Mar 31, 2015
We have audited the accompanying financial statements of UNIVERSAL ARTS
LIMITED(Formerly Known as Goldmines Media Limited)("the Company"),
which comprise the Balance Sheet as at March 31st, 2015, and the
Statement of Profit and Loss for the period 1st July, 2014 till year
then ended, and a summary of significant accounting policies and other
explanatory information.
MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS.
Management and Board of Directors of the Company are responsible for
the matters stated in Section 134(5) of the Companies Act, 2013 ('the
act') with respect to 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 the
Accounting Standards specified under Section 133 of the Act, read with
rule 7 of Companies (Accounts) Rules, 2014. This responsibility
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; design,
implementation and maintenance of adequate internal financial controls,
that are 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 these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under. We conducted our
audit in accordance with the Standards on Auditing specified under
Section 143(10) of the Act. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the 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 accounting policies used and the reasonableness of
the accounting estimates made by the Company's management and Board of
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.
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,itsProfitand its Cash Flow for the period 1st July,
2014 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 paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act, we report that:
a) We have sought 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 dealt with by
this Report are in agreement with the books of account.
d) In our opinion, the Balance Sheet and Statement of Profit and Loss
comply with the Accounting Standards referred to in Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules 2014;
e) On the basis of written representations received from the directors
as on March 31, 2015, none of the directors is disqualified as on March
31, 2015, from being appointed as a director in terms of sub section
(2) of Section 164 of the Act.
f) In our opinion and to the best of our information and according to
the explanations given to us, we report as under with respect to other
matters to be included in the Auditor's Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules, 2014:
i. The Company does not have any pending litigations which would
impact its financial position
ii. The Company did not have any long-term contracts including
derivative contracts; as such the question of commenting on any
material foreseeable losses thereon does not arise
iii. There has not been an occasion in case of the Company during the
year under report to transfer any sums to the Investor Education and
Protection Fund. The question of delay in transferring such sums does
not arise
ANNEXURE TO THE AUDITORS' REPORT (Period 1st July 2014 to 31st March
2015)
(REFERRED TO IN PARAGRAPH (3) OF OUR REPORT OF EVEN DATE)
As required by the Companies (Auditor's report) Order, 2015, issued by
the Central Government of India in terms of Sub-section (11) of section
143 of the Companies Act, 2013 and on the basis of such check as were
considered appropriate and according to the information and explanation
and representation given to us, we report:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of its fixed assets.
b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such verification.
The Company's inventory consists of intangible rights of movies.
a) & b) The said Intangible rights cannot be physically verified but
the documents creating rights in the said Intangible rights are
available.
c) The Company is maintaining proper records of the inventory.
i. The Company has not taken loans from parties listed in register
maintained u/s 189 of the Companies Act, 2013.
The Company has granted loans and advances to companies, firms or other
parties as listed in the register maintained under section 189 of the
companies Act, 2013. The year-end balance of loans and advances given
to such parties was Rs62,10,000 Maximum Outstanding was Rs63,10,000.
ii. There are adequate internal control procedures commensurate with
the size of the Company and the nature of its business, being buying
and selling of film rights. To the best of our knowledge, no major
weaknesses in internal control system were either reported or noticed
by us during the course of our audit.
iii. According to the information & explanations provided to us, the
company has not accepted any deposits from the public to which the
directives issued by the Reserve Bank of India and the provisions of
Section 73 to 76 of the Companies Act, 2013 and other relevant
provisions of the Companies Act, 2013 and the rules framed there under
apply.
iv. We have been informed that the central government has not
prescribed for the maintenance of cost records under sub-section (1) of
section 148 of the Companies Act, 2013.
v. (a) According to the records of the company, undisputed statutory
dues including Income-tax, Sales-tax, Wealth Tax, Service Tax and entry
tax to the extent applicable and any other statutory dues have been
regularly deposited with the appropriate authorities. According to the
information and explanations given to us there were no outstanding
statutory dues as on 31st of March, 2015 for a period of more than six
months from the date they became payable.
(b) We have been informed that no undisputed amount payable in respect
of Income tax, Wealth tax, Sales tax, Customs duty, Excise duty and
Service tax were outstanding as at 31st March, 2015 for a period of
more than six months from the date they became payable. We have been
informed that the provisions of the Investor Education and Protection
Fund, Employees State Insurance Act, Sales Tax, Custom Duty and Excise
Duty are not applicable to the Company for the period 1st July 2014 to
31st March 2015.
vi. The Company has accumulated losses at the end of the financial
year which does not exceed 50% of it's net worth. Also, the Company has
not incurred cash losses during the financial period 1st July 2014 and
ended on March 31, 2015.
vii. The Company has not defaulted in repayment of dues to any
financial institution or bank or debenture holders.
viii. According to information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions during the period 1st July 2014 to 31st
March 2015.
ix. The Company has not availed any term loans during the period 1st
July 2014 to 31st March 2015.
x. Based on the audit procedure performed and the representation
obtained from the management, we report that in no case fraud on or by
the company has been noticed or reported during the period 1st July
2014 to 31st March 2015.
For SekhriKanodia& Associates
Chartered Accountants,
Firm No. 109389w
Sd/-
Ajay Sekhri- Partner
Membership No. 032103
Place: - Mumbai
Date: -30/05/2015
Jun 30, 2013
REPORT ON FINANCIAL STATEMENTS
We have audited the accompanying financial statements of UNIVERSAL ARTS
LIMITED (Formerly Known as Goldmines Media Limited)("the Company"),
which comprise the Balance Sheet as at June 30, 2013, and the Statement
of Profit and Loss 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.
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. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
OPINION
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 30th June, 2013 and;
(ii) In the case of the Statement of Profit and Loss account, of the
Loss of the Company for the year ended on that date.
(iii) In so far as it relates to Cash Flow Statement, of the Cash Flow
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 and Statement of Profit and Loss dealt with by
this Report are in agreement with the books of account.
d) In our opinion, the Balance Sheet and Statement of Profit and Loss
comply with the Accounting Standards referred to in subsection (3C) of
section 211 of the Companies Act, 1956;
e) On the basis of written representations received from the directors
as on June 30, 2013, none of the directors is disqualified as on June
30, 2013, from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
ANNEXURE TO THE AUDITORS'' REPORT
(REFFERED TO IN PARAGRAPH (3) OF OUR REPORT OF EVEN DATE )
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 and on the basis of such check as were
considered appropriate and according to the information and explanation
and representation given to us, we report:
1. a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) The management has physically verified most of the fixed assets at
the year end. No material discrepancies were noticed on such
verification.
c) There is no disposal of fixed assets during the year.
2. The Company''s inventory consists of intangible rights of movies and
proper records of the same have been maintained by the management.
Further, physical verification of said intangible rights is not
possible.
3. The Company has not taken loans from parties listed in register
maintained u/s 301 of the Companies Act, 1956. The Company has granted
loans to companies, firms or other parties as listed in the register
maintained under section 301 of the companies Act, 1956. The year-end
balance of loan given to suchparties was Rs.38.10 lakhs.
4. There are adequate internal control procedures commensurate with
the size of the Company and the nature of its business, being buying
and selling of film rights. To the best of our knowledge, no major
weaknesses in internal control were either reported or noticed by us
during the course of our audit.
5. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements, that needed to be entered into in the register maintained
under section 301 of the Companies Act, 1956 have been so entered.
In our opinion and according to the information and explanations given
to us, the transactions in pursuance of contracts or arrangements
entered in the register maintained under section 301 of the Companies
Act, 1956 and exceeding Rs. 5,00,000/- (Rupees Five Lacs Only) in
respect of any party during the year have been made at price, which are
reasonable having regard to prevailing market price at the relevant
time.
6. The Company has not accepted any deposit from the public within the
meaning of Section 58A and 58AA of the Companies Act, 1956 and the
Companies (Acceptance of Deposits) rules 1975.
7. There is no formal internal audit system. However, according to the
information and explanations provided to us, operating control systems
are commensurate with the size of the Company and the nature of its
business.
8. We have been informed that the Central Government has not
prescribed for the maintenance of cost records under clause (d) of
sub-section (1) of section 209 of the Companies Act, 1956.
9. According to the records of the Company, the Company has been
generally regular in depositing undisputed statutory due with the
appropriate authorities. There were no undisputed amounts payable in
respect of Income-tax, Wealth-tax, Sales-tax, Customs duty and Excise
duty, which were outstanding as at the balance sheet date for a period
of more than six months from the date they became payable.
There are no disputed dues which have remained unpaid as on 30th June,
2013 in respect of sales tax, income tax, custom duty, wealth tax,
excise duty, cess.
10. The Company has accumulated losses at the end of the financial
year which does not exceed 50% of the its net worth. Also, the Company
has incurred cash losses during the financial year covered by our
audit.
11. The Company has not defaulted in repayment of dues to any
financial institution or bank or debenture holders.
12. The Company has not granted any loans and advances on the basis of
security during the year.
13. In our opinion, the provision of special statute applicable to
Chit Fund, Nidhi or mutual benefit society is not applicable to the
Company.
14. In our opinion, proper records have been maintained of the
transactions and contracts relating to dealing in the shares and timely
entries have been made therein.
15. According to information and explanations given to us, the Company
has not given any guarantee for loans taken by others from banks or
financial institutions.
16. During the year, company has not taken any term loans.
17. On the basis of overall examination of the balance sheet, we
report that the funds raised on short-term basis have not been used for
long-term investments and vice versa.
18. During the year, the Company had not made any preferential
allotment of shares to parties and companies covered in the register
maintained u/s. 301 of the Companies Act, 1956.
19. The Company has not issued debentures during the year and hence,
the question of creating securities in respect thereof does not arise.
20. The company has not raised any money by public issue during the
year.
21. Based on the audit procedure performed and the representation
obtained from the management, we report that in no case fraud on or by
the company has been noticed or reported during the year under audit.
FOR SEKHRI KANODIA & ASSOCIATES
CHARTERED ACCOUNTANTS,
Sd/-
AJAY SEKHRI-
PARTNER
MEMBERSHIP NO. 032103
FIRM NO. 109389W
PLACE : MUMBAI
DATE : 28.08.2013
Jun 30, 2012
1. We have audited the attached Balance Sheet of UNIVERSAL ARTS
LIMITED (Formerly Known as Goldmines Media Limited) as at 30th June,
2012 and the Statement of Profit & Loss account for the year ended on
that date annexed thereto. These financial statements are the
responsibility of the Company's management. Our responsibility is to'
express an opinion on these financial statements based on our audit. '
2. 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 Annexure hereto a
Statement on the matters specified in paragraph 4 and 5 of the said
Order.
4. Further, we report that:
a) We have obtained all the information and explanation, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b) In our opinion proper books of accounts as required by law have been
kept by the Company so far as appears from our examination of the
books. '
c) The Balance Sheet and Statement of Profit and Loss Account dealt
with by this report are in agreement with the books of accounts of the
Company.
d) In our opinion, the Statement of Profit & Loss Account and the
Balance Sheet comply with the Accounting Standard referred to in sub
section (3C) of section 211 of the Companies Act 1956.
e) In our opinion and to the best of our information and explanations
given to us in Significant Accounting Policies and Notes on Accounts,
the said accounts read together with the notes thereon, give the
information required by the Companies Act, 1956, in the manner so
required and give 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 30th June, 2012 and;
(ii) In the case of the Statement of Profit and Loss Account, of the
Profit of the company for the year ended on that date.
(iii) In so far as it relates to Cash Flow Statement, of the Cash Flow
for the year ended on that date.
f) On the basis of the written representation received from Directors
and taken on record by the Board of Directors we report that none of
the Directors are disqualified as on 30th June, 2012, from being
appointed as a Director rn term of clause (g) of sub-section (1) of
section 274 of Companies Act, 1956.
ANNEXURE TO AUDITORS' REPORT (Referred to in Paragraph 3 of our
report of even date)
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 and on the basis of such check
as were considered appropriate and according to the information and
explanation and representation given to us, we report:
1. a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) The management has physically verified most of the fixed assets at
the year end. No material discrepancies were noticed on such
verification.
c) There is no disposal of fixed assets during the year.
2. The Company's inventory consists of intangible rights of movies and
proper records of the same have been maintained by the management.
Further, physical verification of said intangible rights is not
possible.
3. The Company has not taken loans from parties listed in register
maintained u/s 301 of the Companies Act, 1956. The Company has granted
loans to companies, firms or other parties as listed in the register
maintained under section 301 of the Companies Act, 1956. The year-end
balance of loan given to such parties was Rs 141.10 lakhs.
4. There are adequate internal control procedures commensurate with
the size of the Company and the nature of its business, being buying
and selling of film rights. To the best of our knowledge, no major
weaknesses in internal control were either reported or noticed by us
during the course of our audit.
5. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements, that needed to be entered into in the register maintained
under section 301 of the Companies Act, 1956 have been so entered.
In our opinion and according to the information and explanations given
to us, the transactions in pursuance of contracts or arrangements
entered in the register maintained under section 301 of the Companies
Act, 1956 and exceeding Rs. 5,00,000/- (Rupees Five Lacs Only) in
respect of any party during the year have been made at price, which are
reasonable having regard to prevailing market price at the relevant
time.
6. The Company has not accepted any deposit from the public within the
meaning of Section 58A and 58AA of the Companies Act, 1956 and the
Companies (Acceptance of Deposits) Rules 1975.
7. In our opinion, the internal audit system of the Company is
commensurate with its size and nature of its business.
8. We have been informed that the Central Government has not
prescribed for the maintenance of cost records under clause (d) of
sub-section (1) of section 209 of the Companies Act, 1956.
9. According to the records of the Company, the Company has been
generally regular in depositing undisputed statutory due with the
appropriate authorities. There were no undisputed amounts payable in
respect of Income-tax, Wealth- tax, Sales-tax, Customs duty and Excise
duty, which were outstanding as at the balance sheet date for a period
of more than six months from the date they became payable.
There are no disputed dues which have remained unpaid as on 30th June,
2012 in respect of Sales tax, Income tax, Custom duty, Wealth tax,
Excise duty, cess.
10. The Company has accumulated losses at the end of the financial
year which does not exceed 50% of the its net worth. Also, the Company
has not incurred cash losses during the financial year covered by our
audit.
11. The Company has not defaulted in repayment of dues to any
financial institution or bank or debenture holders.
12. The Company has not granted any loans and advances on the basis of
security during the year.
13. In our opinion, the provision of special statute applicable to
Chit Fund, Nidhi or Mutual Benefit Society is not applicable to the
Company.
14. In our opinion, proper records have been maintained of the
transactions and contracts relating to dealing in the shares and timely
entries have been made therein.
15. According to information and explanations given to us, the Company
has not given any guarantee for loans taken by others from banks or
financial institutions.
16. During the year, Company has not taken any term loans.
17. On the basis of overall examination of the balance sheet, we
report that the funds raised on short-term basis have not been used for
long-term investments and vice versa.
18. During the year, the Company had not made any preferential
allotment of shares to parties and companies covered in the register
maintained u/s. 301 of the Companies Act, 1956.
19. The Company has not issued debentures during the year and hence,
the question of creating securities in respect thereof does not arise.
20. The Company has not raised any money by public issue during the
year.
21. Based on the audit procedure performed and the representation
obtained from the management, we report that in no case fraud on or by
the Company has been noticed or reported during the year under audit.
FOR SEKHRI KANODIA & ASSOCIATES
CHARTERED ACCOUNTANTS
Sd/-
AJAY SEKHRI
(PARTNER)
MEMBERSHIP NO :- 032103
FIRM NO:- 109389W
Place : Mumbai.
Date : 12th November, 2012
Jun 30, 2010
We have audited the attached Balance Sheet of UNIVERSAL ARTS LTD,
Mumbai as at 30th June, 2010 and the Profit ana Loss Account 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 the 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 misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in Financial Statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the 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 issued
by the Central Government of India in terms of Sub-section (4A) of
section 227 of the Companies Act, 1956, we enclose in Annexure hereto a
Statement on the matters specified in paragraph 4 and 5 of the said
Order.
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 explanation which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(b) In our opinion, proper books of accounts, as required by law, have
been kept by the Company, so far as appears from our examination of
those books;
(c) The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of accounts;
(d) In our opinion, Balance Sheet and Profit andLoss Account dealt
with by this report comply with the mandatory Accounting Standard
referred to in sub-section (3C) of Section 211 of the Companies Act,
1956 except for Accounting of taxes as per AS-22.
(e) In our opinion, and to the best of our information and explanations
given to us none of the directors are disqualified as on 30th June,
2010 from being appointed as directors in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956.
(f) 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
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 30th June, 2010.
(ii) In so far as it relates to the Profit and Loss Account, of the
Loss of Company for the year ended on that date.
(iii) In so far as it relates to Cash Flow Statement, of the Cash Flow
for the year ended on that date.
ANNEXURE TO AUDITORS REPORT (Referred to in Paragraph 2 of our report
of even date)
1. a) The Company has maintained proper records showing full
particulars including quantitative details and situation
of fixed assets on the basis of available information.
b) As explained to us, the fixed assets have been physically verified
by the management during the year in a phased periodical manner, which
in our opinion is reasonable, having regard to the size of the Company
and nature of its assets. No material discrepancies were noticed on
such physical verification.
c) In our opinion, the Company has not disposed of substantial part of
fixed assets during the year.
2. a) As explained to us, inventories have been physically verified by
the management at regular intervals during the year.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by fne management are 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 explanation
given to us, the Company has maintained proper records of inventories,
As explained to us, there were no material discrepancies noticed on
physical verification of inventory as compared to the book records.
3. The company has taken loans from parties listed in the register
maintained U/s. 301 of the Companies Act, 1956. The year-end balance of
loan taken from such parties was Rs. 0.50 lakhs.
The Company has granted loans to Companies, Firms or other parties as
listed in the register maintained under section 301 and / or to the
Companies under the same management as defined under sub-section (1B)
of Section 370 of the Companies Act, 1956. Theyear-end balance of loan
given to such parties was Rs. 142.07 lakhs. ,
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory, 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. a) in our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements, that needed to be entered into in 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 in pursuance of contracts or arrangements
entered in the register maintained under Section 301 of the Companies
Act, 1956 and exceeding Rs. 5,00,000/- (Rupees Five Lacs only) in
respect of any party during the year have been made at price, which are
reasonable having regard to prevailing market price at the relevant
time.
6. As explain to us the Company has not accepted any deposits from the
public within the meaning of Section 58A and 58AA of the Companies Act,
1956 and the Rules framed there under.
7. In our opinion, the internal audit system of the Company is
commensurate with its size and nature of its business.
8. The company is not required to maintain cost record U/s. 209(1 )(d)
of the Companies Act, 1956.
9. a) According to the information and explanation given to us, and
records being made available to us, the undisputed statutory dues
including Income-tax, Sales Tax, Wealth Tax, and other statutory dues
wherever applicable have been generally regularly deposited with the
appropriate authorities. According to the information and explanations
given to us, no undisputed amounts payable in respect of the aforesaid
dues were outstanding as at 30th June, 2010 for a period of more than
six months from the date of becoming payable.
b) In our opinion and according to the information and explanations
given to us, there are no disputed statutory dues pending,before any
Authority.
10. The Company has accumulated losses of Rs. 187.46 Lakhs as on
30.06.2010 and has incurred cash losses of Rs. 14.20 lakns during the
Financial Year covered by our audit.
11. Based on our audit procedures and according to the information and
explanation given to us, we are of the opinion that the Company has not
defaulted in repayment of dues to banks. .
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 transaction 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.
15. According to information and explanation given to us and to the
best of knowledge, the Company has not given guarantees for loans taken
by others from Danks or financial institutions.
16. In our opinion and according to information and explanation given
to us, a company has not received any terms loan during trie year.
17. According to the information and explanation given to us, and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that the Company has not raised funds from Short Term
sources and utilized the same towards Long Term investments and
vice-versa.
18. During the year, the Company had not made any preferential
allotment of shares to parties and companies covered in the register
maintained U/s. 301 of the Companies Act, 1956.
19. According to information and explanation given to us, the Company
has not issued any secured debentures during the year.
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 explanation
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 SANJAY RAJA JAIN & CO,
CHARTERED ACCOUNTANTS
FRN - 120132W
SANJAY RAJA JAIN
(PARTNER)
Place : Mumbai.
Date : 22nd November, 2010
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