Mar 31, 2015
We have audited the accompanying financial statements of S. V. Trading
and Agencies limited ("the Company"), which comprises the balance
sheet as at 31st March 2015, the statement of profit and loss and Cash
Flow Statement for year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ('the Act') with
respect to the preparation and presentation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on financial statements
based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, 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 the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, and its profit and its cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ('the
Order') issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in the paragraph 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 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 aforesaid comply with the Accounting Standards
specified under Section 133 of the Companies Act, 2013, and read with
Rule 7 of the Companies (Accounts) Rule 2014.
(e) On the basis of the written representations received from the
directors as on 31 March 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
I. the company have disclosed the impact of pending litigations on its
financial position in its financial statements, if any have been
disclosed.
II. the company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
III. There has been no delay in transferring amount, required to
transferred, to investor Education and Protection Fund by the company.
(Referred to in paragraph under 'Report on Other Legal and Regulatory
Requirements' of our report of even date to the members of S. V.
Trading and Agencies Limited for the year ended 31st March, 2015)
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
Assets.
(b) All the assets have been physically verified by the management
during the year. No material discrepancies were noticed on such
verification.
(ii) (a) The Inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) According to the information and explanations given to us, the
procedures followed for physical verification of the inventory are, in
our opinion, reasonable and adequate in relation to the size of the
Company and the nature of its business;
(c) According to the records produced before us for our verification,
there were no material discrepancies notices on physical verification
of stocks referred to in para 2(a) above as compared to the books
records.
(iii) The Company has not granted unsecured Loan to party covered in
the register maintained under section 189 of the Companies Act 2013.
Hence clause (a) & (b) are not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of fixed assets and sale of services. The activities of the
Company involve purchase of inventory and the sale of goods. We have
not observed any major weakness in the internal control system during
the course of the audit.
(v) The Company has not accepted any deposits from the public.
(vi) The Central Government has not prescribed the maintenance of cost
records under section 148(1) of the Act, for any of the services
rendered by the Company.
(vii) (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, customs duty, excise duty and cess were in arrears, as at
31.3.2015 for a period of more than six months from the date they
became payable.
(b) According to the information and explanations given to us, there
are no material dues of wealth tax, duty of customs and cess which have
not been deposited with the appropriate authorities on account of any
dispute.
(c) According to the information and explanations given to us there are
no amount required to be transferred to the investor education and
protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules there under.
(viii) The Company has accumulated losses at the end of the financial
year but not incurred cash losses in the financial year and in the
immediately preceding financial year.
(ix) The Company did not have any outstanding dues to financial
institutions, banks or debenture holders during the year.
(x) In our opinion and according to the information and the
explanations given to us, the Company has not given any guarantee for
loans taken by others from banks or financial institutions.
(xi) In our opinion and according to the information and explanation
given to us, no term loans have been availed.
(xii) According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of our audit.
For S. G. Kabra & Co.,
Chartered Accountants
F.R.N. 104507W)
Place : Mumbai Malvika P. Mitra
Date : 22/05/2015 (Partner)
Membership No. 44105
Mar 31, 2014
1. We have audited the accompanying financial statement of S. V.
Trading & Agencies Limited ("the Company"), which comprise the Balance
Sheet as at March 31, 2014, 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 Statement.
2. 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 Section 211 (3C) 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 free from the material misstatement, whether due
to fraud or error.
Auditors'' Responsibility
3. Our responsibility is to express an opinion on these financial
statement 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.
4. 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 judgement, 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
preparation and presentation of the financial statement that give a
true and fair view in order to design audit procedure 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 statement. We believe that the
audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
2> Opinion
In our opinion and to the best of our information and according to the
explanations given to us, and based on consideration of the reports the
financial statements give a true and fair view in conformity with the
accounting principles generally accepted in India.
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(b) In the case of the Statement of Profit and Loss, 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 Matters
5. Report on Other Legal and Regulatory Requirements
(i) As require 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 A<*t, 1956, we enclosed in the Annexure a
statement of the matters specified in paragraphs 4 and 5 of the said
order. (ii) Further to our comments in the Annexure referred to in
paragraph6(i) above, 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 and Statement of Profit and Loss and Cash Flow
statement dealt with by this report are in agreement with the books of
accounts.
d. In our opinion, the Balance Sheet and Statement of Profit & Loss
and Cash Flow statement dealt with by this report comply with the
mandatory Accounting Standards referred in sub-section (3C) of section
211 of the Companies Act, 1956 to the extent applicable.
e. On the basis of written representations received from the directors
of the company, as on 31st March, 2014 and taken on record by the Board
of Directors, we report that none of the Director 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 Independent Auditors'' Report
Referred to in paragraph 4 of our report of even date
On the basis of such checks, as we considered appropriate and in terms
of the information and explanations given to us, we state that-
1. In respect of its fixed assets:
(a) The company has fixed assets, Therefore clause 1 is not applicable
to the Company.
2. (a) There is no closing stock, therefore clause 2 is not not
applicable to the company.
3 In respect to loans, secured or unsecured, granted or taken by the
Company to/from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
a) The Company has not granted/taken any loan secured or unsecured
to/from firms or other parties listed in register maintained under
section 301 of the Companies Act, 1956 during the year under audit.
Therefore, Clause (b), (c) and (d) of the Companies (Auditor''s Report)
Order, 2003 is not applicable to the company for the year. The Company
has not taken any loans, secured or unsecured, from companies, firms or
other parties covered in the Register maintained under Section SOI of
the Act.
4 In our opinion and according to the information and explanation given
to us, there are adequate internal control procedures commensurate with
the size of the Company and the nature of its business for the purchase
of inventory, fixed assets and also for the sale of goods. During the
course of our audit, we have not observed any major weaknesses in
internal controls.
5. In respect of transactions covered under Section 301 of the
Companies Act, 1956
a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements, have been entered in the register required to be
maintained under that section.
b) In our opinion and according to the information and explanation
given to us, .no transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the^public.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8 The Central Government has not prescribed maintenance of Cost Records
under Sanction 209 (1) (d) of the Companies Act, 1956 for any of the
product of the Company
9. In respect of statutory dues.
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,
Customs Duty, Excise Duty, Cess and other statutory dues have been
generally regularly deposited with the appropriate authorities.
According to, the information and explanation given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at 31st March, 2014 for a period of more than six months
from the date of becoming payable.
b) There are no disputed statutory dues that have not been deposited on
account of matters pending before appropriate authorities
10. The Company has no accumulated losses but has incurred cash losses
during the financial year covered by our audit, and also has incurreds
cash losses in the immediately preceding financial year.
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 or
debenture holders.
12. In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, clause 4(xiii) of the Companies
(Auditor''s Report) Order 2003 is not applicable to the Company.
14. The Company has maintained proper records of transactions and
contracts in respect of trading in securities, debentures and other
investments and timely entries have been made therein. All shares,
debentures and other investments have been held by the company in its
own name except to the extent of the exemption granted under section 49
of the Company Act 1956 and save for certain share which are either
lodged for transfer or held with valid transfer form.
15. The Company has not given any guarantees for loans taken by others
from banks or financial institutions.
16. The Company has not raised any new term loans during the year.
17. In our opinion, the funds raised on short - term or long - term
basis have been used for the purpose for which they were raised.
18. During the year, the Company has not made any preferential
allotment of shares to parties and Companies covered in the Register
maintained under Section 301 of the Companies Act, 1956.
19. The Company has not made any debenture issue.
20. The Company has not raised any money by way of public issue during
the year.
21. In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year, that causes the financial statements to be materially
misstated.
For S. G. Kabra & Co.
Chartered Accountants
(F.R.N 104507W)
Place :Mumbai Malvika P Pitra
Date: 27-05-2014 Partner
Membership No. 44105
Mar 31, 2012
We have audited the attached Balance Sheet of M/S. S.V. TRADING &
AGENCIES LIMITED, as at 31st March, 2012 and also Statement of 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 is to
express an opinion on these financial statements based on our audit.
1. 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.
2. As required by the Companies (Auditor's Report) Order 2003 and read
with the amendments made by the Companies (Auditor's Report)
(Amendment) Order 2004 issued by the Central Government of India in
terms of sub- section (4A) of section 227 of the Companies Act, 1956,
and on the basis of such checks of books and records of the company as
we considered appropriate and according to the information and
explanation given to us we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said order to the extent
they are applicable to the Company.
3. Further to our comments in the Annexure referred to in paragraph 2
above, 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 and Statement of Profit and Loss Account and Cash
Flow statement dealt with by this report are in agreement with the
books of accounts.
(d) In our opinion, the Balance Sheet and Statement of Profit & Loss
Account and Cash Flow statement dealt with by this report comply with
the mandatory Accounting Standards referred in sub-section (3C) of
section 211 of the Companies Act, 1956 to the extent applicable.
(e) On the basis of written representations received from the directors
of the company, as on 31s' March, 2012 and taken on record by the Board
of Directors, we report that none of the Director is disqualified as on
31" March, 2012 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956.
(f) We further report that :-
(a) Note No. 14 (3) regarding some of balances of sundry debtors,
sundry creditors, deposits, loans & advances and unsecured loan are
subject to confirmation and adjustments necessary upon reconciliation,
if any consequential impact thereof on the financial statement is not
ascertainable.
(b) Note No. 14 (8) regarding accounts are prepared on a going concern
basis in spite of accumulated losses exceeding the share capital and
reserves and surplus.
(c) Non Provision for diminution in value of Long Term Quoted
Investments.
(g) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, subject to para (f)
above and read together with the significant Accounting Policies and
other notes thereon give the information required by the Companies Act,
1956, in the manner so required and present a true and fair view, in
conformity with the accounting principles generally accepted in India:
(i) In so far as it relates to Balance Sheet, of the state of affairs
of the Company as at 31st March, 2012;
(ii) In so far as it relates to the statement of Profit and Loss
Account, of the Profit of the Company 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 Auditors' Report
Referred to in paragraph 2 of our report of even date
On the basis of such checks, as we considered appropriate and in terms
of the information and explanations given to us, we state that:-
1. I n respect of its fixed assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of Fixed Assets.
b) We have been informed that most of fixed assets have been physically
verified by the management during the year. In our opinion the
frequency of the verification is reasonable. No material discrepancies
were noticed on such verification.
c) Total fixed insets or Rs. 269/-have been written off dairy the year.
2. (a) The Inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) According to the information and explanations given to us, the
procedures followed for physical verification of the inventory are, in
our opinion, reasonable and adequate in relation to the size of the
Company and the nature of its business;
(c) According to the records produced before us for our verification,
there were no material discrepancies notices on physical verification
of stocks referred to in para 2(a) above as compared to the books
records;
3. In respect to loans, secured or unsecured, granted or taken by the
Company to/from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
a) The Company has not granted/taken any loan secured or unsecured
to/from firms or other parties listed in register maintained under
section 301 of the Companies Act, 1956 during the year under audit.
Therefore, Clause (b), (c) and (d) of the Companies (Auditor's Report)
Order, 2003 is not applicable to the company for the year. 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 Act.
b) In our opinion and according to the information and explanation
given to us the rate of interest and other terms and conditions on
which these loans have been taken/granted are not prima facie
prejudicial to the interest of the Company.
c) The Company is regular in repaying the principal amounts as
stipulated and has been regular in the payment of interest.
4. In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory, fixed assets and also for the
sale of goods. During the course of our audit, we have not observed any
major weaknesses in internal controls.
5. lnrespect of transactions covered under Section 301 of the
Companies Act, 1956
a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements, have been entered in the register required to be
maintained under that section.
b) In our opinion and according to the information and explanation
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 have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. The Central Government has not prescribed maintenance of Cost
Records under Sanction 209 (1) (d) of the Companies Act, 1956 for any
of the product of the Company.
9. In respect of statutory dues.
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, Customs
Duty, Excise Duty, Cess and other statutory dues have been generally
regularly deposited with the appropriate authorities. According to the
information and explanation given to us, no undisputed amounts payable
in respect of the aforesaid dues were outstanding as at 31st March,
2012 for a period of more than six months from the date of becoming
payable.
b) There are no disputed statutory dues that have not been deposited on
account of matters pending before appropriate authorities
10. The accumulated losses of the Company are more than fifty percent
of its net worth. The Company has not incurred any cash losses during
the financial year covered by our audit but has incurred cash losses in
the immediately preceding financial year.
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 or
debenture holders.
12. In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, clause 4(xiii) of the Companies
(Auditor's Report) Order 2003 is not applicable to the Company.
14. The Company has maintained proper records of transactions and
contracts in respect of trading in securities, debentures and other
investments and timely entries have been made therein. All shares,
debentures and other investments have been held by the company in its
own name except to the extent of the exemption granted under section 49
of the Company Act 1956 and save for certain share which are either
lodged for transfer or held with valid transfer form.
15. The Company has not given any guarantees for loans taken by others
from banks or financial institutions, the terms and conditions whereof
are prejudicial to the interest of the company except for certain
shares pledged by the company for loan taken by the other company.
However, in the opinion of the management, the same is not prejudicial
to the interest of the company.
16. The Company has not raised any new term loans during the year.
17. In our opinion, the funds raised on short - term or long - term
basis have been used for the purpose for which they were raised.
18. During the year, the Company has not made any preferential
allotment of shares to parties and Companies covered in the Register
maintained under Section 301 of the Companies Act, 1956.
19. The Company has not made any debenture issue.
20. The Company has not raised any money by way of public issue during
the year.
21. In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year, that causes the financial statements to be materially
misstated.
ForS.G.Kabra&Co,
Chartered Accountants
(F.R.N. 104507W)
Place: Mumbai (Malvika P. Mitra)
Date: 30/05/2012 Partner
Membership No.44105
Mar 31, 2010
We have audited the attached Balance Sheet of M/S. S.V. TRADING &
AGENCIES LIMITED, as at 31st March, 2010 and also 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
Companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
1. 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.
2. As required by the Companies (Auditors Report) Order 2003 and read
with the amendments made by the Companies (Auditors Report)
(Amendment) Order 2004 issued by the Central Government of India in
terms of sub-section (4A) of section 227 of the Companies Act, 1956,
and on the basis of such checks of books and records of the company as
we considered appropriate and according to the information and
explanation given to us we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said order to the extent
they are applicable to the Company.
3. Further to our comments in the Annexure referred to in paragraph 2
above, 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 and Profit and Loss Account and Cash Flow
statement dealt with by this report are in agreement with the books of
accounts.
(d) In our opinion, the Balance Sheet and Profit & Loss Account and
Cash Flow statement dealt with by this report comply with the mandatory
Accounting Standards referred in sub-section (3C) of section 211 of the
Companies Act, 1956 to the extent applicable.
(e) On the basis of written representations received from the directors
of the company, 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.
(f) We further report that :-
(a) Note No. 3 regarding some of balances of sundry debtors, sundry
creditors, deposits, loans & advances and unsecured loan are subject to
confirmation and adjustments necessary upon reconciliation, if any
consequential impact thereof on the financial statement is not
ascertainable.
(b) Note No. 9 regarding accounts are prepared on a going concern basis
in spite of accumulated losses exceeding the share capital and reserves
and surplus.
(c) Non Provision for diminution in value of Long Term Quoted
Investments.
(g) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, subject to para (f)
above and read together with the significant Accounting Policies and
other notes thereon give the information required by the Companies Act,
1956, in the manner so required and present a true and fair view, in
conformity with the accounting principles generally accepted in India:
(i) In so far as it relates to Balance Sheet, of the state of affairs
of the Company as at 31st March, 2010;
(ii) In so far as it relates to the Profit and Loss Account, of the
profit of the Company 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 Auditors Report
Referred to in paragraph 2 of our report of even date
On the basis of such checks, as we considered appropriate and in terms
of the information and explanations given to us, we state that:-
1. In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of Fixed Assets.
b) We have been informed that most of fixed assets have been physically
verified by the management during the year. In our opinion the
frequency of the verification is reasonable. No material discrepancies
were noticed on such verification.
c) No substantial part of fixed assets has been disposed off during the
year.
2. (a) The Inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) According to the information and explanations given to us, the
procedures followed for physical verification of the inventory are, in
our opinion, reasonable and adequate in relation to the size of the
Company and the nature of its business;
(c) According to the records produced before us for our verification,
there were no material discrepancies notices on physical verification
of stocks referred to in para 2(a) above as compared to the books
records;
3. In respect to loans, secured or unsecured, granted or taken by the
Company to/ from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
a) The Company has not granted/taken any loan secured or unsecured
to/from firms or other parties listed in register maintained under
section 301 of the Companies Act, 1956 during the year under audit.
Therefore, Clause (b), (c) and (d) of the Companies (Auditors Report)
Order, 2003 is not applicable to the company for the year.
b) 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 Act.
c) In our opinion and according to the information and explanation
given to us the rate of interest and other terms and conditions on
which these loans have been taken/granted are not prima facie
prejudicial to the interest of the Company.
d) The Company is regular in repaying the principal amounts as
stipulated and has been regular in the payment of interest.
4. In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory, fixed assets and also for the
sale of goods. During the course of our audit, we have not observed any
major weaknesses in internal controls.
5. In respect of transactions covered under Section 301 of the
Companies Act, 1956
a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements, have been entered in the register required to be
maintained under that section.
b) In our opinion and according to the information and explanation
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 have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. The Central Government has not prescribed maintenance of Cost
Records under Sanction 209 (1) (d) of the Companies Act, 1956 for any
of the product of the Company
9. In respect of statutory dues.
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, Customs
Duty, Excise Duty, Cess and other statutory dues have been generally
regularly deposited with the appropriate authorities. According to the
information and explanation given to us, no undisputed amounts payable
in respect of the aforesaid dues were outstanding as at 31st March,
2010 for a period of more than six months from the date of becoming
payable.
b) There are no disputed statutory dues that have not been deposited on
account of matters pending before appropriate authorities
10. The accumulated losses of the Company are more than fifty percent
of its net worth. The Company has not incurred cash losses during the
financial year covered by our audit but has incurred cash losses in the
immediately preceding financial year.
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 or
debenture holders.
12. In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, clause 4(xiii) of the Companies
(Auditors Report) Order 2003 is not applicable to the Company.
14. The Company has maintained proper records of transactions and
contracts in respect of trading in securities, debentures and other
investments and timely entries have been made therein. All shares,
debentures and other investments have been held by the company in its
own name except to the extent of the exemption granted under section 49
of the Company Act 1956 and save for certain share which are either
lodged for transfer or held with valid transfer form.
15. The Company has not given any guarantees for loans taken by others
from banks or financial institutions, the terms and conditions whereof
are prejudicial to the interest of the company except for certain
shares pledged by the company for loan taken by the other company.
However, in the opinion of the management, the same is not prejudicial
to the interest of the company.
16. The Company has not raised any new term loans during the year.
17. In our opinion, the funds raised on short - term or long - term
basis have been used for the purpose for which they were raised.
18. During the year, the Company has not made any preferential
allotment of shares to parties and Companies covered in the Register
maintained under Section 301 of the Companies Act, 1956.
19. The Company has not made any debenture issue.
20. The Company has not raised any money by way of public issue during
the year.
21. In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year, that causes the financial statements to be materially
misstated.
For S. G. Kabra & Co.,
Chartered Accountants
(F.R.N. 104507W)
Place : Mumbai (Malvika P. Pitra)
Date: 02-09-2010 Partner
Membership No. 44105