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Auditor Report of TCI Developers Ltd.

Mar 31, 2014

We have audited the accompanying financial statements of TCI Developers Limited (''the Company'') which comprise the Balance Sheet as at 31st March 2014, the Statement of Profit and Loss and 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 Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards notified under the Companies Act, 1956 ("the Act") read with the General Circular 15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013.This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the entity''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

Subject to above, 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"), as amended, 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 notified under the Companies Act, 1956 read with the General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013; and

e) on the basis of written representations received from the directors as on 31 March 2014, and taken on record by the Board of Directors, none of the directors is disqualified as on 31 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 Auditors'' Report referred to in paragraph 3 of our report of even date:

Referred to in Paragraph 3 of our report of even date Matters specified in clauses (viii), (xiii) & (xix) (relevant clause number of the clause/s not applicable) of paragraph 4 of the CARO 2003 do not apply to the Company."

1. In respect of its Fixed assets:

The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets. The company has a programme for physical verification on a rotational basis, which in our opinion is reasonable having regard to the size of the company and the nature of its business. Accordingly, certain fixed assets have been physically verified by the management during the year and no material discrepancies were noticed on such verification. There was no disposal of a substantial part of fixed assets during the year.

2. In respect of Inventory:

Inventory comprise project under construction (work in progress). As explained to us, the management has conducted physical verification of inventory at reasonable intervals during the year. 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. The Company is maintaining proper records of its inventories and no material discrepancies were noticed on physical verification.

3. (a) The Company has granted unsecured interest free loan in the previous years (including opening balance of Rs. 705 lacs) to one wholly owned subsidiary company. The maximum amount involved during the year, including opening balance, aggregate to Rs. 740 lacs and the balance at the end of year amounted to Rs. 640 lacs. There are no stipulations as to the dates for repayment of principal.

(b) In our opinion, the terms and conditions of above loans given are not prima facie prejudicial to the interest of the Company.

(c) The Company has taken unsecured interest free loans during the previous year (including opening balance of Rs. 200 lacs) from three of its directors covered in the register maintained under Section 301 of the Act. The maximum outstanding amount involved during the year of such loans was Rs. 294 lacs and the year- end balance was Rs. 294 lacs. There is no stipulation as to dates of repayment of these loans.

(d) In our opinion, the terms and conditions of above loans taken are not prima facie prejudicial to the interest of the Company.

4. There is an adequate internal control system commensurate with the size and nature of the Company''s business for purchase of inventory, services and fixed assets and for the sale of services. During the course of our audit, no major weakness has been noticed in the internal control system, nor we have been informed of any such instance.

5. (a) To the best of our knowledge and belief and according to the information and explanations given to us, the transactions that need to be entered into the register in pursuance of Section 301 of the Act 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 into the register in pursuance of Section 301 of the Act, have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

6. The Company, during the year, has not accepted any deposits from the public.

7. The Company has internal audit system commensurate with the size and nature of Company''s business.

8. (a) According to the information and explanation given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing the undisputed statutory dues including income-tax, wealth tax, service tax and other material statutory dues as applicable with the appropriate authorities.

(b) The Company has no dues of income tax / sales tax / wealth-tax/ service tax/ customs duty / excise duty / cess, which have not been deposited on account of any dispute.

9. The Company has no accumulated losses as at 31st March 2014 and has not incurred any cash losses in the year ended on that date.

10. According to the records of the Company examined by us and the information and explanations given to us, the Company has not defaulted in repayment of dues to any financial institution or bank. The Company has not raised any funds against debentures.

11. The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

12. In our opinion, the Company is not a dealer or trader in shares, securities, debentures and other investments. The investments in shares are held by the Company in its own name.

13. 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.

14. In our opinion, the term loans have been applied for the purpose for which they were raised.

15. On the basis of an overall examination of the balance sheet of the Company, in our opinion and according to the information and explanations given to us, funds raised on short term basis have not been used for long term investment.

16. The Company has not made any preferential allotment of shares to parties and companies covered under Register maintained under section 301 of the Companies Act, 1956.

17. The Company has not raised any money by public issues during the year.

18. 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 material fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the Management.

For M. Gandhi & Co.

Chartered Accountants Firm''s Regn. No. 000851S

M. Gandhi

Camp : Gurgaon (Proprietor)

Date : May 24, 2014 Membership No. 022958


Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying financial statements of TCI Developers Limited (''the Company'') which comprise the Balance Sheet as at 31st March 2013, the Statement of Profit and Loss and 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 Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act"). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Emphasis of Matter:

We draw attention to Note 23 to the financial statements; the Company has paid remuneration to its whole time director, which exceeds the limits under the Act by Rs. 16.72 lacs. Had the Company accounted for the remuneration in accordance with the Act, the profit after tax for the year would have been higher by Rs. 11.72 lacs and the Loans and Advances would have been higher by Rs. 16.72 lacs.

Our opinion is not qualified in this matter.

Opinion

Subject to above, 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.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2003 ("the Order"), as amended, 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; and

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.

Annexure to Auditors'' Report referred to in paragraph 3 of our report of even date:

1. In respect of its Fixed assets:

The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets. The company has a programme for physical verification on a rotational basis, which in our opinion is reasonable having regard to the size of the company and the nature of its business. Accordingly, certain fixed assets have been physically verified by the management during the year and no material discrepancies were noticed on such verification. There was no disposal of a substantial part of fixed assets during the year.

2. In respect of Inventory:

Inventory comprise project under construction (work in progress). As explained to us, the management has conducted physical verification of inventory at reasonable intervals during the year. 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. The Company is maintaining proper records of its inventories and no material discrepancies were noticed on physical verification.

3. (a) The Company has granted unsecured interest free loan (including opening balance of Rs. 1170 lacs) to one wholly owned subsidiary company. The maximum amount involved during the year, including opening balance, aggregate to Rs. 1233 lacs and the balance at the end of year amounted to Rs. 705 lacs. There are no stipulations as to the dates for repayment of principal.

(b) In our opinion, the terms and conditions of above loans given are not prima facie prejudicial to the interest of the Company.

(c) The Company has taken unsecured interest free loans during the previous year amounting Rs. 200 Lacs from two of its directors covered in the register maintained under Section 301 of the Act. The maximum outstanding amount involved during the year of such loans was Rs. 200 lacs and the year- end balance was Rs. 200 lacs. There is no stipulation as to dates of repayment of these loans.

(d) In our opinion, the terms and conditions of above loans taken are not prima facie prejudicial to the interest of the Company.

4. There is an adequate internal control system commensurate with the size and nature of the Company''s business for purchase of inventory, services and fixed assets and for the sale of services. During the course of our audit, no major weakness has been noticed in the internal control system, nor we have been informed of any such instance.

5. (a) To the best of our knowledge and belief and according to the information and explanations given to us, the transactions that need to be entered into the register in pursuance of Section 301 of the Act 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 into the register in pursuance of Section 301 of the Act, have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

6. The Company, during the year, has not accepted any deposits from the public.

7. The Company has internal audit system commensurate with the size and nature of Company''s business.

8. (a) According to the information and explanation given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing the undisputed statutory dues including income-tax, wealth tax, service tax and other material statutory dues as applicable with the appropriate authorities.

(b) The Company has no dues of income tax / sales tax / wealth-tax/ service tax/ customs duty / excise duty / cess, which have not been deposited on account of any dispute.

9. The Company has no accumulated losses as at 31st March 2013 and has not incurred any cash losses in the year ended on that date.

10. According to the records of the Company examined by us and the information and explanations given to us, the Company has not defaulted in repayment of dues to any financial institution or bank. The Company has not raised any funds against debentures.

11. The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

12. The provisions of any special statute applicable to chit fund / nidhi / mutual benefit fund / societies are not applicable to the Company.

13. In our opinion, the Company is not a dealer or trader in shares, securities, debentures and other investments. The investments in shares are held by the Company in its own name.

14. 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

15. In our opinion, the term loans have been applied for the purpose for which they were raised.

16. On the basis of an overall examination of the balance sheet of the Company, in our opinion and according to the information and explanations given to us, funds raised on short term basis have not been used for long term investment.

17. The Company has made preferential allotment of 42,30,000, 5% Non Convertible Non Cumulative Redeemable Preference Shares @ Rs. 10 each, during the year to parties covered in the register maintained under section 301 ofthe Act.

18. The Company has not raised any money by public issues during the year.

19. 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 material fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the Management.

For M. Gandhi & Co.

Chartered Accountants

Firm''s Regn. No. 000851S

M. Gandhi

Camp : Gurgaon (Proprietor)

Date : May 15, 2013 Membership No. 022958


Mar 31, 2012

We have audited the attached Balance Sheet of TCI Developers Limited as at 31st March, 2012 the annexed Statement of Profit and Loss and the Cash Flow Statement for the year ended on that date (hereinafter referred to as Financial Statements).

1. 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 (Auditors' 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 and on the basis of such checks as we considered appropriate and according to the information and explanations given to us during the course of audit, we enclose in the Annexure hereto a statement on the matters specified in paragraph's 4 & 5 of the said Order.

4. Further to our comments in the Annexure, referred to in paragraph 3 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 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 the books.

iii. 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.

iv. In our opinion, the Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement, comply with the accounting standards referred to in section 211 (3C) of the Companies Act, 1956.

v. On the basis of written representations received from the directors as on 31st March, 2012 and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2012 from being appointed as a director under section 274(1) (g) 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 the notes and accounting policies 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 the accounting principles generally accepted in India:

a) in the case of the Balance Sheet of the state of affairs of the Company as at 31st March 2012;

b) in the case of the Statement of Profit and Loss, of the profit of the Company for the year ended on that date and

c) in the case of the Cash Flow Statement, of the cash flows of the Company for the year ended on that date.

Annexure to Auditors' Report referred to in paragraph 3 of our report of even date:

1. The Company has maintained records showing full particulars including quantitative details and situation of fixed assets. We are informed that a test physical verification of these assets was carried out by the management during the year and no material discrepancies were noticed.

2. During the year, the Company has not disposed off a substantial part of fixed assets.

3. (a) The Company has granted unsecured interest free loan (including opening balance of Rs 1110 lacs) to one wholly owned subsidiary company. Besides interest bearing loan has been given to one another company, covered in the register maintained under Section 301 of the Act; which has been fully repaid during the year. The maximum amount involved during the year, including opening balance, aggregate to Rs 1225 lacs and the balance at the end of year amounted to Rs 1170 lacs. There are no stipulations as to the dates for repayment of principal and interest. However, interest where applicable is being charged thereon.

(b) In our opinion, the rate of interest and other terms and conditions of above loans are not prima facie prejudicial to the interest of the Company

(c) The Company has taken unsecured interest free loans during the year from two of its directors covered in the register maintained under Section 301 of the Act. The maximum amount involved during the year of such loans was Rs 200 lacs and the year- end balance was Rs 200 lacs. There is no stipulation as to dates of repayment of these loans.

4. There is an adequate internal control system commensurate with the size and nature of the Company's business for purchase of inventory, services and fixed assets and for the sale of services. During the course of our audit, no major weakness has been noticed in the internal control system, nor we have been informed of any such instance.

5. (a) To the best of our knowledge and belief and according to the information and explanations given to us, the transactions that need to be entered into the register in pursuance of Section 301 of the Act 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 into the register in pursuance of Section 301 of the Act, have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

6. The Company, during the year, has not accepted any deposits from the public.

7. The Company has internal audit system commensurate with the size and nature of Company's business.

8. (a) According to the information and explanation given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing the undisputed statutory dues including income-tax, wealth tax, service tax and other material statutory dues as applicable with the appropriate authorities.

(b) The Company has no dues of income tax / sales tax / wealth-tax/ service tax/ customs duty / excise duty / cess, which have not been deposited on account of any dispute.

9. The Company has no accumulated losses as at 31st March 2012 and has not incurred any cash losses in the financial year ended on that date.

10. According to the records of the Company examined by us and the information and explanations given to us, the Company has not defaulted in repayment of dues to any financial institution or bank. The Company has not raised any funds against debentures.

11. The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

12. The provisions of any special statute applicable to chit fund / nidhi / mutual benefit fund / societies are not applicable to the Company.

13. In our opinion, the Company is not a dealer or trader in shares, securities, debentures and other investments. The investments in shares are held by the Company in its own name.

14. 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

15. In our opinion, the term loans have been applied for the purpose for which they were raised.

16. The Company has not made any preferential allotment of shares during the year to parties covered in the register maintained under section 301 of the Act.

17. The Company has not raised any money by public issue during the year.

18. 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 material fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the Management.

For M. Gandhi & Co.

Chartered Accountants

Firm's Regn. No. 000851S

M. Gandhi

Camp : Gurgaon (Proprietor)

Date : May 05, 2012 Membership No. 022958


Mar 31, 2011

We have audited the attached Balance Sheet of TCI Developers Limited as at 31st March 2011, the annexed Profit and Loss Account and the Cash Flow Statement of the company for the year ended on that date (hereinafter referred to as Financial Statements).

1. 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 misstatements. 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 (as amended) 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 as we considered appropriate and according to the information and explanations given to us during the course of audit, we enclose in the Annexure hereto a statement on the matters specified in paragraph 4 & 5 of the said Order.

4. Further to our comments in the Annexure, referred to in paragraph 3 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 the 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 and Cash Flow Statement, comply with the accounting standards referred to in section 211 (3C) 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 none of the directors is disqualified as on 31st March 2011 from being appointed as a director under section 274(1) (g) 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 the notes and accounting policies 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 the 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 Profit and Loss Account, of the profit of the Company 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 our report of even date:

1. The Company has maintained records showing full particulars including quantitative details and situation of fixed assets. We are informed that a test physical verification of these assets was carried out by the management during the year and no material discrepancies were noticed.

2. During the year, the Company has not disposed off any fixed assets.

3. (a) The Company has granted unsecured interest free loan to one wholly owned subsidiary company. Besides interest bearing loan has been given to one another company, covered in the register maintained under Section 301 of the Act; which has been fully repaid during the year. The maximum amount involved during the year aggregate to Rs. 1651 lacs and the balances at the end of year amounted to Rs. 1110 lacs. There are no stipulations as to the dates for repayment of principal and interest. However, interest where applicable is being charged thereon.

(b) In our opinion, the rate of interest and other terms and conditions of above loans are not prima facie prejudicial to the interest of the Company

(c) As informed 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.

4. There is an adequate internal control system commensurate with the size and nature of the Companys business for fixed assets and for the sale of services. During the course of our audit, no major weakness has been noticed in the internal control system, nor we have been informed of any such instance.

5. (a) To the best of our knowledge and belief and according to the information and explanations given to us, the particulars of contracts or arrangements that need to be entered into the register in pursuance of Section 301 of the Act, 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 into the register in pursuance of Section 301 of the Act, have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

6. The Company, during the year, has not accepted any deposits from the public.

7. The company has internal audit system commensurate with the size and nature of Companys business.

8. (a) According to the information and explanation given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing the undisputed statutory dues including income-tax, wealth tax, service tax and other material statutory dues as applicable with the appropriate authorities.

(b) The Company has no dues of income tax / sales tax / wealth-tax/ service tax/ customs duty / excise duty / cess, which have not been deposited on account of any dispute.

9. The Company has no accumulated losses as at March 31, 2011 and has not incurred any cash losses in the year ended on that date. However there was cash loss in the two immediately preceding financial years.

10. According to the records of the Company examined by us and the information and explanations given to us, the Company has not borrowed any funds from any financial institution or bank or raised any funds against debentures.

11. The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

12. The provisions of any special statute applicable to chit fund / nidhi / mutual benefit fund / societies are not applicable to the Company.

13. In our opinion, the Company is not a dealer or trader in shares, securities, debentures and other investments. The investments in shares, securities, debentures etc. are held by the Company in its own name.

14. 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

15. The Company did not have any term loans outstanding during the year.

16. The Company has not made any preferential allotment of shares during the year to parties covered in the register maintained under section 301 of the Act except as per the Scheme of Arrangement, referred in the Note 1 of the Notes on Accounts.

17. The Company has not raised any money by public issues during the year.

18. 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 material fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the Management.



For M. Gandhi & Co. Chartered Accountants

M. Gandhi (Proprietor) Membership No. 022958 Firm Regn. No. 000851S

Place : Gurgaon Date : 30-05-2011



 
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