Mar 31, 2010
1. We have audited the attached Balance Sheet of Nidhi Polyester Limited as at 31st March 2010 and Profit and Loss Account of the Company for the year ended on that date which we have signed under reference to this report. These financial statements are the responsibility of the Companys Management. Our responsibility is to express an opinion on these financial statements based on our audit.
2. We have 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 also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraph 4 and 5 of the said Order to the extent applicable to the Company.
4. Further to our comment in the Annexure referred to in Paragraph 3 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, the company has kept proper books of accounts as required by law so far as it appears from our examination of those books.
(iii) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account.
(iv) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956.
(v) On the basis of the written representations received from the Directors, as on 31st March, 2010 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March 2010 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 our information and according to the explanations given to us, the said accounts together with the notes thereon and attached thereto give the information required by the Companies Act, 1956 in the manner so required and give true and fair view in conformity with the accounting principles generally accepted in India:
(a) in the case of Balance Sheet of the state of affairs of the Company as at 31st March, 2010 and
(b) in the case of Profit and Loss Account, of the profit for the year ended on that date.
(c) In the case of Cash Flow Statement, of the cash flows for the year ended on that date.
Annexure To Auditors Report Annexure referred to in Paragraph 3 of our report of even date.
In our opinion and according to the information and explanations given to us and on the basis of relevant records and documents produced for our verification, we report that:
1. (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets
(b) The management has, at reasonable intervals, physically verified fixed assets and no. material discrepancies between physical inventories and book records were noticed.
(c) The Company has not sold / disposed off any significant portion of fixed assets during the year.
2. The company has neither granted nor taken any loans, secured or unsecured to / from companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956.
3. There are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to fixed assets. During the course of our audit we have not observed any continuing failure to correct major weaknesses in internal controls.
4. (a) There is no transaction, which needs to be entered into a register maintained in pursuance of section 301 of the Companies Act, 1956.
(b) There are no transactions of purchase and sale of goods, materials and services made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 aggregating during the year to Rupees Five Lacs or more in respect of each party.
5. The company has not accepted any deposits from the public during the year.
6. The Company does not have formal internal audit system.
7. (a) The Company has been generally regular in depositing undisputed statutory dues including income tax and other statutory dues applicable to it with the appropriate authorities during the year.
(b) No undisputed amounts payable in respect of income tax, wealth tax and cess were in arrears, as on 31st March 2010 for a period of more than six months from the date they became payable.
(c) There are no dues of income tax, wealth tax and cess, which have not been deposited on account of any dispute.
8. The Company does not have any accumulated losses at the end of the year. The Company has not incurred cash losses during the current and the immediately preceding financial year.
9. The Company has neither taken any loans from banks or financial institution nor issued any debentures.
10. No loans or advances have been granted by the Company on the basis of security by way of pledge of shares, debentures and other securities.
11. The Company is not a chit fund or a nidhi / mutual benefit fund / society. The provisions of clause 4(xiii) of the Companies (Auditors Report) Order, 2003 are therefore not applicable to the Company.
12. In respect of its dealings in shares, securities and other investments;
(a) The Company has maintained proper records of transactions and contracts in respect of its dealing in shares, securities, debentures and other investments.
(b) The aforesaid securities have been held by the Company in its own name.
13. The Company has not given any guarantee for loans taken by others from banks and financial institutions during the year.
14. The Company has not taken any term loan from the banks and financial institutions during the year.
15. On an overall examination of the Balance Sheet of the Company, funds raised on short term basis have not prima facie, been used during the year for long term investments and vice versa.
16. The Company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956.
17. No fraud on or by the Company has been noticed or reported during the year.
For H.H. Bandukwala & Co.
H H Bandukwala
Membership No. 016940