies Act, 1956.
(xix) According to the information and explanations given to us, no
debentures were issued during the period.
(xx) The Company has not raised any money by way of public issue during
the period. Therefore, the provision of clause (xx) of the order is not
applicable to the Company.
(xxi) According to the information and explanations furnished by the
management, which have been relied upon by us, there were no frauds on
or by the Company noticed or reported during the course of our audit.
For K. S. Aiyar & Co.
Chartered Accountants
Registration No. 100186W
Sachin A Negandhi
Place: Mumbai Partner
Date: May 24, 2012 Membership No. 112888
Mar 31, 2010
1. We have audited the attached Balance Sheet of KJMC Financial
Services Limited ("the company") as at 31st March, 2010 and the Profit
and Loss Account and Cash Flow Statement for the year ended on that
date, annexed thereto (all together referred to as the 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 misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 (the
Order), as amended, 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 matters specified in paragraph 4 and 5 of
the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b) In our opinion, proper books of 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, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub- section (3C) of Section 211 of the
Companies Act, 1956;
e) On the basis of the written representations received by the Company
from its Directors, none of the directors is disqualified as on the
balance sheet date 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 financial statements read with the
notes thereon, give the information required by the Companies Act, 1956
in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India.
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2010
ii) in the case of the Profit and Loss Account, of the
profit of the Company for the year ended on that date; and
iii) in the case of the Cash Flow Statement, of the cash flows of the
Company for theyear ended on that date.
Annexure to the Auditors Report
(Referred to in paragraph 3 of our report of even date to the members
of KJMC Financial Services Limited on the financial statements for the
year ended on March 31, 2010)
i) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets
b) According to the information and explanations given to us, the
management conducted physical verification of fixed assets as at the
year end, and no material discrepancies were noticed on such
verification. In our opinion, having regard to the size of the Company
and the nature of its business, the frequency of verification is
reasonable.
c) The Company has not disposed off any substantial part of fixed
assets during the year, accordingly, the assumption of the going
concern being affected, does not arise.
ii) In our opinion, and on the basis of the records examined by us, and
information and explanations given to us, the Company has maintained
proper records of inventory.
iii) a) According to the information and explanations given to us, the
Company has not granted any loans to companies, firms or other parties
covered in the register maintained under Section 301 of the Companies
Act, 1956. Accordingly, sub-clauses (b), (c) and (d) of clause (iii) of
paragraph 4 of the said Order, are not applicable. b) According to the
information and explanations given to us, the Company has not taken any
loans from companies, firms or other parties covered in the register
maintained under Section 301 of the Companies Act, 1956. Accordingly,
sub-clauses (f) and (g) of clause (iii) of paragraph 4 of the said
Order, are not applicable.
iv) In our opinion, the Company has an adequate internal control
procedure commensurate with the size of the company and nature of its
business for the purchase of inventory and fixed assets and sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in the
internal control system.
v) a) To the best of our knowledge and belief, and according to the
information and explanations given to us, we are of the opinion that
particulars of contracts and arrangements referred to in section 301 of
the Companies Act, 1956 have been entered in the register required to
be maintained under that section. b) In our opinion, and according to
the information and explanations given to us, in respect of
transactions during the year, made pursuant to contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act,1956 and exceeding the value of Rupees five hundred
thousand in respect of each party, except for certain transactions
where there are no comparable transactions with other parties or where
prevailing market prices are not available as the services are of
specialized nature, transactions have been made at prices which are
reasonable having regard to prevailing market prices.
vi) The Company has not accepted any deposits from the public to which
the directives issued by the Reserve bank of India and the provisions
of Sections 58A, 58AA or any other relevant provisions of the Act, or
the rules framed there under, are applicable.
vii) In our opinion, and according to the information and explanations
given to us, the Company has an internal audit system commensurate with
the size and the nature of its business.
viii) The Central Government has not prescribed maintenance of cost
records under clause (d) of subsection (1) of Section 209 of the
Companies Act, 1956 for any of the activities of the Company.
ix) a) According to the information and explanations given to us,
during the year under report, the Company was generally regular in
depositing undisputed statutory dues including Provident fund,
Income-tax, service-tax and other material statutory dues with the
appropriate authorities . We are informed that the provisions of
Employees State Insurance Act are not applicable to the Company during
the year under report.
b) According to the information and explanations given to us there are
no undisputed amounts payable in respect of income tax, wealth tax, and
service tax, sales tax, customs duty, excise duty and cess which
remained unpaid as at the balance sheet date for a period of more than
six months from the date they became payable.
c) According to the information and explanations given to us, there are
no dues of income- tax, sales tax, wealth tax, service tax, customs
duty, cess which have not been deposited on account of any dispute.
x) The company does not have any accumulated losses at the balance
sheet date .The Company did not incur cash losses for the year under
report, and in the immediately preceding financial year.
xi) On the basis of our examination and according to the information
and explanations given to us, the Company has not defaulted in
repayment of the dues to banks. The Company did not have any loans from
financial institutions and also did not have any debentures outstanding
during the year under report.
xii) According to the information and explanations given to us, during
the year under report, the Company did not grant any loans or advances
on the basis of security by way of pledge of shares, debentures or
other securities.
xiii) In our opinion, the Company is not a chit fund / nidhi / mutual
benefit fund / society to which the provisions of any special statute
apply; accordingly, the provisions of clause (xiii) of paragraph 4 of
the Order are not applicable to the Company.
xiv) On the basis of our examination of books and records of the
Company, and according to the information and explanations given to us,
in our opinion, the Company has maintained proper records of
transactions and contracts in respect of dealing or trading in shares
and securities entered into, in which entries were made on a timely
basis. As at the balance sheet date the shares, securities and other
investments were held in the Companys own name.
xv) According to the information and explanation given to us, the
Company has not given any guarantees for loans taken by others from
banks and financial institutions.
xvi) The Company did not have any term loans outstanding during the
year under report; accordingly, the provisions of clause (xvi) of
paragraph 4 of the Order are not applicable.
xvii) In our opinion, and according to the information and explanations
given to us, and on an overall examination of the balance sheet of the
Company, we report that prima facie, no funds raised on short term
basis have been used for long-term investment.
xviii) During the year under report, the Company has made preferential
allotment of shares to parties and companies covered in the Register
maintained under Section 301 of the Companies Act, 1956.In our opinion
,each of the transactions has been made at price; which are not
prejudicial to the interest of the company ;as the same has been
determined in accordance with the SEBI (Disclosure and Investor
Protection Guidelines), 2000.
xix) The Company did not have any debentures outstanding during the
year under report; accordingly, the question of creating security in
respect of debentures, does not arise.
xx) The Company did not have any public issue; accordingly, the
question of commenting on end-use of moneys raised, does not arise.
xxi) To the best of our knowledge and belief, and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the course of our audit.
For Batliboi & Purohit
Chartered Accountants
FRN No. 101048W
(R.D. Hangekar)
Place :Mumbai Partner
Dated:27/05/ 2010 Membership No. 30615
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