Mar 31, 2015
1. We have audited the accompanying financial statements of M/s
Malabar Trading Company Limited ("the Company"), which comprises the
Balance Sheet as at March 31, 2015, and the Statement of Profit and
Loss and Cash Flow statement for the year ended, and a summary of
significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
2. The Company's Board of Directors is responsible for the preparation
of these financial statement in terms of the requirements of the
Companies Act, 2013 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 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. The
Board of Directors of the Company are responsible for 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 by the Directors of the Company, as aforesaid.
Auditors' Responsibility
3. Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
While conducting the audit, we have taken into account the provisions
of the Act, the accounting and auditing standards and matters which are
required to be included in the audit report under the provisions of the
Act and the Rules made there under.
4. We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatements.
5. 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 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 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.
6. 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
7. 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
8. 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,
to the extent applicable.
9. As required by Section 143(3) of the Act, we report to the extent
applicable, that:
a) We have sought and obtained all the information and explanations
which is 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 aforesaid standalone financial statements comply
with the Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rule 2014;
e) On the basis of written representations received from the directors
as on March 31, 2015, and 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.
Annexure referred to in Paragraph 8 of the Auditors Report for the year
ended 31st March 2015 of MALABAR TRADING COMPANY LIMITED as required by
the Companies (Auditors Report) Order, 2015 and amendments thereto and
according to the information and explanations given to us during the
course of the audit and on the basis of such checks of the books and
records as were considered appropriate, we report that:
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;
(b) According to the information and explanation given to us and the
records produce to us, fixed assets have been physically verified by
the management at reasonable intervals and no any material
discrepancies were noticed on such verification.
2. (a) As explained to us, inventories have been physically verified by
the management during the year. In our opinion, the frequency of such
verification is reasonable.
(b) On the basis of information and explanation given to us, the
procedures of physical verification of inventories followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of its business.
(c) On the basis of examination of records of the inventory, we are of
the opinion that the company is maintaining proper records of
inventory. No material discrepancies were noticed on verification
between the physical stock and book records.
3. According to the information and explanations given to us and on
the basis of our examination of the books of account, the company has
not granted any loans, secured or unsecured, to companies, firms or
other parties listed in the register maintained under Section 189 of
the Companies Act, 2013.
4. In our opinion and according to information and explanations given
to us there is an adequate internal control procedure commensurate with
the size of the Company and the nature of its business with regards to
purchase of inventory, fixed assets and with regard to sale of goods
and services. We have not observed any major weakness in the internal
control system during the course of the audit.
5. The Company has not accepted any deposits from the public and
consequently, the directives issued by the Reserve Bank of India, the
provision of sections 73 to 76 or any other relevant provisions of the
Companies Act, 2013 and rules made there under are not applicable.
6. We have reviewed the books of accounts maintained by the Company
pursuant to the order made by the Central Government for the
maintenance of the cost records under provisions of Section 148(1) of
the Companies Act, 2013 and of the opinion that prima facie the
prescribed accounts and records have not been applicable to the
Company.
7. (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the company
has been generally regular in depositing undisputed statutory dues
including income tax and other material statutory dues applicable to
it. According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax were outstanding,
as at 31st march, 2015 for a period of more than six months from the
date they become due.
(b) According to the information and explanations given to us, and on
the basis of our examination of the books of account, there were no
dues of income tax, and other statutory dues, which have not been
deposited on account of any dispute.
(c) The Company not required to transfer any amount to the Investor
Education and Protection Fund.
8. The Company does not have any accumulated losses at the end of the
financial year and has not incurred any cash losses in the current year
and in the preceding financial year.
9. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
10. According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from a
bank or financial institution
11. According to the information and explanations given to us, the
Company has not taken any term loan during the year.
12. Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management.
For, RISHI SEKHRI AND ASSOCIATES
CHARTERED ACCOUNTANTS
FRN: 128216W
PLACE: MUMBAI
DATE: 20.05.2015 Sd/-
CA RISHI SEKHRI PARTNER
M. No.: 126656
Mar 31, 2014
We have audited the accompanying financial statements of M/s Malabar
Trading Company Limited ("the Company"), which comprises the Balance
Sheet as at March 31, 2014, and the Statement of Profit and Loss and
Cash Flow statement for the year 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") 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. 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:
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 Profit and Loss Account, of the profit/ loss for
the year ended on that date; and
c. in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
cash flow statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956 read with 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;
and
e) On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f) Since the Central Government had not issued any notification as to
the rate at which cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the companies.
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of Malabar Trading Company Limited on the accounts of
the company for the year ended 31st March, 2014.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
1. (a)The Company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets.
(b) According to the information and explanation given to us and the
records produce to us, fixed assets have been physically verified by
the management at reasonable intervals and no any material
discrepancies were noticed on such verification.
(c) Substantial part of the Fixed Assets has not been disposed off
during the year which affects the Going Concern.
2. (a) The Management has conducted physical verification of inventory
at reasonable intervals.
(b) In our opinion, the procedure followed by the management for such
physically verification are reasonable and adequate in relation to the
size of the Company and nature of its business.
(c) The Company is maintaining proper records of inventory. As
explained to us, no material discrepancies were noticed on verification
between inventories and the books records.
3. (a) According to the information and explanations given to us and
the record produce to us for our verification, the company has not
taken any loan from any companies / firms / parties listed in the
register maintained under Section 301 of the Companies Act, 1956,
accordingly other points of the said clause is not applicable to the
company. However, according to the information and explanations given
to us and the record produce to us for our verification, the company
has granted loan to its subsidiary company listed in the register
maintained under Section 301 of the Company Act, 1956,
(b) In our opinion terms and conditions on which loans have been
granted to its subsidiary company, listed in the registers maintained
under Section 301 is not, prima facie, prejudicial to the interest of
the company.
(c) The parties are regular in reaping of principal amount along with
payment of interest, if any.
(d) There is no overdue amount of loans granted to subsidiary company
listed in the registers maintained under section 301 of the Companies
Act, 1956.
4. In our opinion and according to the information and explanation
given to us, there is exists a reasonable 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.
5. (a)On the basis of information and explanations given to us and
records produced to us for our verification, all the contract /
arrangements, the particulars of which needed to be entered into the
register maintained under section 301 of the Act, have been recorded.
(b) Based on the information and explanations provided by the
management to us, all transaction entered under section 301 of the
Companies Act, 1956, have been made / executed in pursuance of contract
/ arrangements entered in the register maintained under section 301 of
the Companies Act 1956 exceeding the value of Rs. 5 lacs in respect of
any party during the year.
6. As per Information & Explanations given to us, the company has not
accepted any deposits during the year from the public under section 58
of the Companies Act-1956.Accordingly the said clause of the Order is
not applicable to the company.
7. As per Information & explanations given to us and record produce to
us, the company has an internal audit system commensurate with its size
of the company and the nature of its business.
8. The Central Government has not prescribed maintenance of cost
records under section 209(1)(d) of the Act, hence the said clause of
the Order is not applicable to the company.
9. (a)According to the records of the company, the company has been
regular in depositing undisputed statutory dues of the Income Tax and
any other statutory dues with the appropriate authorities.
(b) According to the records of the company and information and
explanations given to us, there are no undisputed amount payable in
respect of Income tax and other Statutory Dues at the last date of the
financial year concerned for a period for more than six months from the
date they become payable.
(c) The provisions of Employees State Insurance and Employees Provident
Fund, Investor Education and Protection Fund, Sales Tax, Wealth Tax,
Custom Duty, Excise Duty, Leave Encashment, Gratuity Act and others
Retirement Benefits Clauses are not applicable to the company.
(d) According to the records of the company and as per information and
explanations given to us, there are no statutory dues outstanding on
account of any dispute.
10 According to the records of the company and information &
explanations given to us the company has not given any guarantees for
loans taken by other from banks or financial institutions.
11. The Company does not have any accumulated losses at the end of the
financial year and has not incurred any cash losses in the current year
and in the preceding financial year.
12. According to the records of the company and information &
explanations given to us the company has not defaulted in repayment of
dues to a financial institution or bank or debenture holders.
13. According to the records of the company and information &
explanations given to us the company has not granted loans on the basis
of security by way of pledge of shares.
14. According to the records of the company and information &
explanations given to us, the company is not a chit fund or
nidhi/mutual benefit fund / societies, accordingly the said clause of
the Order is not applicable to the company.
15. In our opinion and record produce to us, Company had sold 789000
unquoted equity shares at a total consideration of Rs. 59.18 Lacs of
M/s IADFAC Laboratories Private Limited ("ILPL") and 900000 unquoted
equity shares at a total consideration of Rs. 360.00 Lacs of M/s
Protect Nature Private Limited ("PNPL"). Investments are valued at
Cost.
16. According to the records of the company and information &
explanations given to us the company has not taken any term loan
facility from any bank or financial institutions.
17. On the basis of an overall examination of the balance sheet and
cash flows of the company and as per the information and explanations
given to us, we report that the company has not utilized any fund
raised on short term basis for long term investment and vice versa
Except unutilized Preference Equity Share Issue Proceeds which have
been temporarily held in short term interest bearing liquid loans.
18. During the year, company had issued 92.40 Lacs Convertible
Preferential Allotment at a face value of Rs. 10 /-each with a premium
of Rs. 25 each.
19. The company has not issued any debentures during the year.
Accordingly the said clause of the Order is not applicable to the
company.
20. According to the information and explanations given to us, during
the year covered by our audit report, the Company has not raised any
money by public issue.
21. Based on our audit procedures performed and the information and
explanation given to us by the management we report that no fraud on or
by the company has been noticed or reported during the year that caused
the financial statement to be materially misstated.
For, RISHI SEKHRI AND ASSOCIATES
CHARTERED ACCOUNTANTS
PLACE: MUMBAI
DATE: 30.06.2014 CA RISHI SEKHRI
PARTNER
M. No.: 126656
Mar 31, 2012
We have audited the attached Balance Sheet of M/S MALABAR TRADING
COMPANY LIMITED as at 31st March 2012 and also the Statement of Profit
and Loss for the year ended on that date annexed hereto. These
Financial Statement are the responsibility of the company's management.
Our responsibility is to express an opinion on these financial
statements based on our audit:-
1. We conducted our audit in accordance with the Auditing Standards
generally accepted in India. The Standards required that we planned
and performed the audit to obtain reasonable assurance about whether
the financial statements are free of any 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 the management as well as evaluating the overall
presentation of the financial statements. We believe that our Audit
provides a reasonable basis for our opinion.
2. As required by the Companies (Auditor's Report) Order, 2003 as
amended by the companies (Auditor's Report) Amendment Order 2004
(together the 'Order'), issued by the Central Government in terms of
Sub-Section (4A) of the 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
3. Further to our comments in the Annexure referred to above, we
report that :-
i. 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;
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 of the company ;
iii. The Balance Sheet, Statement of Profit & Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
accounts of the company;
iv. In our opinion, the Balance sheet, Statement of Profit & 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.
v. Based on the representation made by the Directors of the company and
taken on record by the Board of Directors and the information and
explanations given to us, we report that none of the Directors is, as
at 31st March 2012, Prima Facie disqualified from being appointed as a
Director in terms of clause (g) of sub-section (1) of section 274 of
the companies act, 1956;
vi. In our opinion and to the best of information and according to the
explanations given to us, the said accounts read with significant
accounting policies and other 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 :
(a) in the case of the Balance Sheet, of the State of Affairs of the
Company as at , 31st March 2012 ; and
(b) in the case of the Statement of Profit & Loss, of the profit of the
Company for the year ended on that date.
(c) in the case of the Cash flow of the Company for the year ended on
that date.
ANNEXURE TO THE AUDITORS' REPORT
Referred to in Para (2) of our report of even date
We report that :-
1. (a) The Company has maintained proper records showing full
particulars including quantitative - details and situation of Fixed
Assets.
(b) According to the information and explanation given to us and the
records produce to us, fixed assets have been physically verified by
the management at reasonable intervals and no any material
discrepancies were noticed on such verification.
(c) Substantial part of the Fixed Assets has not been disposed off
during the year which affects the Going Concern.
2. (a) The Management has conducted physical verification of inventory
at reasonable intervals.
(b) In our opinion, the procedure followed by the management for such
physically verification are reasonable and adequate in relation to the
size of the Company and nature of its business.
(c) The Company is maintaining proper records of inventory. As
explained to us, no material discrepancies were noticed on verification
between inventories and the books records.
3 (a) According to the information and explanations given to us and the
record produce to us for our verification, the company has not taken or
granted any loan from / to any Parties/ Firm/Companies listed in the
register maintained under Section 301 of the Company Act, 1956.
Accordingly Clause No. 3(b), (c),(d), (e), (f) and (g) of the said
Order are not applicable te the company.
4. In our opinion and according to the information and explanation
given to us, there is exists a reasonable 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.
5. (a) On the basis of information and explanations given to us and
records produced to us for our verification, all the contract /
arrangements, the particulars of which needed to be entered into the
register maintained under section 301 of the Act, have been recorded.
(b) Based on the information and explanations provided by the
management to us, all transaction entered under section 301 of the
Companies Act, 1956, have been made / executed in pursuance of contract
arrangements entered in the register maintained under section 301 of
the Companies Act 1956 exceeding the value of Rs. 5 lacs in respect of
any party during the year.
6. As per Information & Explanations given to us, the company has not
accepted any deposits during the year from the public under section 58
of the Companies Act-1956.Accordingly the said clause of the Order is
not applicable to the company.
7. As per Information & explanations given to us and record produce to
us, the company has an internal audit system commensurate with its size
of the company and the nature of its business.
8. The Central Government has not prescribed maintenance of cost
records under section 209(1 )(d) of the Act, hence the said clause of
the Order is not applicable to the company.
9. (a) According to the records of the company, the company has been
regular in depositing undisputed statutory dues of the Income Tax and
any other statutory dues with the appropriate authorities.
(b) According to the records of the company and information and
explanations given to us, there are no undisputed amount payable in
respect of Income tax and other Statutory Dues at the last date of the
financial year concerned for a period for more than six months from the
date they become payable.
(c) The provisions of Employees State Insurance and Employees Provident
Fund, Investor Education and Protection Fund, Sales Tax, Wealth Tax,
Custom Duty, Excise Duty, Leave Encashment, Gratuity Act and others
Retirement Benefits Clauses are not applicable to the company.
(d) According to the records of the company and as per information and
explanations given to us, there are no statutory dues outstanding on
account of any dispute.
10 According to the records of the company and information &
explanations given to us the company has not given any guarantees for
loans taken by other from banks or financial institutions.
11. The Company does not have any accumulated losses at the end of the
financial year and has not iricurred any cash losses in the current
year and in the preceding financial year.
12. According to the records of the company and information &
explanations given to us the company has not defaulted in repayment of
dues to a financial institution or bank or debenture holders.
13. According to the records of the company and information &
explanations given to us the company has not granted loans on the basis
of security by way of pledge of shares.
14. According to the records of the company and information &
explanations given to us, the company is not a chit fund or
nidhi/mutual benefit fund / societies, Accordingly the said clause of
the Order is not applicable to the company.
15. In our opinion and record produce to us, during the year, Company
has acquired 789000 unquoted equity shares at a total consideration of
Rs. 201.00 Lacs of M/s IADFAC Laboratories Private Limited ("ILPL")
(99.87% Holding of "ILPL") and 900000 unquoted equity shares at a total
consideration of Rs. 360.00 Lacs of M/s Protect Nature Private Limited
("PNPL") (97.26% Holding of "PNPL"). Pursuant to the said acquisitions,
ILPL and PNPL became subsidiaries of the Company. Investments are
valued at Cost.
16. According to the records of the company and information &
explanations given to us the company
has not taken any term loan facility from any bank or financial
institutions.
17. On the basis of an overall examination of the balance sheet and
cash flows of the company and as per the information and explanations
given to us, we report that the company has not utilized any fund
raised on short term basis for long term investment and vice versa.
Except unutilized , Preference Equity Share Issue Proceeds which have
been temporarily held in short term interest bearing liquid loans.
18. The Company has allotted bonus shares in the ratio of 1:6 to its
shareholders by utilizing the amount of security premium. 48,60,000
Equity Shares allotted to parties or companies covered under section
301 of the Act.
19. The company has not issued any debentures during the year.
Accordingly the said clause of the Order is not applicable to the
company.
20. According to the information and explanations given to us, during
the year covered by our audit report, the Company has not raised any
money by public issue.
21. Based on our audit procedures performed and the information and
explanation given to us by the management we report that no fraud on or
by the company has been noticed or reported during the year that caused
the financial statement to be materially misstated.
FOR LKM & CO.
Chartered Accountants
FRN No.126823W
L.K.MALPANI
Proprietor
M No. 106989
PLACE : MUMBAI
DATE : 29.9.2012
Mar 31, 2010
We have audited the attached Balance Sheet of M/S MALABAR TRADING
COMPANY LIMITED As at 31st March 2010 and also the Profit and Loss
Account for the year ended on that date annexed hereto. These Financial
Statement are the responsibility of the companys management. Our
responsibility is to express an opinion on these financial statements
based on our audit:- 1 We conducted our audit in accordance with the
Auditing Standards generally accepted in India. The Standards required
that we planned and performed the audit to obtain reasonable assurance
about whether the financial statements are free of any 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 the management as well as evaluating the
overall presentation of the financial statements. We believe that our
Audit provides a reasonable basis for our opinion.
2 As required by the Companies (Auditors Report) Order, 2003 as
amended by the companies (Auditors Report) Amendment Order 2004
(together the Order), issued by the Central Government in terms of
Sub-Section (4A) of the 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
3 Further to our comments in the Annexure referred to above, we report
that :-
i. 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 ;
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 of the company ;
iii. The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts
of the company;
iv. In our opinion, the Balance sheet, Profit & 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.
v. Based on the representation made by the Directors of the company and
taken on record by the Board of Directors and the information and
explanations given to us, we report that none of the Directors is, as
at 31st March 2010, Prima Facie disqualified from being appointed as a
Director in terms of clause (g) of sub-section (1) of section 274 of
the companies act, 1956;
vi. In our opinion and to the best of information and according to the
explanations given to us, the said accounts read with significant
accounting policies and other 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 :
(a) in the case of the Balance Sheet, of the State of Affairs of the
Company as at 31st March 2010 ; and
(b) in the case of the Profit & Loss Account ,of the profit of the
Company for the year ended on that date.
(c) in the case of the Cash flow of the Company for the year ended on
that date.
ANNEXURE TO THE AUDITORS` REPORT Referred to in Para (2) of our report
of even date
We report that:- 1. (a)The Company has maintained proper records
showing full particulars including quantitative details and situation
of Fixed Assets.
(b)According to the information and explanation given to us and the
records produce to us, fixed assets have been physically verified by
the management at reasonable intervals and no any material
discrepancies were noticed on such verification.
(c)Substantial part of the Fixed Assets has not been disposed off
during the year which effect the Going Concern.
2. (a)The Management has conducted physical verification of inventory
at reasonable intervals.
(b)In our opinion, the procedure followed by the management for such
physically verification are reasonable and adequate in relation to the
size of the Company and nature of its business.
(c)The Company is maintaining proper records of inventory. As explained
to us, no material discrepancies were noticed on verification between
inventories and the books records.
3.(a) According to the information and explanations given to us and the
record produce to us for our verification, the company has not taken or
granted any loan from / to any Parties/Firm/Companies listed in the
register maintained under Section 301 of the Company Act, 1956.
Accordingly Clause No. 3(b), (c),(d), (e), (f) and (g) of the said
Order are not applicable to the company.
4. In our opinion and according to the information and explanation
given to us, there is exists a reasonable 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.
5.(a)On the basis of information and explanations given to us and
records produced to us for our verification there are no contract /
arrangements, the particulars of which needed to be entered into the
register maintained under section 301 of the Act.
(b) Based on the information and explanations provided by the
management to us, no transaction have been made / executed in pursuance
of contract / arrangements entered in the register maintained under
section 301 of the Companies Act 1956 exceeding the value of Rs. 5 lacs
in respect of any party during the year.
6.As per Information & Explanations given to us, the company has not
accepted any deposits during the year from the public under section 58
of the Companies Act-1956.Accordingly the said clause of the Order is
not applicable to the company.
As per Information & explanations given to us and record produce to us,
the company has an internal audit system commensurate with its size of
the company and the nature of its business.
The Central Government has not prescribed maintenance of cost records
under section 209(1)(d) of the Act, hence the said clause of the Order
is not applicable to the company.
(a) According to the records of the company, the company has been
regular in depositing undisputed statutory dues of the Income Tax and
any other statutory dues with the appropriate authorities
(b) According to the records of the company and information and
explanations given to us, there are no undisputed amount payable in
respect of Income tax and other Statutory Dues at the last date of the
financial year concerned for a period for more than six months from the
date they become payable.
(c) The provisions of Employees State Insurance and Employees Provident
Fund, Investor Education and Protection Fund, Sales Tax, Wealth Tax,
Custom Duty, Excise Duty, Leave Encashment, Gratuity Act and others
Retirement Benefits Clauses are not applicable to the company.
(d) According to the records of the company and as per information and
explanations given to us, there are no statutory dues outstanding on
account of any dispute.
10 According to the records of the company and information &
explanations given to us the company has not given any guarantees for
loans taken by other from banks or financial institutions.
11. The Company does not have any accumulated losses at the end of the
financial year and has not incurred any cash losses in the current year
and in the preceding financial year.
12. According to the records of the company and information &
explanations given to us the company has not defaulted in repayment of
dues to a financial institution or bank or debenture holders.
13. According to the records of the company and information &
explanations given to us the company has not granted loans on the basis
of security by way of pledge of shares.
14. According to the records of the company and information &
explanations given to us, the company is not a chit fund or
nidhi/mutual benefit fund / societies, Accordingly the said clause of
the Order is not applicable to the company.
15. In our opinion and record produce to us, the Company does not have
any Investments.
16. According to the records of the company and information &
explanations given to us the company has not taken any term loan
facility from any bank or financial institutions.
17. On the basis of an overall examination of the balance sheet and
cash flows of the company and as per the information and explanations
given to us, we report that the company has not utilized any fund
raised on short term basis for long term investment and vice versa.
18. The Company has not made any preferential allotment of shares to
parties or companies covered under section 301 of the Act. Accordingly
the said clause of the Order is not applicable to the company.
19. The company has not issued any debentures during the year.
Accordingly the said clause of the Order is not applicable to the
company.
20. The Company has not raised any money through a public issue during
the year. Accordingly the said clause of the Order is not applicable to
the company.
21. Based on our audit procedures performed and the information and
explanation given to us by the management we report that no fraud on or
by the company has been noticed or reported during the year that caused
the financial statement to be materially misstated.
FOR LKM & CO.
Chartered Accountants
Sd/-
L.K.MALPANI
Proprietor
Membership No. : 106989
Firm Reg. No. : 126823W
PLACE: MUMBAI
DATED: 31.05.2010