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Auditor Report of Purity Flex Pack Ltd.

Mar 31, 2015

1. We have audited the accompanying financial statements of Purity Flexpack 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 Financial Statement

2. 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 financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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 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

3. Our responsibility is to express an opinion on these 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 there under.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.

4. 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.

5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.

Opinion

6. In our opinion and to the best of our information 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, of the state of affairs of the Company as at 31st March, 2015, and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

7. As required by the Companies (Auditor's Report) Order, 2015 ("the Order") issued by the Central Government 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.

8. 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 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 does not have any pending litigations which would impact its financial position

II. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

III. The question of delay in transferring amounts to the Investor Education and Protection Fund by the company does not arise as there are no amounts required to be transferred to the said fund.

The Annexure referred to in our Independent Auditors' Report to the members of the Company on the standalone financial statements for the year ended 31 March 2015, we report that:

On the basis of such checks as we considered appropriate and according to the information and explanations given to us during the course of our audit, we report that:

1. The Company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets. The company' has not physically verified the entire fixed assets during the year however procedure for physically verification is proper in relation to size and nature of business. No substantial parts of fixed assets have been disposed of during the year, which will affect its status as going concern.

2. The Management at reasonable intervals has physically verified the inventory during the year. In our opinion, the procedure of physical verification of inventory followed by the management is reasonable and adequate in relation to the size of the company and the nature of its business. The company is maintaining proper records of inventory. The discrepancies noticed on physical verification of stocks as compared to book records were not material.

3. (a) The company has granted loan to parties covered in the register maintained under section 301 of the Companies Act, 1956, of the value "36.70/- lacs (P.Y. Rs.24.99 lacs);

(b) The Company has taken unsecured loan from parties covered in the register under section 301 of the Companies Act, 1956, of the value " 149.41/- lacs (P.Y.Rs. 22.37/- lacs);

(c) In our Opinion, the rate of interest and other terms & conditions of loans given / taken are not prima facie prejudicial to the interest of company. The company is regular in repaying the principal amount as stipulated.

4. In our opinion and according to information and explanations given to us, there is adequate internal control system commensurate with the size of the company and the nature of its business with regard to the fixed assets. There are no transactions of the purchase of inventory or with regards to the sale of goods & services. During the course of audit, we have not observed any continuing failure to correct major weakness in internal control system.

5. The company has not accepted any deposits from public and the directives issued by Reserve Bank of India has been followed and Section 73 to 76 of the Companies Act, 2013 and rules framed there under, have been duly complied with.

6. We have broadly reviewed the cost records maintained by the company pursuant to the Companies (Cost Accounting Records) Rules, 2014 prescribed by the Central Government under section 148 of the Companies Act, 2013 and are of the opinion that prima facie the prescribed cost records have been maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

7. The company has been regular in depositing any undisputed statutory dues if any such as Provident Fund, Income Tax, Excise Duty, Custom Duty, Cess and any other statutory dues. However, no statutory dues were payable beyond the due date under respective statutes as at the balance sheet date.

(i) There were no amount payable in respect of undisputed statutory dues, if any such as Provident Fund, Income Tax, Value Added Tax, Service Tax, Custom Duty, cess and other statutory dues in arrears as on 31st March 2015 for the period of more than six months from the date they become payable.

(ii) There are no amounts required to be transferred to the Investor Education and Protection Fund by the company under the relevant provisions of Companies Act, 1956 and rules made thereunder.

8. The Company does not have any accumulated losses at the end of the financial year exceeding fifty percent of its net worth. The company has not incurred cash losses in current financial year and immediately preceding financial year.

9. According to the records of the company examined by us and as per the information and explanations given to us, the company has not defaulted on repayment of dues to any financial institution or banks.

10. In our opinion, and according to the information and explanations given to us, the Company has not given any guarantee for loan taken by others from a bank or financial institution during the year.

11. According to information and explanations given to us, the company has applied the term loans for the purpose for which same were taken. Therefore, the provision of clause 4(xvi) of the Order is not applicable to the company.

12. There is no fraud on or by the company has been reported during the year. During the course of examination of books and records of the company, carried out in accordance with the generally accepted auditing standards in India and according to the information and explanations given to us, we have neither come across any instance of fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the management.

For Shah Mehta & Bakshi, Chartered Accountants (Registration No. 103824W)

(Vihang Bakshi) Partner M. No. 39054

Place: Vadodara. Dated: 25th August, 2015


Mar 31, 2014

We have audited the accompanying financial statements of Purity Flex Pack Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2014, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act") 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.

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 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 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 Account, of the profit 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 (as amended) ("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;

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.

(Referred to in paragraph 1 under ''Report on Other Legal and Regulatory Requirements'' section of our report of even date of Purity Flexpack Limited ("the Company") for the year ended March 31, 2014)

As required by the Order issued by the Company Law Board in terms of Section 227 (4A) of the Companies Act, 1956, we further report that:

I. The Company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets. The company'' has not physically verified the entire fixed assets during the year however procedure for physically verification is proper in relation to size and nature of business. No substantial parts of fixed assets have been disposed of during the year, which will affect its status as going concern.

II. The Management at reasonable intervals has physically verified the inventory during the year. In our opinion, the procedure of physical verification of inventory followed by the management is reasonable and adequate in relation to the size of the company and the nature of its business. The company is maintaining proper records of inventory. The discrepancies noticed on physical verification of stocks as compared to book records were not material.

III. (a) The company has granted loan to parties covered in the register maintained under section 301 of the Companies Act, 1956, of the value Rs. 24.99/- lacs (P.Y. Nil);

(b) The Company has taken unsecured loan from parties covered in the register under section 301 of the Companies Act, 1956, of the value Rs. 22.37/- lacs (P.Y. Rs. 22.37/- lacs);

(c) In our Opinion, the rate of interest and other terms & conditions of loans given/taken are not prima facie prejudicial to the interest of company. The company is regular in repaying the principal amount as stipulated.

IV. In our opinion and according to information and explanations given to us, there is adequate internal control system commensurate with the size of the company and the nature of its business with regard to the purchase of inventory, fixed assets and with regard to the sale of goods & services. During the course of audit, we have not observed any continuing failure to correct major weakness in internal control system.

V. According to information and explanations given to us, we are of the opinion that the transactions that need to be entered into a register in pursuance of section 301 of the Companies Act, 1956 have been so entered. In our opinion and according to information and explanations given to us, the transactions made in pursuance contract and arrangement entered in registered maintained under section 301 of the Companies Act, 1956 and exceeding the value of rupees five lakhs in respect of any parties during the year have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

VI. In our opinion and according to information and explanations given to us, the company has not accepted deposits from the public with in the meaning of section 58A and 58AA of the Companies Act, 1956.

VII. According to information and explanations given to us, the company has sufficient managerial control on all the activities of the company, including all the financial transactions of the company, and therefore has not appointed any internal auditor. However, it requires further strengthening due to increase in the activities of the company in recent past.

VIII. We have broadly reviewed the cost records maintained by the company pursuant to the Companies (Cost Accounting Records) Rules, 2011 prescribed by the Central Government under section 209(1)(d) of the Companies Act, 1956 and are of the opinion that prima facie the prescribed cost records have been maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

IX. (a) The company is regular in depositing undisputed statutory dues including Provident Fund, Income Tax, Excise Duty, Custom Duty, Cess and any other statutory dues. However, no statutory dues were payable beyond the due date under respective statutes as at the balance sheet date.

(b) According to information and explanations given to us, no undisputed amount payable in respect of Income Tax and other statutory dues in arrears as at 31.03.2014 for the period of more than six months from the date they become payable.

(c) According to the information and explanations given to us, no disputed amount payable in respect of income tax and statutory dues in arrears as at 31st March, 2014 which have not been deposited.

X. In our opinion, the company does not have accumulated losses more than fifty percent of its net worth. The company has not incurred cash losses in current and previous financial year covered under report.

XI. According to information and explanations given to us, the company has not made any default in repayment of dues in respect of loans from a financial institution or bank or debenture holders.

XII. According to information and explanations given 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. Therefore, the provision of clause 4(xii) of the Order is not applicable to company.

XIII. In our opinion and according to information and explanations given to us, the company is not a chit fund, nidhi or mutual benefit fund/society. Therefore, the provisions of clause 4 (xiii) of the Order are not applicable to the company.

XIV. In our opinion and according to information and explanations given to us, the company is not dealing or trading in shares, securities, debentures and other investments. Therefore, the provisions of clause 4 (xiv) of the Order is not applicable to the company.

XV. As per information and explanations given to us and as the records examined by us, the company has not given any guarantee for loans taken by others from bank or financial institutions. Therefore, the provisions of clause 4 (xv) of the Order is not applicable to the company.

XVI. According to information and explanations given to us, the company has applied the term loans for the purpose for which same were taken. Therefore, the provision of clause 4(xvi) of the Order is not applicable to the company.

XVII. According to information and explanations given to us and on overall examination of the balance sheet of the company, we report that no funds that have been raised on short-term basis have been used for long-term investment. No long-term funds have been used to finance short-term asset except the working capital.

XVIII. The company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under section 301 of the Act. Therefore, the provisions of clause 4 (xviii) of the Order is not applicable to the company.

XIX. The company has not issued any debentures. Therefore, the provisions of clause 4 (xix) of the Order is not applicable to the company.

XX. The company has not raised money by public issue during the year covered under audit. Therefore, the provisions of clause 4 (xx) of the Order is not applicable to the company.

XXI. As per information and explanations given to us, no fraud on or by the company has been noticed or reported during the year under report.

For Shah Mehta & Bakshi Chartered Accountants FRN: 103824W

(Kalpit Bhagat) Partner M No. 142116

Vadodara, Dated: 6th August, 2014


Mar 31, 2011

We have audited the attached Balance Sheet of PURITY FLEXPACK LTD. as on 31st March 2011 and Profit A Loss Account of the company for the year ended on that date. These financial statements art 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 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 mode by management, as well as evaluating overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

Further to our comments in the Annexure referred to above, we report that:

a) We have obtained all information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit.

b) In our opinion, the Company, as required by taw, has kept proper books of accounts, so for, so appears from our examination of those books.

c) The Balance Sheet and Profit & Loss Account dealt with by this report are in agreement with the Books of Accounts.

d) In our opinion, the Balance Sheet and Profit & Loss Account dealt with by the report are in compliance with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956.

e) On the basis of written representation received from the directors, as on 31.03.2011 and taken on record by the Board of Directors, we report that none of the director is disqualified as on 31.03.2011 from being appointed as director in terms of section 274 (l)(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 with notes (Schedule - 16) thereon, give the information required under the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

I. In the case of Balance Sheet of the State of affairs of the Company as at 31st March 2011.

II. In the case of Profit 4 Loss Account of the Profit for the year ended on that date.

As required by the Companies (Auditor's Report) Amendment Order, 2004 issued by the Company Law Board in terms of Section 227 (4A) of the Companies Act, 1956, we further report that:

I. The Company has maintained proper records showing full particulars, including quantitative details and situation of its fixed assets. All the assets have been physically verified by the management during the year and there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No substantial parts of fixed assets have been disposed of during the year, which will affect its status as going concern.

II. The Management at reasonable intervals has physically verified the inventory during the year. In our opinion, the procedure of physical verification of inventory followed by the management is reasonable and adequate in relation to the size of the company and the nature of its business. The company is maintaining proper records of inventory. The discrepancies noticed on physical verification of stocks as compared to book records were not material nature,.

HI. a) The company has not granted loan to parties covered in the register maintained under section 301 of the Companies Act, 1956.

b) The Company has taken unsecured loan from parties covered in the register maintained under section 301 of the Companies Act 1956, of the value 24.37 lacs (Max! 24.37 Lacs).

c) In our opinion, the rate of interest and other terms of loans given are not prima facie prejudicial to the interest of company. The company is regular in repaying the principal amount as stipulated and has been regular in the payment of interest.

IV. In our opinion and according to information and explanations given to us, there is an adequate internal control system commensurate with the size of the company and the nature of its business with regard to the purchase of inventory, fixed assets and with regard to the sale of goods and services. During the course of audit, we have not observed any continuing failure to correct major weakness in internal control system.

V. According to information and explanations given to us, the transaction those are required to be entered into registered in pursuance of section 301 of the Act, have been so entered. In our opinion and according to information and explanations given to us, the transactions made in pursuance of such contracts and arrangements exceeding value of five lacs rupees in respect of any party during the year have been made at prices that are reasonable with regard to the prevailing market prices at the relevant time.

VI. In our opinion and according to information and explanations given to us, the company has not accepted deposits from the public within the meaning of section 58A and 58AA of the Companies Act, 1956.

VII. According to information and explanations given to us, the company has sufficient managerial control on all activities of the company, including all financial transactions of the company, and therefore have not appointed an internal auditor. However it requires further strengthening due to increase in the activities of the Company in recent past.

VIII. We have been informed that the Central Government has not prescribed maintenance of cost records under Section 209(lXd) of the Companies Act, 1956.

IX. (a) The company is regular in depositing undisputed statutory dues including Provident Fund, Income

Tax, Excise duty. Custom duty. Cess and any other statutory dues. However, no statutory dues were payable beyond the due date under respective statutes as at the Balance Sheet date.

(b) According to information and explanations given to us, there are no due of Income Tax, Sales Tax, Excise duty, Custom Duty and Cess that were in arrears as on 31-03-2011 for the period of more than six months from the date they become payable.

X. In our opinion, the company does not have accumulated losses more than fifty percent of its net worth. The company has not incurred cash losses in the current A previous financial year covered under report.

XI. In our opinion and according to information and explanations given to us, the company has not defaulted In repayment of dues to a financial institution or bank or debenture holders.

XII. According to information and explanations given 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.

XIII. The company is not a chit fund, nidhi or mutual benefit fund or a society.

XIV. In our opinion and according to information and explanations given to us, the company is not dealing or trading in aharmn, securities, debentures and other Investments.

XV. According to information and explanations given to us and as the record examined by us, the company has not given any guarantee for loans taken by others from bank or financial institutions.

XVI. According to information and explanations given to us, we arm of the opinion that the company has applied the Term Loans for the purpose for which the same were taken.

XVII. According to Information and explanations given to us and on overall examination of tha Balance Sheet of the company, we report that the no funds that were raised for short - term basis have been used for long term investment. No long-term funds have been used to finance short-term assets except the working capital term loan.

XVIII. The company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under section 301 of the Act during the year covered under audit.

XIX. That company did not issue any debentures during the year.

XX. The company has not raised money by public Issue during the year.

XXI. To that best of our knowledge and belief and according to Information and explanations given to us, and than records of the Company examined buys. No Radnor by the company has been noticed or reported during the year.

For Shah Mehta A Bakshi Chartered Accountants

(Vihang Bakshi)

Partner

M. No. 39054

FR No. 103824W

Vadodara. dated: 27th July 2011


Mar 31, 2010

We have audited the attached Balance Sheet of PURITY FLEXPACK LTD. as on 31st March 2010 and Profit & Loss Account of the company for the year ended on that date. These financial statements are the responsibility of the companys management. Our responsibility is to express an opinion on these financial statements based en 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 art 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 overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

Further to our comments in the Annexure referred to above, we report that:

a) We have obtained all information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit.

b) In our opinion, the Company, as required by law, has kept proper books of accounts, so far, as appears from our examination of those books.

c) The Balance Sheet and Profit 4 Loss Account dealt with by this report art in agreement with the Books of Accounts.

d) In our opinion, the Balance Sheet and Profit & Loss Account dealt with by the report are in compliance with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956.

e) On the basis of written representation received from the directors, as on 31.03.2010 and taken on record by the Board of Directors, we report that none o,f the director is disqualified as on 31.03.2010 from being appointed as director in terms of section 274 (l)(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 with notes (Schedule - 16) thereon, give the information required under the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

I. In the case of Balance Sheet of the State of affairs of the Company as at 31st March 2010. •

II. In the case of Profit & Loss Account of the Profit for the year ended on that date.

As required by the Companies (Auditors Report) Amendment Order, 2004 issued by the Company Law Board in terms of Section 227 (4A) of the Companies Act, 1956, we further report that:

I. The Company has maintained proper records showing full particulars, including quantitative details and situation of its fixed assets. All the assets have been physically verified by the management during the year and there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No substantial parts of fixed assets have been disposed of during the year, which will affect its status as going concern.

II. The Management at reasonable intervals has physically verified the inventory during the year. In our opinion, the procedure of physical verification of inventory followed by the management is reasonable and adequate in relation to the size of the company and the nature of its business. The company is maintaining proper records of inventory. The discrepancies noticed on physical verification of stocks as compared to book records were not material; however, the same have been properly dealt with the books of account.

III. a) The company has not granted loan to parties covered in the register maintained under section 301 of the Companies Act, 1956.

b) The Company has taken unsecured loan from parties covered in the register maintained under section 301 of the Companies Act 1956, of the value 21.06 lacs (Maxi 21.06 Lacs).

c) In our opinion, the rate of interest and other terms of loans given art not prima facie prejudicial to the interest of company. The company is regular in repaying the principal amount as stipulated and has been regular in the payment of interest.

IV. In our opinion and according to information and explanations given to us, there is an adequate internal control system commensurate with the size of the company and the nature of its business with regard to the purchase of inventory, fixed assets and with regard to the sale of goods and services. During the course of audit, we have not observed any continuing failure to correct major weakness in internal control system.

V. According to information and explanations given to us, the transaction those are required to be entered into registered in pursuance of section 301 of the Act, have been so entered. In our opinion and according to information and explanations given to us, the transactions made in pursuance of such contracts and arrangements exceeding value of five lacs rupees in respect of any party during the year have been made at prices that are reasonable with regard to the prevailing market prices at the relevant time.

VI. In our opinion and according to information and explanations given to us, the company has not accepted deposits from the public within the meaning of section 58A and 58AA of the Companies Act, 1956.

VII. According to information and explanations given to us, the company has sufficient managerial control on all activities of the company, including all financial transactions of the company, and therefore have not appointed an internal auditor. However it requires further strengthening due to increase in the activities of the Company in recent past.

vIII. We have been informed that the Central Government has not prescribed maintenance of cost records under Section 209(l)(d) of the Companies Act, 1956.

IX. (a) The company is regular in depositing undisputed statutory dues including Provident Fund, Income Tax, Excise duty, Custom duty. Cess and any other statutory dues. However, no statutory dues were payable beyond the due date under respective statutes as at the Balance Sheet date.

(b) According to information and explanations given to us, there are no due of Income Tax, Sales Tax, Excise duty, Custom Duty and cess that were in arrears as on 31-03-2010 for the period of more than six months from the date they become payable.

X. In our opinion, the company does not have accumulated losses more than fifty percent of its net worth. The company has not incurred cash losses in the current & previous financial year covered under report.

XI. In our opinion and according to information and explanations given to us, the company has not defaulted in repayment of dues to a financial institution or bank or debenture holders.

XII. According to information and explanations given 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.

xIII.The company is not a chit fund, nidhi or mutual benefit fund or a society.

XIV. In our opinion and according to information and explanations given to us, the company is not dealing or trading in shares, securities, debentures and other investments.

XV. According to information and explanations given to us and as the record examined by us, the company has not given any guarantee for loans taken by others from bank or financial institutions.

XVI. According to information and explanations given to us, we are of the opinion that the company has applied the Term Loans for the purpose for which the same were taken.

XVII. According to information and explanations given to us and on overall examination of the Balance Sheet of the company, we report that the no funds that were raised for short -term basis have been used for long term investment. No long-term funds have been used to finance short-term assets except the working capital term loan.

XVIII.The company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under section 301 of the Act during the year covered under audit.

XIX. The company did not issue any debentures during the year.

XX. The company has not raised money by public issue during the year except issued on account of Amalgamation.

XXI. To the best of our knowledge and belief and according to information and explanations given to us, and the records of the Company examined by us, no fraud on or by the company has been noticed or reported during the year.

FOR SHAH. MEHTA & BAKSHI

Chartered Accountants

(Vihang Baxi)

Partner

Vadodara M. No. 39054

27.07.2010 FR No. 103824W

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