Mar 31, 2014
We have audited the accompanying consolidated financial statements of
Remi Sales and Engineering Limited (the company), which comprise the
balance sheet as at 31st March, 2014, and the statement of profit and
loss and cash flow statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
These consolidated financial statements has been prepared after
considering financial statement of Head office Mumbai and Branches
situated at Ahmedabad, Bangaluru, Kolkata, New Delhi, Chennai,
Hyderabad, Kochi, Nagpur, Indore, Kanpur and Margao (Goa). The report
on the Accounts of the Branch offices stated above have been audited by
branch auditors which was forwarded to us and have been dealt with in
preparing our report in the manner considered necessary by us.
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 and
financial performance of the company in accordance with the accounting
principles generally accepted in India, including accounting standards
referred to in sub-section (3C) of section 211 of the Companies Act,
1956 ("the Act") read with General Circular 15/2013 dated 13th
September, 2013 of the Ministry of Corporate Affairs in respect Section
133 of the Companies Act, 2013. This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error
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 auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the company''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
Matter of emphasis:
Without qualifying our report we draw attention to:
The Company has unsettled exposure for various commodities trade
through NSEL/broker. NSEL has not been able to discharge payment
obligation from August 2013 onwards. The Company has decided to write
off Rs. 2,23,30,912/-being 25% of original outstanding and shown as bad
dets written off under other expenses. The detailed note on subject is
given at note no. 1.9 of Notes to Financial Statements for the year
ended 31st March, 2014.
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:
i. in the case of the balance sheet, of the state of affairs of the
company as at 31st March, 2014;
ii. in the case of the statement of profit and loss, of the profit for
the year ended on that date; and
iii. in the case of the cash flow statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b. in our opinion proper books of account as required by law have been
kept by the company so far as appears from our examination of those
books.
c. the balance sheet, statement of profit and loss and cash flow
statement dealt with by this report are in agreement with the books of
account.
d. in our opinion, the balance sheet, statement of profit and loss, and
cash flow statement comply with the accounting standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956.
e. on the basis of written representations received from the directors
as on 31st March, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2014, from
being appointed as a director in terms of clause (g) of sub-section (1)
of section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITORS'' REPORT
(Referred to in paragraph 1 under ''Report on Other Legal and Regulatory
Requirements'' section of our report of even date)
i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) According to the information and explanations give to us, all the
assets have not been physically verified by the management during the
year but there is regular programme of verification which, in our
opinion, is reasonable having regard to the size of the company and the
nature of its assets. To the best of our knowledge, No material
discrepancies were noticed on such verification.
(c) The Company has not disposed off substantial part of fixed assets
during the year.
ii) (a) The inventory has been physically verified during the year by
the management wherever possible. In our opinion, the frequency of
verification is reasonable.
(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 were reasonable and adequate wherever
applicable/possible in relation to the size of the company and the
nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the company is maintaining proper records of inventory.
The discrepancies noticed on verification between the physical stocks
and the book records were not material having regard to the size of the
operations of the Company except transactions on NSEL plat forum.
iii) (a) In our opinion and according to information and explanations
given to us, the Company has not granted loans, secured or unsecured to
Companies, Firm or other parties listed in the register maintained
under section 301 of the Act and hence sub clause (b), (c) and (d) are
not applicable, (e) In our opinion and according to the information and
explanations given to us, the Company has not taken any secured or
unsecured loans from Companies, firm or other parties listed in the
register maintained under section 301 of the Companies Act and hence
sub clause (f) and (g)are also not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedure commensurate
with the size of the company and the nature of its business with regard
to purchases 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 major weaknesses in internal
control systems.
(v) (a) & (b) According to the information and explanations given to
us, we are of the opinion that there are no transactions that need to
be entered into the register maintained under section 301 of the
Companies Act, 1956.
(vi) In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits from the public
and hence the directives issued by the Reserve Bank of India and
provisions of sections 58A and 58AA or any other relevant provisions of
the Companies Act, 1956 and the Companies (Acceptance of Deposits)
Rules, 1975 are not applicable.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) As the Company is not a manufacturing Company, the Rules made by
the Central Government for the maintenance of cost records under
Section 209(1)(d) of the companies Act, 1956 are not applicable to it.
(ix) (a) According to the information and explanations given to us, the
Company is generally regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, Investor Education
Protection Fund, Employees'' State Insurance, Income tax, Sales tax,
Service tax, Wealth tax, Custom Duty, Excise Duty, Cess and other
material statutory dues applicable to it with appropriate authorities
and there were no undisputed arrears as at 31st March, 2014 for a
period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, the
particulars of dues of Income tax, Wealth tax, Service tax, Sales tax,
Custom Duty, Excise Duty and Cess as at 31st March, 2014, which have
not been deposited in account of a dispute, are as follows:
Sr. Name of the Statute Assessment Nature of dues
No. Year
1. The KVAT Act, 2003 2008-09 VAT and Interest
2. The Delhi Value Added 2008-09 VAT, Interest
Tax Act, 2004. and Penalty
3. The Kerala Value
Added Tax, 2005 2010-11 VAT
Sr. Name of the Statute Amount From where dispute
No. in Rs. is pending
1. The KVAT Act, 2003 69197 Appellate Tribunal
2. The Delhi Value Added 5947031 Additional Commissioner,
Tax Act, 2004. Objection Hearing Authority-II
3. The Kerala Value
Added Tax, 2005 57505 The Dy. Commissioner (Appeals)
(x) The Company does not have accumulated Losses and has not incurred
cash losses during the financial year covered by our audit and in the
immediately preceding financial year.
(xi) In our opinion and according to the information and explanation
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, the
Company has not granted any loans and 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 and therefore, the provisions of clauses 4(xiii)
of the Order are not applicable to the Company.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provision of clause 4 (xiv) of the Order are not applicable to the
Company.
(xv) In our opinion the Company has not given any guarantees for loans
taken by others from banks or financial institutions.
(xvi) According to information and explanations given to us, the
Company has not taken any Term Loan 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 the no funds raised on short term basis have been used for long
term investment.
(xvii) According to the information and explanations given to us, the
company has not made any preferential allotment of shares to parties
and Companies covered in the register maintained under section 301 of
the Act during the year.
(xix) According to the information and explanations given to us, the
Company has neither issued any debentures during the year nor issued
earlier are outstanding.
(xx) According to the information and explanations given to us, the
Company has not raised any money by public issue during the year.
(xxi) To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
has been noticed or reported during the course of our audit except
Commodity related transactions on NSEL plat forum.
For SUNDARLAL, DESAI AND KANODIA,
CHARTERED ACCOUNTANTS,
(Firm Registration Number.110560W)
Sd/-
(M.B. DESAI)
PLACE : MUMBAI PARTNER
DATED : 30th May, 2014. Membership Number 33978
Mar 31, 2013
Report on the financial statements
We have audited the accompanying financial statements of Remi Sales and
Engineering Limited (the company), which comprise the balance sheet as
at 31st March, 2013, 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 and we have received the
audited Balance Sheet and the statement of Profit and Loss as of 31st
March 2013, from all branches situated at Ahmedabad, Bangaluru,
Kolkata, New Delhi, Chennai, Hyderabad, Kochi, Nagpur, Indore, Kanpur
and Margao (Goa) and prepared the consolidated Balance Sheet and the
statement of Profit and Loss and Cash Flow statement at Mumbai after
considering the accounts of Head office, Mumbai.
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 principles generally accepted in India, including
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956 ("the Act"). This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error.
Auditor''s responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the company''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
Report on other legal and regulatory requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b. In our opinion proper books of account as required by law have been
kept by the company so far as appears from our examination of those
books.
c. The balance sheet, statement of profit and loss and cash flow
statement dealt with by this report are in agreement with the books of
account.
d. In our opinion, the balance sheet, statement of profit and loss,
and cash flow statement comply with the accounting standards referred
to in sub-section (3C) of section 211 of the Companies Act, 1956.
e. On the basis of written representations received from the directors
as on 31st March, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2013, from
being appointed as a director in terms of clause (g) of sub-section (1)
of section 274 of the Companies Act, 1956.
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:
i. In the case of the balance sheet, of the state of affairs of the
company as at 31st March, 2013;
ii. In the case of the statement of profit and loss, of the profit for
the year ended on that date; and
iii. In the case of the cash flow statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
(REFERRED TO IN OUR REPORT OF EVEN DATE TO THE MEMBERS OF REMI SALES
AND ENGINEERING LIMITED AS AT 31st March, 2013)
i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) According to the information and explanations give to us, all the
assets have not been physically verified by the management during the
year but there is regular programme of verification which, in our
opinion, is reasonable having regard to the size of the company and the
nature of its assets. To the best of our knowledge, No material
discrepancies were noticed on such verification.
(c) The company has not disposed off substantial part of fixed assets
during the year.
ii) (a)The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(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 were reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the company is maintaining proper records of inventory.
The discrepancies noticed on verification between the physical stocks
and the book records were not material having regard to the size of the
operations of the Company.
iii) a) In our opinion and according to information and explanations
given to us, the Company has not granted loans, secured or unsecured to
Companies, Firm or other parties listed in the register maintained
under section 301 of the Act and hence sub clause (b), (c) and (d) are
not applicable. (e) In our opinion and according to the information and
explanations given to us, the Company has not taken any secured or
unsecured loans from Companies, firm or other parties listed in the
register maintained under section 301 of the Companies Act and hence
sub clause (f) and (g)are also not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedure commensurate
with the size of the company and the nature of its business with regard
to purchases 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 major weaknesses in internal
control systems.
(v) (a) According to the information and explanations given to us, we
are of the opinion that there are no transactions that need to be
entered into the register maintained under section 301 of the Companies
Act, 1956.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act,1956 during the year have been made at prices which
are reasonable having regard to 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
and hence the directives issued by the Reserve Bank of India and
provisions of sections 58A and 58AA or any other relevant provisions of
the Companies Act,1956 and the Companies (Acceptance of Deposits)
Rules, 1975 are not applicable.
vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii) As the Company is not a manufacturing Company, the Rules made by
the Central Government for the maintenance of cost records under
Section 209(1)(d) of the companies Act, 1956 are not applicable to it.
(ix) (a) According to the information and explanations given to us.
The company is generally regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
employees state insurance, income tax, sales tax, service tax, wealth
tax, custom duty, excise duty, cess and other material statutory dues
applicable to it and there were no dues in arrears as at 31st
March,2013 for a period of more than six months from the date they
became payable.
(b) According to the information and explanations given to us, no
disputed amounts payable in respect of Income tax, Wealth tax, Sales
tax, Service tax, Customs duty, Excise duty and Cess were in arrears,
as at 31st March, 2013 except demand of Rs.59,47,031/- in respect of
sales tax interest & penalty thereon pertaining to F.Y. 2008-09,
disputed before Commissioner of Sales Tax (Appeals).
(x) The Company does not have accumulated Losses and has not incurred
cash losses during the financial year covered by our audit and in the
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, the
Company has not granted any loans and 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.
(xiv) In our opinion the Company is not dealing in or trading in
shares, securities, debentures and other investments.
(xv) In our opinion the Company has not given any guarantees for loans
taken by others from banks or financial institutions.
(xvi) According to information and explanations given to us, the
Company has not taken any
Term Loan 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 the no funds raised on short term basis have been used for long
term investment.
(xvii) According to the information and explanations given to us, the
company has not made any preferential allotment of shares to parties
and Companies covered in the register maintained under section 301 of
the Act during the year.
(xix) According to the information and explanations given to us, the
Company has neither issued any debentures during the year nor issued
earlier are outstanding.
(xx) According to the information and explanations given to us, the
Company has not raised any money by public issue during the year.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For SUNDARLAL, DESAI AND KANODIA,
CHARTERED ACCOUNTANTS,
Registration Number.110560W
Sd/-
(M.B.DESAI)
PARTNER
Membership Number 33978
PLACE : MUMBAI
DATED : 30TH MAY, 2013.
Mar 31, 2011
1) We have audited the attached Balance Sheet of Remi Sales And
Engineering Ltd. as at 31st March, 2011, the Profit and Loss Account
for the year ended on that date annexed thereto and the Cash Flow
Statement for the period ended on that date and we have received the
audited Balance Sheets and the Profit and Loss accounts as of 31st
March 2011, from all branches situated at Ahmedabad, Bangalore,
Kolkata, New Delhi, Chennai, Hyderabad, Kochi, Nagpur, Indore, Kanpur
and Margaon and prepared the consolidated Balance Sheet and Profit and
Loss account and Cash Flow Statement at Mumbai after considering the
accounts of Head Office, Mumbai. 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) 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 issued by
the Central Government of India in terms of sub-section (4A)of section
227 of the Companies Act, 1956, we enclose in the Annexure 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 above, we report
that:
(i) 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;
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, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
iv) In our opinion, the Balance Sheet, Profit and Loss Account dealt
and Cash Flow Statement 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 written representations received from the Directors
as on 31st March, 2011,and taken on record by the Board of Directors,
we report that none of the Director is disqualified as on 31st
March,2011 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, the said accounts, read together with
notes thereon, give the information required by the Companies Act,
1956, in the manner so required and give a true and fair view in
conformity with accounting principles generally accepted in India:
(a) in the case of Balance Sheet, of the State of affairs of the
Company as at 31st March, 2011;
(b) in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
(c) in the case of the Cash Flow Statement of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
(REFERRED TO IN OUR REPORT OF EVEN DATE TO THE MEMBERS OF REMI SALES
AND ENGINEERING LIMITED AS AT 31st March, 2011)
i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) According to the information and explanations give to us, all the
assets have not been physically verified by the management during the
year but there is regular programmed of verification which, in our
opinion, is reasonable having regard to the size of the company and the
nature of its assets. To the best of our knowledge, No material
discrepancies were noticed on such verification.
(c) The company has not disposed off substantial part of fixed assets
during the year.
ii)(a) The inventory has been physically verified during the year by
the management. in our opinion, the frequency of verification is
reasonable.
(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 were reasonable and adequate in relation to
the size of the company and the nature of its business.
(c)In our opinion and according to the information and explanations
given to us, the company is maintaining proper records of inventory.
The discrepancies noticed on verification between the physical stocks
and the book records were not material having regard to the size of the
operations of the Company.
iii)a)In our opinion and according to information and explanations
given to
us, the Company has not granted loans, secured or unsecured to
Companies, Firm or other parties listed in the register maintained
under section 301 of the Act and hence sub clause (b), (c) and (d) are
not applicable.
(e)In our opinion and according to the information and explanations
given to us, the Company has not taken any secured or unsecured loans
from Companies, firm or other parties listed in the register maintained
under section 301 of the Companies Act and hence sub clause (f) and
(g)are also not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedure commensurate
with the size of the company and the nature of its business with regard
to purchases 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 major weaknesses in internal
control systems.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered into
the register maintained under section 301 of the Companies Act, 1956
have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 during the year have been made at prices which
are reasonable having regard to 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
and hence the directives issued by the Reserve Bank of India and
provisions of sections 58A and 58AA or any other relevant provisions of
the Companies Act, 1956 and the Companies (Acceptance of Deposits)
Rules, 1975 are not applicable.
vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii)As the Company is not a manufacturing Company, the Rules made by
the Central Government for the maintenance of cost records under
Section 209(1)(d) of the companies Act, 1956 are not applicable to it.
(ix) (a) According to the information and explanations given to us, The
company is regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, employees state
insurance, income tax, sales tax, service tax, wealth tax, custom duty,
excise duty, cess and other material statutory dues applicable to it
and there were no dues in arrears as at 31st March, 2011 for a period
of more than six months from the date they became payable.
(b) According to the information and explanations given to us, no
disputed amounts payable in respect of Income tax, Wealth tax, Sales
tax, Service tax, Customs duty, Excise duty and Cess were in arrears,
as at 31st March, 2011.
(x) The Company does not have accumulated Losses and has not incurred
cash losses during the financial year covered by our audit and in the
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's 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.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund / society.
(xiv) In our opinion the Company is not dealing in or trading in
shares, securities, debentures and other investments.
(xv) In our opinion and according to the information and explanations
given to us the terms and conditions of the guarantees given by the
Company to banks for loans taken by others are not prejudicial to the
Interest of the Company.
(xvi) According to information and explanations given to us, the
Company has applied the term loans for the purposes for which the loans
were obtained.
(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 the 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 any preferential allotment of shares to parties
and Companies covered in the register maintained under section 301 of
the Act during the year.
(xix) According to the information and explanations given to us, the
Company has neither issued any debentures during the year nor issued
earlier are outstanding.
(xx) According to the information and explanations given to us, the
Company has not raised any money by public issue during the year.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For SUNDARLAL, DESAI AND KANODIA,
CHARTERED ACCOUNTANTS,
Registration Number.110560W
Sd/-
(M.B.DESAI)
PARTNER
Membership Number 33978
PLACE : MUMBAI
DATED : 5th September,2011.
Mar 31, 2010
1) We have audited the attached Balance Sheet of Remi Sales And
Engineering Ltd. as at 31st March, 2010, the Profit and Loss Account
for the year ended on that date annexed thereto and the Cash Flow
Statement for the period ended on that date and we have received the
audited Balance Sheets and the Profit and Loss accounts as of 31st
March 2010, from all branches situated at Ahmedabad, Bangalore,
Kolkata, New Delhi, Chennai, Hyderabad, Kochi, Nagpur, Indore, Kanpur
and Margaon and prepared the consolidated Balance Sheet and Profit and
Loss account and Cash Flow Statement at Mumbai after considering the
accounts of Bead Office, Mumbai. These financial statements are the
responsibility of the Companys management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2) We conducted our audit in accordance with auditing standards
generally accepted in India. 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 (Auditors Report) Order,2003 issued by
the Central Government of India in terms of sub-section (4A)of section
227 of the Companies Act, 1956, we enclose in the Anhexure 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 above, we report
that:
(i) 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;
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, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
iv) In our opinion, the Balance Sheet, Profit and Loss Account dealt
and Cash Flow Statement 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 written representations received from the Directors
as on 31st March, 2010,and taken on record by the Board of Directors,
we report that none of the Director is disqualified as on 31st
March,2010 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 out opinion and to the best of our information and according to
the explanations given to us, the said accounts, read togetl c with
notes thereon, give the information required by the Compai as Act,
1956, in the manner so required and give a . true and fair view in
conformity with accounting principles generally accepted in India:
(a) in the case of Balance Sheet, of the State of affairs of the
Company as at 31st March, 2010;
(b) in the case of the Profit and Loss Account,of the profit for the
year ended on that date; and
(c) in the case of the Cash Flow Statement of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
(REFERRED TO IN OUR REPORT OF EVEN DATE TO THE MEMBERS OF REMI SALES
AND ENGINEERING LIMITED AS AT 31st March, 2010)
i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) According to the information and explanations give to us, all the
assets have not been physically verified by the management during the
year but there is regular programme of verification which,in our
opinion, is reasonable having regard to the size of the company and the
nature of its assets. To the best of our knowledge, No material
discrepancies were noticed on such verification.
(c) The company has not disposed off substantial part of fixed assets
during the year.
ii) (a) The inventory has been physically verified during the year by
the management.in our opinion,the frequency of verification is
reasonable.
(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 were reasonable and adequate in relation to
the size of the company and the nature of* its business.
(c) In our opinion and according to the information and explanations
given to us, the company is maintaining proper records of inventory.
The discrepancies noticed on verification between the physical stocks
and the book records were not material having regard to the size of the
operations of the Company.
iii)a)In our opinion and according to information and explanations
given to us, the Company has not granted loans, secured or unsecured to
Companies, Firm or other parties listed in the register maintained
under section 301 of the Act and hence sub clause (b), (c) and (d) are
not applicable.
(e)In our opinion and according to the information and explanations
given to us, the Company has not taken any secured or unsecured loans
from Companies, firm or other parties listed in the register maintained
under section 301 of the Companies Act and hence sub clause (f) and
(g)are also not applicable.
(iv) In our opinion and according to the information and explanations
given to us,there are adequate internal control procedure commensurate
with the size of the company and the nature of its business with regard
to purchases 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 major weaknesses in internal
control systems.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered into
the register maintained under section 301 of the Companies Act, 1956
have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 during the year have been made at prices which
are reasonable having regard to 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
and hence the directives issued by the Reserve Bank of India and
provisions of sections 58A and 58AA or any other relevant provisions of
the Companies Act, 1956 and the Companies (Acceptance of Deposits)
Rules, 1975 are not applicable.
vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii)A3 the Company is not a manufacturing Company, the Rules made by
the Central Government for the maintenance of cost records under
Section 209(1)(d) of the companies Act, 1956 are not applicable to it.
(ix) (a) According to the information and explanations given to us, The
company is regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, employees state
insurance, income tax, sales tax, service tax, wealth tax, custom duty,
excise duty, cess and other material statutory dues applicable to it
and there were no dues in arrears as at 31st March, 2008 for a period
of more than six months from the date they became payable.
(b) According to the information and explanations given to us, no
disputed amounts payable in respect of Income tax, Wealth tax, Sales
tax, Service tax, Customs duty, Excise duty and Cess were in arrears,
as at 31st March, 2010.
(x) The Company does not have accumulated Losses and has not incurred
cash losses during the financial year covered by our audit and in the
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 informations and explainations given to us, the
Company has not granted any loansi and 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.
(xiv) In our opinion the Company is not dealing in or trading in
shares, securities, debentures and other investments.
(xv) In our opinion and according to the information and explanations
given to us. the terms and conditions of the guarantees given by the
Company to banks for loans taken by others are not prejudicial to the
Interest of the Company.
(xvi) According to information and explanations given to us, the
Company has applied the term loans for the purposes for which the loans
were obtained.
(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 the 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 any preferential allotment of shares to parties
and Companies covered in the register maintained under section 301 of
the Act during the year.
(xix) According to the information and explanations given to us,the
Company has neither issued any debentures during the year nor issued
earlier are outstanding.
(xx) According to the information and explanations given to us, the
Company has not raised any money by public issue during the year.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For SUNDARLAL, DESAIAND KANODIA,
CHARTERED ACCOUNTANTS,
Registration Number.110560W
(M.B.DESAI)
PARTNER
Membership Number 33978
PLACE : MUMBAI
DATED: 4th September, 2010.