Mar 31, 2015
We have audited the accompanying financial statements of M/s Anshu's
Clothing Limited ("the Company"), which comprise the Balance Sheet as
at March 31, 2015 and also the Statement of Profit and Loss and Cash
Flow Statement for the year ended on that annexed thereto, and a
summary of the 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 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 accounting principles generally
accepted in India, including the Accounting Standards specified under
section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for
safeguarding of the assets of the Company and for preventing and
detecting frauds and other irregularities; selection and application of
appropriate accounting policies; making judgments and estimates that
are reasonable and prudent; and the design, implementation and
maintenance of adequate internal financial control that were operating
effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditors' 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, issued by the
Institute of Chartered Accountants of India, as 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 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 the 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.
Basis of Qualified Opinion:- Attention is drawn to:
A) In respect of balances of receivables and payables confirmation and
reconciliation is unsecured and doubtful. Impact is uncertain and
cannot be commented by us. For receivables considered doubtful and no
provision has been created in the books of accounts.
B) Claims & Discounts payable to the debtors/creditors are subject to
confirmations, adjustments and realization are not ascertained.
C) Valuation and verification of inventories is as taken, valued and
certified by the management, the impact of any variation on the
statement of Profit and Loss and state of affairs not being
ascertained.
Qualified 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 subject to the our observations and notes
of the state of affairs of the company as at March 31st, 2015, its
profit/loss, and its 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, 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 1 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. Except as stated in under the head " Basis of Qualified Report" 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 accounts as required by law have
been kept by the Company so far as it appears from our examination of
those books.
c. The Balance Sheet and the Statement of Profit and Loss Account and
the Cash Flow Statement dealt with by this Report are in agreement with
the books of accounts.
d. In our opinion, the Balance Sheet and the Statement of Profit and
Loss Account and the Cash Flow Statement comply with the notified under
the Act read with the General Circular 15/2013 dated 13th September,
2013 of the Ministry of Corporate Affairs in respect of section 133of
the Companies Act, 2013.
e. On the basis of the written representations received from the
directors as on March 31, 2015, taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2015,
from being appointed as a director in terms of Section 164(2) of the
Act.
ANNEXURE TO THE AUDITORS' REPORT
Referred to in Paragraph 1 under the heading of "report on other legal
and regulatory requirements" of our report of even date
Re: Anshu's Clothing Limited (the Company)
1. In respect of the Company's fixed assets:
a) The Company has maintained records of fixed assets in the books of
accounts.
b) Physical verification of fixed assets not carried out and their
realizable value is not ascertainable. As explained to us, all 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 fixed
assets.
2. In respect of the Company's inventories:
a) Realizable value of inventories not ascertained in view of no
physical verification of inventories and same is accepted as per the
management declaration and therefore shortfall/excess realization will
affect the financial results. 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 inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business except that
instructions for physical verification of inventory were issued orally
and not documented.
c) The Company has maintained proper records of inventories. As
explained to us, the discrepancies noticed on physical verification of
inventories as compared to the book records were not material.
3. In respect of the loans, secured or unsecured, granted by the
Company to companies, firms or other parties covered in the register
maintained under Section 189 of the Companies Act, 2013:
(a) According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured to companies,
firms or other parties covered in the register maintained under section
189 of the Companies Act, 2013. Accordingly, the provisions of clause
3(iii) (a) and (b) of the Order are not applicable to the Company and
hence not commented upon.
(b) There is no overdue amount of loans granted to companies, firms or
other parties listed in the register maintained under section 189 of
the Companies Act, 2013.
4. 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, for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
major weakness or continuing failure to correct any major weakness in
the internal control system of the company in respect of these areas.
5. According to information and explanations given to us, the Company
has not invited or accepted any public deposit, hence the provisions of
section 73 to 76 or any other relevant provisions of the Companies Act,
2013 and the rules framed there-under are not applicable to the
Company.
6. According to the information and explanations provided by the
Company, the Central Government has not prescribed maintenance of cost
records under sub-section (1) of Section 148 of the Act. Accordingly,
clause 4(viii) of the Order is not applicable to the Company.
7. In respect of statutory dues:
a) According to the records of the Company, the company is not regular
in depositing amount payable on account of undisputed statutory dues
including provident fund, sales tax, and other statutory dues with
appropriate authorities.
b) According to the information and explanations given to us,
undisputed dues in respect of provident fund, value added tax,
professional tax which were outstanding, at the year end, for a period
of more than six months from the date they became payable are of Rs.
11.60 lacs.
c) According to the information and explanations given to us, there are
no dues of income tax, sales-tax, wealth tax, service tax, customs
duty, excise duty, value added tax and cess which have not been
deposited on account of any dispute.
d) There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company in accordance
with the relevant provisions of the Companies Act, 1956 (1 of 1956) and
rules made there under.
8. The Company's accumulated losses at the end of the financial year
are less than fifty per cent of its net worth but it has incurred cash
losses in the current year only and not in the immediately preceding
financial year.
9. Based on our audit procedures and as per the information and
explanations given by the management, the Company has defaulted in the
repayment of loan and interest on loan to the financial institutions
and banks. The company does not have provisions of interest payable to
bank/NBFC amounting to Rs. 127.42 lacs in view of default.
10. 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.
11. In our opinion and according to the information and explanation
given to us, the Company had not raised any term loan during the year.
12. Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the year.
FOR, S KANSAL & ASSOCIATES,
CHARTERED ACCOUNTANTS,
Sachin Kansal
Proprietor
M. No:-137191 Date: 22.08.2015
Firm Reg No: - 134937W Place: Ahmedabad
Mar 31, 2014
We have audited the accompanying financial statements of M/s Anshu''s
Clothing Limited ("the Company"), which comprise the Balance Sheet as
at March 31, 2014 and also the Statement of Profit and Loss and Cash
Flow Statement for the year ended on that annexed thereto, and a
summary of the significant accounting policies and other explanatory
information.
Management''s Responsibility for the Financial Statements:
The Company''s 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 Flow of the Company in
accordance with the 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.
Auditors'' Responsibility:
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted the 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 misstatements.
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 the 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.
Basis of Qualified Opinion:- Attention is drawn to:
A) In respect of balances of receivables and payables confirmation and
reconciliation is unsecured and doubtful. Impact is uncertain and
cannot be commented by us. For receivables considered doubtful and no
provision has been created in the books of accounts.
B) Claims & Discounts payable to the debtors/creditors are subject to
confirmations, adjustments and realization are not ascertained.
C) Valuation and verification of inventories is as taken, valued and
certified by the management, the impact of any variation on the
statement of Profit and Loss and state of affairs not being
ascertained.
Qualified 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 subject to the our observations and notes:
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014; and
(ii) In the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date.
(iii) In case of Cash Flow Statement, of the Cash Flows of the Company
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 Section
227(4A) 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. Except as stated in under the head " Basis of Qualified Report" 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 accounts as required by law have
been kept by the Company so far as it appears from our examination of
those books.
c. The Balance Sheet and the Statement of Profit and Loss Account and
the Cash Flow Statement dealt with by this Report are in agreement with
the books of account.
d. In our opinion, the Balance Sheet and the Statement of Profit and
Loss Account and the Cash Flow Statement comply with the notified under
the Act read with the General Circular 15/2013 dated 13th September,
2013 of the Ministry of Corporate Affairs in respect of section 133of
the Companies Act, 2013.
e. On the basis of the written representations received from the
directors as on March 31, 2014, taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2014,
from being appointed as a director in terms of Section 274(1) (g) of
the Act.
Referred to in Paragraph 1 under the heading of "report on other legal
and regulatory requirements" of our report of even date
1. In respect of the Company''s fixed assets:
a) The Company has maintained records of fixed assets in the books of
accounts.
b) Physical verification of fixed assets not carried out and their
realizable value is not ascertainable. As explained to us, all 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 fixed
assets.
c) In our opinion, the Company has not disposed of substantial part of
its fixed assets during the year and the going concern status of the
Company is not affected.
2. In respect of the Company''s inventories:
a) Realizable value of inventories not ascertained in view of no
physical verification of inventories and same is accepted as per the
management declaration and therefore shortfall/excess realization will
affect the financial results. 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 the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company has maintained proper records of inventories. As
explained to us, the discrepancies noticed on physical verification of
inventories as compared to the book records were not material and have
been properly dealt with in the books of account.
3. In respect of the 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) As explained, the company has taken interest free unsecured loan
from one party covered in the register maintained under Section 301 of
the Act. The maximum amount involved during the year and the year-end
balance of such loans aggregates to Rs. 18.22 Lacs & Rs. 18.22 lacs
respectively.
(b) The company has also given the interest free loan to one party
covered in the register maintained under section 301 of the Act. The
maximum amount involved during the year and the year-end balance of
such loans aggregates to Rs. 69.33 Lacs & Rs. 8.82 lacs respectively.
(c) The Company has given interest free loans in the nature of loan, to
one party covered in the register maintained under section 301 of the
Act.
(d) In our opinion the rate of interest and other terms and conditions
on which loans have been granted to companies, firms or other parties
listed in the registers maintained under Section 301 are not, prima
facie, prejudicial to the interest of the company.
4. In our opinion and according to the information and explanations
given to us, there are generally adequate internal control systems
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 and services during the course of our audit. In our
opinion and according to the information and explanations given to us,
there is no continuing failure to correct major weakness in internal
control system.
5. In respect of the contracts or arrangements referred to in 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, 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 made in pursuance of contracts or
arrangements entered in the register maintained u/s. 301 of the
Companies Act, 1956 in respect of any party during the year have been
made at prices which are reasonable having regard to prevailing market
prices at the relevant time.
6. According to information and explanations given to us, the Company
has not invited or accepted any public deposit, hence the provisions of
section 58A, 58AA and any other relevant provision of the Companies
Act, 1956 and the rules framed there-under are not applicable to the
Company and no order under the aforesaid section have been passed by
the Company Law Board or National Company Law Tribunal or Reserve Bank
of India or any court or any tribunal, on the Company.
7. The Company does not have formal internal audit system but there
are adequate checks and controls at all levels. The management has
informed us that the steps are being taken to introduce internal audit
system commensurate with the size and nature of its business.
8. According to the information and explanations provided by the
Company, the Central Government has not prescribed maintenance of cost
records under clause (d) of sub-section (1) of Section 209 of the Act.
Accordingly, clause 4(viii) of the Order is not applicable to the
Company.
9. In respect of statutory dues:
a) According to the records of the Company, the company is not regular
in depositing amount payable on account of undisputed statutory dues
including provident fund, sales tax, wealth tax, service tax, TDS
payable and other material statutory dues with appropriate authorities,
wherever applicable to it subject to the details herein below.
b) According to information and explanations given to us, the company
has not deposited amount of undisputed statutory dues related to VAT
amounting Rs. 9.32 lacs which is more than six months.
c) We have not examined outstanding of other statutory dues. The
Company does not have accumulated losses at the end of the financial
year.
10. The company has not incurred any cash losses during the financial
year 2013-14 according to accounts but the same be read with notes
related to Profit and Loss Account covered by the audit and in the
immediately preceding financial year as per audited accounts.
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
defaulted in the repayment of loan and interest on loan to the
financial institutions and banks. The company does not have provisions
of interest payable to bank/NBFC amounting to Rs. 80.92 lacs in view of
default.
12. According to information and explanations given to us, and based
on the documents and records produced before us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities. Therefore the provisions of
clause 4(xii) of the Order are not applicable to the Company.
13. In our opinion, the Company is not a chit fund or a nidhi /mutual
benefit fund/society. Therefore, the provisions of clause (xiii) of
paragraph 4 of the Companies (Auditors Report) Order 2003 are not
applicable to the Company.
14. In our opinion, the Company is not dealing in or trading in
shares, securities, Debentures and other investments. Accordingly, the
provisions of Clause (xiv) of paragraph 4 of the Companies (Auditor''s
Report) Order, 2003 are not applicable to the Company. However, as and
when the Company deals in shares and securities, proper entries are
made in records maintained for the purpose.
15. 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.
16. In our opinion and according to the information and explanation
given to us, the Company had not raised any term loan and therefore the
provisions of Clause (xvi) of the Para 4 of the Companies Auditor''s
Report) Order 2003 are not applicable to the Company.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, prima
facie, we report that no funds raised on short term basis have been
used for long term investment or vice versa.
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 issued any debentures and therefore the
question of creating security & charge in respect thereof does not
arise.
20. The Company has not raised money by public issues 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
FOR, JSKG & CO.,
CHARTERED ACCOUNTANTS
Sachin Kansal
Partner
M. No:-137191 Date: 27.08.2014
Firm Reg No: - 138035W Place: Ahmedabad
Mar 31, 2013
Report on the Financial Statements:
I have audited the accompanying financial statements of M/s Anshu''s
Clothing Limited ("the Company"), which comprise the Balance Sheet
as at March 31, 2013 and also the Statement of Profit and Loss and Cash
Flow Statement for the year ended on that annexed thereto, and a
summary of the significant accounting policies and other explanatory
information.
Management''s Responsibility for the Financial Statements:
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position and financial performance of the Company in accordance with
the accounting principles generally accepted in India including
Accounting Standards referred to in 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 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. I conducted the audit in accordance with
the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that I comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatements.
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 the management, as well as evaluating the overall presentation of
the financial statements.
I believe that the audit evidence I 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 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:
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013; and
(ii) In the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date.
(iii) In case of Cash Flow Statement, of the Cash Flows of the Company
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 Section 227(4A) of the Act, I 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, I report that:
a. I 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 my opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books.
c. The Balance Sheet and the Statement of Profit and Loss Account and
the Cash Flow Statement dealt with by this Report are in agreement with
the books of account.
d. in my opinion, the Balance Sheet and the Statement of Profit and
Loss Account and the Cash Flow Statement comply with the Accounting
Standards referred to in section 211(3C) of the Act;
e. On the basis of the written representations received from the
directors as on March 31, 2013, taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2013,
from being appointed as a director in terms of Section 274(1) (g) of
the Act.
Referred to in Paragraph 1 under the heading of "report on other legal
and regulatory requirements" of our report of even date
1. In respect of the Company''s fixed assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b) As explained to us, all the fixed assets have 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 fixed assets. No material
discrepancies were noticed on such physical verification.
c) In our opinion, the Company has not disposed of substantial part of
its fixed assets during the year and the going concern status of the
Company is not affected.
2. In respect of the Company''s inventories:
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 the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company has maintained proper records of inventories. As
explained to us, the discrepancies noticed on physical verification of
inventories as compared to the book records were not material and have
been properly dealt with in the books of account.
3. In respect of the 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) According to the information & explanations given to us, the Company
has not granted any loan to companies, firms or other parties covered
in the register maintained u/s. 301 of the Companies Act, 1956.
b) According to the information and explanation given to us, the
Company during the year has not taken any Unsecured Loan from the
Companies, firms and other parties covered in the register maintained
u/s 301 of the Companies Act, 1956.
c) In our opinion and according to the information and explanation
given to us, the rate of interest, wherever applicable and other terms
& conditions are not prima facie prejudicial to the interest of the
Company.
d) In our opinion and according to the information and explanation
given to us, the interest payments are regular and the principal amount
is repayable on demand.
e) There is no overdue amount in respect of loans taken by the Company.
4. In our opinion and according to the information and explanations
given to us, there are generally adequate internal control systems
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 and services during the course of our audit. In our
opinion and according to the information and explanations given to us,
there is no continuing failure to correct major weakness in internal
control system.
5. In respect of the contracts or arrangements referred to in 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, 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 made in pursuance of contracts or
arrangements entered in the register maintained u/s. 301 of the
Companies Act, 1956 in respect of any party during the year have been
made at prices which are reasonable having regard to prevailing market
prices at the relevant time.
6. According to information and explanations given to us, the Company
has not invited or accepted any public deposit, hence the provisions of
section 58A, 58AA and any other relevant provision of the Companies
Act, 1956 and the rules framed there-under are not applicable to the
Company and no order under the aforesaid section have been passed by
the Company Law Board or National Company Law Tribunal or Reserve Bank
of India or any court or any tribunal, on the Company.
7. The Company does not have formal internal audit system but there
are adequate checks and controls at all levels. The management has
informed us that the steps are being taken to introduce internal audit
system commensurate with the size and nature of its business.
8. According to the information and explanations provided by the
Company, the Central Government has not prescribed maintenance of cost
records under clause (d) of sub-section (1) of Section 209 of the Act.
Accordingly, clause 4(viii) of the Order is not applicable to the
Company.
9. In respect of statutory dues:
a) According to the records of the Company, the company is depositing
with late payment being amount payable on account of undisputed
statutory dues including provident fund, sales tax, wealth tax, service
tax, and other material statutory dues with appropriate authorities,
wherever applicable to it.
b) According to information and explanation given to us, there are no
undisputed amounts payable in respect of Income Tax, Sales Tax, Service
Tax, and other statutory bodies which have remained outstanding as on
31st March, 2013 for a period of more than six months from the date
they become payable.
c) According to information and explanations given to us, there are no
statutory dues which have not been deposited on account of any dispute.
The Company does not have accumulated losses at the end of the
financial year.
10. The company has not incurred any cash losses during the financial
year covered by the audit and 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 the repayment of dues to financial institutions and banks.
The Company does not hold any debentures.
12. According to information and explanations given to us, and based
on the documents and records produced before us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities. Therefore the provisions of
clause 4(xii) of the Order are not applicable to the Company.
13. In our opinion, the Company is not a chit fund or a nidhi /mutual
benefit fund/society. Therefore, the provisions of clause (xiii) of
paragraph 4 of the Companies (Auditors Report) Order 2003 are not
applicable to the Company.
14. In our opinion, the Company is not dealing in or trading in
shares, securities, Debentures and other investments. Accordingly, the
provisions of Clause (xiv) of paragraph 4 of the Companies (Auditor''s
Report) Order, 2003 are not applicable to the Company. However, as and
when the Company deals in shares and securities, proper entries are
made in records maintained for the purpose.
15. 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.
16. In our opinion and according to the information and explanation
given to us, the Company had not raised any term loan and therefore the
provisions of Clause (xvi) of the Para 4 of the Companies Auditor''s
Report) Order 2003 are not applicable to the Company.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, prima
facie, we report that no funds raised on short term basis have been
used for long term investment or vice versa.
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 issued any debentures and therefore the
question of creating security & charge in respect thereof does not
arise.
20. As informed to us, during the year, the Company has raised Rs.
505.44 lacs (Rupees Five Crores Five Lacs Forty Four Thousand Only) by
public issue of 18,72,000 equity shares of Rs. 27.00 per share including
share premium and accordingly the provisions of Clause 4(xx) of the
Order are applicable to the Company.
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.
FOR LOONIA & ASSOCIATES,
CHARTERED ACCOUNTANTS,
Hitesh Loonia Proprietor
M. No:-135424 Date: 26.08.2013
Firm Reg No: - 130883W Place: Ahmedabad