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. Ã
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