Mar 31, 2014
We have audited the accompanying financial statements of RAJSANKET
REALTY LIMITED (Formerly known as "SANKET INTERNATIONAL LIMITED") ("the
Company"), which comprise the Balance Sheet as at 31st March 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") read with the General Circular
15/2013 dated 13-09-2013 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. 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 read together with
notes thereon, 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 31st March 2014;
(b) in the case of the Statement of Profit and Loss, of the loss for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
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;
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 referred
to in subsection (3C) of section 211 of the Companies Act, 1956 read
with the General Circular 15/2013 dated 13- 09-2013 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 31st March 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March 2014 from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITOR''S REPORT
Referred to in Paragraph 3 of our report of even date
[i] (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) These fixed assets have been physically verified by the management
at reasonable intervals during the year and no material discrepancies
were noticed on such verification.
[ii] (a) As informed to us, the inventory in the company''s possession
has been physically verified at reasonable intervals during the year by
the management. In respect of inventory of shares lying with depository
participants, the statements obtained from them have been verified at
reasonable intervals.
(b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion, the company is maintaining proper records of
inventory and no discrepancies were noticed on such physical
verification.
[iii] The company has neither granted nor taken any loans, secured or
unsecured, to/from the companies, firms or other parties covered in the
register maintained u/s. 301 of the Companies Act, 1956. Accordingly,
clause 4(iii) of the order is not applicable.
[iv] In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business, for the purchase of inventory and fixed assets and for the
sale of goods. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system of the company.
[v] In our opinion and according to the information and explanations
given to us, there are no contracts or arrangements that need to be
entered into the register maintained under section 301 of the Companies
Act, 1956.
[vi] The company has not accepted any deposits from the public during
the year.
[vii] The company does not have an internal audit system.
[viii] As informed to us, maintenance of cost records has not been
prescribed by the Central Government u/s. 209(1)(d) of the Companies
Act, 1956 in respect of the activities carried on by the company.
[ix] (a) In our opinion and according to the information and
explanations given to us, the company has not been regular in
depositing with the appropriate authorities the undisputed statutory
dues applicable to it. As informed to us, there were no arrears of
outstanding undisputed statutory dues as at the last day of the
financial year concerned for a period of more than six months from the
date they became payable.
(b) According to information and explanations given to us, there are no
dues of income tax, sales tax, service tax, custom duty, wealth tax,
excise duty, cess which have not been deposited on account of any
dispute.
[x] The accumulated losses of the company as at 31st March, 2014 are
not less than fifty per cent of its net worth. The company has incurred
cash losses during the current and in the immediately preceding
financial year.
[xi] According to the information and explanations provided to us, the
company does not have any borrowing by way of debentures, loans from
the bank or financial institution. Accordingly, clause 4(xi) of the
order is not applicable.
[xii] 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. Accordingly,
clause 4(xii) of the Order is not applicable.
[xiii] The company is not a chit fund or a nidhi/mutual benefit fund or
a society. Accordingly, clause 4(xiii) of the Order is not applicable.
[xiv] According to the information and explanations given to us, in our
opinion, the company has maintained proper records of the transactions
and contracts in respect of trading in shares and securities and timely
entries have been made therein. All the shares have been held by the
company in its own name except to the extent of the exemption granted
under section 49 of the Companies Act, 1956.
[xv] According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from
banks or financial institutions. Accordingly, clause 4(xv) of the Order
is not applicable.
[xvi] According to the information and explanation given to us, the
company has not borrowed any term loans during the year. Accordingly,
clause 4(xvi) of the order is not applicable.
[xvii] According to the information and explanation given to us and on
an overall examination of the balance sheet of the company, in our
opinion, the funds raised on short term basis have not been used for
long term investment.
[xviii] The company has not made any preferential allotment of shares
during the year. Accordingly, clause 4(xviii) of the order is not
applicable.
[xix] The company has not issued any debentures. Accordingly, clause
4(xix) of the Order is not applicable.
[xx] The company has not raised any money by public issues during the
year. Accordingly, clause 4(xx) of the Order is not applicable.
[xxi] According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
FOR CHANDAN PARMAR & CO.
Chartered Accountants
ICAI FRN No. 101662W
Place : Mumbai (Deepak H. Padachh)
Date : 29th May, 2014 Partner
Membership No. 45741
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