Mar 31, 2015
We have audited the accompanying financial statements of M/S Rajath
Finance Limited ("the Company"), which comprise the Balance Sheet as at
March 31, 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 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 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 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
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.
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 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/loss and its 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, 2015 ("the
Order"), issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Companies Act, 2015, and on the
basis of such checks of the books of 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, to the extent
applicable.
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 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, 2015taken 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. There were no amounts which
were required to be transferred to the Investor Education and
Protection Fund by the Company
The Annexure referred to in paragraph 1 of Our Report on "Other Legal
and Regulatory Requirements".
We report that:
i. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such verification.
ii. Since the Company does not hold any physical inventory, the
requirement of reporting of physical verification of inventory and
maintenance of inventory records does not arise.
iii. The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under Section 189 of the Act. Therefore, the provisions of Clause
3(iii), (iii)(a), (iii)(b) of the said Order are not applicable to the
Company.
iv. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories & fixed assets and for sale
of goods and services. During the course of our audit, no major
instance of continuing failure to correct any weaknesses in the
internal controls has been noticed.
v. The Company has not accepted any deposits from the public covered
under sections73 to 76 of the Companies Act, 2013.
vi. As per information & explanation given by the management,
maintenance of cost records has not been specified by the Central
Government under sub-section (1) of section 148 of the Companies Act,
2013.
vii. (a) According to the records of the company, undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees' State Insurance, Income-tax, Sales- tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, value added tax, cess and any other
statutory dues to the extent applicable, have generally been regularly
deposited with the appropriate authorities. According to the
information and explanations given to us there were no outstanding
statutory dues as on 31st of March, 2015 for a period of more than six
months from the date they became payable.
(b) According to the information and explanations given to us, there is
no amount payable in respect of income tax, wealth tax, service tax,
sales tax, customs duty, excise duty, value added tax and cess
whichever applicable, which have not been deposited on account of any
disputes.
(c) The provision of clause (vii)(c) of the order is not applicable on
the company.
viii. The Company does not have accumulated losses at the end of
financial year more than fifty percent of its net worth and has not
incurred cash loss during the financial year and in the immediately
preceding financial year.
ix. In our opinion and according to the information and explanations
given by the management, we are of the opinion that, the Company has
not defaulted in repayment of dues to a financial institution, bank or
debenture holders, as applicable to the company.
x. According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from a
bank or financial institution.
xi. Based on our audit procedures and on the information given by the
management, the company has not taken any term loan during the year.
xii. According to the information and explanations given to us, we
report that no fraud on or by the Company has been noticed or reported
during the year, nor have we been informed of such case by the
management.
For S A D P AND CO
Chartered Accountants
FRN: 112625W
Place:-Rajkot
PARAG GUNVANTRAI BHUPTANI
Date: 30/May/2015
(PARTNER )
Membership No.122330
Mar 31, 2014
We have audited the accompanying financial statements of M/S Rajath
Finance 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 notified under the Companies Act, 1956 ("the
Act") read with the General Circular 15/2013 dated 13th September
2013 of the Ministry of Corporate Affairs in respect of section 133 of
the Companies Act, 2013. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
AUDITOR''S RESPONSIBILITY
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment
of the risks of material misstatement of the financial statements,
whether due to fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the Company''s
preparation and fair presentation of the financial statements in order
to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness
of the entity''s internal control. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness
of the accounting estimates made by management, as well as evaluating
the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
OPINION
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b) in the case of the Profit and Loss Account, of the profit/ loss for
the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENT
1. As required by the Companies (Auditor''s Report) Order, 2003
("the Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
bb) **The report on the accounts of the branch offices audited under
section 228 by a person other than the company''s auditor has been
forwarded to us as required by clause (c) of sub-section (3) of section
228 and have been dealt with in preparing our report in the manner
considered necessary by us.
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, the Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards notified
under the Companies Act, 1956 read with the General Circular 15/2013
dated 13th September 2013 of the Ministry of Corporate Affairs in
respect of section 133 of the Companies Act, 2013.
e) On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF THE AUDITOR''S REPORT ON THE
ACCOUNTS OF M/S Rajath Finance Limited FOR THE YEAR ENDING 31st March
2014
As required by the Companies (Auditor''s report) Order, 2003 issued by
the central Government of India in terms of section 227(4-A) of the
Companies Act, 1956, we report that:
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, no fixed asset has been disposed during the year and
therefore does not affect the going concern assumption.
2. Since the company does not hold any physical inventory, the
requirement of reporting of physical verification of inventory and
maintenance of inventory records in our opinion does not arise.
3. (a) The Company has granted loans to 3 parties covered in the
register maintained under section 301 of the Companies Act, 1956
wherein the balance receivable as at the year-end is Rs. Nil. The
maximum amount outstanding during the year was Rs. 75,00,000.
(b) In our opinion, the rate of interest and other terms and conditions
on which the loans have been granted to the parties listed in the
register maintained under Section 301 of the Act are not, prima facie,
prejudicial to the interest of the Company.
(c) In the case of the loans granted to the parties listed in the
register maintained under section 301 of the Act, the borrowers have
been regular in the payment of the interest, wherever stipulated.
(d) There are no overdue amounts of more than rupees one lakh in
respect of the loans granted to the parties listed in the register
maintained under section 301 of the Act.
(e) The Company has taken loans from Nil parties covered in the
register maintained under section 301 of the Companies Act, 1956
4. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories & fixed assets and payment
for expenses & for sale of goods. During the course of our audit, no
major instance of continuing failure to correct any weaknesses in the
internal controls has been noticed.
5. a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, the
particulars of contracts or arrangements referred to in section 301 of
the Act have been entered in the register required to be maintained
under that section.
b)As per information & explanations given to us and in our opinion, the
transaction entered into by the company with parties covered u/s 301 of
the Act aggregating Rs. Five lacs in the year have been made at prices
which are reasonable having regard to the prevailing market prices at
the relevant time.
6. The Company has not accepted any deposits from the public covered
under section 58A and 58AA of the Companies Act, 1956.
7. In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
8. As per information & explanation given by the management,
maintenance of cost records has not been prescribed by the Central
Government under clause (d) of sub-section (1) of section 209 of the
Act.
9. (a) According to the records of the company, undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income-tax, Sales-tax, Wealth Tax,
Service Tax, Custom Duty, Excise Duty, cess to the extent applicable
and any other statutory dues have generally been regularly deposited
with the appropriate authorities. According to the information and
explanations given to us there were no outstanding statutory dues as on
31st of March, 2014 for a period of more than six months from the date
they became payable.
(b) According to the information and explanations given to us, there is
no amounts payable in respect of income tax, wealth tax, service tax,
sales tax, customs duty and excise duty, whichever applicable, which
have not been deposited on account of any disputes.
10. The Company does not have any accumulated loss and has not incurred
cash loss during the financial year covered by our audit and in the
immediately preceding financial year.
11. Since no fund has been raised from banks or financial institution,
hence not applicable.
12. According to the 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.
13. The Company is not a chit fund or a nidhi /mutual benefit
fund/society. Therefore, the provision of this clause of the Companies
(Auditor''s Report) Order, is not applicable to the Company.
14. The company has maintained proper records of transactions and
contracts in respect of dealing and trading in shares, securities,
debentures and other investments and timely entries have been made
there in. All shares, debentures and other investments have been held
by the company in its own name. The company had purchased 23,300 nos.
of Master Gain, The same were misappropriated in transit. The company
had filed suit before the Hon''ble Civil Court,Rajkot.
15. According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from a
bank or financial institution.
16. Based on our audit procedures and on the information given by the
management, the company has not taken any term loan during the year.
17. Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company as at 31st
March, 2014, we report that no funds raised on short- term basis have
been used for long-term investment by the Company.
18. Based on the audit procedures performed and the information and
explanations given to us by the management, we report that the Company
has not made any preferential allotment of shares during the year to
parties and companies covered in the register maintained under section
301 of the Companies Act.
19. The Company has not issued any secured outstanding debentures
during the period.
20. The Company has not raised any money by public issue during the
year.
21. According to the information and explanations given to us, we
report that no fraud on or by the Company has been noticed or reported
during the year, nor have we been informed of such case by the
management.
For S A D P AND CO
Chartered Accountants
FRN: 112625W
Place: Rajkot PARAG GUNVANTRAI BHUPTANI
Date: 28/05/2014 (PARTNER)
Membership No. 122330
Mar 31, 2012
1 We have audited the attached Balance Sheet of Rajath Finance Limited
as at 31st March 2012 and the Profit and Loss Account for the year ended
on that date both of which we have signed under rcfcrcncc lo this
report. These financial statements are the responsibility of the
management of the Company. Our responsibility is to express an opinion
on these financial statements based on our audit.
2 We conducted our audit in accordance with auditing standards
generally accepted in India. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statement is 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 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), 2003 issued by the
Central Government of India in terms of section 227(4A) of the
Companies Act, we enclose in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
4. Without qualifying our opinion we draw attention that company has
incurred director remuneration of Rs.6.00 Lae during the year which is
in excess of limit specified by the relevant provision of the Companies
Act 1956. We have been informed by the BoD that they are in process to
get the approval from relevant authority for excess remuneration paid.
In view of BoD's opinion of seeking approval from relevant authority
no adjustment has been j made to accompanying financial statement in
this regard.
5 Further we report that:
We have obtained all the information and explanations, which to the
best of our knowledge and belief were j
necessary for the purposes of our audit. j
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 referred to in this report is in agreement with
the books of account.
d. In our opinion, this financial statement have been prepared in
compliance with the applicable accounting i standards referred to in
section 211(3C) of the Companies Act, 1956.
e. Based on the representations made by all the Directors of the
company as on March 31, 2012 and taken on I record by the Directors of
the company and in accordance with the information and explanations as
made j available the Directors of the company do not prima facie have
any disqualification as referred to in clause (g) of subsection (1) to
section 274 of the Act.
f. In our opinion, and to the best of our information and according to
the explanations given to us, the said Balance-Sheet and Profit & Loss
Account read together with the notes thereon give the information
required and give a true and fair view: j
i. In the case of Balance Sheet, of the state of affairs of the
company as at 31'1 March 2012; and
ii. In the case of the Profit and Loss Account, of the loss for the
year ended on that date.
iii. In caser of cash flow statement of cash flows for the year ended
on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF THE AUDITOR'S REPORT ON THE
ACCOUNTS OF M/S Rajath Finance Limited FOR THE YEAR ENDING 31st March
2012
As required by the Companies (Auditor's report) Order, 2003 issued by
the central Government of India in terms of section 227(4-A) of the
Companies Act, 1956, we report that:
1. In respect f fixed assets:
(A) The company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets on the
basis of available information.
(B) As explained to us, all the fixed assets have been physically
verified by the management during the year at reasonable intervals,
which in our opinion, is reasonable having regard to the size of the
company and the nature of assets. No material discrepancies were
noticed on such physical verification.
(C) In our opinion the Company has not disposed off any
substantial/major part of fixed assets during the year and the going
concern status of the company is not affected.
2. Since the company does not have any inventory, the requirement of
reporting on physical verification of inventory and maintenance of
inventory records, in our opinion, does not arise.
3. In respect of loans, secured or unsecured, granted or taken by the
company to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act 1956:
(A) The company has granted Loans to one party. At the year end the
outstanding balance of such loans granted was Rs.55,00,000/- and the
maximum amount involved during the year was Rs. 65,00,000/-
(B) In our opinion and according to the information and explanations
given to us, the rate of interest, wherever applicable and other the
terms and conditions are prima-facie prejudicial to the interest of the
company since there is no stipulation regarding repayment of Principle
and interest.
(C) In respect of loans granted by the company, the interest and the
principal amount is repayable on demand.
(D) Since the loans granted by the company are repayable on demand, no
question of overdue amounts arises.
(E) The company has not taken any new loans during the year.
(F) Since the company has not taken any new loans during the year hence
Not Applicable
(G) Since the company has not taken any loans during the year hence Not
Applicable
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedure commensurate
with the size of the company and nature of its business with regard to
purchase of inventory and fixed assets and with regard for the sale of
goods and services. During the course of audit, no major weakness has
been noticed in the internal control.
5. In our opinion and according to the information and explanation
given to us, there are no contracts or arrangements that need to be
entered into the register maintained in pursuance of Section 301 of the
Companies Act, 1956.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits from the public and
therefore, the provisions of Section 58 A and 58 AA of the Companies
Act, 1956 and Rules made there under are not applicable to the Company.
7. In our opinion, the company has an internal audit system
commensurate with its size and nature of its business.
8. As explained to us, the provisions section 209(1) (d) are not
applicable to the company as the company is not in production,
processing, manufacturing or mining activities.
9. In respect of statutory dues:-
(A) According to the information and explanations given to us, the
company was generally regular in depositing dues in respect of
Employees Provident Fund, Employees State Insurance Fund and other
statutory dues with the appropriate authority during the year except
Income Tax. The company has not paid the Income Tux for the Financial
Year 2010-11 till date. The approximate amount of such tax payable is
of Rs. 13,93,000.
(B) According to the records examined by us and the information and
explanations given to us, there arc no disputed amounts due in respect
of income tax, wealth tax, sales tax, excise duty, Employees provident
fund, Employee state insurance fund and other statutory dues at the end
of the year.
10. The Company does not have accumulated losses more than fifty
percent of its net worth as at the end of the year and the company has
not incurred cash losses during current year or in the year immediately
preceding the previous year.
11. Since no fund is raised/ outstanding to banks, financial
institution and from debenture holders, hence Not Applicable
12. In our opinion and according to information and explanation given
to us, no loans and advances have been granted by the company on the
basis of security by way of pledge of shares, debentures and other
security.
13. In our opinion the company is not a Chit Fund, Nidhi or Mutual
Benefit Fund/Society. Therefore, the provisions of clause 4(XIII) of
the CARO,2003 are not applicable to the company.
14. The company has maintained proper records of transactions and
contracts in respect of dealing and trading in shares, securities,
debentures and other investments and timely entries have been made
there in. All shares, debentures and other investments have been held
by the company in its own name. The company had purchased 23,300 Nos.
of Mater Gain. The same were misappropriated in transit. The company
had filed suit before the Hon'ble Civil Court Rajkot. The same was
disposed in favour of the company and an execution application has also
been filed, which is pending for disposal before the Hon'ble Civil
Court, Rajkot.
15. According to the records of the company and information and
explanations given to us, the company has not given guarantees for
loans taken by others from banks and financial institutions.
16. In our opinion and according to information and explanation given
to us, the Company has not availed of any term loans during the year.
There were no term loans outstanding as at the beginning and as at end
of the year.
17. According to the information and explanations given to us and on
examination of balance sheet, funds raised on short term basis have,
prima facie, not been used during the year for long term investment and
vice versa.
18. The company has not made any preferential allotment to parties and
companies covered under register maintained under Section 301 of the
Companies Act, 1956, during the year.
19. The company has not issued any debentures during the year, hence
question of creation of securities does not arise.
20. The Company has not raised money by any public issues during the
year and hence the question of disclosure and verification of end use
of such money does not arise.
21. In our opinion and according to the information and explanations
given to us no fraud on or by the Company has been noticed or reported
during the year that causes the financial statements to be materially
misstated.
For S A D P & Co.
Chartered Accountants
(FRN: 11262SW)
Place: Rajkot (PC Bhuptani)
Date: 30/05/2012 Partner
Membership no. : 122330
Mar 31, 2010
1 We have audited the attache Balance Sheet of Rajath Fiance Limited as
at 31st March 2010 and the Profit and Loss Account
for the year ended of that date both of which we have signed under
reference to this report. These financial statements are the
responsibility of the management of the Company. Our responsibility is
to express an opinion on there financial statements based on our audit.
2 We conducted our audit in accordance with auditing standards
generally accepted India. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statement is 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 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), 2003 issued by the
Central Government of India in terms of section 227 (4A) of the
Companies Act, we enclose in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said Order
4 Further we report that:
a Wh have obtained all the information an explanations, which to the
best of our knowledge and belief 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 appears from our examination of such
books.
c The Balance Sheet referred to in this report is in agreement with the
books of account.
d In our opinion, this financial statement have been prepared in
compliance with the applicable accounting standards referred to in
section 211 (3C) of the Companies Act, 1956.
e Based on the representations made by all the Directors of the company
as on March 31,2010 and taken on record by the Directors of the company
and in accordance with the information and explanations as made
available the Directors of the Company fo not prima facie have any
disqualification as referred to in clause (g) of subsection (1) to
section 274 of the Act.
In our opinion, and ot the best of our information and according to
the explanations given to us, the said Balance-sheet and profit & Loss
Account read together with the notes thereon give the information
required and give a true and fair view:
i, In the case of Balance Sheet, of the state of affairs of the company
as at 31st March 2010;
and
ii. In the case of the Profit and Loss Account, of the profit for the
year ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF THE AUDITORS REPORT ON THE
ACCOUNTS OF Rajath Finance Limited for THE YEAR ENDING 31 ST MARCH
2010
As required by the Companies (Auditors report) Order, 2003 issued by
the Central Government of India in terms of section 227(4-A) of the
Companies Act, 1956, we report that:
1 In Respect of Fixed Assets:
(a) The company has maintained proper records showing full particulars,
including quantitative details and situatio of fixed assets on the
basis of available information.
(b) As explained to us, all the fixed assets have been physically
verified by the management during the year at reasonable intervals,
which in our opinion, is reasonable having regard to the size of the
company and the nature of assets. No material discrepancies were
noticed no such physical verification
(c) In our opinion the Company has not unsecured, disposed off any
substantial/major part of fixed assets during the year and the going
concern status of the Company is not affected,
2 Since the Company does not have any inventory, the requirement of
reporting on physical verification of inventory and maintenance of
inventory records, in our opinion, does not arise
3 In respect of loans, secured or unsecured, granted or taken by the
company to/from companies, firms other parties covered in the register
maintained under section 301 of the Companies Act 1956:
(a) The company has not granted or taken any loans from the persons
covered in the register maintained u/s. 301 of the Companies Act, 1956.
(b) Not applicable , since no loans are granted or taken during the
year.
(c) We are unable to express our opinion, since there in no stipulation
as regard repayment of loan and interest.
(d) There in no overdue amount of loans, secured or unsecured from
companies, firms or other parties covered in the register maintained
u/s. 301 of the Companies Act, 1956.
(e) According to the information and explanation given to us, the
Company has not taken loans, secured or unsecured, from any party
listed in the register maintained under section 301 of the Companies
Act, 1956.
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 nature of its business
with regard to purchase of inventory and fixed assets and with regard
for the sale of goods and services. During the course of audit, no
major weakness has been noticed in the internal control.
5 As no new contracts or arrangements are entered in pursuance of
section 301 of the Companies Act, 1956; the requirement of reporting in
this in this matter does not arise.
6 In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits from the public an
therefore, the provisions of Section 58A and 58AA of the Companies Act,
1956 and Rules made there under are not applicable to the Company.
7 In our opinion, the company has a proper internal audit system
commensurate with is size and nature of its business.
8 As explained to us, the provisions section 209(1) (d) are not
applicable to the company as the Company is not engaged in production,
processing manufacturing or mining activities.
9 In respect of statutory dues:
(a) According to the information and explanations given to us, the
company was generally regular in depositing dues in respect of
Employees Provident Fund, Employees State Insurance Fund, Income Tax,
and other statutory dues with the appropriate authority during the year
except in the payment of tax deducted at source but no outstanding dues
exists for more than six month.
(b) According to the records examined by us and the information and
explanations given to us, there are no disputed amounts due in respect
of income tax, wealth tax, sales tax, excise duty, Employees provident
fund, Employees state insurance fund and other statutory dues, at the
end of the year.
10 The Company does not have accumulated losses more than fifty percent
of its net worth as at the end of the year and the Company has not
incurred cash losses during current year or in the year immediately
preceding the precious year.
11 Since no fund is raised/ outstanding to banks, financial
institutions and debenture holders, hence not applicable.
12 In our opinion and according to information and explanation given to
us, no loans and advances have been granted by the company on basis of
security by way of pledge of shares, debentures and other security.
13 In our opinion the company is not a chit fund, Nidhi or Mutual
benefit fund/society. Therefore, the provisions of clause 4(XIII) of
the CARO, 2003 are not applicable to the company.
14 The company in not dealing in or trading in shares, securities,
debentures and other investments. Accordingly , the provisions of
clause 4(xiv) of the order are not applicable.
15 According to the records or the Company and information and
explanations given to us, the Company has not given guarantees for
loans taken by others from banks and financial institutions.
16 In our opinion and according to information and explanation given to
us, the Company has not availed of any term loans during the year.
There were no term loans outstanding as at the beginning and as at end
of the year.
17 According to the information and explanation given to us and on
examination of balance sheet, funds raised on short term basis have,
prima facie, not been used during the year for long term investment and
vice versa.
18 The company has not made any preferential allotment to parties and
companies covered under register maintained under Section 301 of the
Companies Act, 1956, during the year.
19 The company has not issued any debentures during the year, hence
question of creation of securities does not arise.
20 The Company has not raised money by any public issues during the
year and hence the question of disclosure and verification of end
use of such money does not arise.
21 In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year causes that causes the financial statements to be
materially misstated.
For, S A D P & CO.
Chartered Accountants
S. G. Bhuptani
Place:- Rajkot Partner
Date:- 27th May, 2010 Membership No. 107361