Mar 31, 2014
1. We have audited the accompanying financial statements of Gravity
(India) Limited which comprise the Balance Sheet as at March 31, 2014,
and the Statement of Profit and Loss and Cash Flow Statement for the
year then ended, and a summary of significant accounting policies and
other explanatory information.
Management''s Responsibility for the Financial 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"). read with General Circular
15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs
in respect of Section 133 of the Companies Act ,2013 .This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor''s Responsibility
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 judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
5. We believe that the audit evidence we have obtained is suffcient
and appropriate to provide a basis for our audit opinion.
Opinion
6. In our opinion and to the best of our information and according to
the explanations given to us, the financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b) in the case of the Profit and Loss Account, of the Profit/ loss for
the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
7. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
8. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) on the basis of written representations received from the directors
as on March 31, 2014, and 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 clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO THE INDEPENDENT AUDITOR''S REPORT
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of Gravity (India) Limited ("the Company) on the
accounts of the company for the year ended 31st March, 2014.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As explained to us, fixed assets have been physically verified by the
management at reasonable intervals; no material discrepancies were
noticed on such Verification.
(c) In our opinion and according to the information and explanations
given to us, no fixed asset has been disposed during the year and
therefore does not affect the going concern assumption.
2. (a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals.
(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) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical Verification of stocks
by the management as compared to book records.
3. (a) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
not granted any loans, secured or unsecured, to companies, firms or
other parties listed in the register maintained under Section 301 of
the Companies Act, 1956. Consequently, the provisions of clauses iii
(b), iii(c) and iii (d) of the order are not applicable to the Company.
(e) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
not taken loans from companies, firms or other parties listed in the
register maintained under Section 301 of the Companies Act, 1956. Thus
sub clauses (f) & (g) are not applicable to the company.
4. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories and fixed assets and payment
for expenses and for sale of goods. During the course of our audit, no
major instance of continuing failure to correct any weaknesses in the
internal controls has been noticed.
5. a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, 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.
b) As per information & explanations given to us and in our opinion,
the transaction entered into by the company with parties covered u/s
301 of the Act does not exceeds five lacs rupees in a financial year
therefore requirement of reasonableness of transactions does not
arises.
6. The Company has not accepted any deposits from the public covered
under section 58A and 58AA of the Companies Act, 1956.
7. As per information and explanations given by the management, the
Company has an internal audit system commensurate with its size and the
nature of its business.
8. As per information & explanation given by the management,
maintenance of cost records has been prescribed by the Central
Government under clause (d) of sub-section (1) of section 209 of the
Act and we are of the opinion that prima facie the prescribed accounts
and records have been made and maintained.
9. (a) According to the records of the company, undisputed statutory
dues including Provident Fund, Income-tax, Sales-tax, Wealth Tax,
Excise Duty, cess to the extent applicable and any other statutory dues
have generally been regularly deposited with the appropriate
authorities. According to the information and explanations given to us
there were no outstanding statutory dues as on 31st of March, 2014 for
a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there is
no amounts payable in respect of income tax, wealth tax, sales tax, and
excise duty which have not been deposited on account of any disputes.
10. The Company does not have any accumulated loss and has not incurred
cash loss during the financial year covered by our audit and in the
immediately preceding financial year.
11. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
12. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidhi /mutual benefit
fund/society. Therefore, the provision of this clause of the Companies
(Auditor''s Report) Order, 2003 (as amended) is not applicable to the
Company.
14. According to information and explanations given to us, the Company
is not trading in Shares, Mutual funds & other Investments.
Accordingly, clause 4(xv) of the order is not applicable to the
Company.
15. According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from a
bank or financial institution.
16. Based on our audit procedures and on the information given by the
management, we report that the company has not raised any term loans
during the year.
17. Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company as at 31st
March, 2014, we report that no funds raised on short-term basis have
been used for long-term investment by the Company.
18. Based on the audit procedures performed and the information and
explanations given to us by the management, we report that the Company
has not made any preferential allotment of shares during the year.
19. The Company has no outstanding debentures during the period under
audit.
20. The Company has not raised any money by public issue during the
year.
21. Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management.
For : J C KABRA & ASSOCITATES
Chartered Accountants
Firm Registration No :115749W
(CA. J.D.Kabra)
Place: Mumbai Partner
Date: 30th May, 2014 Mem. No. 038525
Mar 31, 2012
1. We have audited the attached Balance Sheet of Gravity (India)
Limited as at 31 March 2012, the Statement of Profit and Loss and the
Cash Flow Statement for the year ended on that date annexed thereto.
These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by 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 as
amended by the Companies (Auditor's Report) (Amendment) Order, 2004
issued by the Central Government of India in terms of Sub-section (4A)
of section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. Further to our comments in the Annexure referred to above, we
report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the 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
those books;
c. The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the Books of
Account;
d. In our opinion, the Balance Sheet, Statement of Profit & Loss and
Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956 subject to annexure referred in Paragraph 3
above, in clauses and in notes to the accounts , Note No. "23". In the
absence of the information with the company, the quantum of the same
could not be determined;
e. On the basis of the written representations received from the
directors as on 31 March 2012, and taken on record by the board of
directors, we report that none of the directors is disqualified as on
31 March 2012 from being appointed as a director in terms of clause (g)
of
sub-section (1) of section 274 of the Companies Act, 1956;
f. In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements together
with the notes thereon and attached thereto give, in the prescribed
manner, the information required by the Companies Act, 1956, 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 31 March, 2012;
(ii) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Annexure to the Auditor's Report
Referred to in paragraph 3 of the Auditor's Report of even date to the
members of Gravity (India) Limited on the financial statements as of
and for the year ended 31 March 2012
1) a) The Company has maintained proper records showing
full particulars, including quantitative details and situation of fixed
assets
b) The fixed assets have been physically verified by the management
during the year at reasonable intervals and no material discrepancies
were noticed. The fixed assets register is in the process of updation.
c) The company has not disposed off any substantial part of its fixed
assets so as to affect its going concern status.
2) a) As explained to us, the inventories have been physically
verified by management at reasonable intervals during the year. In our
opinion, the frequency of verification is reasonable.
b) In our opinion, 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.
c) The company is maintaining proper records of inventory, the
registers being in process of updation. The discrepancies noticed on
verification between the physical stocks and the book records were not
material.
3) a) The Company has granted unsecured loans to companies, firm or
other parties listed in the register maintained under section 301 of
the Act.
b) The rate of interest and other terms and conditions of such loans
were prima facie not prejudicial to the interests of the Company.
c) In respect of the aforesaid loans, the Company is regularly
receiving the principal and interest thereon.
d) According to the information and explanations given to us, the
company has not taken any loans, secured or unsecured from companies,
firms and other parties covered in the register maintained under
section 301 of the Companies Act, 1956. Accordingly, reporting
requirements as per paragraphs 4(iii)(f) and (g) of the order are not
applicable.
4) In our opinion and according to the information and explanations
given to us, the internal control procedures need to be strengthened to
be commensurate with the size of the company and the nature of its
business for the purchase of inventory and fixed assets and forthe sale
of goods.
5) a) Tothebestofourknowledgeandbeliefandaccordingto
the information and explanations given to us, we are of the opinion
that the particulars of the contracts and arrangements that need to be
entered into the register maintained under section 301 of the Act have
been so entered.
b) In our opinion and according to the information and explanation
given to us, transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Act and exceeding the value of Rs. 5 Lakh 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 where such
market prices are available.
6) The company has not accepted any deposits from the public within the
meaning of Sections 58A and 58AA of the Companies Act and the rules
framed there under.
7) The company has no internal audit system.
8) The Company, is not required to maintain accounts and records
prescribed by the central government under section 209(1 )(d) of the
Companies Act, 1956.
9) The company is generally regular in depositing undisputed statutory
dues including Provident Fund, Income-tax, Sales tax, Custom Duty,
Excise Duty, Cess and other material Statutory Dues applicable to it
(Except those mentioned in Note 9 in notes No.23) with the appropriate
authorities. There were no arrears as at 31 March, 2012 for a period
of more than six months from the date they became payable.
10) The Company has neither accumulated losses at the end of the
financial year nor has it incurred cash losses, both, in the reporting
financial year and the immediately preceding financial year.
11) According to the information and explanations given to us, (except
Note 6 of Notes No.23) the company has not defaulted in repayment of
any dues to a financial institution or bank. However the Company has
not provided any interest in the books of accounts on the secured loan
availed from The Madhavpura Mercantile Co-operative Bank Ltd. In
absence of the information, the quantum of the same cannot be
determined. The company has at no time issued any debentures.
12) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and othersecurities.
13) The company is not a chit fund or a Nidhi mutual benefit
fund/society. Therefore the requirement of clause 4(xiii) of the order
is not applicable to the Company.
14) According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments. Accordingly, clause 4(xv) of the order is not
applicable to the Company.
15) The Company, according to the information and explanations given to
us, has not given any guarantee for loans taken by others from banks or
financial institutions.
16) As per information and explanations given to us, the Company has
not obtained any term loan during the year.
17) According to the information and explanations given to us, we
report that no funds raised on short-term basis have been used for
long-term investment. No long term funds have been used to finance
short-term assets.
18) The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act.
19) According to the information and explanations given to us, the
Company has not issued any secured debentures. Hence, clause 4(xix) of
the order is not applicable to the company.
20) The Company has not raised any money by a public issue during the
year.
21) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor we
have been informed of any such case by the management.
For J C KABRA & ASSOCIATES
Chartered Accountants
Firm registration No 115749W
(CA.J.D. Kabra)
Place: Mumbai Partner
Date : 5,hSeptember, 2012 Membership No. 38525
Mar 31, 2011
1. We have audited the attached Balance, Sheet of Gravity (India)
Limited as at 31st March, 2011 , the Profit and Loss Account and also
the Cash Flow Statement for the year ended on that date, annexed
thereto. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on
these financial statements based on our audit
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by 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, as
amended by the companies (Auditor's Report) (amended (order, 2004
("Together the order" ((hereinafter referred to as the CARO 2003)
issued by the Central Government of India in terms of Sub-section (4A)
of section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
order.
4 Further to our comments in the Annexure referred to above, we report
that:
i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit,
ii) In our opinion, proper books of Account as required by law have
been kept by the Company, so far as appears from our examination of
those books.
iii) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the Books of Account.
iv) In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report comply with the mandatory
Accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956. except Accounting standard 9,13,15 & 16 as
referred to in notes no. 3,4,5,6 in notes to accounts of schedule "19"
in the absence of the information with the company, the quantum of the
same could not be determined
v) Based on the representation made, the directors of the Company do
not prima facie have any disqualification as on 31st March, 2011 from
being appointed as a director as referred to in section 274(1)(g) of
the companies Act, 1956.
vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with
Significant Accounting Policies and Notes on Accounts in Schedule 19
and 20 those appearing elsewhere in the accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of the Balance Sheet, of the State of affairs of the
Company as at 31st March, 2011,
b) in the case of the Profit and Loss Account, of the profit of the
Company for the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE REFERRED TO IN OUR REPORT OF EVEN DATE ON THE FINANCIAL
STATEMENT FOR THE YEAR ENDED 31ST MARCH 2011 OF GRAVITY (INDIA)
LIMITED.
On the basis of such checks as we considered appropriate and according
to the information and explanations given to us during the course of
audit, we state that:
(i) (a) The Company has generally maintained proper records showing
full particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, all the fixed assets have been physically
verified by the management during the year at reasonable intervals. No
material discrepancies were noticed on such verification.
(c) During the year, there was no disposed of substantial part of fixed
assets and hence the going concern of the Company is not effected,
(ii) (a) As explained to us, the inventories have been physically
verified during the year by the management. In our opinion, the
frequency of verification is reasonable.
(b)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 is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(iii)(a)The company has granted loans & advances unsecured, to
companies, firm or other parties listed in the register maintained
under section 301 of the Act.
(b)The rate of interest and other terms and conditions of the
loans/advances were prima facie not prejudicial to the interest of the
Company.
(c)The payment of principal amount are as stipulated has been changed
on some of the loans and advances.
(d) The company has not taken any loans, therefore provision of sub
clause (e)(f) and (g) of clause 4(iii) of the CARO 2003 are not
applicable of the company.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, for the purchase of inventory and fixed assets and for the
sale of goods. During the course of audit, no major weakness has been
noticed in these internal controls.
(v) In respect of transaction covered under section 301 of the Act,
(a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that
the transaction that need to be entered into the register maintained
undersection301 of the Act have been so entered.
(b) In our opinion and according to the information and explanation
given to us, transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Act and exceeding the value of Rs. 5 Lacs 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 where such
market prices are available.
(vi) In our opinion and according to the information and explanations
given to us, the company has not accepte any deposit from the public.
(vii) The company has no internal audit system, however, as explained
to us the company has an internal check system commensurate with its
size and nature of its business.
(viii) The Company, in our opinion and according to the information and
explanations given to us, is not required to maintain accounts and
records as prescribed by the central government under section 209(1
)(d) of the Companies Act,1956.
(ix) In respect of statutory dues, the company is generally regular in
depositing with appropriate authorities undisputed statutory dues
including Provident Fund, , Income-tax, Sales tax, Custom Duty, Excise
Duty, Cess and other material Statutory Dues applicable to it (Except
see Note 10 in notes to accounts of schedule : 19) There were no
arrears at 31st March, 2011 for a period of more than six months from
the date they became payable.
(x) The Company has neither accumulated losses at the end of the
financial year nor has it incurred cash losses, both, in the financial
year under report and the immediately preceding financial year.
(xi) According to the information and explanations given to us, the
Company (Refer, notes no. 6 in notes to accounts of schedule "19") has
not defaulted in repayment of any dues to a financial institution or
bank, However secured loan from The Madhavpura Mercantile Co-operative
Bank Ltd., as informed to us, the Company had not provided interest on
aforesaid loan in the accounts. In absence of the information with the
Company, the quantum of the same could not be determined. The company
has at no time issued any debenture.
(xii) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
(xiii) The company is not a chit fund or a Nidhi mutual benefit fund/
society. Therefore the provisions of clause 4(xiii) of the (CARO 2003)
are not applicable to the company.
(xiv) According to the information and explanations given to us, the
Company is not dealing or trading (except for investments purposes) in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the (CARO 2003) are not applicable to
the Company. All the investments are held by the Company in its own
name.
(xv) The Company, according to the information and explanations given
to us, has not given any guarantee for loans taken by others from banks
or financial institutions.
(xvi) On the basis of the records examined by us, and relying on the
information complied by the company for co-relating the funds raised to
the end use of the term loans, we have to state that, the company has,
prima-facie, applied the term loan for the purpose for which they were
obtained.
(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 no funds raised on short-term basis have been used for long-term
investment. No long-term funds have been used to finance short-term
assets except long term working capital.
(xviii)The Company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act.
(xix) According to the information and explanations given to us, the
Company has not issued any secured debentures. Accordingly, the
provisions of clause 4 (xix) of the (CARO 2003) are not applicable to
the Company.
(xx) The Company has not raised any money through a public issue during
the year.
(xxi) According to the information and explanation given to us, and to
the best of our knowledge and belief, no fraud on or by the Company,
has been noticed or reported by the company during the course of our
audit.
For J C KABRA & ASSOCIATES
Chartered Accountants
(CA J.D. Kabra)
Partner
Membership No. 38525
FirmRegi.: 115749-W
Place: Mumbai
Date : 18th August, 2011
Mar 31, 2010
1. We have audited the attached Balance, Sheet of Gravity (India)
Limited as at 31st March, 2010, the Profit and Loss Account and also
the Cash Flow Statement for the year ended on that date, annexed
thereto. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining on a test basis, evidence supporting the amounts and
disclosures in the financial statements An audit also includes
assessing the accounting principles used and significant estimates made
by 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, as
amended by the companies (Auditor s Report) (amended) order, 2004
("Together the order") (hereinafter referred to as the CARO 2003)
issued by the Central Government of India in terms of Sub-section (4A)
of section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs4and5ofthesaid order.
4 Further to our comments in the Annexure referred to above, we report
that:
i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit,
ii) In our opinion. proper books of Account as required by law have
been kept bythe Company, so far as appears from our examination of
those books.
iii) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the Books of Account.
iv) In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report comply with the mandatory
Accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956. except Accounting standard 9,13,15 & 16 as
referred to in notes no. 3,4,5,6 in notes to accounts of schedule "20"
in the absence of the information with the company, the quantum of the
same could not be determined.
v) Based on the representation made, the directors of the Company do
not prima facie have any disqualification as on 31st March, 2010 from
being appointed as a director as referred to in section 274(1 )
vi) In our opinion and to the best of our information and according to
the explanations given to us, the said
accounts read together with Significant Accounting Policies and Notes
on Accounts in Schedule 19 and 20 those appearing elsewhere in the
accounts give the information required by the Companies Act, 1956, in
the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India:
a) in the case of the Balance Sheet, of the State of affairs of the
Company as at 31st March, 2010,
b) in the case of the Profit and Loss Account, of the profit of the
Company for the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE REFERRED TO IN OUR REPORT OF EVEN DATE ON THE FINANCIAL
STATEMENT FOR THE YEA ENDED31STMARCH2010OFGRAVITY(IIMDIA) LIMITED.
On the basis of such checks as we considered appropriate and accord ing
to the information and explanations given to us during the course of
audit, we state that.
(i) (a) The Company has generally maintained proper records showing
full particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, all the fixed assets have been physically
verified by the management during the year at reasonable intervals. No
material discrepancies were noticed on such verification.
(c) During the year, there was no disposed of substantial part of fixed
assets and hence the going concern of the Company is not effected,
(ii) (a) As explained to us, the inventories have been physically
verified during the year by the management. In our opinion, the
frequency of verification is reasonable.
(b)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 is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(iii)(a)The company has granted loans & advances unsecured.to
companies, firm or other parties listed in the register maintained
under section 301 of the Act.
(b)The rateof interest and other terms and conditions of the loans
/advances were prima facie not prejudicial to the interest of the
Company.
(c)Thepayment of principal amount are as stipulated has been changed on
some of the loans and advances.
(d)The company has not taken any loans, therefore provision of sub
clause (e) (f) and (g) of clause 4(iii) of the CARO 2003 are not
applicable of the company.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, for the purchase of inventory and fixed assets and for the
sale of goods. During the course of audit, no major weakness has been
noticed in these internal controls.
(v) In respect of transaction covered under section 301 of the Act,
(a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that
the transaction that need to be entered into the register maintained
under section 301 of the Act have been so entered.
(b) In our opinion and according to the information and explanation
given to us, transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Act and exceeding the value of Rs. 5 Lacs 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 where such
market prices a re available.
(vi) In our opinion and according to the information and explanations
given to us, the company has not accepte any deposit from the public.
(vii) The company has no internal audit system, however, as explained
to us the company has an internal check system commensurate with its
size and nature of its business.
(viii) The Company, in our opinion and according to the information and
explanations given to us is not required to maintain accounts and
records as prescribed by the central government under section 209(1
)(d)oftheCompaniesAct.1956.
(ix) In respect of statutory dues, the company is generally regular in
depositing with appropriate authorities undisputed statutory dues
including Provident Fund, , Income-tax, Sales tax, Custom Duty Excise
Duty, Cess and other material Statutory Dues applicable to it (Except
see Note 10 in notes to accounts of schedule : 20) There were no
arrears at 31st March, 2010 for a period of more than six months from
the date they became payable.
(x) The Company has neither accumulated losses at the end of the
financial year nor has it incurred cash losses, both, in the financial
year under report and the immediately preceding financial year.
(xi) According to the information and explanations given to us, the
Company (Refer, notes no. 6 in notes to accounts of schedule 20") has
not defaulted in repayment of any dues to a financial institution or
bank, However secured loan from The Madhavpura
(xii) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
(xiii) The company is not a chit fund or a Nidhi mutual benefit fund/
society. Therefore the provisions of clause 4(xiii) of the (CARO 2003)
are not applicable to the company.
(xiv) According to the information and explanations given to us, the
Company is not dealing or trading (except for investments purposes) in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the (CARO 2003) are not applicable to
the Company. All the investments are held by the Company in its own
name.
(xv) The Company, according to the information and explanations given
to us, has not given any guarantee for loans taken by others from banks
or financial institutions.
(xvi) On the basis of the records examined by us, and relying on the
information complied by the company for co relating the funds raised to
the end use of the term loans, we have to state that, the company has,
prima - facie. applied the term loan for the purpose for which (hey
were obtained.
(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 no funds raised on short-term basis have been used for long-term
investment. No long-term funds have been used to finance short-term
assets except long term working capital.
(xviii)The Company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act.
(xix) According to the information and explanations given to us, the
Company has not issued any secured debentures. Accordingly, the
provisions of clause4 (xix) of the (CAR02003) are not applicable to the
Company.
(xx) The Company has not raised any money through a public issue during
the year.
(xxi) According to the information and explanation given to us, and to
the best of our knowledge and belief, no fraud on or by the Company,
has been noticed or reported by the company during the course of our
audit.
For J CKABRA& ASSOCIATES
Chartered Accountants
(J. D. Kabra)
Place : Mumbai Partner
Date : 18th August, 2010 Membership No. 38525
Firm Regi.: 115749-W