Mar 31, 2014
We have audited the accompanying financial statements of Magnanimous
Trade & Finance Ltd. "the company"), which comprise the Balance Sheet
as at March 31,2014, the Statement of Profit and Loss and Cash Flow
Statement for the year ended on that date and a summary of 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 notified under the Companies
Act, 1956 (the Act) read with the General circular 15/2013 dated 13th
September,2013 of the Ministry of Corporate Affairs in respect of
section 133 of Companies Act,2013 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.
AUDITORS'' 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 infomation 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 sum of Rs. 14,09,033.00 shown under the head long term loans and
advances, recoverable from Shri Prakash Kanodia.No recovery of this
loan have been made. The company has adopted legal recourse for
recovery for the same. However, provision for bad debts has not been
made.
(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 of
the company for the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Legal and other Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of Section
227( 4A) of the Act, we give in the Annexure hereto a statement on the
matters specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the 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, 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
notified under the Act read with the General Circular 15/2013 dated
13th September,2013 of the Ministry Of Corporate Affairs in respect of
section 133 of the Companies Act,2013
e. On the basis of written representations received from the Directors
as on 31 March 2014, taken on record by the Board of Directors, none of
the directors is disqualified as on 31st March, 2014 from being
appointed as a director in terms of section 274 (1 )(g)of the Act.
ANNEXURE TO INDEPENDENT AUDITORS''REPORT
ANNEXURE REFERED TO IN PARAGRAH 1 UNDER THE HEADING "REPORT ON LEGAL
AND OTHER REGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATE
1. In Respect of its Fixed Assets :
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets on the
basis of available information.
(b) As explained to us all fixed assets have been physically verified
by the management in a phased periodical 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) In our opinion, the company has not disposed off any fixed assets
during the year.
2. In Respect of its inventories:
(a) The management has conducted physical verification of inventory at
reasonable intervals.
(b) There is only building in the inventory therefore there is no
requirement of physical verification of the same at reasonable
intervals.
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
3. (a) According to the information and explanations given to us the
Company has granted
Unsecured loan to one party whose maximum balance at any time during
the year is Rs.2,52,87,565.00 covered in the register maintained under
section 301 of the Companies Act 1956 and the balance outstanding is
Rs. 2,52,87,565.00 at the end of year.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions of the
unsecured loan granted by the company are prima facie not prejudicial
to the interest of the company.
(c) In our opinion and according to the information and explanations
given to us the party is regular in payment of principal and interest
according to the terms and conditions of the loan given during the
year.
(d) In our opinion and according to the information and explanations
given to us there is no overdues on account of loan granted by the
company.
(e) According to the information and explanations given to us the
company has not taken any loan, Secured or unsecured from companies,
firms or other parties covered in the register maintained under section
301 of the Companies Act, 1956. Hence the provisions of sub paragraph
V, VI & VII of paragraph 4(III) of the order are not applicable.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, no major weakness has been
noticed in the internal control system.
5. (a) According to the information and explanation provided to us, we
are of the opinion that The particulars of contracts or 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 explanation
given to us, there is transaction made in pursuance of contract or
arrangement with parties with whom transactions exceeding value of
Rupees Five Lakhs have been entered into during the financial year are
at prices which are reasonable having regard to the prevailing market
prices at the relevant time.
6. In our opinion and according to information and explanation given
to us, the Company has not accepted any deposits from the public.
Therefore the provisions of clause (vi) of paragraph 4 of the order are
not applicable to the company.
7 In our opinion the Company has an in house internal audit system
commensurate with the size and nature of its business.
8. Since the company has not done any production or processing during
the year thus the paragraph (VIII) of the paragraph 4 of the order not
applicable.
9. In Respect Of Statutory Dues :
(a) According to the records of the company and information &
explanation 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, Custom Duty, Excise Duty, Service Tax, and Cess and other
statutory dues applicable to it with the appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales
Tax, Customs Duty, Excise Duty, Service Tax, and Cess were outstanding,
at the year end for a period of more than six months from the date they
became payable.
(b) According to the records of the Company and information and
explanation given to us, there are no dues outstanding of sales Tax,
Income Tax, Custom Duty, Wealth Tax, Excise Duty, Cess, and Service Tax
as applicable which have not been deposited on account of any dispute.
10. The company does not have accumulated losses at the end of the
financial year. The Company has not incurred cash losses in the current
year covered by the audit and in the immediately preceding financial
year.
11. Based on our audit procedures and on the information and
explanations given by the management, the Company does not have any
borrowings from financial institutions, banks or by way of debentures.
12 In our opinion and according to the information and explanations
given to us and based on the documents and records produced to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. In our opinion and according to the information and explanations
given to us, the nature of activities of the Company does not attract
any special statute applicable to chit fund and nidhi/mutual benefit
fund/societies. Therefore the provisions of clause 4(xiii) of the order
are not applicable to the company.
14. In respect of dealing/trading in shares, securities, debentures
and other investments in mutual funds, in our opinion and according to
the information and explanations given to us, proper records have been
maintained of the transactions and contracts and timely entries have
been made therein. The shares, securities, debentures and other
investments in mutual funds have been held by the Company, in its own
name.
15. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from bank or financial institutions.
16. The Company did not have any term loans during the year.
17. The Company did not have any borrowings of short term during the
year.
18. The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under Section
301 of the Companies Act, 1956.
19. The Company has not issued any debentures.
20. The Company has not raised any money through a public issue during
the year.
21. 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
has been noticed or reported during the course of our audit.
For Om P.Agarwal & Associates
Chartered Accountants
FRN 006948C
Place: Kanpur (Om Prakash Agarwal)
Dated: 28-05-2014 Proprietor
M.No. 17821
Mar 31, 2011
1. We have audited the attached Balance Sheet of MAGNANIMOUS TRADE &
FINANCE LIMITED, KOLKATA, as at 31st March, 2011 and also the Profit
and Loss Account of the Company 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
2. We conducted our audit In acceptance with Auditing Standards
generally accepted in India. These Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements arc 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 Companies (Auditors' Report) Order, 2003 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 of the
matters specified in paragraph 4 and 5 of the said Order,
4. Further to out 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 necessity for the purposes, of
our audit.
b) In our opinion, proper hooks of account as required by law have been
kept by the company so far as appears, from our examination of those
books.
c) The Balance Sheet and-Profit and Loss Account dealt with by this
report are in agreement with the books of account.
d) In our opinion, the Balance Sheet and Profit & Loss Account dealt,
with by this report comply with the applicable accounting standards
referred to in Sec.211 (3C) of the Companies Act, 1956.
e) On the basis of the written representations received from the
Directors as on 31st March,2011 and taken on record by the Board, of
Directors we report that none of the directors is disqualified as on
31.03.2011 from being appointed as director in terms of section 274(1)
(g) of the Companies Act. 1956.
f) In our opinion and to the best of our information and according to
the explanation given to us, the said accounts, read together with the
notes thereof 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, Subject to
the following;
Loans &. Advances include Rs. 1409033.00 from Shri Prakash Kanodia. No
recovery of this loan have been made. The company has adopted Legal
recourse for recoverse of the same, However, provision for bad debts
has not been made. (Refer Note No. 5 of Notes on Accounts).
I. In the case of the Balance Sheet of the State of affairs of the
company as at 31st March, 2011 and:
II. In the case of the Profit and Loss Account of the Company of the
Profit for the year ended on that date.
III. In the case of cash flow statement, of the cash flows for the year
ended on that date.
1. The nature of the company's business / activities during the year is
such that clause (viii), of paragraph 4 of the companies (Audit Report)
order, 2003 are not applicable to the company for the year ended
01.03.11.
2. a) The company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets on the basis of Available information.
b) As explained to us, the fixed assets have been physically verified
by the management during the year in a phased periodical manner, which
in our opinion is reasonable, having regard to the size of the company
and nature of its assets, No material discrepancies were noticed on
such physical verification.
c) Based on our aerating of records of the company and the information
and explanation required by us, we report that company has not disposed
off any Fixed Assets during the F.Y. 2010-11.
3. a) As explained to us inventory have been physically verified by the
management at reasonable intervals during the year. in our opinion the
frequency of verification is reasonable, having regard to the size of
the company and the nature of its business.
b) 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) On the basis of our examination of the records of inventory, we are
of the opinion that the company is maintaining proper records of
inventory. The discrapancies noticed on verification between the
physical stocks and the book records were not material and have been
duly adjusted.
4) The parties to whom the loans, or advances in the nature of loans
have been given by the company are repaying the principal amount as
stipulated and are also regular in payment of the interest except in
following two cases, where interest has not been charged / debited by
the company.
a) Shri Prakash Kanadia Outstanding Balance Rs. 1409033.00
b) Smt. Poonam Khurana Outstanding Balance Rs. Nil
(Amt of old balance of Rs. 361250.00 the company has recovered Rs.
250000.00 and the balance Rs. 111250.00 have been written off as bad
debts.)
Now management is taking steps for recovery of the dues from Shri
Prakash Kanndia.
5a) The company has granted unsecured loans to two parties whose
maximum balance at any time during the year were Rs, 18849470/- & Rs.
9471713/- which are covered in the register maintained under section
301 of the Companies Act, 1956. The terms and conditions of such loans
are not prejudicial to the interest of the company. There are no
overdues of such loans.
b) The company has not taken unsecured loans from companies, firms or
other parties covered in the register maintained under section 301 of
the Companies Act, 1956.
6. 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 purchase of inventory and fixed assets and with
regard to the sale of goods and services.
7a) In our opinion, and according to the information and explanations
given to us, the particulars of contract(s) and arrangement (s)
referred to in section 301 of the Companies Act, 1956 have been entered
in the register required to be maintained under the Act.
b) In our opinion and according to the information and explanations
give to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the company Act, 1956 and exceeding the value of Rs. Five Lacs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
8. The company has not accepted any deposits in respect of which
provisions at section 58A, 58AA or any other relevant provision of the
companies Act, 1956 are applicable.
9. In our opinion the company has an Internal Audit system which is
commensurate with the size of the company.
10.a) According to the records of the company, the company is regular
in depositing with appropriate authorities undisputed statutory dues
including investor education protection Fund, Income Tax, Sales Tax,
Wealth Tax, Custom Duty, Service Tax, Excise Duty, Cess and other
statutory dues applicable to it.
b) According to the information and explanation give, no undisputed
amounts payable in respect of Income Tax, Wealth Tax, Sales Tax, Custom
Duty, Service Tax and Excise Duty were outstanding as at 31st March,
2011 for a period of more than six months from the date they became
payable.
c) According to the records of the company, there are no dues of sales
Tax, Income Tax, Custom Tax / Wealth Tax, Service Tax, Excise Duty /
Cess which have not been deposited on account of any dispute.
11. The accumulated losses of the company are not more than fifty
percent of its not worth. The company has not incurred cash loss during
the financial year covered by our audit and has not incurred any cash
loss during immediately preceding financial year.
12. According to the records of the company, the company has not
borrowed from financial institution or issued debentures till 31s March
2011.
13.According to the information & explanation given to us and based on
the documents & records produced to us the company has not granted any
loans and advance on the basis of security by way of pledge of shares,
debentures or other similar securities.
14. on the basis of our examination of the companies records we are of
the opinion that the company is maintaining adequate records regarding
transactions and contracts regarding its trading activities in shares,
securities, Debentures and other investment and timely entries have
been made in these records. The shares, securities, Debenture and other
investment are held by the company in its own name.
15. According to the records of the company and the information and
explanations provided by the management the company has not given any
guarantee for loans taken by others from bank or financial institution.
16. According to the records of the company, the company has not
obtained any term loan.
17. According to the information and explanations given by the
management to us and on 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 the company.
18. As required by the Non Banking Financial Companies Auditor's
Report(Reserve Bank Direction), 1998 we Further state that:-
a) the Company incorporated prior to 9the January, 1997 had applied for
registration as provided in section 45(A) of The Reserve Bank of India
Act, 1934 (2 of 1934) and has received the certificate of Registration
from the Reserve Bank of India as investment company.
b) The company has complied with the prudential norms relating to
income recognition accounting standard, assets classification and
provisioning of bad and doubtful debts as Applicable to it except in
one case for which we have qualified our Audit Report.
c) The company has a branch office at Jaipur as per information
provided to us,
19. According to the records of the company and the information and
explanations provided by the management, the company has not made any
preferential allotment of shares to parties and companies covered in
the register maintained under section 301 of the company Act.
20. According to the records of the company, the company has not issued
any debentures.
21. The company has not raised any money by public issues during the
period covered by our audit report.
22. In our opinion, and according to the information and explanations
given to us, no fraud on or by the company has been noticed or reported
during the year, that causes the financial statements to be materially
misstated.
PLACE : KANPUR
DATED : 27.06.2011
Mar 31, 2010
1. We have audited the attached balance sheet of MAGNANIMOUS TRADE &
FINANCE LIMITED, KOLKATA, as at 31st 2010 and also the profit and Loss
Account of the company 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. These Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are farce of material misstatement.
3. As required by companies (Auditors" Report) Order.2003 issued by the
central Governments of India in terms of section 227 (4A) of the
companies Act,1956. we enclose in the Annexure "A" statement of 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 for the purposes. of our audit.
c) The Balance Sheet and profit and Loss Account dealt with by this
report are in agreement with the books of account.
e) On the basis of the written representations received from the
Director as on 31st March,2010 and taken on record by the Board Of
Director in terms of section 274 (1) (g) of the companies Act,1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, The said accounts, read together 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 accoutering principles generally accepted ir India, Subject to
the following;
Loans & Advances include Rs, 361250.00 recoverable from Ms. Poonam
Khurana-& Rs, 1409033.00 Shri prakash Kanodia. No recovery' of these
loans have been made. The company has adopted legal recourse for
recovery of the same. However, provision for bad debts has not been
made. (Refer Note No. 5)
1.In the case of the Balance Sheet of the State of affairs of the
Company as at 31st March. 2010 and;
II. In the case of the Profit and Loss Account of the Company of the
Profit for the year ended on that date.
III.IN the case of cash flow statement, of the cash flows for the
year ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH (3) OF OUR REPORT OF EVEVN DATE
1. The nature of the company's business/actives during the year is such
that clause (iii) of paragraph 4 of the companies (Audit Report) order
2003 are applicable to the company for the year ended 31.03.2010.
2, a) The company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets on the basis of available information. particulars
b) As explained to us, the fixed assets have been physically verified
by the management during the year in a Phased periodical manner, which
in our opinion le reasonable having regard to the size of the company
and nature of its assets, No material discrepancies were noticed on
such physical verification.
c) Based on our scrutiny "of records of the company and the information
and explanation required by us, we report that company has not disposed
off any Fixed Assets during the F.Y.2009-10.
3. a) As explained to us inventory have been physically verified by the
management reasonable intervals during the Year. In our opinion the
frequency of verification is reasonable having regard to the size of
the company and the nature of its business.
b) 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) On the basis of our examination of the records of inventory, we are
of the opinion that the company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and the book records were not material and have been
duly adjusted.
4. The parties to whom the loans, or advances in the nature of loans
have been given by the company are repaying the principal amount as
stipulated and are also regular in payment of the interest except in
following two cases, where interest has not been charged/debited by the
company.
a) Shri prakash Kanodia Outstanding Balance Rs. 1409033.00
b) Smt Poonam Khurana Outstanding Balance Rs. 361250.00
Management has taken stops far recovery of the dues' from the above
parties.
5 a) The company has granted unsecured loans to two parties whose
maximum balances at any time during the year ware Rs.18187666/- Rs.760
5908/- which are covered in the register" maintained under section 301
of Companies Fact, 1956. The terms and conditions of such loans are not
prejudicial to the interest of the company. There are no overdoes of
such loans.
b) The company has not taken unsecured loans from companies, firms or
other parties covered in the register maintained under section 301 of
the Companies Act, 1956.
6. 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 purchase of inventory and fixed assets and with
regard to the sale of goods and services.
7.a) In our opinion, and according' to the information and explanations
given to us. the particulars of contract (s) and arrangement(s) referred
to in section 301 of the Companies Act, l956 have been entered' in the
register required to be maintained under the Act.
b)In our opinion and according "to the information and explanations
given to us, the transitions made in pursuance of contracts or
arrangements entered in the register maintained under section 301
of the company Act, 1956 and exceeding the value of Rs. Five lacs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
8. The company has not accepted any deposits in respect of which
provisions of section Section 58A,58AA or any other relevant provision
of the Companies Act,l956 are applicable. '
9. In our opinion the company has an internal Audit System which is
commensurate with the size of' the company.
10.a) According to the records of the company, the company is regular
in depositing with appropriate arthritis undisputed" statutory dues
including investor education Protection Fund, Income Tax. Sales Tax,
Wealth Tax, Custom Duty, Service Tax, Excise Duty, Cess and other
statutory dues applicable to it.
b) According to the information and explanation given, no undisputed
amount payable in respect of Income Tax. Wealth Tax, Sales Tax, Custom
Duty, Service Tax and Excise Duty' were outstanding as at' " 31st March,
2010 for a period of more than Six Months from the date they became
payable.
c)According to the records of the company, there are no dues. of sales
Tax, Income Tax, custom Tax/Wealth Tax, Service Tax, Excise Duty/Cess
which have not been deposited on' account' of any dispute.
11. The accumulated losses of the company are not more than fifty
percent of its net worth. The company has not incurred cash loss during
the financial year covered by our audit and has not incurred any cash
loss during immediately preceding' financial year.
12. According the records of the company, the company has not borrowed
from financial institution or issued' debentures till 31st March 2010.
13. According to the information & explanation given to us and based on
the documents & ' records produced to us the company has not granted
any loans and advances on the basis of security by way Of Pledge of
shares, debentures or other similar securities.
14. on the basis of our examination of the companies records we are of
the opinion that the company is maintaining adequate records regarding
transactions and contracts regarding Its trading activities in shares.
Securities, debentures and other investment and timely entries have
bean made it these records. The Shares, securities. debenture and other
Investment are held by the company in its own name.
15 According" to the records of the company and the information and
explanations provided by the management, the company has not Given any
guarantee for loans taken by others from bank or financial Institution.
16.According to the records of the company, the company has not
obtained any term loan.
17 according to the information and explanations given by
the "management to us and on 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 the company.
18. AS required ' by the Non Banking Financial Companies' Auditor's'
Report (Reserve Bank Director by the company.
a) The company, incorporated prior to 9th January,1997 had applied
for registration as provided In Section 45(A) of The Reserve Bank of
India as investment company.
b)The company has complied with the prudential norms relating to
income recognition accounting standard, assets classification and
provisioning of bad and doubtful debts as applicable to it, except in
two cases for which we have qualified our Audit Report.
c)The Company has a branch office at" Jaipur as per information
provided to us.
19. According to" the records of the company and the information and
explanation provided by the management, the company has not made any
preferential allotment' of shares to parties and companies covered in
the register maintained Under Section 301 of the company Act.
20. According to the records of the company, the company has not
issued any debentures.
21. The company has not raised any money by public' issues during
the period covered by our audit report.
22. In our opinion, and according to the information and explanations
given to us, no fraud on or by the company has been noticed or reported
during' the year that causes the financial statements to be materially
misstated.
PLACE: KANPUR
DATED: 29.06.2010
Mar 31, 2009
1. We have audited the attached Balance Sheet of MAGNANIMOUS TRADE &
FINANCE LIMITED. KOLKATA, as at 3l,st March, 2009 and also the Profit
and Loss Account of the Company for the year ended on that date annexed
thereto. These financial statements are the responsibility of (he
Company''s management, Our responsibility is lo 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. These 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.
1 As required by Companies (Auditors'' Report) Order. 2003 issued by the
Central Government of India in ''emis of .Section 227 (4A) of the
Companies Act 1956, we enclose in the Annexure "A" statement of the
matters specified in paragraph
4. Further lo on comments in the Annexure referred to in paragraph (3)
above, we report that :-
&) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes, of
out audit.
b) In nir opinion, proper books of account as required by Law have been
kept by the Cohipany so far as appears, from our examination of those
books.
c) The Balance Sheet and Profit and Loss Account dealt with by this
report are in agi cement with the books of account.
A) In >ur opinion, the Balance Sheet and Profit & Loss Account dealt
with by this report coi iply with the applicable accounting standards
referred to in Kec,2i 1 (3C) of the Ccnpauies Act. 1956.
e) On the basis of the written representations received from the
Directors as on 31st M''irch.2009 and taken on record by the Board of
Directors we report that none of the directors is disqualified as on
31,03.2009 from being appointed as director in terms of section 274(1)
(g) of Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, read together with the
notes thereon give the inlirmation required by the Companies Act 1956
in the manner so required and give a I ue and fair view in conformity
with the accounting principles generally accepted in ndia. Subject to
the following;
i)Loans & Advances include Rs. 17,70,283.00 recoverable from Ms.
Poonam Khurana & 3hri Prakash Kanodia. The company has adopted legal
recourse for recovery of the sai le, However, provision for bad debts
has not been made. (Refer Note No. 8). ii) Stock in trade of shares as
at 31.03.09 have been valued at cost while upto prtceeding previous
year it was valued at cost or market price whichever is less. Due to
change in basis of valuation profit has increased by Rs. 2132911.45.
(Refer Note No. 5(a))
F. In the case of the Balance Sheet of the State of affairs of the
Company as at 31st March, 2009 and; II, In the case of the Profit and
Loss Account of the Company of the Profit For the year ended on that
date, 111. In the case of cash How statement, of the cash flows for
the year ended on thai date,
The nature of the.Company''s business/activities during the year is such
that Clauses. paragraph-4 o the Companies (Audit Report) not applicable
to the company foro the year ended 31 ,03.09
;> a) The company has maintained proper record" showing full
particulars including quantitative details and situation of Fixed
Asset? on the basis of  vailabia information.
b) As ftvpUii.ed to us, the fixed assets have been physically verified
by the management during the year in a phased periodical manner, which
in |our opinion is reasonable, having regard to the size of the company
and nature of its assets, .No material discrepancies were noticed on
such physical verification. Based on our scrutiny-of records of the
company and the information and expic nation required by us«i we''
report that company has not disposed eff any Fixed Assets dating the
F.Y. 2008-09.
a) As explained to us inventory have been physically verified by the
management -at reasonable intervals during the year. In our opinion the
frequency of verification is reasonable, having regard to the size of
the company and the nature of its business.
The procedures of physical verification of inventories followed .by the
managed-nt arc reasonable and adequate in relation to the size of the
company and the nature of its business, examination, of the records of
inventory, we are of the of.ini.on that the company is maintaining
proper records of inventory. The discrepancies noticed on verification
between the'' physical stocks and the book records were not material and
have been duly adjust id. ,
d) stock in tride of shaves as at 31.03.0'') have been valued at cost
while upt;. proeooding previous year it was valued at cost or market
pri;e whichever is less. Due to change in basis ot ¦ valuation Firofit
has increased by Rs. 2132911.45.
a) The parties to whom the loans, or advances in the nature of loans
have been given by the company are repaying the principal amount as
stipulated and are also regular m payment of the interest except in
following two;cases, where interest has net been charged/debited by the
company.
The company hes granted unsecured loans to two parties whose maximum
balances at an/ time during the y<^r were Rs.20117666/- & Rs. 2292818/-
to covered in the register maintained under Section 301 ot the
Comoanies Act, ''19F.6. The terms and conditions of such loans ^.r& not,
prejudicial ''¦ o fhe interest of the company. There are no overdu.es ot
such loans
b) The company[has not taken unsecured loans from companies; firms or
other parties covered in the register maintained under section 301 of
the Companied Act,. 1956.
In our opini and according to the information and explanations given to
us,there are adequate internal control procedures commensurate with of
the Company and the nature of its business with regard to purchase of
inventory and fixed assets.
our opinion, and according to the information and explanations given to
us, the particulars at contractus) and arrangement(s) referred to in
section ::i0) of the Companies Act, 1956. have bean entered in the
register required to be maintained under section.
our opinion and according to the information and explanations given to
us, the transactions made in pursuance of contracts or arrangements
entered in the register maintained under section 301 of the Company
Act, 19K. and exceeding the value of Rs. Five lacs in respect of an/
Party during the year have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
Tho company has not accepted ''any deposits in respect, of which
provisions of section or any other relevant provision of the Companies
Act are applicable. opinion the company has an internal Audit System
which is, commensurate with the size of the company.
According the records of the company, the company is regular in
depositing uith appropriate authorities undisputed statutory dues
including investor education Protection Fund, Income Tax, Sales Tax,
Wealth Tax,: Custom Duty, Service Tax, Excise Duty, Cess and other
statutory dues applicable to it. the information and explanation
given, no undisputed amounts payable in respect of Income Tax, Wealth
Tax, Sales Tax, Custom Duty, and excise Duty were outstanding as at
3.1st March, Z0O0 ponied ot rr.ove than Six rionfhs from the date they
became payable
The records of the company, there are no dues of Sales lax, TncoiTK
Tax. Custom Tax/Uelth Tax, Service Tax, Excise Duty/Cess which havebeen
deposited on account of any dispute.
ii . The aecomuj.ated Josses of the company are not more than fifty
percent of it net
The company has not incurred cash loss during the finanoial covered by
our audit and has not incurred any cash loss during immediately
proceeding financial year.
According o the records of the company, the company has not borrowed
from fin gin:- a J institution or issued debentures till 31st
Mareh''2009.
3., According t the information & sxplanati.on given to us and based on
the documents - records produced to us the company has not granted any
loans and advances on the basis of security by way of pledge of shares,
debentures or other similar securities,
On the basis of our examination of the companies records we are of the
opinion the company is maintaining adequate records regarding
transaction and contracts regarding its trading activities in Shares,
Securities Debentures and other investment and timely entries have been
made in these records.The Shares,. Securities, Debenture and other
investment are held by the company in its own name.
According to the records of the company and the information and
explanationprovided hy the management, the company has not given any
guoanf.ee to. loouis taken by others from bank or financial
institution.
According o the records of the company, the company has not obtained
any term.
7 According to the information and explanations given by the management
to us and -n overall examination of the balance sheet of the company,
wo report that no funds raised on short term basis have been used tor"
long term investment by the company.
As raquireo by the Non Banking Financial. Companies Auditor''s Report
(Reserve Bank Direction), 1999 we further state that :-
ajihe company; incorporated prior to 9th January, 1997, had applied.
for registration as provided in Section 45(.A) of The Reserve Bank of
India Act, : 1934 (?, of 1934) and has received the certificate, of
Registration from the Reserve Bank of India as investment company.
b)Tho company has complied with the prudential norms relating to income
recognition accounting standard, assets classification and provisioning
of bad and doubtful debts as applicable to it, except in tfco cases for
which we have qualified our Audt Report
c)The Company has a brenoh office at Jaipur as per information provided
to us.
According to the Â.ooods of the company and the information and
explanation provided fry the management, the company has not made any
p; cfercnt of shares to parties and companies covered in the register
maintained dnder Section 301 of the Company Act,
According the records of the company, the company has not issued any
debentures.
- The company has not raised any money by public issues during the
period covered by our audit report..
-: Tn our opinion, and according to the information and explanations
given to us, no fraud on or by the company has bean noticed or reported
during the year , that causes the financial statements to be materially
misstated.
ON BEHALF OF THE BOARD
Sd/-
Sudhir kumar
Parasrampuria
DIRECTOR
Dated: 01/09/2009