Mar 31, 2018
Independent Auditor''s Report
To
The Members of
Real News and Views Limited
Report on the Financial Statements
We have audited the accompanying Standalone Ind AS financial statements of Real News and Views Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information (hereinafter referred to as "Ind AS Financial Statements").
Management''s Responsibility for the Financial Statements
Management 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 Ind AS financial statements that give a true and fair view of the state of affairs (financial position), Profit (financial performance including Other Comprehensive Income), cash flows and Changes in Equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the 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 control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone Ind AS 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.
In conducting 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 Standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Standalone Ind AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the Standalone Ind AS 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 Standalone Ind AS financial statements that give true and fair view 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 Company''s Directors, as well as evaluating the overall presentation of the Standalone Ind AS 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 Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the Standalone Ind AS 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 including Ind AS:
(a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2018;
(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.
Other Matter
The comparative financial information of the company for the year ended 31st March 2017 and the transition date opening balance sheet as 1st April 2016 included in these Ind AS financial statements, are based on the previously issued statutory financial statements prepared in accordance with the Companies (Accounting Standards), Rules, 2006 audited by another firm of auditors for the year ended on 31.03.2016 expressed an unmodified opinion on those financial statements as adjusted for the differences in the accounting principles adopted by the Company on transition to the Ind AS, which have been audited by us.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors'' Report) Order, 2016 ("the Order") issued by Central Government of India in terms of subsection (11) of section 143 of the Act, we give in "Annexure-1", 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 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 it appears from our examination of those books;
c. the Balance Sheet, Statement of Profit and Loss, Cash Flow Statement and the Statement of Changes in Equity dealt with by this Report are in agreement with the books of accounts;
d. in our opinion, the aforesaid Standalone Ind AS financial statement comply with the Indian Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules 2014;
e. on the basis of written representations received from the directors as on March 31, 2018, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018, from being appointed as a director in terms of section 164(2) of the Act.
f. with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in "Annexure-2".
g. 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, as amended, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements.
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses on long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company;
(Referred to in paragraph 1(f) under ''Report on Other Legal and Regulatory Requirements'' of our report of even date) Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Real News & Views Limited. ("the Company") as of March 31st,
2018 in conjunction with our audit of the financial statements of the company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls.
Over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. 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.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company;
and
(3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31st, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
The Annexure-B referred to in our Audit Report of even date to the members of Real News & Views Limited on the accounts of the company for the year ended 31st March, 2018.
On the basis of such checks as we considered appropriate and according to the information and explanation given to us during the course of our audit, 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) There is no immovable property held by the company.
2. (a) As explained to us, inventories have been physically verified during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories 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 and on the basis of our examination of the records, the Company is generally maintaining proper records of its inventories. No material discrepancy was noticed on physical verification of stocks by the management as compared to book records.
3. According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has not granted any loans, secured or unsecured, to companies, firms or other parties listed in the register maintained under Section 189 of the Companies Act, 2013. Consequently, the provisions of clauses iii (a), iii(b) and iii (c) of the order are not applicable to the Company.
4. In our opinion and according to the information and explanations given to us, the company has complied with the provisions of section 185 and 186 of the Companies Act, 2013.
5. Based on the audit procedures applied by us and according to the information and explanations provided by the management, the company has not accepted any deposit u/s 73 to 76 or any other relevant provisions of the Companies Act.
6. We have been informed that maintenance of cost records under sub-section 1 of section 148 of the Companies Act 2013 is not mandatory to the company.
7. (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 irregularly 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, 2018 for a period of more than six months from the date they became payable.
(b) There are the following disputed statutory dues that have not been deposited on account of disputed matters pending before appropriate authorities.
Sr. No. |
Name of the Statute |
Period to which amount relates (FY) |
Amount (Rs.) |
Forum where the dispute is pending |
Present Status |
1 |
Income Tax |
2013-14 |
4,19,34,620 |
CIT(Appeals)-1, Ahmedabad |
First appeal against Order u/s. 143(3) is pending before CIT(A)-1, Ahmedabad |
2012-13 |
1,24,820 |
CIT(Appeals)-1, Ahmedabad |
First appeal against Order u/s. 143(3) is pending before CIT(A)-1, Ahmedabad |
||
TOTAL |
4,20,59,440 |
8. Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that, the Company has not defaulted in repayment of dues to any bank. The company has not borrowed from financial institution, government or debenture holder during the year.
9. According to the information and explanation given to us, the Company has not raised money through initial public officer nor taken any term loan during the year. Hence, the question of application of funds for the purpose for which these were borrowed does not arise.
10. Based on the audit procedures performed and 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.
11. During the year under review, the company has not paid managerial remuneration to its key managerial personnel and hence compliance of section 197 read with Schedule V to the Companies Act, 2013 is not applicable.
12. Based on the audit procedures performed and the information and explanation given to us, the company is not Nidhi Company, therefore it is not required to follow Nidhi Rule, 2014.
13. Based on the audit procedures performed and the information and explanations given to us, the transactions with related party are in compliance with sections 177 and 188 of the Companies Act, 2013.
14. According to the information and explanation given to us, the Company has not made preferential allotment or private placement of shares during the year.
15. According to the information and explanation given to us, the Company has not entered in to non-cash transaction with directors or person connected with them during the year.
16. According to the information and explanation given to us, the Company is not required to be registered under section 45-IA of Reserve Bank of India Act, 1934.
Place : Ahmedabad For V. D. Shukla & Co.
Date : 24.05.2018 Chartered Accountants
FRN: 110240W
(Vimal D. Shukla)
Proprietor
Membership No.: 036416
Mar 31, 2016
We have audited the accompanying financial statements of REAL REALTY MANAGEMENT COMPANY LIMITED [Earlier known as Hillock Agro Foods (India) Limited] (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2016, 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.
Managementâs Responsibility for the Financial Statements
The companyâs board of directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to preparation and presentation of these financial statement 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 u/s 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 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 control, 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.
Auditorsâ Responsibility
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.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditorsâ 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 Companyâs 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 whether the company has in place an adequate internal financial controls system over financial reporting and operating effectiveness of such controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by companyâs 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 qualified audit opinion.
Basis for Qualified Opinion
During the audit, we have not received confirmation of trade payable of Rs.38,03,671/-, trade receivable of Rs.1,11,11,325/-, advance to supplier of Rs.2,16,10,757/- and advance from customer of Rs.1,36,36,375/- and we were unable to perform alternate audit procedures. Consequently, we were unable to determine whether any adjustments to these amounts are necessary.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, except for the possible effects of the matter described in the basis of qualified opinion paragraph, 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, 2016;
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 (Auditorsâ Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the âAnnexure Aâ, 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 purpose of our audit, except described in basis of qualified opinion paragraph;
b. Except for the effect of the matter described in basis for qualified opinion paragraph above, 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. Except for the effect of the matter described in basis for qualified opinion paragraph above, 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. Except for the effect of the matter described in basis for qualified opinion paragraph above, in our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement 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 written representations received from the directors as on March 31, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2016, from being appointed as a director in terms of Section 164(2) of the Act.
f. With respect to the adequacy of the internal financial controls over financial reporting of the company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ, and
g. With respect to the other matters to be included in the Auditorâs 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 explanation given to us;
i. The company has disclosed the impact of pending litigations on its financial position in its financial statements refer note 26 to the financial statements.
ii. The company does not have any long-term contracts including derivative contracts, hence the question of any material foreseeable losses does not arise;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the company.
[Referred to in paragraph 1 under âReport on Other Legal and Regulatory Requirementsâ in the Independent Auditorsâ Report of even date to the members of REAL REALTY MANAGEMENT COMPANY LIMITED [Earlier known as Hillock Agro Foods (India) Limited ] on the financial statements for the year ended 31st March, 2016]
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) No information or explanations of physical verification of fixed assets were given to us. Hence, we are unable to opine whether any physical verification of fixed assets has been conducted by the management and any material discrepancies.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the company, company does not have any immovable property in fixed assets as at 31st March, 2016.
(ii) No information or explanations of physical verification of inventory were given to us. Hence, we are unable to opine whether any physical verification of inventory has been conducted by the management and any material discrepancies.
(iii) As informed, 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, accordingly, the provisions stated in paragraph 3 (iii)(a) and 3(iii)(b) of the Order are not applicable.
(iv) In our opinion and according to the information and explanations given to us, the company has not granted any loans or guarantees and hence provisions of Section 185 shall not apply to the company and company has complied with the provisions of section 186 of the act, with respect to the investments made.
(v) In our opinion and according to the information and explanations given to us, the company has not accepted any deposits from the public within the provisions of section 73 to 76 of the Act and rules framed there under.
(vi) The Central Government of India has not prescribed the maintenance of cost records for any of the products of the company under sub-section (1) of section 148 of the Act and rules framed there under.
(vii) (a)The Company is not regular in depositing with appropriate authorities undisputed statutory dues including service tax, tax deducted at source and other material statutory dues applicable to it. Details of statutory dues which were outstanding at the year end for a period of more than six months from the date they become payable are as follows:-
Name of the statute |
Nature of the dues |
Amount (Rs.) |
Period to which the amount relates |
The Income Tax |
Tax deduction |
72,000 |
FY 2014-15 |
Act, 1961 |
at source |
6,33,456 |
FY 2015-16 |
The Finance Act, 1994 |
Service Tax |
1,88,222 |
FY 2015-16 |
(b) According to the records of the Company, the dues outstanding of income-tax, sales-tax, wealth-tax, service tax, customs duty, excise duty and cess on account of any dispute, are as follows:
Name of the statute |
Nature of dues |
Amount (Rs.) |
Period to which the amount relates |
Forum where dispute is pending |
The Income Tax Act, 1961 |
Income Tax |
1,24,820 |
FY 2012-13 |
Commissioner of Income Tax (Appeals) |
(viii) According to information and explanation given to us, the company has defaulted in repayment of loan taken from Allahabad Bank. As per sanction letter the loan was to be repaid in September 2014 which was repaid in January 2016. Amount outstanding at the beginning of the year was Rs.67,13,080/.
(ix) The Company has not raised money by way of public issue during the year.
(x) During the course of our examination of the books and records of the company, carried out in accordance with the generally accepted auditing practices 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.
(xi) According to the information and explanations given to us and based on our examination of the records of the company, the company has not paid any managerial remuneration.
(xii) In our opinion, the Company is not a nidhi company. Accordingly, the provisions of clause (xii) of paragraph 4 of the Companies (Auditorâs Report) Order, 2016 are not applicable to the Company.
(xiii) According to information and explanation given to us and on the basis of books of accounts and other relevant records of the company, company has not entered into any transaction with the related parties prescribed under section 177 and 188 of Companies Act, 2013.
(xiv) Company has not made any private placement or preferential allotment during the year.
(xv) According to information and explanation given to us and on the basis of books of accounts of the company no non cash transaction is entered into by the company during the year.
(xvi) The company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section 143 of the Companies Act, 2013 (âthe actâ)
We have audited the internal financial control over financial reporting of REAL REALTY MANAGEMENT COMPANY LIMITED [Earlier known as Hillock Agro Foods (India) Limited] (âthe companyâ) as of 31st March, 2016 in conjunction with our audit of the financial statement of the company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the company considering the essential components of internal control stated in the Guidance Note on Audit of internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the Companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, and accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India.
Because of the matter described in Disclaimer of Opinion paragraph below, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on internal financial controls system over financial reporting of the Company.
Meaning of Internal Financial Control over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purpose in accordance with generally accepted accounting principles.
A companyâs internal financial control over financial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorization of the management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatement due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
The system of internal financial controls over financial reporting with regard to the Company were not made available to us to enable us to determine if the Company has established adequate internal financial control over financial reporting and whether such internal financial controls were operating effectively as at March 31, 2016.
We have considered the disclaimer reported above in determining the nature, timing, and extent of audit tests applied in our audit of the financial statements of the Company, and the disclaimer has affected our opinion on the financial statements of the Company and we have issued a qualified opinion on the financial statements.
For Maharishi & Co.
Chartered Accountants
Firm Registration No.124872W
Kapil Sanghvi Partner
Membership No.141168
Signed at Rajkot on 30th May, 2016
Mar 31, 2015
We have audited the accompanying standalone financial statements of
Real Realty Management Company Limited [Earlier known as Hillock Agro
Foods (India) 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 significant
accounting policies and other explanatory information
Management's Responsibility for the Standalone 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
and ensuring their operating effectiveness and 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
thereunder.
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 standalone financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the standalone financial statements. The
procedures selected depend on the auditors' judgment, including the
assessment of the risks of material misstatement of the standalone
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, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of 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 standalone 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, its 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 (Auditors' Report) Order, 2015 ("the
Order") issued by the Central Government of India 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.
(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 standalone 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 written representations received from the directors
as on March 31, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 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 hence, the question of any material foreseeable
losses does not arise;
(iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO INDEPENDENT AUDITOR'S REPORT
[Referred to in paragraph 1 under 'Report on Other Legal and Regulatory
Requirements' in the Independent Auditor's Report of even date to the
members of Real Realty Management Company Limited [Earlier known as
Hillock Agro Foods (India) Limited] on the financial statements for the
year ended March 31, 2015]
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) During the year, all the fixed assets have not been physically
verified by the management. However, 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.
(ii) (a) The inventory has been physically verified by the management
during the year. In our opinion, the frequency of verification is
reasonable.
(b) 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) The Company is maintaining proper records of inventory. As informed
no material discrepancies were noticed on physical verification carried
out during the year.
(iii) As informed, 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. Accordingly, the provisions
stated in paragraph 3 (iii)(a) and 3 (iii)(b) of the Order are not
applicable.
(iv) In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
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 and services. 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, the Company has not accepted any deposits from the public
within the provisions of Sections 73 to 76 of the Act and the rules
framed there under.
(vi) The Central Government of India has not prescribed the maintenance
of cost records for any of the products of the Company under
sub-section (1) of Section 148 of the Act and the rules framed there
under.
(vii) (a) The Company is generally regular in depositing with
appropriate authorities, undisputed statutory dues including provident
fund, employees' state insurance, income tax, sales tax, wealth tax,
service tax, value added tax, customs duty, excise duty, cess and any
other material statutory dues applicable to it.
AND
(a) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, employees'
state insurance, income tax, sales tax, wealth tax, service tax, value
added tax, customs duty, excise duty, cess and any other material
statutory dues applicable to it, were outstanding, at the year end, for
a period of more than six months from the date they became payable.
(b) According to the information and explanation given to us, there are
no dues with respect to income tax, sales tax, wealth tax, service tax,
value added tax, customs duty, excise duty, cess and any other material
statutory dues applicable to it, which have not been deposited on
account of any dispute.
(c) According to the information and explanations given to us, there
has been no delay in transferring amounts, required to be transferred,
to the Investor Education and Protection Fund by the Company.
(viii) The accumulated losses of the Company are not more than fifty
percent of its net worth. The Company has incurred cash losses during
the financial year covered by our audit, and company has not incurred
cash losses in the immediately preceding financial year.
(ix) According to the information and explanations given to us, the
Company has defaulted in repayment of loan taken from Allahabad bank.
(x) 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.
(xi) The Company has not obtained any term loans during the year under
audit.
(xii) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices 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 any such instance by the management.
For Maharishi & Co.
Chartered Accountants
ICAI Firm Registration No.124872W
Prashant Maharishi
Partner
Membership No.041452
Rajkot: May 29, 2015
Mar 31, 2014
We have audited the accompanying financial statements of Real Realty
Management Company Limited [Formerly Known as Hillock Agro Foods
(India) Limited], which comprise the Balance Sheet as at March 31st,
2014 and the Statement of Profit and Loss and Cash Flow Statement for
the year 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 of the Company in accordance with the Accounting
Standards referred in sub-section (3C) of Section 211 of the Companies
Act, 1956. 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.
Auditors'' 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 auditors'' 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 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 31st, 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 (Auditors'' Report) Order, 2003 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, 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 representation received from the directors
as on March 31st, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31st, 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 AUDITORS'' REPORT
[Referred to in paragraph 1 under the heading of "reporting on Other
Legal and Regulatory requirements" of our report of even date to the
members of Real Realty Management Company Limited [Formerly Known as
Hillock Agro Foods (India) Limited] on the financial statements for the
year ended March 31, 2014]
(i) (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 not been physically
verified by the management during the year but there is a regular
program of verification which, in our opinion, is reasonable having
regard to the size of the Company and the nature of its assets. As
informed, no material discrepancies were noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, the company has not disposed off a substantial part of its
fixed assets during the year and the going concern status of the
company is not affected.
(ii) (a) The inventory has been physically verified by the management
during the year. In respect of inventory lying with third parties,
these have substantially been confirmed by them. In our opinion, the
frequency of verification is reasonable.
(b) In our opinion and according to the explanation and information
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) The Company is maintaining proper records of inventory and as
explained to us, there were no material discrepancies were noticed on
physical verification carried out at the end of the year as compared to
the book records.
(iii) (a) According to information and explanations given to us, the
Company has taken unsecured loans from parties covered in the register
maintained under section 301 of the Companies Act, 1956, balance at the
beginning of the year was Rs.3,28,89,272/- fresh loan taken during the
year Rs.92,30,000/- repaid Rs.34,00,000/- and the balance outstanding
at the close of the year is Rs.3,87,19,272/-.
(b) In our opinion the rate of interest and other terms and conditions
on which loan has been taken from the parties listed in the register
maintained under section 301 are not prima facie, prejudicial to the
interest of the company.
(c) The Company is regular in repaying the principal amount as
stipulated and has been regular in the payment of interest.
(d) The Company not granted any loans to the companies/firms or other
parties covered in the register maintained under the Companies Act,
1956.
(iv) In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct weakness
in internal control system of the company.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
referred to in section 301 of the Companies Act, 1956 that need to be
entered into the register maintained under section 301 have been so
entered. (b) In our opinion and according to the information and
explanations given to us, no transactions made in pursuance of such
contracts or arrangements exceeding value of Rs. 5 lacs have been entered
into during the financial year at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits from the public
within the meaning of Sections 58A and 58AA of the Act and the rules
framed there under. Therefore, the provisions of clause (vi) of
paragraph 4 of the order are not applicable to the company.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the cost records maintained by the
Company pursuant to the companies (Cost Accounting Records) Rules, 2011
prescribed under Section 209(1) (d) of the Companies Act, 1956 and are
of the opinion that prima facie the prescribed accounts and records
have been made and maintained. However, we have not made a detailed
examination of the records with a view to determining whether they are
accurate or complete.
(ix) (a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including income-tax, sales-tax,
wealth-tax, service tax, cess and other material statutory dues
applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income-tax, wealth-tax,
service tax, sales-tax, customs duty, cess and other undisputed
statutory dues were outstanding, at the year end, for a period of more
than six months from the date they became payable,
(x) The company has accumulated losses at the end of the financial
year, however it is not more than 50% of the net worth of the company
and it has not incurred cash losses in the current and immediately
preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution, bank or debenture holders.
(xii) According to the information and explanations given to us and
based on the documents and records produced to us, the company has not
granted loans & advances on the basis of security by way of pledge of
shares, debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause
(xiii) of paragraph 4 of the Companies (Auditor''s Report) Order, 2003
(as amended) are not applicable to the Company.
(xiv) In respect of dealing/trading in shares, securities, debentures
and other investments, in our opinion and according to the information
and explanations given to us, the company has not dealt with any of
share, security, debenture and other investment.
(xv) In our opinion and 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 during the year.
(xvi) The Company has obtained term loans during the year and same
applied for the purpose for which it is taken.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
investment.
(xviii) According to the information and explanations given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of The
Companies Act.
(xix) According to the information and explanations given to us, no
debentures have been issued by the company during the year.
(xx) According to the information and explanations given to us, company
has not made any public issue during the year.
(xxi) During the course of our examination of the books and records of
the company, carried out in accordance with the generally accepted
auditing practices 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 Maharishi & Co.
Chartered Accountants
Firm Reg. No. 124872W
Prashant Maharishi
Partner
M.No.041452
Signed at Rajkot on 29.05.2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Real Realty
Management Company Limited [Formerly Known as Hillock Agro Foods
(India) Limited] (''the Company''), which comprise the Balance Sheet as
at March 31, 2013, 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. 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.
Auditors'' 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 auditors'' 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 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, 2013;
(b) In the case of the Statement of Profit and Loss, 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 (Auditors'' 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, 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, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, 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 AUDITORS'' REPORT
[Referred to in paragraph 1 under the heading of "reporting on Other
Legal and Regulatory requirements" of our report of even date to the
members of Real Realty Management Company Limited [Formerly Known as
Hillock Agro Foods (India) Limited] on the financial statements for the
year ended March 31, 2013]
(i) (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 not been physically
verified by the management during the year but there is a regular
program of verification which, in our opinion, is reasonable having
regard to the size of the Company and the nature of its assets. As
informed, no material discrepancies were noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, the company has not disposed off a substantial part of its
fixed assets during the year and the going concern status of the
company is not affected.
(ii) (a) The inventory has been physically verified by the management
during the year. In respect of inventory lying with third parties,
these have substantially been confirmed by them. In our opinion, the
frequency of verification is reasonable.
(b) In our opinion and according to the explanation and information
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) The Company is maintaining proper records of inventory and as
explained to us, there where no material discrepancies were noticed on
physical verification carried out at the end of the year as compared to
the book records.
(iii) (a) According to information and explanations given to us, the
Company has taken unsecured loans from parties covered in the register
maintained under section 301 of the Companies Act, 1956, balance at the
beginning of the year was Rs. 19,91,600/- repaid on account of
demerger was Rs.19,91,600/- taken over on account of amalgamation was
Rs. 2,37,48,700/- , fresh loan taken during the year Rs. 139,90,572/-
repaid Rs. 48,50,000/- and the balance outstanding at the close of the
year is Rs. 3,28,89,272/-.
(b) In our opinion the rate of interest and other terms and conditions
on which loan has been taken from the parties listed in the register
maintained under section 301 are not prima facie, prejudicial to the
interest of the company.
(c) The Company is regular in repaying the principal amount as
stipulated and has been regular in the payment of interest.
(d) The Company not granted any loans to the companies/firms or other
parties covered in the register maintained under the Companies Act,
1956.
(iv) In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct weakness
in internal control system of the company.
(v)(a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
referred to in section 301 of the Companies Act, 1956 that need to be
entered into the register maintained under section 301 have been so
entered. (b) In our opinion and according to the information and
explanations given to us, no transactions made in pursuance of such
contracts or arrangements exceeding value of ` 5 lacs have been entered
into during the financial year at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits from the public
within the meaning of Sections 58A and 58AA of the Act and the rules
framed there under. Therefore, the provisions of clause
(vi) of paragraph 4 of the order are not applicable to the company.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the cost records maintained by the
Company pursuant to the companies (Cost Accounting Records) Rules, 2011
prescribed under Section 209(1) (d) of the Companies Act, 1956 and are
of the opinion that prima facie the prescribed accounts and records
have been made and maintained. However, we have not made a detailed
examination of the records with a view to determining whether they are
accurate or complete.
(ix) (a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including income-tax, sales-tax,
wealth-tax, service tax, cess and other material statutory dues
applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income-tax, wealth-tax,
service tax, sales-tax, customs duty, cess and other undisputed
statutory dues were outstanding, at the year end, for a period of more
than six months from the date they became payable,
(x) The company has accumulated losses at the end of the financial
year, however it is not more than 50% of the net worth of the company
and it has not incurred cash losses in the current and immediately
preceding financial year.
(xi) Based on our audit procedures and In our opinion and according to
the information and explanations given to us, the Company has not
defaulted in repayment of dues to a financial institution, bank or
debenture holders.
(xii) According to the information and explanations given to us and
based on the documents and records produced to us, the company has not
granted loans & advances on the basis of security by way of pledge of
shares, debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of lause
(xiii) of paragraph 4 of the Companies (Auditor''s Report) Order, 2003
(as amended) are not applicable to the Company.
(xiv) In respect of dealing/trading in shares, securities, debentures
and other investments, in our opinion and according to the information
and explanations given to us, the company has not dealt with any of
share, security, debenture and other investment.
(xv) In our opinion and 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 during the year.
(xvi) The Company has obtained term loans during the year and same
applied for the purpose for which it is taken.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
investment.
(xviii) According to the information and explanations given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of The
Companies Act.
(xix) According to the information and explanations given to us, no
debentures have been issued by the company during the year.
(xx) According to the information and explanations given to us, company
has not made any public issue during the year.
(xxi) During the course of our examination of the books and records of
the company, carried out in accordance with the generally accepted
auditing practices 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 Maharishi & Co.
Chartered Accountants
Firm Registration No.124872W
Prashant Maharishi
Partner
Membership No.041452
Mar 31, 2012
1. We have audited the attached Balance Sheet of Real Realty Management
Company Ltd (''the Company'') as at March 31, 2012 and also the
Statement of Profit and Loss and the cash flow statement for the year
ended on that date annexed thereto. These financial statements are the
responsibility of the Company''s management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. Except as discussed in the following para 4, 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 are 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 (Auditor''s Report) Order, 2003, (as
amended), issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of ''The Companies Act, 1956'' of India
(the ''Act'') and on the basis of such checks of the books and 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 4 and 5 of the said
Order.
4. We have not received balance conformation of Trade Payables of
Rs.65,78,033/-, Trade Receivables of Rs.9,50,250/-, and Loans &
Advances of Rs.70,81,692/- and hence we are unable to satisfy ourselves
as to balance of these accounts as at 31st March, 2012 and their
classification as current & non-current.
5. Further we would also like to draw your attention to Note No. 16(b)
relating to preparation of account on a going concern basis.
5. Further we would also like to draw your attention to Note No. 16(b)
relating to preparation of account on a going concern basis.
6. Further to our comments in the paragraph 3 above, we report that:
i. We have obtained all the information and explanations except stated
as above, which to the best of our knowledge and belief were necessary
for the purposes of our audit;
ii. 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;
iii. 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;
iv. In our opinion, the balance sheet, statement of profit and loss
and cash flow statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956.
v. On the basis of the written representations received from the
directors, as on March 31, 2012, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
March 31,2012 from being appointed as a director in terms of clause (g)
of sub-section (1) of section 274 of the Companies Act, 1956.
vi. In our opinion and to the best of our information and according to
the explanations given to us, subject to the effects of such
adjustments, if any, as might have been determined to be necessary had
we been able to satisfy ourselves as to conformation of balance, the
said accounts give the information required by 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;
a) in the case of the balance sheet, of the state of affairs of the
Company as at March 31, 2012;
b) in the case of the statement of profit and loss, of the profit for
the year ended on that date; and
c) in the case of cash flow statement, of the cash flows for the year
ended on that date.
ANNEXURE TO AUDITORS'' REPORT
[Referred to in paragraph 3 of the Auditors'' Report of even date to the
members of HILLOCK AGRO FOODS (INDIA) on the financial statements for
the year ended March 31,2012]
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) All the fixed assets have not been physically verified by the
management during the year but 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. As informed, no
material discrepancies were noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
of by the company during the year.
(ii) (a) The company has no inventory during the year.
(iii) (a) As informed, the Company has not granted any loans, secured
or unsecured to companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
Accordingly, the provisions stated in paragraph 4 (iii)(b),(c) and (d)
of the order are not applicable.
(e) The Company had taken loan from its directors covered in the
register maintained under section 301 of the Companies Act, 1956. The
maximum amount involved during the year was Rs. 19.92 lakhs and the
year-end balance of loans taken from such parties was Rs. 19.92.
(f) In our opinion, the rate of interest and other terms and conditions
for such loans are not, prima facie, prejudicial to the interest of the
Company.
(g) In respect of the aforesaid loans, the company is regular in
repaying the principal amounts as stipulated and has been regular in
payment of interest.
(iv) In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct weakness
in internal control system of the company.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
referred to in section 301 of the Companies Act, 1956 that need to be
entered into the register maintained under section 301 have been so
entered.
(b) In our opinion and according to the information and explanations
given to us, no transactions made in pursuance of such contracts or
arrangements exceeding value of Rs. five lakhs have been entered into
during the financial year at prices which are reasonable having regard
to the prevailing market prices at the relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits from the public
within the meaning of Sections 58A and 58AA of the Act and the rules
framed there under.
(vii) The company has no internal audit system.
(viii) The Central Government of India has not prescribed the
maintenance of cost records under clause (d) of sub-section (1) of
Section 209 of the Act for any of the products of the company.
(ix) (a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
employees'' state insurance, income-tax, sales-tax, wealth- tax, service
tax, customs duty, excise duty, cess and other material statutory dues
applicable to it. However the company has not deposited professional
tax of Rs.7,020/-, VAT of Rs.45,250/-.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees'' state insurance, income-tax,
wealth-tax, service tax, sales-tax, customs duty, excise duty, cess and
other undisputed statutory dues were outstanding, at the year end, for
a period of more than six months from the date they became payable,
except dues towards Professional Tax, VAT & TDS as stated above.
(c) According to the records of the Company has no dues outstanding of
income-tax, sales-tax, wealth-tax, service tax, customs duty, excise
duty and cess on account of any dispute.
(x) The company has accumulated losses at the end of the financial year
and it has not incurred cash losses in the current and immediately
preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution, bank or debenture holders.
(xii) According to the information and explanations given to us and
based on the documents and records produced to us, the company has not
granted loans & advances on the basis of security by way of pledge of
shares, debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause
(xiii) of paragraph 4 of the Companies (Auditor''s Report) Order, 2003
(as amended) are not applicable to the Company.
(xiv) In respect of dealing/trading in shares, securities, debentures
and other investments, in our opinion and according to the information
and explanations given to us, proper records have been maintained of
the transactions and contracts and timely entries have been made
therein. The shares, securities, debentures and other investments have
been held by the Company, in its own name.
(xv) In our opinion and 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 during the year.
(xvi) The Company has not obtained any term loans during the year.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that funds raised on short-term basis have been used for long-term
investment.
(xviii) According to the information and explanations given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Act.
(xix) According to the information and explanations given to us, no
debentures have been issued by the company during the year.
(xx) The company has not raised any money by public issue during the
year.
(xxi) During the course of our examination of the books and records of
the company, carried out in accordance with the generally accepted
auditing practices 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 Maharishi & Co.
Chartered Accountants
Firm Registration No.124872W
Sd/-
Prashant Maharishi
Partner
Membership No.041452
Signed at Ahmedabad, 30th May, 2012
Mar 31, 2010
1. We have audited the attached Balance sheet of HILLOCK AGRO FOODS
(INDIA) LIMITED as at 31st March 2010, Profit & Loss Account and the
Cash Flow Statement for the year ended on that date annexed thereto
These financial statements are the responsibility of the Company's
management. Our responsibility express an opinion on these financial
statements based on our audit.
2. We have conducted our audit in accordance with auditing standards
generally accepted in India. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether there
for statements are free of material misstatement. An audit includes,
examining on a test basis, evidence supports 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.
i. As required by the companies (Auditor's Report) order, 2003, as
amended by the Companies (Auditors Report) (Amendment) Order, 2004(the
Order) issued by the Central Government of India in terms of (4A) of
Section 227 of the companies Act, 1956, we annex hereto a statement on
the matters specification paragraphs 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to in Paragraph 3
above, we report that
(1) We have obtained all the information and explanations, which to the
best of our knowledge and notices were necessary for the purpose of our
Audit;
(2) In our opinion, proper books of accounts as required by law have
been kept by the Company audit appears from our examination of the
books;
(3) The Balance Sheet, Profit & Loss Account and Cash Flow statement,
dealt with by this report the agreement with the books of account:
(4) In our opinion, the Balance sheet, Profit and Loss account and Cash
flow statement deal with be report comply with the accounting standards
referred to in sub-section (3C) of Section 211 of the Companies Act,
1956; except As-22, for non provision of Deferred Taxation & As 15
revised and at disclosurements as required by the said As -15 are not
complied with.
(5) On the basis of the written representations received from the
Directors, as on March 31. 2010 and to on record by the Board of
Directors, we report that none of the Directors of the Company are
disqualified as on March 31, 2010 from being appointed as a director in
terms of clause (g)of sub Section (I) of Section 274 of the Companies
Act; 1956;
(6) Attention is invited to following notes of schedule-10-
1) note no. 11 relating to preparation of accounts on a going concern
basis. Subject to the foregoing, in our opinion and to the best of our
information and according explanations given to us, the said financial
statements, read together with the notes the there all information
required by the Companies Act, 1956, in the manner so required and
given a view in conformity with the accounting principles generally
accepted in India :
i) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2010,
ii) In the case of the Profit & Loss account, of the Loss of the
Company for the year ended on and
iii) In the case of the Cash Flow Statement, of cash flows for the
period ended on that date.
Annexure 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 as situation of fixed asset.
(b)As explained to us, management has physically verified fixed assets
during the year and in our frequency of verification is reasonable
having regard to the size of the Company and the nature Assets. No
material discrepancies were noticed on such physical verification.
(c ) Although a substantial/major part of the fixed assets have been
disposed off during the year, in on and according to the information
and explanations given to us, the ability of the company to continued
as a concern is not affected.
2, During the year, the company has done job work on behalf of other
parties & Government. Company has maintains inventories of By products
during the year under review. In case of Govt. Job work, Payment in
kind in form of bran and reflection items which are By products.
3.In our opinion & according to the information & explanations; given
to us the Company has not granted and loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956 .
In our opinion & according to the explanation given to us the Company
has not taken any loans. Secured unsecured from companies, firms or
other parties covered in the register maintained under Section 3(1)
Companies Act, 1956 except Loan of Rs. 22.91 lacs from the Directors of
the company, terms of loan secured detrimental to the interest of the
company.
4. In our opinion and according to the information and explanations
given to us, there are adequate control systems commensurate with the
size of the Company and the nature of its business with regard
purchases of stores, including components, Fixed Assets and sale of
goods & services. During the course audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system
5. There is no such transaction that needs to be entered into register
in pursuance os section 301 of the Act.
6. in our opinion and according to the information and explanations
given to us, the Company has not recent any deposits in terms of
provisions of Sections 58A, 58AA or any other relevant provisions of
the Act and the rules framed there under.
7. The company has no internal audit system.
8. The Central Government has not prescribed the maintenance of cost
records under Section 209 Companies Act 1956,
9. a According to the records of the Company, the company is generally
regular in depositing under statutory dues including Provident Fund,
Investor Education Fund, Protection Fund, Employee's state insurance,
Income Tax. Sales Tax, Wealth Tax, Customs Duty, Excise Duty, Cess and
other statutory due applicable to it with the appropriate authorities.
-b According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Sales Tax, Excise
Duty, ESI, Wealth Tax, Service Tax, Investor's Education Protection
Boards were in arrears as at 31/03/10 for a period of more than six
months from the date they became payable.
10. In our opinion, the accumulated losses of the company are more than
fifty percent of its net worth be company has incurred cash loss of Rs.
54.59 lacs during the financial year and Rs.9.16 lacs cash period
preceding year covered by our audit.
11. Based on our audit procedures and according to the information and
explanation given to us we are of opinion that the company has not
defaulted in repayment of dues to financial institutions, banks,
12. Based on our examination of the records and the information and
explanations given to us, the Company has not granted any loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities, hence clause no(xii) of paragraph 4 of
the Order is not applicable to the company
13. in our opinion, the company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore the provisions of clause no. (xiii)
of the paragraph 4 of the Order is not applicable to the company.
14. According to explanations and information given to us.( the company
is not dealing in or trading secured debentures or other investments.
Accordingly, the provisions of clause 4(xiv) of the Companies (Auditors
Report) order, 2003are not applicable to the Company.
15. According to the information & explanations given to us the
Company has not given guarantees to be taken by others from banks or
financial institutions.
16. According to the information & explanations given to us and on an
overall examination, we report and company has not taken any loan
during the year.
17. According to the Cash Flow Statement & other records examined by us
and the information and explanations given to us and on an overall
basis funds raised on short term basis, prima facie, have not her used
during the year for long term investment.
18. According to the information and explanations given to us, the
Company has not made any prescient allotment of shares to parties or
companies covered in the register maintained under Section 301 of the
19. According to information & explanations given to us the company
has not issued Debentures
20. The company has not raised any money by public issue during the
year
21 .To the best of our knowledge & belief & according to the
information and explanations given to certified by the management, no
fraud on or by the Company has been noticed or reported during the our
audit.
FOR, D J N V & CO
CHARTERED ACCOUNTANTS
DATE: 20/07/10 ICAI Registration No. 115145W
PLACE: AHMEDABAD NABSESH M KHANDHAR
(PARTNER)
Membership No. 39925
Mar 31, 2009
1. We have audited the attached Balance sheet of HILLOCK AGRO
FOODS(INDIA) LIMITED as at 31st March 2009, Profit & Loss Account and
the Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
CompanyÃs management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We have conducted our audit in accordance with auditing standards
generally accepted in India. Those standards requires that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are 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 (AuditorÃs Report) order, 2003, as
amended by the Companies (AuditorÃs Report) (Amendment) Order, 2004(the
Order) issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the companies Act, 1956, we annex
hereto a statement on the matters specified in paragraphs 4 and 5 of
the said order.
4. Further to our comments in the Annexure referred to in Paragraph 3
above, we report that:
(1) 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;
(2) In our opinion, proper books of accounts as required by law have
been kept by the Company, so far as appears from our examination of the
books;
(3) The Balance Sheet, Profit & Loss Account and Cash Flow statement
dealt with by this report are in agreement with the books of account;
(4) In our opinion, the Balance sheet, Profit and Loss account and Cash
flow statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956; except As-22 in respect of Deferred Tax & As
15(revised) and above disclosurements as required by the said As-15 are
not complied with.
(5) On the basis of the written representations received from the
Directors, as on March 31, 2009 and taken on record by the Board of
Directors, we report that none of the Directors of the Company are
disqualified as on March 31, 2009 from being appointed as a director in
terms of clause (g) of Sub- Section (1) of Section 274 of the Companies
Act; 1956;
(6) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts gives the information
required by 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 the Balance Sheet, of the state of affairs of the
Company as at March 31, 2009,
ii) in the case of the Profit & Loss account, of the Loss of the
Company for the year ended on that date, and
iii) in the case of the Cash Flow Statement, of cash flows for the
period ended on that date.
Annexure referred to in Paragraph 3 of our report of even date:
1.(a)The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed asset.
(b)As explained to us, management has physically verified fixed assets
during the year and in our opinion the frequency of verification is
reasonable having regard to the size of the Company and the nature of
its Fixed Assets. No material discrepancies were noticed on such
physical verification.
2.During the year, the company has done job work on behalf of other
parties & Government.Company has maintains inventories of By products
during the year under review.In case of Govt. Job work,Payment is made
in kind in form of bran and reflection items which areBy products.
3.In our opinion & according to the information & explanations given to
us the Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956 .
In our opinion & according to the explanation given to us the Company
has not taken any loans, secured or unsecured from companies, firms or
other parties covered in the register maintained under Section 301 of
the Companies Act, 1956 except Loan of Rs. 152.43 lacs from the
Directors of the company, terms of loans are not detrimental to the
interest of the company.
4.In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchases of stores, including components, Fixed Assets and sale of
goods & services. During the course of our audit, we have not observed
any continuing failure to correct major weaknesses in internal control
system.
5.There is no such transaction that need to be entered into a register
inpursuance os section 301 of the Act.
6.In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits in terms of
provisions of Sections 58A, 58AA or any other relevant provisions of
the Act, and the rules framed thereunder.
7.The company has no internal audit system.
8.The Central Government has not prescribed the maintenance of cost
records under Section 209 (1) (d) of the Companies Act 1956.
9. a According to the records of the Company, the company is generally
regular in depositing undisputed statutory dues including Provident
Fund,Investor Education Fund, Protection Fund,EmployeeÃs State
insurance,Income Tax, Sales Tax,Wealth Tax,Customs Duty, Excise Duty,
Cess and other statutory dues applicable to it with the appropriate
authorities.
b According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Saels Tax,Excise
Duty, ESI, Wealth Tax, Service Tax, InvestorÃs Education Protection
Fund etc. were in arrears as at 31/03/09 for a period of more than six
months from the date they became payable.
10. In our opinion, the accumulated losses of the company are more than
fifty percent of its net worth. The company has incurred cash profit of
Rs. 9.16 lacs during the financial year and Rs.45.78 lacs during
preceding year covered by our audit.
11.Based on our audit procedures and according to the information and
explanation given to us,we are of the opinion that the company has not
defaulted in repayment of dues to financial institutions,banks.
12.Based on our examination of the records and the information and
explanations given to us, the Company has not granted any loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities, hence clause no(xii) of paragraph 4 of
the Order is not applicable to the company.
13.In our opinion, the company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore, the provisions of clause no. (xiii)
of the paragraph 4 of the Order is not applicable to the company.
14.According to explanations and information given to us, the company
is not dealing in or trading in securities,debentures or other
investments.Accordingly, the provisions of clause 4(xiv) of the
Companies(AuditorÃs Report) order, 2003are not applicable to the
Company.
15.According to the information & explanations given to us the Company
has not given guarantees for loans taken by others from banks or
financial institutions.
16..According to the information & explanations given to us and on an
overall examination ,we report that the company has not taken any loan
during the year.
17.According to the Cash Flow Statement & other records examined by us
and the information and explanations given to us and on an overall
basis funds raised on short term basis, prima facie, have not been used
during the year for long term investment.
18.According to the information and explanations given to us , the
Company has not made any preferential allotment of shares to parties or
companies covered in the register maintained under Section 301 of the
Act.
19.According to information & explanations given to us the company has
not issued Debentures
20.The company has not raised any money by public issue during the year
21.To the best of our knowledge & belief & according to the information
and explanations given to us& as certified by the management, no fraud
on or by the Company has been noticed or reported during the course of
our audit.
FOR, D J N V & CO
CHARTERED ACCOUNTANTS
DATE: 24/08/09
PLACE: AHMEDABAD
NAINESH M KHANDHAR
(PARTNER)
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