Mar 31, 2015
We have audited the accompanying standalone financial statements of
MONNET INDUSTRIES LIMITED ("the Company"), which comprise the Balance
Sheet as at 31st March, 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 inaccordance with the
provisions of the Act for safeguarding of 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. 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 sorequired and
give a true and fair view in conformity with the accounting principles
generally accepted in India:-
(i) in the case of the balance sheet, of the state of affairs of the
Company as at 31 March 2015;
(ii) in the case of the statement of profit and loss, of the loss 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.
Emphasis of Matter
We draw attention to the following matters in the Notes to the
financial statements:
* Note No. 31 in respect of accumulated losses of the company as on
31st March 2015 exceeding its paid up capital and free reserves;
Our opinion is not modified in respect of these matters.
Report on Other Legal and Regulatory Requirements
1. As required by 'the Companies (Auditor's Report) Order, 2015',
issued by the Central Government of India in terms of sub-section (11)
of section 143 of the Act (hereinafter referred to as the "Order"), and
on the basis of such checks of the books and records of the Company as
we considered appropriate and according to the information and
explanations given to us, 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 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements.
ii. In our opinion and as per the information and explanations
provided to us, the Company has not entered into any long-term
contracts including derivative contracts, requiring provision under
applicable laws or accounting standards, for material foreseeable
losses.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE REFERRED TO IN PARAGRAPH 1 OF THE AUDITORS' REPORT ON ACCOUNTS
FOR THE YEAR ENDED 31st MARCH, 2015
1. a) The company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) As explained to us, all the 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
nature of its assets. No material discrepancies were noticed on such
physical verification.
2. (a) Physical verification has been conducted by the management at
reasonable intervals in respect of finished goods, stores, spare parts
and raw materials. We were informed that physical verification of
manganese ore & coke was made on the basis of volume and density which
is approximately correct.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the company and the nature of its business.
(c) In our opinion the Company is maintaining proper records of
inventories. The discrepancies noticed on such verification between the
physical stocks and book records were not significant and the same have
been properly dealt with in the books of account.
3. As informed to us the company has not granted loans, secured or
unsecured, to companies, firms or other parties covered in the register
maintained under section189 of the Companies Act.
4. In our opinion there is an 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 audit, we have not
observed any continuing failure to correct major weaknesses in internal
control system.
5. According to the information and explanations given to us the
company has not accepted any deposits, in terms of the directives
issued by the Reserve Bank of India and the provisions of sections 73
to 76 or any other relevant provisions of the Companies Act and the
rules framed there under.
6. In respect of business activities of the company, maintenance of
cost records has not been specified by the Central Government under
sub-section (l) of section 148 of the Companies Act.
7. As per information and explanations given to us, the company is
regular in depositing undisputed statutory dues including provident
fund, employees'state insurance, income-tax, sales-tax, wealth tax,
service tax, duty of customs, duty of excise, value added tax, cess and
any other statutory dues with the appropriate authorities. There are no
outstanding statutory dues as at the last day of the financial year
under audit for a period of more than six months from the date they
became payable.
8. The accumulated losses of the company as at the end of the year are
more than the 50% of the net worth of the company. The company has
incurred cash loss during the year under audit and in the immediately
preceding financial year.
9. Based on our audit procedures and on the basis of information and
explanations given to us by the management, we are of the opinion that
there is no default in repayment of dues to the Financial Institutions,
banks or debenture holders as at the year end.
10. According to information and explanations given to us the Company
has not given any guarantee for loan taken by others from banks or
financial institutions, the terms and conditions whereof are
prejudicial to the interest of the company.
11. In our opinion term loans were applied for the purpose for which
the loans were obtained by the company.
12. Based upon the audit procedures performed and information and
explanations given by the management, we report that, no fraud on or by
the Company has been noticed or reported during the course of our audit
for the year ended 31.03.2015.
For O.P. BAGLA & CO.
CHARTERED ACCOUNTANTS
Firm Regn. No. 000018N
Sd/-
(ATUL BAGLA)
Place : New Delhi Partner
Date : 28.05.2015 M. No. 91885
Mar 31, 2014
We have audited the accompanying financial statements of MONNET
INDUSTRIES LIMITED, which comprise the Balance Sheet as at March 31,
2014 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, which we have signed under reference to this
report.
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 and
financial performance and cash flows of the Company in accordance with
the Accounting Standards notified under the Companies Act, 1956 of
India (the ÂAct"), read with the General Circular 15/ 2013 dated
September 13, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013. This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
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 and other applicable authoritative
pronouncements 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 Statement of Profit and Loss, of the LOSS for the
year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor''s Report) Order, 2003 as amended
by the Companies (Auditor''s Report) order 2004 (Âthe Order") issued by
the Central Government of India in terms of sub-section (4A) of section
227 of the Act, (hereinafter referred to as the ÂOrder"), and on the
basis of such checks of the books and records of the Company as we
considered appropriate and according to the information and
explanations given to us, 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 and 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 notified under the Act read with the General
Circular 15/ 2013 dated September 13, 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 March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE REFERRED TO IN PARAGRAPH 1 OF THE AUDITORS'' REPORT ON ACCOUNTS
FOR THE YEAR ENDED 31st MARCH, 2014
1. a) The Company has maintained proper records to show full
particulars including quantitative details and situation of
fixed assets.
b) As explained to us, major fixed assets have been physically verified
by the management during the year. We have been informed that the
discrepancies noticed on such verification as compared to book record
were not material and have been properly dealt with in the books of
account. In our opinion the frequency of verification is reasonable.
c) As the Company has not disposed off any of the fixed assets during
the year, paragraph 4 (i) (c) of the said order is not applicable.
2. The Company has no stocks during the year under audit.
3. According to the information and explanations given to us, the
Company has neither granted nor taken any loans, secured or unsecured
to/From Companies, firms or other Parties covered in the register
maintained under section 301 of the Companies Act 1956. Accordingly,
paragraph 4 (iii) (b), (c) and (d) 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 procedures commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventories, fixed assets and with regard to the sale of
goods. During the course of audit, no major weakness has been noticed
in the underlying internal controls.
5. a) In our opinion and according to information and explanations
given to us the transactions that needed to be entered in the register
maintained under section 301 of the Act have been entered in the
register. b) As per information and explanations given to us aforesaid
transactions exceeding the aggregate amount of Rupees five lacs in
respect of each Party made during the year, have been made at prices
which are reasonable having regard to the prevailing market price at
the relevant time except investment in 6.5% Non Convertible Cumulative
Redeemable Preference shares of M/s Monnet Ispat & Energy Ltd wherein
rate of borrowing is substantially higher than the return expected on
Non Convertible Cumulative Redeemable Preference shares.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits within the
meaning of provisions of section 58A and 58AA of the Companies Act,
1956 and the Companies (Acceptance of Deposits) Rules, 1975.
7. In our opinion and according to the information and explanations
given to us, the Company has adequate internal audit system
commensurate with its size and nature of its business.
8. We are informed that the Central Government has not prescribed the
maintenance of cost records under section 209(1)(d) of the Companies
Act, 1956.
9. As per information and explanations given to us the Company has
been regular in depositing the undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Employees State
Insurance, Income Tax, Sales Tax, and other statutory dues with the
appropriate Authorities. There are no undisputed statutory dues at the
year end outstanding for a Year of more than six months from the date
they become payable.
10. The accumulated losses of the Company as at the end of the year are
more than the 50% of the net worth of the Company. The Company has
incurred cash loss during the year under audit and in the immediately
preceding financial year.
11. As per information and explanations given to us, the Company has
not defaulted in repayment of dues to the bank.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Paragraph 4 (xii) of the order is not applicable.
13. The Company is dealing in shares, securities, debentures and other
investments and proper records have been maintained of the transactions
and contracts and timely entries have been made therein. Also the
shares, securities, debentures and other securities have been held by
the Company in its own name.
14. According to the information and explanations given to us, the
Company has not given any guarantees for loans taken by others from
banks for financial institutions during the year.
15. According to the information and explanations given to us the term
loans taken by the Company have been applied for the purposes for which
the loans were obtained.
16. During the year the Company has made preferential allotment of
Preference shares to Companies covered in the Register maintained u/s
301 of the Companies Act 1956. In our opinion, the price at which the
shares have been issued is not prejudicial to the interest of the
Company.
17. Since the Company has not raised money by way of Public Issue
during the year paragraph 4 (xx) of the order is not applicable.
18. Based upon the audit procedures performed and information and
explanations given by the management, we report that, no fraud on or by
the Company has been noticed or reported during the course of our audit
for the year ended 31.03.2014.
19. Clauses in Paragraph no.4 (xiii),,(xvii),(xix) of the order are not
applicable to the Company for the year under report.
For O.P. BAGLA & CO.
CHARTERED ACCOUNTANTS
Firm Regn. No. 000018N
Sd/-
Place : New Delhi (ATUL BAGLA)
Date : 29th May, 2014 PARTNER
M.NO. 91885
Mar 31, 2011
We have audited the attached Balance Sheet of MONNET INDUSTRIES LIMITED
as at 31st March, 2011 and Profit & Loss Account for the Year Ended 31st
March, 2011 annexed thereto and cash flow statement for the year
ended on that date. 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.
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 financial statements. An audit also includes assessing
the accounting principles used and significant estimates made by the
management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1 As required by the Companies (Auditor's Report) order, 2003 as
amended by the Companies (Auditor's Report) (Amendment) order 2004
issued by the Central Government in terms of Section 227(4A) of the
Companies Act, 1956, we enclose in the annexure a statement on the
matters specified in the paragraphs 4 & 5 of the said order to the
extent applicable to the Company.
2.Further to our comments in the annexure referred to in paragraph 1
above, we report that:
a)We have obtained all the information and explanations which to the
best of our knowledge and belief, were necessary for the purpose of our
audit.
b)In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of such
books.
c)The Balance Sheet and the Profit & Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
d) In our opinion, the profit and loss account and balance sheet and
Cash Flow Statement comply with the accounting standards referred to in
sub-section (3c) of section 211 of the Companies Act, 1956.
e) On the basis of written representation received from the directors
and taken on records by the Board of Directors, we report that, none of
the director is disqualified as on 31 st March, 2011 from being
appointed as Director u/s 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
Significant Accounting Policies and other Notes thereon in Schedule
give the information as required by the Companies Act, 1956 in the
manner so required and give true and fair view in conformity with
accounting principles generally accepted in India :-
i) In the case of the Balance Sheet of the State of affairs of the
Company as at 31.03.2011.
ii) In the case of the Profit & Loss Account 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 1 OF THE AUDITORS' REPORT ON ACCOUNTS
FOR THE YEAR ENDED 31st MARCH 2011
1.a)The Company has maintained proper records to show full particulars
including quantitative details and situation of fixed assets.
b) As explained to us, major fixed assets have been physically verified
by the management during the year. We have been informed that the
discrepancies noticed on such verification as compared to book record
were not material and have been properly dealt with in the books of
account. In our opinion the frequency of verification is reasonable.
c) As the Company has not disposed off any of the fixed assets during
the year, paragraph 4 (i) (c) of the said order is not applicable.
2. The Company has no stocks during the year under audit.
3. According to the information and explanations given to us, the
Company has neither granted nor taken any loans, secured or unsecured
to/From Companies, firms or other Parties covered in the register
maintained under section 301 of the Companies Act 1956. Accordingly,
paragraph 4 (iii) (b), (c) and (d) 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 procedures commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventories, fixed assets and with regard to the sale of
goods. During the course of audit, no major weakness has been noticed
in the underlying internal controls.
5. a) In our opinion and according to information and explanations
given to us the transactions that needed to be entered in the register
maintained under section 301 of the Act have been entered in the
register.
b) As per information and explanations given to us aforesaid
transactions exceeding the aggregate amount of Rupees five lacs in
respect of each Party made during the year, have been made at prices
which are reasonable having regard to the prevailing market price at
the relevant time.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits within the
meaning of provisions of section 58A and 58AA of the Companies Act,
1956 and the Companies (Acceptance of Deposits) Rules, 1975.
7. In our opinion and according to the information and explanations
given to us, the Company has adequate internal audit system
commensurate with its size and nature of its business.
8. We are informed that the Central Government has not prescribed the
maintenance of cost records under section 209(1)(d) of the Companies
Act, 1956.
9. As per information and explanations given to us the Company has been
regular in depositing the undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employees State
Insurance, Income Tax, Sales Tax, and other statutory dues with the
appropriate Authorities. There are no undisputed statutory dues at the
year end outstanding for a Year of more than six months from the date
they become payable.
10. The accumulated losses of the company as at the end of the year are
less than the 50% of the net worth of the company. The company has not
incurred cash loss during the year under audit and in the immediately
preceding financial year.
11. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Paragraph 4 (xii) of the order is not applicable.
12. According to the information and explanations given to us, the
company has not given any guarantees for loans taken by others from
banks for financial institutions during the year.
13. According to the information and explanations given to us the
company has not taken any term loans during the year.
14. During the year the Company has not made any preferential allotment
of shares to parties and Companies covered in the Register maintained
u/s 301 of the Companies Act 1956. As such paragraph 4 (xviii) of the
order is not applicable.
15. Since the Company has not raised money by way of Public Issue
during the year paragraph 4 (xx) of the order is not applicable.
16. Based upon the audit procedures performed and information and
explanations given by the management, we report that, no fraud on or by
the Company has been noticed or reported during the course of our audit
for the year ended 31.03.2011.
17. Other clauses of the order are not applicable to the Company for
the year under report.
For O.P. BAGLA & CO.
CHARTERED ACCOUNTANTS
(RAKESH KUMAR)
PARTNER
MNo. 87537
Firm Regn. No. 000018N
PLACE : NEW DELHI
DATED : 03/08/2011
Mar 31, 2010
We have audited the attached Balance Sheet of MONNET INDUSTRIES LIMITED
as at 31st March, 2010 and Profit & Loss Account for the Year Ended
31st March, 2010 annexed thereto and cash flow statement for the year
ended on that date. 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.
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 financial statements. An audit also includes assessing
the accounting principles used and significant estimates made by the
management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1. As required by the Companies (Auditor's Report) order, 2003 as
amended by the Companies (Auditor's Report) (Amendment) order 2004
issued by the Central Government in terms of Section 227(4A) of the
Companies Act, 1956, we enclose in the annexure a statement on the
matters specified in the paragraphs 4 & 5 of the said order to the
extent applicable to the Company.
2. Further to our comments in the annexure referred to in paragraph 1
above, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief, were necessary for the purpose of our
audit.
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of such
books.
c) The Balance Sheet and the Profit & Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
d) In our opinion, the profit and loss account and balance sheet and
Cash Flow Statement comply with the accounting standards referred to in
sub-section (3c) of section 211 of the Companies Act, 1956.
e) On the basis of written representation received from the directors
and taken on records by the Board of Directors, we report that, none of
the director is disqualified as on 31st March, 2010 from being
appointed as Director u/s 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
Significant Accounting Policies and other Notes thereon in Schedule -
11 give the information as required by the Companies Act, 1956 in the
manner so required and give true and fair view in conformity with
accounting principles generally accepted in India :-
i) In the case of the Balance Sheet of the State of affairs of the
Company as at 31.03.2010.
ii) In the case of the Profit & Loss Account 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 1 OF THE AUDITORS' REPORT ON ACCOUNTS
FOR THE YEAR ENDED 31ST MARCH, 2010
1. a) The Company has maintained proper records to show full
particulars including quantitative details and situation of fixed
assets.
b) As explained to us, major fixed assets have been physically verified
by the management during the year. We have been informed that the
discrepancies noticed on such verification as compared to book record
were not material and have been properly dealt with in the books of
account. In our opinion the frequency of verification is reasonable.
c) As the Company has not disposed off any of the fixed assets during
the year, paragraph 4 (i) (c) of the said order is not applicable.
2. The Company has no stocks during the year under audit.
3. According to the information and explanations given to us, the
Company has neither granted nor taken any loans, secured or unsecured
to/From Companies, firms or other Parties covered in the register
maintained under section 301 of the Companies Act 1956. Accordingly,
paragraph 4 (iii) (b), (c) and (d) 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 procedures commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventories, fixed assets and with regard to the sale of
goods. During the course of audit, no major weakness has been noticed
in the underlying internal controls.
5. a) In our opinion and according to information and explanations
given to us the transactions that needed to be entered in
the register maintained under section 301 of the Act have been entered
in the register.
b) As per information and explanations given to us aforesaid
transactions exceeding the aggregate amount of Rupees five lacs in
respect of each Party made during the year, have been made at prices
which are reasonable having regard to the prevailing market price at
the relevant time.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits within the
meaning of provisions of section 58A and 58AA of the Companies Act,
1956 and the Companies (Acceptance of Deposits) Rules, 1975.
7. In our opinion and according to the information and explanations
given to us, the Company has adequate internal audit system
commensurate with its size and nature of its business.
8. We are informed that the Central Government has not prescribed the
maintenance of cost records under section 209(1)(d) of the Companies
Act, 1956.
9. As per information and explanations given to us the Company has
been regular in depositing the undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Employees State
Insurance, Income Tax, Sales Tax, and other statutory dues with the
appropriate Authorities. There are no undisputed statutory dues at the
year end outstanding for a Year of more than six months from the date
they become payable.
10. The accumulated losses of the company as at the end of the year
are less than the 50% of the net worth of the company. The company has
not incurred cash loss during the year under audit and in the
immediately preceding financial year.
11. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Paragraph 4 (xii) of the order is not applicable.
12. According to the information and explanations given to us, the
company has not given any guarantees for loans taken by others from
banks or financial institutions during the year.
13. According to the information and explanations given to us the
company has not taken any term loans during the year.
14. During the year the Company has not made any preferential
allotment of shares to parties and Companies covered in the Register
maintained u/s 301 of the Companies Act 1956. As such paragraph 4
(xviii) of the order is not applicable.
15. Since the Company has not raised money by way of Public Issue
during the year paragraph 4 (xx) of the order is not applicable.
16. Based upon the audit procedures performed and information and
explanations given by the management, we report that, no fraud on or by
the Company has been noticed or reported during the course of our audit
for the year ended 31.03.2010.
17. Other clauses of the order are not applicable to the Company for
the year under report.
For O.P. BAGLA & CO.
Chartered Accountants
Sd/-
(RAKESH KUMAR)
Place : New Delhi Partner
Dated : 10th August, 2010 M. No. 87537
Firm Regn. No. 000018N
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