Mar 31, 2014
Report on the Financial Statements
We have audited the accompanying financial statements of Kapashi
Commercial Ltd. ("the Company"), which comprise the Balance Sheet as at
March 31, 2014, 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
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards notified under the Companies Act, 1956 ("the
Act") (which continue to be applicable in respect of Section 133 of the
Companies Act, 2013 in terms of General Circular 15/2013 dated
September 13, 2013 of the Ministry of Corporate Affairs) and in
accordance with the accounting principles generally accepted in India.
This responsibility includes the design, implementation and maintenance
of internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the 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:
(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 Statement of Profit and Loss, of the 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
1] As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of Section
227(4A) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the Order.
2] As required by Section 227(3) of the Act, we report that:
a. 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 the 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
comply with the Accounting Standards notified under the Act, (which
continue to be applicable in respect of Section 133 of the Companies
Act, 2013 in terms of General Circular 15/2013 dated September 13, 2013
of the Ministry of Corporate Affairs).
e. On the basis of the written representations received from the
directors as on March 31, 2014 taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2014,,
from being appointed as a director in terms of Section 274(1)(g) of the
Act.
ANNEXURE TO AUDITOR''S REPORT
Referred to in paragraph 3 of our report of even date.
[1] The Company do not have any fixed Assets
[II] The Company do not hold any Inventory.
[III] The Company has neither granted nor taken any loans, secured or
unsecured, to or from companies, firms or other parties covered in the
register maintained under section 301 of the Act.
[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 with regard to purchase of fixed assets. The activities of the
Company do not involve sale of goods. During the course of our audit,
we have not observed any continuing failure to correct major weakness
in internal controls.
[V] [a] According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered into
the register maintained under section 301 of the Companies Act, 1956
have been so entered.
[b] In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the registers maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of rupees Five 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.
[VI] In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
58A and 58AA of the Companies Act, 1956 and the Companies (Acceptance
of Deposits) Rules, 1975 with regard to the deposits accepted from the
public. No order has been passed by the Company Law Board.
[VII] In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
[VIII] The Rules made by the Central Government for the maintenance of
cost records under Section 209 (1) (d) of the Companies Act, 1956 does
not apply in respect of Company''s business.
[IX] [a] The company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education protection fund, employees'' state insurance,
income-tax, sales-tax, wealth-tax, service tax, custom duty, excise-
duty, cess and other statutory dues applicable to it.
[b] According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, customs duty, excise duty and cess were in arrears, as at 31st
March 2014 for a period of more than six months from the date they
became payable.
[c] According to the information and explanation given to us, there are
no dues of sale tax, income-tax, customs duty, wealth-tax, service tax,
excise duty and cess which have not been deposited on account of any
dispute.
[X] The company has accumulated losses as at 31st March, 2014. The
company has incurred Cash Losses during the financial year covered by
the audit and has not incurred any Cash Losses during the immediately
preceding financial year.
[XI] During the year, the company has not taken any loan from any
financial institution or bank and has not issued any debenture.
[XII] The company has not granted any loans and advances on the basis
of security byway of pledge of shares, debentures and other securities.
[XIII] In our opinion, the company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause
4(xiii) of the said order are not applicable to the company.
[XIV] According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments.
[XV] The company has not given any guarantee for loans taken by others
from Bank or financial institutions.
[XVI] The provision of clause 4(XVI) of the order is not presently
applicable to the company since it has not taken any term loan during
the financial year.
[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.
[XVIII] According to the information and explanations given to us,
during the year 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] The company has not issued any debentures during the year.
[XX] The company has not raised any money through Public Issue during
the year.
[XXI] In our opinion and according to the information and explanations
given to us, no fraud on or by the company has been noticed or reported
during the course of our audit.
For D. V. VORA & CO.
Chartered Accountants
(FRN 111624W)
( D.V.VORA )
PARTNER
Membership No. 30013
Place: Mumbai.
Dated: 28th May, 2014
Mar 31, 2012
1. We have audited the attached Balance Sheet of KAPASHI COMMERCIAL
LIMITED as at 31st March, 2012, also the Statement of Profit and Loss
Account 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 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 annexed hereto a statement
on the matters specified in paragraphs 4 and 5 of the said Order, to
the extent applicable to the company.
4. Further to our comments in the Annexure referred to in paragraph
(3) 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 account 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
account 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;
(e) On the basis of the written representations received from the
Directors, as on 31st March, 2012 and taken on record by the Board of
Directors, we report that none of the Directors of the Company 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;
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with
significant Accounting Policies and 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;
1. In the case of Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012
2. In the case of the Statement Profit and Loss Account, of the Profit
of the Company for the year ended on that date and
3. In the case of Cash Flow statement, of the Cash Flows for the year
ended on that date.
ANNEXURE TO AUDITOR'S REPORT
Referred to in paragraph 3 of our report of even date.
[I] [a] The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
[b] The company has a regular programme of verification which, in our
opinion, is reasonable having regard to the size of the company and the
nature of its assets. No material discrepancies were noticed on such
verification.
[c] During the year, the Company has not disposed off any major part of
the Fixed Assets.
[II] [a] The inventory has 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 had taken loan from four parties covered in the
Register maintained under Section 301 of the Companies Act, 1956. The
maximum amount involved during the year was Rs 223.14 lacs and the
year-end balance of loans taken from such parties was Rs. 14.21 lacs.
There are no parties covered in the register maintained under section
301 of the Companies Act, 1956 to which the company has granted loans.
[b] In our opinion the rate of interest and other terms and conditions
on which loans have been taken from/granted to companies, firms or
other parties listed in the registers maintained under Section 301 are
not, prima facie, prejudicial to the interest of the company.
[c] The Company is regular in repaying the principal amounts as
stipulated and has been regular in the payment of interest. The parties
have repaid the principal amounts as stipulated and have been regular
in the payment of interest.
[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 with regard to purchases of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weakness in
internal controls.
[V] [a] According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered into
the register maintained under section 301 of the Companies Act, 1956
have been so entered.
[b] In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the registers maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of rupees Five 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.
[VI] In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
58A and 58AA of the Companies Act, 1956 and the Companies (Acceptance
of Deposits) Rules, 1975 with regard to the deposits accepted from the
public. No order has been passed by the Company Law Board.
[VII] In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
[VIII] The Rules made by the Central Government for the maintenance of
cost records under Section 209 (1) (d) of the Companies Act, 1956 does
not apply in respect of Company's business.
[IX] [a] The company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education protection fund, employees' state insurance,
income-tax, sales-tax, wealth-tax, service tax, custom duty,
excise-duty, cess and other statutory dues applicable to it.
[b] According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, customs duty, excise duty and cess were in arrears, as at 31st
March 2012 for a period of more than six months from the date they
became payable.
[c] According to the information and explanation given to us, there are
no dues of sale tax, income-tax, customs duty, wealth-tax, service tax,
excise duty and cess which have not been deposited on account of any
dispute.
[X] The company does not have accumulated losses as at 31st March,
2012,The company has not incurred any cash losses during the financial
year covered by the audit and the immediately preceding financial year.
[XI] During the year, the company has not taken any loan from any
financial institution or bank and has not issued any debenture.
[XII] The company has not granted any loans and advances on the basis
of security byway of pledge of shares, debentures and other securities.
[XIII] In our opinion, the company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause
4(xiii) of the said order are not applicable to the company.
[XIV] In our opinion, the company has maintained proper records of the
transactions and contracts of the investments dealt in by the company
and timely entries have been made there in. The investments made by the
company are held in its own name except to the extent of the exemption
under section 4a of the act.
[XV] The company has not given any guarantee for loans taken by others
from Bank or financial institutions.
[XVI] The provision of clause 4(XVI) of the order is not presently
applicable to the company since it has not taken any term loan during
the financial year.
[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.
[XVIII] According to the information and explanations given to us,
during the year 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] The company has not issued any debentures during the year.
[XX] The company has not raised any money through Public Issue during
the year.
[XXI] In our opinion and according to the information and explanations
given to us, no fraud on or by the company has been noticed or reported
during the course of our audit.
For D. V. VORA & CO.
Chartered Accountants
(FRN 111624W)
(D.V.VORA)
PARTNER
Membership No. 30013
Place: Mumbai.
Dated: 30th May, 2012
Mar 31, 2011
1. We have audited the attached Balance Sheet of KAPASHI COMMERCIAL
LIMITED as at March 31, 2011, also the Profit and Loss Account 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 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 annexe hereto a statement
on the matters specified in paragraphs 4 and 5 of the said Order, to
the extent applicable to the company.
4. Further to our comments in the Annexure referred to in paragraph
(3) 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, 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 Balance Sheet Profit and Loss account 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;
(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, we report that none of the Directors of the Company 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;
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said 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;
1. In the case of Balance Sheet, of the state of affairs of the
Company as at March 31, 2011
2. In the case of the Profit and Loss Account, of the Profit of the
Company for the year ended on that date and
3. In the case of Cash Flow statement, of the Cash Flows for the year
ended on that date
ANNEXURE TO AUDITORS' REPORT
Referred to in paragraph 3 of our report of even date,
[I] [a] The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
[b] The company has a regular program of verification which, in our
opinion, is reasonable having regard to the size of the company and the
nature of its assets. No material discrepancies were noticed on such
verification.
[c] During the year, the Company has not disposed off any major part of
the Fixed Assets.
[II] [a] The inventory has 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 had taken loan from four parties covered in the
Register maintained under Section 301 of the Companies Act, 1956. The
maximum amount involved during the year was Rs.538.48 lacs and the
year-end balance of loans taken from such parties was Rs. 60.06 lacs.
There are no parties covered in the register maintained under section
301 of the Companies Act, 1956 to which the company has granted loans.
[b] In our opinion the rate of interest and other terms and conditions
on which loans have been taken from/granted to companies, firms or
other parties listed in the registers maintained under Section 301 are
not, prima facie, prejudicial to the interest of the company.
[c] The Company is regular in repaying the principal amounts as
stipulated and has been regular in the payment of interest. The parties
have repaid the principal amounts as stipulated and have been regular
in the payment of interest.
[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 with regard to purchases of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weakness in
internal controls.
[V] [a] According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered into
the register maintained under section 301 of the Companies Act, 1956
have been so entered.
[b] In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the registers maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of rupees five 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.
[VI] In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
58A and 58AA of the Companies Act, 1956 and the Companies (Acceptance
of Deposits) Rules, 1975 with regard to the deposits accepted from the
public. No order has been passed by the Company Law Board.
[VII] In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
[VIII] The Rules made by the Central Government for the maintenance of
cost records under Section 209 (1) (d) of the Companies Act, 1956 does
not apply in respect of Company's business.
[IX] [a] The company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education protection fund, employees' state insurance,
income-tax, sales-tax, wealth-tax, service tax, custom duty,
excise-duty, cess and other statutory dues applicable to it.
[b] According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, customs duty, excise duty and cess were in arrears, as at 31st
March 2011 for a period of more than six months from the date they
became payable.
[c] According to the information and explanation given to us, there are
no dues of sale tax, income-tax, customs duty, wealth-tax, service tax,
excise duty and cess which have not been deposited on account of any
dispute.
[X] The company has no accumulated losses as at 31st March, 2011 and
has not incurred any cash losses during the financial year covered by
our audit and the immediately preceding financial year.
[XI] During the year, the company has not taken any loan from any
financial institution or bank and has not issued any debenture.
[XII] 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] In our opinion, the company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause
4(xiii) of the said order are not applicable to the company.
[XIV] In our opinion, the company has maintained proper records of the
transactions and contracts of the investments dealt in by the company
and timely entries have been made there in. The investments made by the
company are held in its own name except to the extent of the exemption
under section 4a of the act.
[XV] The company has not given any guarantee for loans taken by others
from Bank or financial institutions.
[XVI] The provision of clause 4(XVI) of the order is not presently
applicable to the company since it has not taken any term loan during
the financial year.
[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.
[XVIII] According to the information and explanations given to us,
during the year 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] The company has not issued any debentures during the year.
[XX] The company has not raised any money through Public Issue during
the year.
[XXI] According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For D. V. VORA & CO.
Chartered Accountants
[D. V. Vora]
Partner
Membership No. 30013
Place: Mumbai.
Dated: 25th May, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of KAPASHI COMMERCIAL
LIMITED as at March 31, 2010, also the Profit and Loss Account and 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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 as
amended by the Companies (Auditors 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 annexe hereto a statement
on the matters specified in paragraphs 4 and 5 of the said Order, to
the extent applicable to the company.
4. Further to our comments in the Annexure referred to in paragraph
(3) 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, 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 Balance Sheet Profit and Loss account 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;
(e) On the basis of the written representations received from the
Directors, as on March 31, 2010 and taken on record by the Board of
Directors, we report that none of the Directors of the Company are
disqualified as on March 31, 2010 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 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;
1. In the case of Balance Sheet, of the state of affairs of the
Company as at March 31, 2010
2. In the case of the Profit and Loss Account, of the Profit of the
Company for the year ended on that date and
3. In the case of Cash Flow statement, of the Cash Flows for the year
ended on that date
ANNEXURE TO AUDITORS REPORT
Referred to in paragraph 3 of our report of even date,
[I] [a] The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
[b] The company has a regular program of verification which, in our
opinion, is reasonable having regard to the size of the company and the
nature of its assets. No material discrepancies were noticed on such
verification.
[c] During the year, the Company has not disposed off any major part of
the Fixed Assets.
[II] [a] The inventory has 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 had taken loan from four parties covered in the
Register maintained under Section 301 of the Companies Act, 1956. The
maximum amount involved during the year was Rs.256.52 lacs and the
year-end balance of loans taken from such parties was Rs. NIL lacs.
There are no parties covered in the register maintained under section
301 of the Companies Act, 1956 to which the company has granted loans.
[b] In our opinion the rate of interest and other terms and conditions
on which loans have been taken from/granted to companies, firms or
other parties listed in the registers maintained under Section 301 are
not, prima facie, prejudicial to the interest of the company.
[c] The Company is regular in repaying the principal amounts as
stipulated and has been regular in the payment of interest. The parties
have repaid the principal amounts as stipulated and have been regular
in the payment of interest.
[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 with regard to purchases of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weakness in
internal controls.
[V] [a] According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered into
the register maintained under section 301 of the Companies Act, 1956
have been so entered.
[b] In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the registers maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of rupees five 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.
[VI] In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
58A and 58AA of the Companies Act, 1956 and the Companies (Acceptance
of Deposits) Rules, 1975 with regard to the deposits accepted from the
public. No order has been passed by the Company Law Board.
[VII] In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
[VIII] The Rules made by the Central Government for the maintenance of
cost records under Section 209 (1) (d) of the Companies Act, 1956 does
not apply in respect of Companys business.
[IX] [a] The company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor educationprotection fund, employees state insurance,
income-tax, sales-tax, wealth-tax, service tax, custom duty,
excise-duty, cess and other statutory dues applicable to it.
[b] According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, customs duty, excise duty and cess were in arrears, as at 31st
March 2010 for a period of more than six months from the date they
became payable.
[c] According to the information and explanation given to us, there are
no dues of sale tax, income-tax, customs duty, wealth-tax, service tax,
excise duty and cess which have not been deposited on account of any
dispute.
[X] The company has no accumulated losses as at 31st March, 2010 and
has not incurred any cash losses during the financial year covered by
our audit and the immediately preceding financial year.
[XI] During the year, the company has not taken any loan from any
financial institution or bank and has not issued any debenture.
[XII] 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] In our opinion, the company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause
4(xiii) of the said order are not applicable to the company.
[XIV] In our opinion, the company has maintained proper records of the
transactions and contracts of the investments dealt in by the company
and timely entries have been made there in. The investments made by the
company are held in its own name except to the extent of the exemption
under section 4a of the act.
[XV] The company has not given any guarantee for loans taken by others
from Bank or financial institutions.
[XVI] The provision of clause 4(XVI) of the order is not presently
applicable to the company since it has not taken any term loan during
the financial year.
[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.
[XVIII] According to the information and explanations given to us,
during the year 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] The company has not issued any debentures during the year.
[XX] The company has not raised any money through Public Issue during
the year.
fXXI] According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For D. V. VORA & CO.
Chartered Accountants
[D. V. Vora]
Partner
Membership No. 30013
Place: Mumbai.
Dated: 15th May, 2010