Mar 31, 2015
We have audited the accompanying financial statements of the Company
Margo Finance Limited ('the Company'), which comprises the Balance
Sheet as at 31st March, 2015, 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
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ('the Act') with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with 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. These responsibilities also include
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
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the provision
of the Act, the accounting and auditing standards and matters which are
required to be included in the audit report under the provision of the
Act and 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 statement that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of 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 financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015 and its loss and its cash flows for the year ended
on that date.
Report on other Legal and Regulatory Matters
1. As required by the Companies (Auditors' Report) Order, 2015 issued
by the Central Government of India in terms of sub-section (11) of
Section 143 of the Act, we give in the Annexure a statement on the
matters specified in the paragraph 3 and 4 of the Order, to the extent
applicable.
2. 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
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 it appears from our examination of those
books;
(c) the Balance Sheet, the Statement of Profit and Loss, and the Cash
Flows Statement dealt with by this Report are in agreement with the
books of account;
(d) in our opinion, the aforesaid financial statement comply with the
Accounting Standards specified under Section 133 of the Act, read with
the Rule 7 of the Companies (Accounts) Rules, 2014;
(e) on the basis of written representations received from the directors
as on March 31, 2015 taken on record by the Board of Directors, none of
the directors is disqualified as on March 31, 2015, from being
appointed as a director in terms of Section 164(2) of the Act.
(f) With respect to the other matters to be included in 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 explanation given to us :
(i) There are no pending litigation affecting financial position hence
no disclosure is required to be made.
(ii) There are no long term contracts including derivatives contracts
hence no provision is required to be made.
(iii) The clause is not applicable as there is no amount required to be
transferred to the Investor Education and Protection Fund by the
Company.
Annexure to the Independent Auditors' Report
(i) (a) The Company is maintaining 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 according to a regular program, which, in
our opinion, is reasonable having regard to the size of the Company and
the nature of its assets. No material discrepancies with respect to
book records were noticed on such verification.
(ii) There is no inventory, therefore the clause no. (ii) (a), (b) and
(c) of the order are not applicable to the Company.
(iii) The Company has granted loans to parties covered in the register
maintained under Section 189 of the Companies Act, 2013. The total
amount outstanding on 31-03-2015 was nil. The maximum amount
outstanding during the year was Rs. 1,800,000/-.
(a) According to the information and explanations given to us, parties
to whom loans have been granted have repaid the principal amount as per
stipulation, wherever applicable.
(b) According to the information and explanations given to us and on
the basis of examination of records of the Company, Company has taken
reasonable steps for recovery of principal and interest where overdue
amount is more than rupees one lakh.
(iv) 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 and for rendering of services. During the course of our
audit, no major weakness has been noticed in the internal controls.
(v) According to the information given to us, the Company has not
accepted any deposits from the public.
(vi) The provisions of Section 148(1) of the Companies Act, 2013
regarding maintenance of cost records are not applicable to the
Company.
(vii) (a) According to the information and explanations given to us and
on the basis of our examination of records of the Company, amounts
deducted/accrued in the books of account in respect of undisputed
statutory dues including Provident Fund, Employees State Insurance,
Income Tax, Sales Tax, Wealth Tax, Service Tax, Duty of Customs, Duty of
Excise, Value Added Tax, Cess and any other statutory dues to the extent
applicable, have generally been regularly deposited.
(b) According to the information and explanations given to us, the
Company does not have any Provident Fund, Employees State Insurance,
Income Tax, Sales Tax, Wealth Tax, Service Tax, Duty of Customs, Duty
of Excise, Value Added Tax, Cess which have not been deposited with the
appropriate authority on account of any dispute.
(c) According to the information and explanations given to us and based
on our examination of records of the Company, there is no amount which
required to be transferred to Investor Education and Protection Fund.
(viii) The Company does not have any accumulated losses at the end of
the financial year. The Company has not incurred any cash losses during
the current financial year whereas the Company had incurred cash losses
in the immediate preceding financial year.
(ix) According to information and explanations given to us, the Company
has not defaulted in repayment of dues to bank and financial
institutions.
(x) According to the information and explanations given to us, the
Company has not given guarantee for loans taken by others from banks or
financial institutions.
(xi) According to the information and explanations given to us and on
an overall examination of records of the Company, we report that
Company has not raised any term loan during the year.
(xii) Based on the audit procedures performed 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 AVK & ASSOCIATES
Chartered Accountants
Firm Registration No. 002638N
Parul Gupta
Place : Delhi Partner
Dated : 14th May, 2015 FCA-095539
Mar 31, 2014
We have audited the accompanying financial statements of the Company
Margo Finance Limited ("the Company"), which comprises the Balance
Sheet as at 31st March, 2014, 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
Management is responsible for preparation of these financial statements
that give a true and fair view of the financial position, financial
performance of the Company in accordance with the Accounting Standards
notified under the Companies Act, 1956 ("the Act") read with the
general circular 15/2013 dated 13 September, 2013 of Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act, 2013.
This responsibility includes the design, implementation and
maintenances of internal control relevant to the preparation of the
financial statements give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, 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 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 said financial statements give the
information required by the Act in the manner so required for the
companies 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 31st March, 2014;
(ii) in the case of the Profit and Loss Account, of loss for the year
ended on that date; and
(iii) in the case of the Cash Flow Statement, of cash flows for the
year ended on that date.
Report on other Legal and Regulatory Matters
1. As required by the Companies (Auditors'' Report) Order, 2003 issued
by the Company Law Board in terms of Section 227(4A) of the Companies
Act, 1956, we enclose in the annexure a statement on the matters
specified in the said order.
2. As required by Section 227(3) of the Act, We report that:
(a) we have obtained all the information and explanations which, to the
best of our knowledge and belief, were necessary for the purpose of our
audit.
(b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
(c) the Balance Sheet and the Statement of Profit and Loss dealt with
by this Report are in agreement with the books of account.
(d) in our opinion, the Balance Sheet and Statement of Profit and Loss
comply with the Accounting Standards notified under the Companies Act,
1956 read with the General Circular 15/2013 dated 13 September, 2013 of
the Ministry of Corporate Affairs in respect of Section 133 of the
Companies, Act, 2013.
(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 referred to in paragraph 5 of the Independent Auditor''s Report
to the Members of Margo Finance Limited on the accounts for the year
ended 31st March, 2014.
(i) (a) The Company is maintaining 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 according to a regular program, which, in
our opinion, is reasonable having regard to the size of the Company and
the nature of its assets. No material discrepancies with respect to
book records were noticed on such verification.
(c) There was no substantial disposal of fixed assets during the year
affecting the going concern assumption.
(ii) There is no inventory, therefore the clause no. (ii) (a), (b) and
(c) of the order are not applicable to the Company.
(iii) a) According to the information and explanation given to us the
Company has not taken any loans, secured or unsecured, from companies,
firms or other parties covered in the register maintained under Section
301 of the Companies Act, 1956.
b) The Company has granted loans to two bodies corporate covered in the
register maintained under Section 301 of the Companies Act, 1956. The
Maximum amount outstanding during the year was Rs. 1,00,95,000 and the
year end balance of such loans amounted to Rs. Nil. Other than above
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.
c) In our opinion, rate of interest and other terms and conditions on
which the loans have been received and granted are not prima facie
prejudicial to the interest of the Company. Parties to whom loans have
been granted have repaid the principal amount as per stipulation,
wherever applicable.
(iv) 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. During the course of our audit, no major weakness has
been noticed in the 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 in the
register maintained under 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 contracts or arrangements entered in
the register maintained under Section 301 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) According to the information given to us, the Company has not
accepted any deposits from the public.
(vii) According to the information and explanation given to us, the
Company has an adequate internal audit system commensurate with the
size and the nature of its business.
(viii) The provisions of Section 209(1 )(d) of the Companies Act, 1956
regarding maintenance of cost records are not applicable to the
Company.
(ix) (a) According to the information and explanations given to us and
on the basis of our examination of records of the Company, amounts
deducted / accrued in the books of account in respect of undisputed
statutory including Provident Fund, Investor Education and Protection
Fund, Employees State Insurance, Income Tax, Wealth Tax and other
statutory dues to the extent applicable, have generally been regularly
deposited.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund, Investor
Education and Protection Fund, Employees'' State Insurance, Income tax,
Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty and other
material statutory dues were in arrears as at 31 March, 2014 for a
period of more than six months from the date they became payable.
(c) According to the information and explanations given to us, the
Company does not have any Sales tax, Wealth tax, Service tax, Customs
duty, Excise duty and cess which have not been deposited with the
appropriate authority on account pf any dispute.
(x) The Company does not have any accumulated losses at the end of the
financial year. The Company has not incurred any cash losses during the
current financial year. In the immediate preceding financial year the
Company incurred cash losses.
(xi) According to information and explanations given to us, the Company
has not defaulted in payment of dues to Bank and financial
institutions.
(xii) According to the information and explanations given to us, the
Company has not granted any loan and advance on the basis of security
by way of pledge of shares, debentures and other securities.
(xiii) According to the information and explanations given to us, the
Company is neither a chit fund nor nidhi / mutual benefit fund /
society and hence clause 4 (xiii) of the Order is not applicable to the
Company.
(xiv) According to the information and explanations given to us and
based on our examination of records, we are of the opinion that the
Company has maintained proper records of the transactions and contracts
and timely entries have been made therein. The shares, securities,
debentures and other securities have been held by the Company in it''s
own name.
(xv) According to the information and explanations given to us, the
Company has not given guarantee for loans taken by others from banks or
financial institutions.
(xvi) 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 permanent working capital.
(xvii)The Company has not made any preferential allotment of shares to
companies / firms / parties covered in the register maintained under
Section 301 of the Companies Act, 1956.
(xviii)The Company did not have any outstanding debentures during the
year.
(xix) The Company has not raised any money by public issue during the
year.
(xx) Based on the audit procedures performed 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 AVK & ASSOCIATES
Chartered Accountants
Firm Registration No. 002638N
Parul Gupta
Place : Delhi Partner
Dated : 15th May, 2014 Membership No. 095539
Mar 31, 2012
We have audited the attached Balance Sheet of MARGO FINANCE LIMITED as
at March 31. 2012, the Profit & Loss Account and the Cash Flow
Statement for the year ended on that date, which we have signed under
reference to this report. These financial statements are the
responsibility of the management of the Company. 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. These 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
disclosure 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.
As required by the Companies (Auditors' Report) Order, 2003 issued by
the Company Law Board in terms of Section 227(4A) of the Companies Act,
1956, we enclose in the annexure a statement on the matters specified
in the said order.
Further to our comments in annexure referred to in paragraph 1 above :
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 it appears from our examination of
the said books.
iii) The Balance Sheet, Cash Flow Statement and the Profit & Loss
Account referred to in this report are in agreement with the books of
account.
iv) In our opinion the Balance Sheet, Cash Flow Statement and the
Profit & Loss Account comply with the Accounting Standards referred to
in sub-section (3C) of Section 211 of the Companies Act. 1956.
v) In our opinion, and based on information and explanations given to
us none of the directors are disqualified as on 31st March, 2012 from
being appointed as director in terms of clause (g) of sub-section (1)
of Section 274 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 with the notes
thereon, give the information required by the Companies Act, 1956 in
the manner so required and give a true and fair view :
a) In the case of Balance Sheet, of the State of affairs of the Company
as at 31st March, 2012.
b) In the case of Profit & Loss Account, of the profit of the Company
for the year ended on that date.
c) In the case of Cash Flow Statement of cash flows for the year ended
on that date.
(i) (a) The company is maintaining 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 according to a regular program, which, in
our opinion, is reasonable having regard to the size of the company and
the nature of its assets. No material discrepancies with respect to
book records were noticed on such verification.
(c) There was no substantial disposal of fixed assets during the year
affecting the going concern assumption.
(in There is no inventory except the stocks under finance agreement,
therefore the clause no. (ii) (a), (b) and (c) of the order are not
applicable to the company
(iii) The company has not received unsecured loans from companies,
firms or other parties covered in the register maintained under Section
301 of the Companies Act, 1956 however the company has granted
unsecured loans to companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956
details of which are furnished hereunder:
a) Following are the' particulars of unsecured loans granted by the
company.
S. Name of Opening Loan
No the Party Balance granted
(Rs. in (Rs. in
Lacs) Lacs)
1. Rini Investment
& Finance Pvt Ltd. 0.70 Nil
2. Skyrise Properties
Private Limited 118.00* Nil
Loan Closing Maximum
S Name of
No the party received Balance Balance
(Rs. in (Rs. in (Rs. in
Lacs) Lacs) Lacs)
1. Rini Investment
& Finance Pvt Ltd 0.70 Nil 0.70
2. Skyrise Properties
Private Limited Nil 118.00' 118.00'
* does not Include Interest debited & recovered / recoverable
In our opinion, rate of interest and other terms and conditions on
which the loans have been received and granted are not prima facie
prejudicial to the interest of the company.
Parties to whom loans have been granted have repaid the principal
amount as per stipulation, wherever applicable.
(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. During the course of
our audit, no major weakness has been noticed in the 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 in the
register maintained under section 301 of the Companies Act. 1956 have
been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 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 given to us, the
company has not accepted any deposits from the public within the
meaning of sections 58A and 58AA of the Companies Act, 1956 and the
Companies (Acceptance of Deposit) Rules. 1975.
(vii) In our opinion, the company has an adequate internal audit system
commensurate with the size and the nature of its business.
(viii) The provisions of Section 209(1 )(d) of the Companies Act, 1956
regarding maintenance of cost records are not applicable to the
company.
(ix) (a) According to the records of the company, the company is
regular in depositing with the appropriate authorities undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees State Insurance, Income Tax, Wealth Tax and
other statutory dues applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Investor Education and
Protection Fund, Provident Fund, Employees State Insurance, Service
tax. Income tax were outstanding as at 31.03.2012 for a period of more
than six months from the date they became payable.
(c) According to the information and explanations given to us, the
Company does not have any Sales tax, Wealth tax, Service tax, Customs
duty. Excise duty and cess which have not been deposited with the
appropriate authority on account of any dispute.
(x) The company does not have accumulated losses at the end of the
financial year, the company has not incurred cash losses during the
current financial year and the immediately preceding financial year.
(xi) Based on our examination of documents and records maintained by
the Company, the Company has not defaulted in payment of dues to Bank
and financial institutions.
(xii) Based on our examination of documents and records maintained by
the company, we are of the opinion that since the company has not
granted any loan and advance on the basis of security by way of pledge
of shares, debentures and other securities, it is not required to
maintain records in respect thereof.
{xiii) In our opinion, the company is neither a chit fund nor nidhi/
mutual benefit fund/ society and hence clause 4 (xiii) of the Older is
not applicable to the company.
{xiv) Based on our examination of records, we are of the opinion that
the company has maintained proper records of the transactions and
contracts and timely entries have been made therein. The shares,
securities, debentures and other securities have been held by the
company in its own name.
{xv} Based on our examination of the records, we are of the opinion
that the company has not given guarantee for loans taken by others from
banks or financial institutions.
{xvi) 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 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 permanent working capital.
{xvii) During the year, the company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under section 301 of the Companies Act, 1956.
{xviii} During the year the company had not issued any debentures.
{xix} During the year no money was raised by public issue.
{xx} According to the information and explanations given to us, we
report no fraud on or by the company has been noticed or reported
during the course of our audit.
For AVK & ASSOCIATES
Chartered Accountants
Parul Gupta
Partner
Place : Delhi FCA-095539
Dated : 30th May, 2012 Firm Registration No. 002638N
Mar 31, 2011
We have audited the attached Balance Sheet of MARGO FINANCE LIMITED as
at March 31, 2011, the Profit & Loss Account and the Cash Flow
Statement for the year ended on that date, which we have signed under
reference to this report. These financial statements are the
responsibility of the management of the Company. 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. These 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
disclosure 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.
As required by the Companies (Auditors' Report) Order, 2003 issued by
the Company Law Board in terms of Section 227(4A) of the Companies Act,
1956, we enclose in the annexure a statement on the matters specified
in the said order.
Further to our comments in annexure referred to in paragraph 1 above :
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 it appears from our examination of
the said books.
iii) The Balance Sheet, Cash Flow Statement and the Profit & Loss
Account referred to in this report are in agreement with the books of
account.
iv) In our opinion the Balance Sheet, Cash Flow Statement and the
Profit & Loss Account comply with the Accounting Standards referred to
in sub-section (3C) of Section 211 of the Companies Act, 1956.
v) In our opinion, and based on information and explanations given to
us none of the directors are disqualified as on 31st March, 2011 from
being appointed as director in terms of clause (g) of sub-section (1)
of Section 274 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 with the notes
thereon in Schedule 13, give the information required by the Companies
Act, 1956 in the manner so required and give a true and fair view :
a) In the case of Balance Sheet, of the State of affairs of the Company
as at 31st March, 2011.
b) In the case of Profit & Loss Account, of the profit of the Company
for the year ended on that date.
c) In the case of Cash Flow Statement of cash flows for the year ended
on that date.
Annexure referred to in paragraph 1 of the Auditors' Report on the
Accounts for the year ended 31st March, 2011.
(i) (a) The company is maintaining 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 according to a regular program, which, in
our opinion, is reasonable having regard to the size of the company and
the nature of its assets. No material discrepancies with respect to
book records were noticed on such verification.
(ii) There is no inventory except the stocks under finance agreement,
therefore the Clause No. (ii) (a), (b) and (c) of the order are not
applicable to the company.
(iii) The company has not received unsecured loans from companies,
firms or other parties covered in the register maintained under Section
301 of the Companies Act, 1956, however the company has granted
unsecured loans to companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956,
details of which are furnished hereunder:
a) Following are the particulars of unsecured loans granted by the
company:
S. Name of the Party Amount Year end Maximum Balance
Balance
No. (Rs. In Lacs) (Rs. In Lacs) (Rs. In Lacs)
1. Rini Investment
& Finance Pvt. Ltd. 2.30 0.70 1.50
2. Skyrise Properties
Private Limited Nil 127.56* 127.56*
* Including Interest
In our opinion, rate of interest and other terms and conditions on
which the loans have been received and granted are not prima facie
prejudicial to the interest of the company.
Parties to whom loans have been granted have repaid the principal
amount as per stipulation, wherever applicable.
(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. During the course of
our audit, no major weakness has been noticed in the 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 in the
register maintained under Section 301 of the Companies Act, 1956 have
been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 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 given to us, the
company has not accepted any deposits from the public within the
meaning of Sections 58A and 58AA of the Companies Act, 1956 and the
Companies (Acceptance of Deposit) Rules, 1975.
(vii) In our opinion, the company has an adequate internal audit system
commensurate with the size and the nature of its business.
(viii) The provisions of Section 209(1 )(d) of the Companies Act, 1956
regarding maintenance of cost records are not applicable to the
company.
(ix) (a) According to the records of the company, the company is
regular in depositing with the appropriate authorities undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees State Insurance, Income Tax, Wealth Tax 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, were outstanding
as at 31.03.2011 for a period of more than six months from the date
they became payable.
(x) The company does not have accumulated losses at the end of the
financial year. The company has not incurred cash losses during the
current financial year and in the immediately preceding financial year.
(xi) Based on our examination of documents and records maintained by
the Company the Company has not defaulted in payment of dues to Bank.
(xii) Based on our examination of documents and records maintained by
the company, we are of the opinion that since the company has not
granted any loan and advance on the basis of security by way of pledge
of shares, debentures and other securities, it is not required to
maintain records in respect thereof.
(xiii) In our opinion, the company is neither a chit fund nor nidhi /
mutual benefit fund / society and hence clause 4 (xiii) of the order is
not applicable to the company.
(xiv) Based on our examination of records we are of the opinion that
the company has maintained proper records of the transactions and
contracts and timely entries have been made therein. The shares,
securities, debentures and other securities have been held by the
company in it's own name.
(xv) Based on our examination of the records, we are of the opinion
that the company has not given guarantee for loans taken by others from
banks or financial institutions.
(xvi) 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 no funds raised on short-term basis have been used for
long-term investments. No long-term funds have been used to finance
short-term assets except permanent working capital.
(xvii) During the year the company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under Section 301 of the Companies Act, 1956.
(xviii) During the year the company had not issued any debentures.
(xix) During the year no money was raised by public issue.
(xx) According to the information and explanations given to us, we
report no fraud on or by the company has been noticed or reported
during the course of our audit.
For AVK & ASSOCIATES
Chartered Accountants
Parul Gupta
Partner
FCA- 095539
Firm Registration No. 002638N
Place : Mumbai
Dated : 17th May, 2011
Mar 31, 2010
We have audited the attached Balance Sheet of MARGO FINANCE LIMITED
(formerly Indocount Finance Limited) as at March 31, 2010, the Profit &
Loss Account and the Cash Flow Statement for the year ended on that
date, which we have signed under reference to this report. These
financial statements are the responsibility of the management of the
Company. 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. These 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
disclosure 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.
As required by the Companies (Auditors Report) Order, 2003 issued by
the Company Law Board in terms of Section 227(4A) of the Companies Act,
1956, we enclose in the annexure a statement on the matters specified
in the said order.
Further to our comments in annexure referred to in paragraph 1 above :
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 it appears from our examination of
the said books.
iii) The Balance Sheet, Cash Flow Statement and the Profit & Loss
Account referred to in this report are in agreement with the books of
account.
iv) In our opinion the Balance Sheet, Cash Flow Statement and the
Profit & Loss Account comply with the Accounting Standards referred to
in sub-section (3C) of Section 211 of the Companies Act, 1956.
v) In our opinion, and based on information and explanations given to
us none of the directors are disqualified as on 31st March, 2010 from
being appointed as director in terms of clause (g) of sub-section (1)
of Section 274 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 with the notes
thereon in Schedule 13, give the information required by the Companies
Act, 1956 in the manner so required and give a true and fair view :
a) In the case of Balance Sheet, of the State of affairs of the Company
as at 31st March, 2010.
b) In the case of Profit & Loss Account, of the profit of the Company
for the year ended on that date.
c) In the case of Cash Flow Statement of cash flows for the year ended
on that date.
Annexure referred to in paragraph 1 of the Auditors Report on the
Accounts for the year ended 31st March, 2010.
(i) (a) The company is maintaining 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 according to a regular program, which, in
our opinion, is reasonable having regard to the size of the company and
the nature of its assets. No material discrepancies with respect to
book records were noticed on such verification.
(ii) There is no inventory except the stocks under finance agreement,
therefore the clause No. (ii) (a), (b) and (c) of the order are not
applicable to the company.
(Hi) The company has granted and taken unsecured loans to / from
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
a) Following are the particulars of unsecured loans taken by the
company:
S. Name of the Party Amount Yearend
Balance Maximum Balance
No. (Rs. In Lacs) (Rs. In Lacs) (Rs. In Lacs)
1 Indocount Securities
Limited 10.75 Nil 11.28
b) Following are the particulars of unsecured loans granted by the
company:
S. Name of the Party Amount Yearend
Balance Maximum
Balance
No. (Rs. In Lacs) (Rs. In Lacs) (Rs. In Lacs)
1. Indocount
Securities Limited 5.42 Nil 5.42
2. Rini Investment
& Finance Pvt. Ltd. Nil Nil 0.05
3. Skyrise Properties
Private Limited Nil 127.56* 127.56*
* Including Interest
In our opinion, rate of interest and other terms and conditions on
which the loans have been received and granted are not prima facie
prejudicial to the interest of the company.
Parties to whom loans have been granted have repaid the principal
amount as per stipulation, wherever applicable.
(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. During the course of
our audit, no major weakness has been noticed in the 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 in the
register maintained under Section 301 of the Companies Act, 1956 have
been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 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 given to us, the
company has not accepted any deposits from the public within the
meaning of Sections 58A and 58AA of the Companies Act, 1956 and the
Companies (Acceptance of Deposit) Rules, 1975.
(vii) In our opinion, the company has an adequate internal audit system
commensurate with the size and the nature of its business.
(viii) The provisions of Section 209(1 )(d) of the Companies Act, 1956
regarding maintenance of cost records are not applicable to the
company.
(ix) (a) According to the records of the company, the company is
regular in depositing with the appropriate authorities undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees State Insurance, Income Tax, Wealth Tax 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, were outstanding
as at 31.03.2010 for a period of more than six months from the date
they became payable.
(x) The company does not have accumulated losses at the end of the
financial year, the company has not incurred cash losses during the
current financial year and in the immediately preceding financial year.
(xi) Based on our examination of documents and records maintained by
the Company the Company has not defaulted in payment of dues to Bank.
(xii) Based on our examination of documents and records maintained by
the company, we are of the opinion that since the company has not
granted any loan and advance on the basis of security by way of pledge
of shares, debentures and other securities, it is not required to
maintain records in "respect thereof.
(xiii) In our opinion, the company is neither a chit fund nor nidhi /
mutual benefit fund / society and hence clause 4 (xiii) of the Order is
not applicable to the company.
(xiv) Based on our examination of records we are of the opinion that
the company has maintained proper records of the transactions and
contracts and timely entries have been made therein. The shares,
securities, debentures and other securities have been held by the
company in its own name.
(xv) Based on our examination of the records, we are of the opinion
that the company has not given guarantee for loans taken by others from
banks or financial institutions.
(xvi) 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 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 permanent working capital.
(xvii) During the year the company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under Section 301 of the Companies Act, 1956.
(xviii) During the year the company had not issued any debentures.
(xix) During the year no money was raised by public issue.
(xx) According to the information and explanations given to us, we
report no fraud on or by the company has been noticed or reported
during the course of our audit.
For AVK & ASSOCIATES
Chartered Accountants
Parul Gupta
Partner
Place : Mumbai FCA-095539
Dated : 29th May, 2010 Firm Registration No. 002638N