Mar 31, 2015
1. We have audited the accompanying standalone financial statements of
DHOOT INDUSTRIAL FINANCE LIMITED ("the Company"), which comprise the
Balance Sheet as at March 31, 2015, the Statement of Profit and Loss
and the Cash Flow Statement for the year then ended, and a summary of
the significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
2. The Company's Board of Directors is responsible for the matters
stated in section 134(5) of the Companies Act, 2013 ("the Act") with
respect to the preparation and presentation of these standalone
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the accounting principles generally accepted in India,
including the Accounting Standards specified under section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This
responsibility also includes maintenance of adequate accounting records
in accordance with the provisions of the Act for safeguarding the
assets of the Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility
3. Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
4. In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid standalone 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 March 31, 2015, and its profit and cash
flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
5. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government in terms of sub-section (11)
of section 143 of the Act, we give in the Annexure a statement on the
matters specified in paragraph 3 and 4 of the Order, to the extent
applicable.
6. As required by section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) In our 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, the statement of profit and loss and the cash
flow statement dealt with by this Report are in agreement with the
books of account;
(d) In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(e) On the basis of the written representations received from the
directors of the Company 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 of the Company in terms of
section 164 (2) of the Act;
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company does not have any pending litigations which would impact
its financial position;
ii. The Company did not have any long-term contracts as on March 31,
2015 including derivative contracts;
iii. There were no amounts which were required to be transferred as on
March 31, 2015 to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO INDEPENDENT AUDITOR'S REPORT
[Referred to in paragraph 5 of the Independent Auditor's Report of even
date to the members of the Company on the standalone financial
statements for the year ended March 31, 2015.]
On the basis of such checks, as we considered appropriate and in terms
of information and explanations given to us, we report that:
(i) (a) The Company is maintaining proper records to show full
particulars, including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the management
during the year. We are informed that no material discrepancies were
noticed by the management on such verification.
(ii) The Company is engaged in trading of chemicals, papers,
electronics and shares. All the goods purchased in respect of above
except (trading in shares) are directly supplied from the principal's
factory/warehouse to the respective consignee's. Hence there are no
stocks lying at the company's disposal at any point of time. Thus
requirements of Clause 3(ii)(a) regarding verification of the
inventory, Clause 3(ii)(b) regarding adequacy of physical verification
in relation to size of the company and Clause 3(ii)(c) regarding
maintenance of proper records of inventory are not applicable.
However, in respect of shares, held as Stock in Tarde, the Company
physically verifies the same lying in dematerialized or physical form
from time to time.
(iii) As per the information furnished 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.
(a) Accordingly, Clause (iii)(a) relating to regularity of receipt of
principal amount and interest and Clause (iii)
(b) relating to steps taken for recovery of overdue principal and
interest of more than rupees one lakh, are not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory and fixed assets and for the sale of goods.
During the course of our audit, no major weakness has been noticed in
the internal control system.
(v) During the year the Company has not accepted any deposits from
public. Accordingly provisions of section 73 to 76 of the Act and other
relevant provisions of the Act and the Rules framed there under and the
directives issued by the Reserve Bank of India are not applicable.
As informed to us, No order has been passed by Company Law Board or
Reserve Bank of India or any Court or any other Tribunal during the
year.
(vi) The maintenance of cost records has not been specified by the
Central Government under subsection (1) of section 148 of the Act, read
with Rule 3 of the Companies (Cost Records and Audit) Rules, 2014
notified by Ministry of Corporate Affairs, Government of India vide
notification dated June 30th, 2014.
(vii) (a) According to the information and explanations given to us and
the records examined by us, the Company has generally been regular in
depositing with appropriate authorities undisputed statutory dues
(except in respect of Service Tax Deposits, where there were delays)
being Income tax and other material statutory dues. There are
undisputed arrears of Gujarat Value Added Tax amounting to Rs,10.75 lacs
outstanding as at March 31, 2015 for a period of more than six months
from the date they became payable.
(b) According to the information and explanation given to us, there are
no outstanding dues which have not been deposited with any statutory
authority on account of disputes.
(c) According to the information and explanations given to us, during
the year there were no amounts required to be transferred to Investor
Education and Protection Fund.
(viii) There are no accumulated losses of the Company as on March 31,
2015. The Company has not incurred any cash losses during the financial
year covered by our audit and in the immediately preceding financial
year.
(ix) As per the information and explanation given to us, the Company
has not defaulted in the repayment of dues to the Bank during the year.
(x) As per the information and explanations given to us, the Company
has not given any guarantee for loan taken by others from banks or
financial institutions.
(xi) As per the information and explanations given to us, during the
year the term loans have been applied for the purpose for which they
were obtained.
(xii) Based on the audit procedures performed and information and
explanations given to us by the management, we report that no fraud on
or by the Company has been noticed or reported during the course of our
audit.
For BANSI S. MEHTA & CO.
Chartered Accountants
Firm Registration No.100991W
HARESH G. BUCH
Place: Mumbai Partner
Date: 29th May, 2015 (Membership No.33114)
Mar 31, 2014
1. We have audited the accompanying financial statements of Dhoot
Industrial Finance Ltd. ("the Company") which comprise the Balance
Sheet as at March 31,2014, 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
2. Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India including
Accounting Standards 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
CompaniesAct, 2013 . This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and fair 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
3. 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.
4. An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s judgement, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
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 that we have obtained is sufficient
and appropriate to provide a basis for our opinion.
Opinion
5. 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 Balance Sheet, of the state of affairs of the
Company as at March 31,2014;
ii. in the case of Statement of Profit and Loss , of the profit for
the year ended on that date; and
iii. in the case of Cash Flow Statement, of the Cash Flow for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
6. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order"), as amended by the Companies (Auditor''s Report) (Amendment)
Order, 2004, issued by the Central Government in terms of Section
227(4A) of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in the paragraphs 4 and 5 of the
Order.
7. 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, the 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, the Statement of Profit and Loss
and Cash Flow Statement comply with the Accounting Standards 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 133 of the Companies Act, 2013;
e. On the basis of the written representations received from the
directors of the Company as on March 31,2014, taken on record by the
Board of Directors, we report that 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."
Annexure referred to in paragraph 5 of the Auditors'' Report of even
date to the members of DHOOT INDUSTRIAL FINANCE LIMITED on the accounts
for the year ended March 31, 2014.
(i) (a) The Company is maintaining proper records to show full
particulars, including quantitative details and situation of fixed
assets.
(b) The fixed Assets have been physically verified by the management
during the year. We are informed that no material discrepancy were
noticed by the management on such verification.
(c) The Company has not disposed off any substantial part of its Fixed
Assets during the year.
(ii) The Company is engaged in trading of chemicals, papers,
electronics, commodities and shares. All the goods purchased in respect
of above (except trading in shares and commodities) are directly
supplied from the principal''s factory/warehouse to the respective
consignees. Hence, there are no stocks lying at the Company''s disposal
at any point of time. Thus requirements of clause 4 (ii)(a) regarding
verification of the Inventory, clause 4 (ii)(b) regarding adequacy of
physical verification in relation to size of the company and clause 4
(ii)(c) regarding maintenance of proper records of inventory, are not
applicable.
However, in respect of shares, held as Stock in Tarde, the Company
physically verifies the same lying in dematerialised or physical form
from time to time.
(iii) (a) As per the information furnished, the Company has not granted
any loans, secured or unsecured, to companies, firms or other parties
covered in the register maintained under Section 301 of the Companies
Act, 1956.
Accordingly, Clause (iii)(b) relating to the rate of interest and terms
and conditions being prima facie prejudicial to the Company, Clause
(iii)(c) relating to regularity of receipt of principal amount and
interest and Clause (iii)(d) relating to steps taken for recovery of
overdue principal and interest of more than rupees one lac, are not
applicable.
(b) As per information furnished, the Company has taken interest free
unsecured loans aggregating to Rs. 562.97 lacs from three parties
covered in the register maintained under section 301 of the Act and has
repaid Rs. 37.375 lacs during the year.
(c) As regards to interest-free loan taken from the company covered in
the register maintained under Section 301 of the Act, no other terms
and conditions, including for repayment thereof, have been stipulated
and hence, the question of making any comment whether the rate of
interest and other terms and conditions of loan are prima facie
prejudicial to the interest of the Company does not arise.
(d) As regards to interest-free loan taken from the company covered in
the register maintained under Section 301 of the Act, no other terms
and conditions, including repayment thereof, have been stipulated and
hence, the question of making any comment whether the payment of
principal is regular does not arise.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, no major weakness has been
noticed in the internal control system.
(v) (a) Based on the audit procedures applied by us and according to
the information and explanations provided to us, we are of the opinion
that the particulars of contracts or arrangements referred to in
Section 301 of the Act have been entered in the register required to be
maintained under that Section; and
(b) According to the information and explanations given to us, the
transactions made in pursuance of such contracts or arrangements
entered in the Register maintained under Section 301 of the Companies
Act, 1956 and exceeding the value of rupees five lacs in respect of
each party during the year, have been made at prices which are
reasonable, having regard to prevailing market prices at the relevant
time, wherever applicable.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
during the year and hence the question of complying with the provisions
of Section 58A, 58AA of the Companies Act, 1956 and the rules framed
thereunder and the directives issued by the Reserve Bank of India does
not arise.
(vii) In our opinion and according to the explanations given to us, the
Company has an internal audit system commensurate with its size and
nature of its business.
(viii) We are informed that the Company is in the process of
maintaining the cost records prescribed under Section 209 (1)(d) of the
Companies Act, 1956 read with Notification dated 3rd June, 2011 and
dated 7th December, 2011 issued by Ministry of Corporate Affairs
prescribing The Companies (Cost Accounting Records) Rules, 2011.
Accordingly, we are unable to comment as to whether such accounts and
records have been made or maintained.
(ix) (a) According to the information and explanations given to us and
the records examined by us, the Company has generally been regular in
depositing with appropriate authorities undisputed statutory dues
including income-tax, wealth-tax and other material statutory dues
wherever applicable and there are no undisputed arrears of above
mentioned statutory dues outstanding as at March 31, 2014 for a period
of more than six months from the date they became payable.
(b) According to the information and explanation given to us, there are
no outstanding dues which have not been deposited with any statutory
authority on account of disputes.
(x) The Company does not have any accumulated losses and it has not
incurred any cash losses during the financial year covered by our audit
and the immediately preceding financial year.
(xi) Based on the audit procedures applied by us and according to the
information and explanations given to us, we are of the opinion that
the Company has not defaulted in repayment of dues to banks in the
financial year under audit.
(xii) Based on our examination of the records and the information and
explanations given to us, the Company has not granted any loans and /
or advances on the basis of security by way of pledge of shares,
debentures and other securities.
(xiii) As the Company is not a Chit fund / Nidhi / Mutual benefit fund
/ Society, clause 4 (xiii) of the Order is not applicable.
(xiv) Based on the audit procedures applied by us and according to the
information and explanations given to us, the Company has maintained
proper records of the transactions and contracts in respect of trading
activities in shares and timely entries have been made therein. All the
shares are held by the Company in its own name.
(xv) As the Company has not given any guarantee for loans taken by
others from Banks or Financial Institutions, clause 4 (xv) of the Order
is not applicable.
(xvi) According to the information and explanations given to us, as the
Company has not taken any term loan during the year, clause 4 (xvi) of
the Order is not applicable.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that the funds raised on short term basis have not been utilised for
long term investments.
(xviii) According to the information and explanation given to us, as
the Company has not made any preferential allotment of shares during
the year, clause 4 (xviii) of the Order is not applicable.
(xix) According to the information and explanations given to us, the
Company has not issued any debentures and hence, the question of
creating security or charges in respect thereof does not arise.
(xx) As the Company has not raised any money by public issue during the
year, clause 4 (xx) of the Order is not applicable to the Company.
(xxi) Based on the audit procedures performed and information and
explanations given to us by the management, we report that no fraud on
or by the Company has been noticed or reported during the course of our
audit.
For BANSI S. MEHTA & CO.
Chartered Accountants
Firm Registration No.100991W
HARESH G. BUCH
Place: Mumbai Partner
Date: 30th May 2014 (Membership No.33114)
Mar 31, 2013
Report on the Financial Statements
1. We have audited the accompanying financial statements of Dhoot
Industrial Finance Limited, which comprise the Balance Sheet as at
March 31, 2013 and the Statement of Profit and Loss and the Cash Flow
Statement for the year ended on that date, and Significant Accounting
policies and other explanatory information.
Management''s Responsibility for the Financial Statements
2. Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This r responsibility includes
the design, implementation and maintenance of intssnal control relevant
to the preparation and fair presentation of the financial statements
that are free from material misstatement, whether due to fraud or
error.
Auditor''s Responsibility
3. Our responsibility is to express an opinion on these financial
statements based on our audit. 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.
Opinion
4. !n our opinion, and to the best of our information and according to
the explanations given to us, they said accounts read with the
Significant Accounting Policies and Other Explanatory Information
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:
i in the case ct the Balance Sheet of the state of affairs of the
Company as at March 31, 2013,
ii. In the case of the Statement of Profit & Loss of the profit for
the year ended on that date, and
iii. In the case of Cash Flow Statement, of the cash flows for the year
ended on that date
Report on Other Legal and Regulatory Requirements
5. As required by the Companies'' (Auditor''s Report) Order, 2003, as
amended, issued by the Central Government in terms of Section 227(4A)
of the Companies Act, 1956, we enclose in the Annexure a Statement, on
the basis of such checks as we considered appropriate and the
information and explanations given to us, on the matters specified in
paragraph 4 of the said Order,
6. As required by Section 227(3) of the Act, 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 such
books.
iii The Balance Sheet, Statement of Profit & Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
iv. In our opinion, the Balance Sheet, Statement of Profit & Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956.
v. On the basis of the written representation received from the
Directors of the Company and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on March 31,
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 referred to in paragraph 5 of the Auditors'' Report of even
date to the members of DHOOT INDUSTRIAL FINANCE LIMITED on the accounts
for the year ended March 31,2013.
(i) (a) The Company is maintaining proper records to show full
particulars, including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the management
during the year. We are informed that no material discrepancies were
noticed by the management on such verification.
(c) The Company has not disposed off any substantial! part of its Fixed
Assets during the year.
(ii) The Company is engaged in trading of chemicals, papers,
commodities and shares. All the goods purchased in respect of above
(except trading in shares and commodities) are directly supplied from
the principal''s factory Avare house to the respective consignees.
Hence, there are no stocks lying at the Company''s disposal at any
point of time. Thus requirements of clause 4 (ii)(a) regarding
verification of the Inventory, clause 4 (ii)(b) regarding adequacy of
physical verification in relation to size of the company and clause
4 (ii)(c) regarding maintenance of proper records of inventory, are not
applicable. However, in respect of shares, held as Steck in Trade, the
Company physically verifies the same lying in dematerialized or
physical form from time to time.
(iii) (a) As per the information furnished, the Company has not granted
any loans, secured or unsecured, to companies, firms or other parties
covered in the register maintained under Section 301 of the Companies
Act, 1956.
(b) Accordingly, Clause (iii)(D) relating to the rate of interest and
terms and conditions being prima facie prejudicial to the Company,
Clause (iii)(c) relating to regularity of receipt of principal amount
and interest and Clause (iii)(d) relating to steps taken for recovery
of overdue principal and interest of more than rupees one lac, are not
applicable.
(c) As per information furnished, the Company has taken interest free
unsecured loans aggregating to Rs 1,213.98 lacs from three parties
covered in the register maintained under section 301 of the Act and has
repaid Rs 979.05 lacs during the year.
(d) In our opinion and according to explanation and information given
to us, the rate of interest wherever applicable and other terms and
conditions of such unsecured loan taken by the Company are not prima
facie prejudicial to interest of the Company.
(e) As per the information given to us, the terms of repayment of such
loans and interest have not been stipulated, hence the question of
commenting as regards regularity in repaying the principal amounts and
interest does not arise.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal! control systems commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, no major weakness has been
noticed in the internal control system.
(v) (a) Based on the audit procedures applied by us and according to
the information and explanations provided to us, we are of the opinion
that the particulars of contracts or arrangements referred to in
Section 301 of the Act have been entered in the register required to be
maintained under that Section; and
(b) According to the information and explanations given to us, the
transactions made in pursuance of such contracts or arrangements
entered in the Register maintained under Section 301 of the Companies
Act, 1956 and exceeding the value of rupees five lacs in respect of
each party during the year, have been made at prices which are
reasonable, having regard to prevailing market prices at the relevant
time, wherever applicable.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
during the year and hence the question of complying with the provisions
of Section 58A, 58AA of the Companies Act, 1956 and the rules framed
there under and the directives issued by the Reserve Bank of India does
not arise.
(vii) In our opinion and according to the explanations given to us, the
Company has an internal audit system commensurate with its size and
nature of its business.
(viii) We are informed that the Company is in the process of
maintaining the cost records prescribed under Section 209 (1)(d) of the
Companies Act, 1956 read with Notification dated 3rd June, 2011 and
dated 7th December, 2011 issued by Ministry of Corporate Affairs
prescribing The Companies (Cost Accounting Records) Rules, 2011.
Accordingly, we are unable to comment as to whether such accounts and
records have been made or maintained.
(ix) (a) According to the information and explanations given to us and
the records examined by us, the Company has generally been regular in
depositing with appropriate authorities undisputed statutory dues
including income-tax, wealth-tax and other material statutory dues
wherever applicable and there are no undisputed arrears of above
mentioned statutory dues outstanding as at March 31, 2013 for a period
of more than six months from the date they became payable.
(b) According to the information and explanation given to us, there are
no outstanding dues which have not been deposited with any statutory
authority on account of disputes.
(x) The Company does not have any accumulated losses and it has not
incurred any cash losses during the financial year covered by our audit
and the immediately preceding financial year.
(xi) Based on the audit procedures applied by us and according to the
information and explanations given to us, we are of the opinion that
the Company has not defaulted in repayment of dues to banks in the
financial year under audit.
(xii) Based on our examination of the records and the information and
explanations given to us, the Company has not granted any loans and /
or advances on the basis of security by way of pledge of shares,
debentures and other securities.
(xiii) As the Company is not a Chit fund / Nidhi / Mutual benefit fund
/ Society, clause 4 (xiii) of the Order is not applicable.
(xiv) Based on the audit procedures applied by us and according to the
information and explanations given to us, the Company has maintained
proper records of the transactions and contracts in respect of trading
activities in shares and timely entries have been made therein. All the
shares are held by the Company in its own name.
(xv) As the Company has not given any guarantee for loans taken by
others from Banks or Financial Institutions, clause 4 (xv) of the Order
is not applicable.
(xvi),. RsAccording to the information and explanations given to us, as
the Company has not taken any term loan during the year, clause 4 (xvi)
of the Order is not applicable.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that the funds raised on short term basis have not been utilised for
long term investments.
(xviii) According to the information and explanation given to us, as
the Company has not made any preferential allotment of shares during
the year, clause 4 (xviii) of the Order is not applicable.
(xix) According to the information and explanations given to us, the
Company has not issued any debentures and hence, the question of
creating security or charges in respect thereof "does not arise.
(xx) As the Company has not raised any money by public issue during the
year, clause 4 (xx) of the Order is not applicable to the Company.
(xxi) Based on the audit procedures performed and information and
explanations given to us by the management, we report that no fraud on
or by the Company has been noticed or reported during the course of our
audit.
For BANSI S. MEHTA& CO.
Chartered Accountants
Firm Registration No. 100991W
HARESHG BUCH
Place : Mumbai Partner
Dated : May 30, 2013 Membership No: 33114
Mar 31, 2012
1) We have audited the attached Balance Sheet of DHOOT INDUSTRIAL
FINANCE LIMITED as at March 31, 2012 and the Statement of Profit and
Loss and the Cash Flow Statement of the Company 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 amount and
disclosures in the 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.
3) As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government in terms of Section 227(4A) of the Companies
Act, 1956, we enclose in the Annexure a statement on the matters
specified in the paragraph 4 and 5 of the said Order.
4) Further to our comments in the Annexure referred to in paragraph 3
above:
a) 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;
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 such
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 attached Balance Sheet, Statement of Profit and
Loss and Cash Flow Statement comply with the applicable Accounting
Standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956;
e) On the basis of the written representations received from the
Directors, as on March 31, 2012 and taken on record by the Board of
Directors and further certified by the Company, we report that none of
the directors are disqualified as on March 31, 2012 from being
appointed as a Director in terms of Clause (g) of Sub-Section (1) of
Section 274 of the Companies Act, 1956; and
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, together with notes
thereon, give the information required by the Companies Act, 1956, in
the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India :
i) In the case of Balance Sheet, of the state of affairs of the Company
as at March 31, 2012;
ii) In the case of Statement of Profit and Loss, of the profit for the
year ended on that date; and
iii) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO THE AUDITORS REPORT
Annexure referred to in paragraph 3 of the Auditor's Report of even
date on the accounts of DHOOT INDUSTRIAL FINANCE LIMITED for the year
ended March 31, 2012
i. a. The Company is maintaining proper records to show full
particulars, including
quantitative details and situation of fixed assets.
b. As per information and explanation given to us, physical
verification of fixed assets has been conducted by the management
during the year.
No material discrepancies were noticed on such verification.
c. There has been no disposal of substantial part of the fixed assets
during the year, which may affect the going concern status of the
Company.
ii. The Company is engaged in trading of chemicals, papers,
electronics, and shares. All the goods purchased in respect of above
(except trading in shares) are directly supplied from the principal's
factory/warehouse to the respective consignees. Hence, there are no
stocks lying at the Company's disposal at any point of time. Thus
requirements of clause 4 (ii)(a) regarding verification of the
Inventory, clause 4 (ii)(b) regarding adequacy of physical verification
in relation to size of the company and clause 4 (ii)(c) regarding
maintenance of proper records of inventory, are not applicable.
However, in respect of shares, held as Stock in Trade, the Company
physically verifies the same lying in dematerialized or physical form,
from time to time.
iii. a. As per information furnished, the Company has granted unsecured
loan of Rs.25 lacs to
one company covered in the register maintained under section 301 of the
Companies Act, 1956. The Company has received Rs.25 lacs during the year.
b. Rate of interest and other terms and conditions of unsecured loan
given by the Company are prima facie prejudicial to interest of the
Company.
c. Receipt of the principal amount and interest are regular.
d. Thus requirements of clause iii(d) does not apply.
e. The Company has taken unsecured loans aggregating to Rs.602.5 lacs
during the year from two parties covered in the register maintained
under Section 301 of the Companies Act 1956. The Company has repaid
Rs.303.75 lacs (including balance of loans taken in earlier years) during
the year.
f. Rate of interest and other terms and conditions of unsecured loan
taken by the Company are prima facie prejudicial to interest of the
Company.
g. As per the information given to us, the terms of repayment of such
loans and interest have not been stipulated; hence the question of
commenting as regards regularity in repaying the principal amounts and
interest does not arise.
iv. In our opinion and according to the information and explanations
given to us, there is an
adequate internal control system commensurate with the size of the
Company and the nature of its business through personal supervision of
management with regard to purchase of inventory, fixed assets and for
the sale of goods. During the course of our audit no major weakness has
been noticed in the internal control system.
v. a. Based on the audit procedures applied by us and according to the
information and
explanations given to us, we are of the opinion that the particulars of
contracts or arrangements referred to in section 301 of the Companies
Act, 1956, have been so entered.
b. According to the information and explanations given to us, the
transactions made in pursuance of such contracts or arrangements
entered into the register maintained under Section 301 of the Companies
Act, 1956 and exceeding the value of rupees five lakhs, have been made
at prices which are reasonable, having regard to the prevailing market
prices at the relevant time, wherever applicable.
vi. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
during the year and hence, the question of complying with the
provisions of Section 58A and Section 58AA of the Companies Act, 1956
and the Rules framed there under, as also the directives issued by the
Reserve Bank of India does not arise.
vii. Based on the information and explanations given to us, the Company
has an Internal Audit system commensurate with its size and the nature
of its business.
viii. According to the information and explanations given to us, as
the Central Government has not prescribed maintenance of cost records
under section 209 (1)(d) of the Companies Act, 1956, clause 4 (viii) of
the Order is not applicable.
ix. a. According to the information and explanations given to us and
the records examined by
us, the Company has generally been regular in depositing undisputed
statutory dues including Investors' Education and Protection Fund,
Income Tax, Sales Tax, Service Tax, Cess and other statutory dues,
applicable to it, with the appropriate authorities, during the year,
except for wealth tax as mentioned below
Sr.Financial
Year Amount Period for which
No. (Rs.) outstanding (months)
1 2007-08 2,950 54
2 2008-09 3,943 42
3 2009-10 15,661 30
b. According to the information and explanation given to us, there are
no dues of Income Tax, Sales Tax, Wealth Tax, Service Tax and Cess
which have not been deposited on account of any disputes.
x. The Company does not have any accumulated losses and it has not
incurred any cash
losses during the financial year covered by our audit and the
immediately preceding financial year.
xi. Based on the audit procedures applied by us and according to the
information and explanations given to us, we are of the opinion that
the Company has not defaulted in repayment of dues to banks in the
financial year under audit.
xii. Based on our examination of records and the information and
explanations given to us, the Company has not granted loans and /or
advances on the basis of security by way of pledge of shares,
debentures and other securities.
xiii. As the Company is not a Chit fund / Nidhi / Mutual benefit fund
/ Society, clause 4 (xiii) of the Order is not applicable.
xiv. Based on the audit procedures applied by us and according to the
information and explanations given to us, the Company has maintained
proper records of the transactions and contracts in respect of trading
activities in shares and timely entries have been made therein. All the
shares are held by the Company in its own name.
xv. As the Company has not given any guarantee for loans taken by
others from Banks or Financial Institutions, clause 4 (xv) of the Order
is not applicable.
xvi. According to the information and explanations given to us, as the
Company has not taken any term loan during the year, clause 4 (xvi) of
the Order is not applicable.
xvii.According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that the funds raised on short term basis have not been utilised for
long term investments.
xviii. According to the information and explanation given to us, as
the Company has not made any preferential allotment of shares during
the year, clause 4 (xviii) of the Order is not applicable.
xix. According to the information and explanation given to us, as the
Company has not issued any debentures during the year, the question of
creating securities or charges in respect thereof does not arise.
xx. As the Company has not raised any money by public issue during the
year, clause 4 (xx) of the Order is not applicable to the Company.
xxi. Based on the audit procedures performed and information and
explanations given to us by the management, we report that, no fraud on
or by the Company, has been noticed or reported during the course of
our audit.
For BANSI S. MEHTA & CO.0
Chartered Accountants
Firm Registration
No. 100991W HARESH G. BUCH
PLACE : MUMBAI Partner
DATED : MAY 31, 2012 Membership No: 33114
Mar 31, 2011
1) We have audited the attached Balance Sheet of DHOOT INDUSTRIAL
FINANCE LIMITED as at March 31, 2011 and the Profit and Loss Account
and the Cash Flow Statement of the Company 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 amount and
disclosures in the 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.
3) As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government in terms of Section 227(4A) of the Companies
Act, 1956, we enclose in the Annexure a statement on the matters
specified in the paragraph 4 and 5 of the said Order.
4) Further to our comments in the Annexure referred to in paragraph 3
above:
a) 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;
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 such
books;
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the attached Balance Sheet, Profit and Loss Account
and Cash Flow Statement comply with the applicable Accounting Standards
referred to in sub-section (3C) of Section 211 of the Companies Act,
1956;
e) On the basis of the written representations received from the
Directors, as on March 31, 2011 and taken on record by the Board of
Directors and further certified by the Company, we report that none of
the directors are disqualified as on March 31, 2011 from being
appointed as a Director in terms of Clause (g) of Sub-Section (1) of
Section 274 of the Companies Act, 1956; and
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, together with notes
thereon, give the information required by the Companies Act, 1956, in
the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India :
i) In the case of Balance Sheet, of the state of affairs of the Company
as at March 31, 2011;
ii) In the case of Profit and Loss Account, of the profit for the year
ended on that date; and
iii) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO THE AUDITORS REPORT
Annexure referred to in paragraph 3 of the Auditor's Report of even
date on the accounts of DHOOT INDUSTRIAL FINANCE LIMITED for the year
ended March 31, 2011
i. a. The Company is maintaining proper records to show full
particulars, including quan- titative details and situation of fixed
assets.
b. As per information and explanation given to us, physical
verification of fixed assets has been conducted by the management
during the year. No material discrepancies were noticed on such
verification.
c. There has been no disposal of substantial part of the fixed assets
during the year, which may affect the going concern status of the
Company.
ii. The Company is engaged in trading of chemicals, papers,
electronics, and shares. All the goods purchased in respect of above
(except trading in shares, debenture and other financial instruments)
are directly supplied from the Principal's factory/warehouse to the
respective Consignees, thus there are no stock lying at the company's
disposal at any point of time. Thus requirement of Clause 4 (ii)(a)
regarding verification of the Inventory, clause 4 (ii)(b) regarding
adequacy of physical verification in relation to size of the company
and clause 4 (ii)(c) regarding maintenance of proper records of
inventory, does not arise.
However in respect of shares, debenture and other financial instruments
held as Stock in Trade, the Company physically verifies the same lying
in Dematerialised or physical form, from time to time.
iii. a. As per information furnished, the Company has not granted any
loans secured / unsecured, to companies, firms or other parties covered
in the register maintained under section 301 of the Companies Act,
1956.
b. As the Company has not granted any such loans, Clause (iii)(b) of
the Order relating to the rate of interest and other terms and
conditions, whether prima facie prejudicial to the interest of the
Company, Clause (iii)(d) relating to regularity of the receipt of
principal amount and interest and Clause (iii)(d) relating to steps for
recovery of overdue amount of more than rupees one lakh, are not
applicable.
c. The Company has taken an unsecured loan amounting to Rs.. 335 Lacs
during the year from two parties covered in the register maintained
under Section 301 of the Companies Act 1956.
However the company has repaid Rs.. 334 Lacs during the year and The
maximum balance outstanding during the year was Rs.. 230 Lacs.
d. Based on the information and explanation given, the rate of
interest and other terms and conditions of the aforesaid sums lent were
prima facie not prejudicial to the interest of the company.
e. As verified from the records made available to us and according to
the information and explanations given to us, the terms of repayments
of such loans have not been stipulated; hence the question of our
commenting as regards regularity in repaying of the principal amounts
and interest does not arise.
iv. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business through
personal supervision of management with regard to purchase of
inventory, fixed assets and for the sale of goods. During the course of
our audit no major weakness has been noticed in the internal controls
system.
v. a. Based on the audit procedures applied by us and according to the
information and explanations given to us, we are of the opinion that
the particulars of contracts or arrangements referred to in section 301
of the Companies Act, 1956, have been so entered.
b. According to the information and explanations given to us, the
transactions made in pursuance of such contracts or arrangements
entered into the register maintained under Section 301 of the Companies
Act, 1956 and exceeding the value of rupees five lakhs, have been made
at prices which are reasonable, having regards to the prevailing market
prices at the relevant time, wherever applicable.
vi. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
during the year and hence, the question of complying with the
provisions of Section 58A and Section 58AA of the Companies Act, 1956
and the Rules framed there under, does not arise.
vii. In our opinion, based on the information and explanations given to
us, the Company has an Internal Audit System commensurate with its size
and the nature of its business operations.
viii. According to the information and explanations given to us, as the
Central Government has not prescribed maintenance of cost records under
section 209 (1)(d) of the Companies Act, 1956, clause 4 (viii) of the
Order is not applicable.
ix. a. According to the information and explanations given to us and
the records examined by us, the Company has generally been regular in
depositing undisputed statutory dues including Investors' Education and
Protection Fund, Income Tax, Sales Tax, Wealth Tax, Service Tax, Cess
and other statutory dues, applicable to it, with the appropriate
authorities, during the year, except for wealth tax as mentioned below
Sr. No. Financial Year Amount (Rs) Period for which outstanding
(Month)
1 2007-08 2,950 42
2 2008-09 3,943 30
3 2009-10 15,661 18
b. According to the information and explanation given to us, there are
no dues of Income Tax, Sales Tax, Wealth Tax, Service Tax and Cess
which have not been deposited on account of disputes.
x. The Company does not have any accumulated losses and it has not
incurred any cash losses during the financial year covered by our audit
and the immediately proceeding financial year.
xi. Based on the audit procedures applied by us and according to the
information and explanations given to us, we are of the opinion that
the Company has not defaulted in repayment of dues to banks in the
financial year under audit.
xii. Based on our examinations of records and the information and
explanations given to us, the Company has not granted loans and /or
advances on the basis of security by way of pledge of shares,
debentures and other securities.
xiii. As the Company is not a Chit fund / Nidhi / Mutual benefit fund /
Society, clause 4 (xiii) of the Order is not applicable.
xiv. Based on the audit procedures applied by us and according to the
information and explanations given to us, the Company has maintained
proper records of the transactions and contracts in respect of trading
activities in shares, securities, debentures and other investments and
timely entries have been made therein. All the shares, securities,
debentures and other investments are held by the Company in its own
name.
xv. As the Company has not given any guarantee for loans taken by
others from Banks or Financial Institutions, clause 4 (xv) of the Order
is not applicable to the Company.
xvi. According to the information and explanations given to us, as the
company has not taken any term loan during the year, clause 4 (xvi) of
the Order is not applicable.
xvii.According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that the funds raised on short term basis have not been utilised for
long term investments.
xviii.According to the information and explanation given to us, as the
Company has not made any preferential allotment of shares during the
year, clause 4 (xviii) of the Order is not applicable.
xix. According to the information and explanation given to us, as the
Company has not issued any debentures during the year, the question of
creating securities or charges in respect thereof does not arise.
xx. As the Company has not raised any money by public issue during the
year, clause 4 (xx) of the Order is not applicable to the Company.
xxi. Based on the audit procedures performed and information and
explanation given to us by the management, we report that, no fraud, on
or by the company, has been noticed or reported during the course of
our audit.
For BANSI S. MEHTA & CO.
Chartered Accountants
Firm Registration
No.100991W
PLACE : MUMBAI HARESH G. BUCH
DATED :12th July 2011 Partner
Membership No. 033114
Mar 31, 2010
1) We have audited the attached Balance Sheet of DHOOT INDUSTRIAL
FINANCE LIMITED as at March 31,2009 and the Profit and Loss Account and
the Cash Flow Statement of the Company for the year ended on that date,
annexed thereto. These financial statements are the responsibility of
the Companys management. Our responsibility is to express an opinion
on these financial statements based on our audit.
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 amount and
disclosures in the 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.
3) As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government in terms of Section 227(4A) of the Companies
Act, 1956, we enclose in the Annexure a statement on the matters
specified in the paragraph 4 and 5 of the said Order.
4) Further to ourcomments in the Annexure referred to in paragraph 3
above:
a) 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;
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 such
books;
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the attached Balance Sheet, Profit and Loss Account
and Cash Flow Statement comply with the applicable Accounting Standards
referred to in sub-section (3C) of Section 211 of the Companies Act,
1956;
e) On the basis of the written representations received from the
Directors, as on March 31, 2009 and taken on record by the Board of
Directors and further certified by the Company, we report that none of
the directors are disqualified as on March 31,2009 from being appointed
as a Director in terms of Clause (g) of Sub-Section (1) of Section 274
of the Companies Act, 1956; and
f) In our opinion and to the best of our information and according to
the explanations given to
us, the said accounts, together with notes thereon, give the
information required by the
Companies Act, 1956, in the manner so required and give a true and fair
view in conformity
with the accounting principles generally accepted in India:
i) In the case of Balance Sheet, of the state of affairs of the Company
as at March 31,
2009; ii) In the case of Profit and Loss Account of the profit for the
year ended on that date; and iii) In the case of Cash Flow Statement,
of the cash flows for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
Annexure referred to in paragraph 3 of the Auditors Report of even
date on the accounts of DHOOT INDUSTRIAL FINANCE LIMITED for the year
ended March 31,2010
i. a. The Company is maintaining proper records to show full
particulars, including quantitative details and situation of fixed
assets.
b. As per information and explanation given to us, physical
verification of fixed assets has been conducted by the management
during the year. No material discrepancies were noticed on such
verification.
c. There has been no disposal of substantial part of the fixed assets
during the year, which may affect the going concern status of the
Company.
ii. The Company is engaged in trading of chemicals, papers,
electronics, and shares. All the goods purchased in respect of above
(except trading in shares, debenture and other financial instruments)
are directly supplied from the Principals factory/warehouse to the
respective Consignees, thus there are no stock lying at the companys
disposal at any point of time. Thus requirement of Clause 4 (ii)(a)
regarding verification of the Inventory, clause 4 (ii)(b) regarding
adequacy of physical verification in relation to size of the company
and clause 4 (ii)(c) regarding maintenance of proper records of
inventory, does not arise.
However in respect of shares, debenture and other financial instruments
held as Stock in Trade, the Company physically verifies the same lying
in Demat or physical form, from time to time.
iii. a. As per information furnished, the Company has not granted any
loans secured / unsecured, to companies, firms or other parties covered
in the register maintained under section 301 of the Companies Act,
1956.
b. As the Company has not granted any such loans, Clause (iii)(b) of
the Order relating to the rate of interest and other terms and
conditions, whether prima facie prejudicial to the interest of the
Company, Clause (iii)(d) relating to regularity of the receipt of
principal amount and interest and Clause (iii)(d) relating to steps for
recovery of overdue amount of more than rupees one lakh, are not
applicable.
c._ The Company has taken an unsecured loan amounting to Rs.
2,05,00,000/- during the year from one party covered in the register
maintained under Section 301 of the Companies Act 1956.
However the company has repaid Rs. 1,49,00,000/- during the year and
The maximum balance outstanding during the year was Rs. 1,55,00,000/-.
d. Based on the information and explanation given, the rate of
interest and other terms and conditions of the aforesaid sums lent were
prima facie not prejudicial to the interest of the company.
e. As verified from the records made available to us and according to
the information and explanations given to us, the terms of repayments
of such loans have not been stipulated; hence the question of our
commenting as regards regularity in repaying of the principal amounts
and interest does not arise.
iv. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business through
personal supervision of management with regard to purchase of
inventory, fixed assets and for the sale of goods. During the course of
our audit no major weakness has been noticed in the internal controls
system.
v. a. Based on the audit procedures applied by us and according to the
information and explanations given to us, we are of the opinion that
the particulars of contracts or arrangements referred to in section 301
of the Companies Act, 1956, have been so entered.
b. According to the information and explanations given to us, the
transactions made in pursuance of such contracts or arrangements
entered into the register maintained under Section 301 of the Companies
Act, 1956 and exceeding the value of rupees five lakhs, have been made
at prices which are reasonable, having regards to the prevailing market
prices at the relevant time, wherever applicable.
vi. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
during the year and hence, the question of complying with the
provisions of Section 58A and Section 58AA of the Companies Act, 1956
and the Rules framed there under, does not arise.
vii. In our opinion, based on the information and explanations given to
us, the Company has an Internal Audit System commensurate with its size
and the nature of its business operations.
viii. According to the information and explanations given to us, as the
Central Government has not prescribed maintenance of cost records under
section 209(1)(d) of the Companies Act, 1956, clause 4 (viii) of the
Order is not applicable.
ix. a. According to the information and explanations given to us and
the records examined by us, the Company has generally been regular in
depositing undisputed statutory dues including Investors Education and
Protection Fund, Income Tax, Sales Tax, Wealth Tax, Service Tax, Cess
and other statutory dues, applicable to it, with the appropriate
authorities, during the year.
b. According to the information and explanation given to us, there are
no dues of Income Tax, Sales Tax, Wealth Tax, Service Tax and Cess
which have not been deposited on account of disputes.
x. The Company does not have any accumulated losses and it has not
incurred any cash losses during the financial year covered by our audit
and the immediately proceeding financial year.
xi. Based on the audit procedures applied by us and according to the
information and explanations given to us, we are of the opinion that
the Company has not defaulted in repayment of dues to banks in the
financial year under audit.
xii. Based on our examinations of records and the information and
explanations given to us, the Company has not granted loans and /or
advances on the basis of security by way of pledge of shares,
debentures and other securities.
xiii. As the Company is not a Chit fund / Nidhi / Mutual benefit fund /
Society, clause 4 (xiii) of the Order is not applicable.
xiv. Based on the audit procedures applied by us and according to the
information and explanations given to us, the Company has maintained
proper records of the transactions and contracts in respect of trading
activities in shares, securities, debentures and other investments and
timely entries have been made therein. All the shares, securities,
debentures and other investments are held by the Company in its own
name.
xv. As the Company has not given any guarantee for loans taken by
others from Banks or Financial Institutions, clause 4 (xv) of the Order
is not applicable to the Company.
xvi. According to the information and explanations given to us, as the
company has not taken any term loan during the year, clause 4 (xvi) of
the Order is not applicable.
xvii. According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that the funds raised on short term basis have not been utilised for
long term investments.
xviii.According to the information and explanation given to us, as the
Company has not made any preferential allotment of shares during the
year, clause 4 (xviii) of the Order is not applicable.
xix. According to the information and explanation given to us, as the
Company has not issued any debentures during the year, the question of
creating securities or charges in respect thereof does notarise.
xx. As the Company has not raised any money by public issue during the
year, clause 4 (xx) of the Order is not applicable to the Company.
xxi. Based on the audit procedures performed and information and
explanation given to us by the management, we report that, no fraud, on
or by the company, has been noticed or reported during the course of
our audit.
For BANSI S. MEHTA & CO.
Chartered Accountants
Firm Registration No. 100991W
AMIT A. DESAI
PLACE :MUMBAI Partner
DATED :18th June2010 Membership No. 048512