Mar 31, 2016
To, The Members of MAXIMAA SYSTEMS LIMITED
Report on the Financial Statements
We have audited the accompanying standalone and consolidated financial statements of MAXIMAA SYSTEMS LIMITED (âthe Companyâ) which comprises the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss, Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility
The Companyâs Board of Directors is responsible for the matters stated in Section 135(4)of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these (Standalone) financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under. We conducted our audit in accordance with the Standards on Auditing 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 auditorâs 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 Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place 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 Companyâs Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statement.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statement give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2016, and its Profit/Loss and its Cash flow for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ), as amended, issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143 (3) of the Act, we report that:
a. 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 Flow Statement dealt with by this Report are in agreement with the books of account in our opinion, the aforesaid (Standalone) financial statements comply with the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
d. On the basis of written representations received from the directors as on March 31, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2016 from being appointed as a director in terms of Section 164 (2) of the Act.
e. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ.
With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company does not have any pending litigations which would impact its financial position.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
Following are the instances of delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company
a. -NILâ
b. -NILâ
âAnnexure Aâ to the Independent Auditorsâ Report
Referred to in paragraph 1 under the heading âReport on Other Legal & Regulatory Requirementâ of our report of even date to the financial statements of the Company for the year ended March 31, 2016:
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 in a phased manner, designed to cover all the items over a period of three years, which in our opinion, is reasonable having regard to the size of the company and nature of its business. Pursuant to the program, a portion of the fixed asset has been physically verified by the management during the year and no material discrepancies between the books records and the physical fixed assets have been noticed.
(c) The title deeds of immovable properties are held in the name of the company.
(2) (a) The management has conducted the physical verification of inventory at reasonable intervals.
b) The discrepancies noticed on physical verification of the inventory as compared to books records which has been properly dealt with in the books of account were not material.
3) The Company has granted interest free loans, secured or unsecured to companies, firms, Limited Liability partnerships or other parties covered in the Register maintained under section 189 of the Act and as detailed in the related party transactions disclosure in the notes. According to the information and explanations given to us and in our opinion the terms and condition on which such advances have been given to parties listed in register maintained under section 189 of the Companies Act are not prima facie prejudicial to the interest of the Company. The parties are regular in repaying the advances, or they are either being adjusted or being repaid regularly.
4) In our opinion and according to the information and explanations given to us, the company has complied with the provisions of section 185 and I86 of the Companies Act, 2013 in respect of loans, investments, guarantees, and security.
5) The Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with regard to the deposits accepted from the public are not applicable.
6) As informed to us, the maintenance of Cost Records has not been specified by the Central Government under sub-section (1) of Section 148 of the Act, in respect of the activities carried on by the company.
7) (a) According to information and explanations given to us and on the basis of our examination of the books of account, and records, the Company has been generally regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income-Tax, Sales tax, Service Tax, Duty of Customs, Duty of Excise, Value added Tax, Cess and any other statutory dues with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the above were in arrears as at March 31, 2016 for a period of more than six months from the date on when they become payable.
a According to the information and explanation given to us, there are no dues of income tax, sales tax, service tax, duty of customs, duty of excise, value added tax outstanding on account of any dispute.
8) In our opinion and according to the information and explanations given to us, the Company has defaulted in the repayment of dues to banks. The Company has not taken any fresh loan either from financial institutions or from the government and has not issued any debentures.
9) Based upon the audit procedures performed and the information and explanations given by the management, the company has not raised moneys by way of initial public offer or further public offer including debt instruments and term Loans. Accordingly, the provisions of clause 3 (ix) of the Order are not applicable to the Company and hence not commented upon.
10) Based upon the audit procedures performed and the information and explanations given by the management, we report that no fraud by the Company or on the company by its officers or employees has been noticed or reported during the year.
11) Based upon the audit procedures performed and the information and explanations given by the management, the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act;
12) In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause 4 (xii) of the Order are not applicable to the Company.
13) In our opinion, all transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 and the details have been disclosed in the Financial Statements as required by the applicable accounting standards.
14) Based upon the audit procedures performed and the information and explanations given by the management, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of clause 3 (xiv) of the Order are not applicable to the Company and hence not commented upon.
15) Based upon the audit procedures performed and the information and explanations given by the management, the company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, the provisions of clause 3 (xv) of the Order are not applicable to the Company and hence not commented upon.
16) In our opinion, the company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934 and accordingly, the provisions of clause 3 (xvi) of the Order are not applicable to the Company and hence not commented upon.
Annexure Bâ to the Independent Auditorâs Report of even date on the Standalone and Consolidated Financial Statements of MAXIMAA SYSTEMS LIMITED . Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of MAXIMAA SYSTEMS LIMITED .
(âthe Companyâ) as of March 31, 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the size of the Company and the nature of its business with regard to purchase of inventory and Fixed Assets and for the sale of goods & services.
These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance
Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2016, based on the size of the Company and the nature of its business with regard to purchase of inventory and Fixed Assets and for the sale of goods & services
For and on behalf of,
C. D. Khakhkhar& Co.
Chartered Accountants
Firmâs registration number: 141767W
Sd/-
Chetan D. Khakhkhar
Proprietor
Membership number: 122647
Place : Valsad
Date : 30.07.2016
Mar 31, 2015
We have audited the accompanying financial statements of Maximaa
Systems Limited ("the Company"), which comprise the Balance Sheet as at
March 31, 2015, 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
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 standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls
that were operating effectively for ensuring the accuracy and
completeness of the accounting records relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
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 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 Company'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 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, 2015;
(b) In the case of the Statement of Profit and Loss, 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 of the
Company for the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor's Report) Order, 2015 (" the
Order ") issued by the Central Government of India in terms of Section
143(11) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that:
a. 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, and the Cash Flow Statement comply with Accounting Standards
notified under the Act in respect of Section 133 of the Companies Act,
2013, read with rule 7 of Companies (Accounts) Rules, 2014.
e. On the basis of the written representations received from the
directors as on March 31,2015, taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2015,
from being appointed as a director in terms of Section 274(1) (g) of
the Act.
On the basis of checks as considered appropriate and in terms of the
information and explanations
given to us, we state as under:
(i) FIXEDASSETS:
(a) The Company has maintained proper records showing full particulars
including quantitative details and situation of FixedAssets.
(b) As explained to us, the FixedAssets have been physically verified
by the management during the year in a phased manner, which in our
opinion is reasonable having regard to the size of the Company and
nature of its Assets. No material discrepancies were noticed on such
verification.
(c) During the year, the Company has not disposed of any
substantial/major part of FixedAssets, and therefore going concern
status of the Company is not affected.
(ii INVENTORIES:
(a) As explained to us, the inventories have been physically verified
during the year by the management. In our opinion, having regard to the
nature and location of stocks, the frequency of the physical
verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, 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. As
explained to us there were no material discrepancies noticed on
physical verification of inventory as compared to the book records and
the same have been properly dealt with in the books of account.
(iii) LOANS:
(a) The Company has granted interest free advance to partiescovered in
the register maintained under Section 189 of the Companies Act 2013, as
detailed inthe Related Party Disclosure at Note No.31of the Notes
Forming Parts of Accounts.
(b) According to the information and explanations given to us and in
our opinion the terms and condition on which such advances have been
given to parties listed in register maintained under section 189 of the
Companies Act are not prima facie prejudicial to the interest of the
Company.The parties are regular in repaying the advances, or they are
either being adjusted or being repaid regularly.
(c) In view of the above answer to clause "b", this clause is not
applicable.
(iv) INTERNAL CONTROL PROCEDURES:
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 inventory and FixedAssets and for the sale of goods &
services. During the course of our audit, no major weakness has been
noticed in the internal controls.
(v) PUBLIC DEPOSITS:
In our opinion and according to the information and explanations given
to us, the Company has complied with the provisions of Sections 73 to76
or any other relevant provisions of the Companies Act, 2013 and the
Companies (Acceptance of Deposits) Rules, 2014, as amended, with regard
to the deposits accepted. According to the information and explanations
given to us, no order has been passed by the Company Law Board or the
National Company Law Tribunal or the Reserve Bank of India or any Court
or any other Tribunal.
(vi) COST RECORDS:
The Company has maintained cost records prescribed by the Central
Government pursuant to the rules made by the Central Government under
section 148 (1) of the Companies Act 1956, in respect of the products
of the Company. However, we have not made a detailed examination of the
records with a view to determine whether they are accurate or complete.
(vii) STATUTORY DUES:
According to the information and explanations given to us and the
records examined by us, undisputed arrears of statutory dues
outstanding as at 31st March, 2015 for a period of more than six months
from the date they became payable are as under. :-
Sr. Nature of Statutory Dues As at As at
No. 31st March 2015 31st March 2014
Amount Rs. Amount Rs.
1 TDS 74,926 4,71,376
2 Provident Fund 1,02,909 -
3 VAT 8,86,472 -
4 CST 2,10,964 1,82,632
5 Profession Tax 5,65,906 3,94,306
6 Service Tax 1,26,321 42,710
(viii) ACCUMULATED LOSSES:
The Companyhas an accumulated loss of Rs. 2,17,56,030/- (Previous Year
Rs.2,19,10,539/-)at the end of the financial year under reference.
However, the accumulated loss does not exceed 50% of the Net Worth of
the Company. The Company has not incurred any cash loss either during
the year under reference or in the previous year.
(ix) REPAYMENT OF DUES OF FINANCIAL INSTITUTIONS:
Based on our audit procedures and the information and explanations
given to us, we are of the opinion that the Company has not defaulted
in repayment of dues to the financial institution or bank.
(x) GUARANTEE:
According to the information and explanations given to us, the Company
has not given any guarantee for loans taken by others from banks and
financial institutions.
(xi) UTILIZATION OF TERM LOAN FUND:
In our opinion and according to the information and explanation given
to us, the Term Loans have been applied for the purpose for which they
were obtained.
(xxi) FRAUD ON OR BY THE COMPANY:
As per the information and explanations given to us, no fraud by the
Company and no material fraud on the Company has been noticed or
reported during the year.
For, KCPG & Co.
Chartered Accountants
Firm Regn. No. : 140913W
Chetan D. Khakhkhar
Partner
Membership No. : 122647
Place : Valsad
Date : 08th September, 2015
Mar 31, 2014
We have audited the accompanying financial statements of Maximaa
Systems Limited ("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
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows 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
13th September, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013 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 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 Company''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 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 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 of the
Company for the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor''s Report) Order, 2003 (" the
Order ") issued by the Central Government of India in terms of
Section 227(4A) of the Act, we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
a. 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,
and the Cash Flow Statement comply with Accounting Standards notified
under the Act read with the General Circular 15/2013 dated 13th
September, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013.
e. On the basis of the written representations received from the
directors 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
On the basis of checks as considered appropriate and in terms of the
information and explanations given to us, we state as under:
(i) FIXED ASSETS:
(a) The Company has maintained proper records showing full particulars
including quantitative details and situation of Fixed Assets.
(b) As explained to us, the Fixed Assets have been physically verified
by the management during the year in a phased manner, which in our
opinion is reasonable having regard to the size of the Company and
nature of its Assets. No material discrepancies were noticed on such
verification.
(c) During the year, the Company has not disposed of any substantial /
major part of Fixed Assets, and therefore going concern status of the
Company is not affected.
(ii) INVENTORIES:
(a) As explained to us, the inventories have been physically verified
during the year by the management. In our opinion, having regard to the
nature and location of stocks, the frequency of the physical
verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, 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. As
explained to us there were no material discrepancies noticed on
physical verification of inventory as compared to the book records and
the same have been properly dealt with in the books of account.
(iii) LOANS:
(a) The Company has granted interest free advance to parties covered in
the register maintained under Section 301 of the Companies Act 1956, as
detailed in the Related Party Disclosure at Note No. 31 of the Notes
Forming Parts of Accounts.
(b) According to the information and explanations given to us and in
our opinion the terms and condition on which such advances have been
given to parties listed in register maintained under section 301 of the
Companies Act are not prima facie prejudicial to the interest of the
Company.
(c) The parties are regular in repaying the advances, or they are
either being adjusted or being repaid regularly.
(d) In view of the above answer to clause "c", this clause is not
applicable.
(e) The Company has accepted interest free loan of Rs.50,00,000/- (
Previous Year Rs.NIL ) from party covered under register maintained
under Section 301 of the Companies Act. The terms and conditions of the
loan are not prima facie prejudicial to the interests of the Company.
(iv) INTERNAL CONTROL PROCEDURES:
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 inventory and Fixed Assets and for the sale of goods &
services. During the course of our audit, no major weakness has been
noticed in the internal controls.
(v) TRANSACTION WITH RELATED PARTY:
Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the particulars of contracts or arrangement with related
party that need to be entered into the Register maintained under
Section 301 have been so entered
In our opinion and according to the information and explanations given
to us, the transactions made in pursuance to such contracts or
arrangements and exceeding the value of five lakh rupees have been
entered into during the financial year at prices which are reasonable
having regard to the prevailing market prices at relevant times.
(vi) PUBLIC DEPOSITS:
The Company has not accepted any deposits from the public.
(vii) INTERNAL AUDIT
As per information and explanation given to us, in our opinion the
Company has an Internal Audit System commensurate with size and nature
of business of the Company.
(viii) COST RECORDS:
The Company has maintained cost records prescribed by the Central
Government pursuant to the rules made by the Central Government under
section 209(1)(d) of the Companies Act 1956, in respect of the products
of the Company. However, we have not made a detailed examination of the
records with a view to determine whether they are accurate or complete.
(ix) STATUTORY DUES:
According to the information and explanations given to us and the
records examined by us, undisputed arrears of statutory dues
outstanding as at 31st March, 2014 for a period of more than six months
from the date they became payable are as under. :-
Nature of Statutory Dues As at As at
31st March 2014 31st March 2013
Amount Rs. Amount Rs.
TDS 4,71,376.00 4,85,153.00
Provident Fund - 4,07,683.00
VAT - 5,35,558.00
CST 1,82,632.00 3,03,757.00
Profession Tax 3,94,306.00 3,24,635.00
Service Tax 42,710.00 -
(x) ACCUMULATED LOSSES:
The Company has an accumulated loss of Rs.2, 19, 10,539/- (Previous
Year Rs. 2,23,98,841/-) at the end of the financial year under
reference. However, the accumulated loss does not exceed 50% of the Net
Worth of the Company. The Company has not incurred any cash loss either
during the year under reference or in the previous year.
(xi) REPAYMENT OF DUES OF FINANCIAL INSTITUTIONS:
Based on our audit procedures and the information and explanations
given to us, we are of the opinion that the Company has not defaulted
in repayment of dues to the financial institution or bank.
(xii) LOANS & ADVANCES AGAINST SHARES, DEBENTURES AND OTHER SECURITIES:
Based on our examination of the records and according to the
information and explanations given to us, the Company has not granted
any loans and / or advances on the basis of security by way of pledge
of shares, debentures and other securities.
(xiii) CHIT FUND COMPANY OR NIDHI/MUTUAL BENEFIT FUND/SOCIETY:
In our opinion, the Company is not a Chit Fund or a Nidhi / Mutual
Benefit Fund / Society. Therefore clause (xiii) of the Order is not
applicable to the Company.
(xiv) MAINTENANCE OF RECORDS FOR DEALING / TRADING IN SHARES,
SECURITIES, DEBENTURES & OTHER INVESTMENTS:
The Company is not dealing or trading in shares, securities, debenture
or other investments. Hence Clause (xiv) of the Order is not applicable
to the Company.
(xv) GUARANTEE:
According to the information and explanations given to us, the Company
has not given any guarantee for loans taken by others from banks and
financial institutions.
(xvi) UTILIZATION OF TERM LOAN FUND:
In our opinion and according to the information and explanation given
to us, the Term Loans have been applied for the purpose for which they
were obtained.
(xvii) MISMATCH BETWEEN SHORT TERM / LONG TERM FUNDS:
According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, we are of the
opinion that the Company has not utilized fund raised on short-term
bases for Investment on Long Term bases.
(xviii) PREFERENTIAL ALLOTMENT OF SHARES:
Based on our audit procedures and the information and explanations
given to us, during the year, the Company has not allotted any shares
on preferential basis.
(xix) CREATION OF SECURITIES FOR ISSUE OF DEBENTURE:
During the year under audit, the Company has not issued any debentures.
(xx) END USE OF MONEY RAISED BY PUBLIC ISSUE:
During the year under audit, the Company has not raised any money by
public issues.
(xxi) FRAUD ON OR BY THE COMPANY:
As per the information and explanations given to us, no fraud on or by
the Company has been noticed or reported during this year, which causes
the financial statements to be materially misstated.
For D D Desai & Associates
Chartered Accountants
Firm Regn. No. : 102297W
D D Desai
Proprietor
Membership No. : 042031
Place : Valsad
Date : 30th May 2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of MAXIMAA
SYSTEMS LIMITED ("the Company"), which comprise the Balance Sheet
as at March 31, 2013 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
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This 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
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.
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 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, 2013;
b) in the case of the Profit and Loss Account, of the loss for the year
ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Matters
1. 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.
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, 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, Statement of Profit and Loss and
the 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, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
For D D Desai & Associates
Chartered Accountants
Firm Regn. No. : 102297W
D D Desai
Proprietor
Membership No. : 042031
Place : VALSAD
Date : 30th May 2013
On the basis of checks as considered appropriate and in terms of the
information and explanations given to us, we state as under:
(i) FIXED ASSETS :
(a) The Company has maintained proper records showing full particulars
including quantitative details and situation of Fixed Assets.
(b) As explained to us, the Fixed Assets have been physically verified
by the management during the year in a phased manner, which in our
opinion is reasonable having regard to the size of the Company and
nature of its Assets. No material discrepancies were noticed on such
verification.
(c) During the year, the Company has not disposed of any substantial /
major part of Fixed Assets, and therefore going concern status of the
Company is not affected.
(ii) INVENTORIES :
(a) As explained to us, the inventories have been physically verified
during the year by the management. In our opinion, having regard to the
nature and location of stocks, the frequency of the physical
verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, 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. As
explained to us there were no material discrepancies noticed on
physical verification of inventory as compared to the book records and
the same have been properly dealt with in the books of account.
(iii) LOANS :
(a) The Company has granted interest free advance to parties covered in
the register maintained under Section 301 of the Companies Act 1956, as
detailed in the Related Party Disclosure at Note No.- 30 of the Notes
Forming Parts of Accounts.
(b) According to the information and explanations given to us and in
our opinion the terms and condition on which such advances have been
given to parties listed in register maintained under section 301 of the
Companies Act are not prima facie prejudicial to the interest of the
Company.
(c) The parties are regular in repaying the advances, or they are
either being adjusted or being repaid regularly.
(d) In view of the above answer to clause "c", this clause is not
applicable.
(e) The Company has not accepted any interest free loan from any party
covered under register maintained under Section 301 of the Companies
Act. In view of the same, clause iii(f) and iii(g) of the Order are not
applicable to the Company.
(iv) INTERNAL CONTROL PROCEDURES:
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 inventory and Fixed Assets and for the sale of goods &
services. During the course of our audit, no major weakness has been
noticed in the internal controls.
(v) TRANSACTION WITH RELATED PARTY:
Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the particulars of contracts or arrangement with related
party that need to be entered into the Register maintained under
Section 301 have been so entered
In our opinion and according to the information and explanations given
to us, the transactions made in pursuance to such contracts or
arrangements and exceeding the value of five lakh rupees have been
entered into during the financial year at prices which are reasonable
having regard to the prevailing market prices at relevant times.
(vi) PUBLIC DEPOSITS:
The Company has not accepted any deposits from the public.
](vii) INTERNAL AUDIT A s per information and explanation given to us,
in our opinion the Company has an Internal Audit System commensurate
with size and nature of business of the Company.
(viii) COST RECORDS:
The Company has maintained cost records prescribed by the Central
Government pursuant to the rules made by the Central Government under
section 209(1)(d) of the Companies Act 1956, in respect of the products
of the Company.
(ix) STATUTORY DUES:
(a) According to the information and explanations given to us and the
records examined by us, undisputed arrears of statutory dues
outstanding as at 31st March, 2013 for a period of more than six months
from the date they became payable are as under. :-
SR
NO PARTICULARS AS ON31st March 2013 AS ON31st March 2012
1 TDS 4,85,153.00 -
2 Provident Fund 4,07,683.00 -
3 VAT 5,35,558.00 -
4 CST 3,03,757.00 -
5 Profession Tax 3,24,635.00 1,51,644.00
The above figures includes Employer Contribution to Provident Fund for
Rs.54,000/- (Previous Year Rs. NIL) not provided for.
(x) ACCUMULATED LOSSES:
The Company has an accumulated loss of Rs.2,23,98,841/- (Previous Year
Rs. 1,69,16,834/-) at the end of the financial year under reference.
However, the accumulated loss does not exceed 50% of the Net Worth of
the Company. The Company has not incurred any cash loss either during
the year under reference or in the previous year.
(xi) REPAYMENT OF DUES OF FINANCIAL INSTITUTIONS:
Based on our audit procedures and the information and explanations
given to us, we are of the opinion that the Company has not defaulted
in repayment of dues to the financial institution or bank.
(xii) LOANS & ADVANCES AGAINST SHARES, DEBENTURES AND OTHER SECURITIES:
Based on our examination of the records and according to the
information and explanations given to us, the Company has not granted
any loans and / or advances on the basis of security by way of pledge
of shares, debentures and other securities.
(xiii) CHIT FUND COMPANY OR NIDHI/MUTUAL BENEFIT FUND/SOCIETY:
In our opinion, the Company is not a Chit Fund or a Nidhi / Mutual
Benefit Fund / Society. Therefore clause (xiii) of the Order is not
applicable to the Company.
(xiv) MAINTENANCE OF RECORDS FOR DEALING / TRADING IN SHARES,
SECURITIES, DEBENTURES & OTHER INVESTMENTS:
The Company is not dealing or trading in shares, securities, debenture
or other investments. Hence Clause (xiv) of the Order is not applicable
to the Company.
(xv) GUARANTEE:
According to the information and explanations given to us, the Company
has not given any guarantee for loans taken by others from banks and
financial institutions.
(xvi) UTILIZATION OF TERM LOAN FUND:
The Company has not raised any new Term Loan during the year, the Term
Loan outstanding at the beginning of the year were applied / utilized
for the purpose for which they were raised.
(xvii) MISMATCH BETWEEN SHORT TERM / LONG TERM FUNDS:
According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, we are of the
opinion that the Company has not utilized fund raised on shortterm
bases for Investment on Long Term bases.
(xviii) PREFERENTIAL ALLOTMENT OF SHARES:
Based on our audit procedures and the information and explanations
given to us, during the year, the Company has not allotted any shares
on preferential basis.
(During the previous year, the Company has allotted 1,50,000 Equity
Shares of Rs.10/- each to Shri Milan Desai and 1,50,000 Equity Shares
of Rs.10/- each to M/s Tanushir Mercantile Private Limited, both at a
Premium of Rs.16/- per share on a preferential basis.)
(xix) CREATION OF SECURITIES FOR ISSUE OF DEBENTURE:
During the year under audit, the Company has not issued any debentures.
(xx) END USE OF MONEY RAISED BY PUBLIC ISSUE:
During the year under audit, the Company has not raised any money by
public issues.
(xxi) FRAUD ON OR BY THE COMPANY:
As per the information and explanations given to us, no fraud on or by
the Company has been noticed or reported during this year, which causes
the financial statements to be materially misstated.
For D D Desai & Associates
Chartered Accountants
Firm Regn. No. : 102297W
D D Desai
Proprietor
Membership No. : 042031
Place : VALSAD
Date : 30th May 2013
Mar 31, 2012
1. We have audited the attached Balance Sheet of MAXIMAA SYSTEMS
LIMITED as at 31st March, 2012, the Profit and Loss Account and Cash
Flow Statement for the year ended on that date annexed thereto. 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.
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 from material misstatement. An audit
includes examining, on a test basis, evidence supporting the amount and
disclosures in 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, issued
by the Central Government of India under sub-section (4A) of Section
227 of the Companies Act, 1956, and on the basis of such checks of the
books and records of the company as we considered appropriate and
according to the information and explanations given to us. We enclose
in the Annexure a statement on the matters specified in paragraph 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 and Profit and Loss Account dealt with by this
report are in agreement with the Books of Accounts;
iv. in our opinion, the Balance Sheet and Profit and Loss Account dealt
with by this report comply with the Accounting Standards referred to in
sub-section (3C) of the section 211 of the Companies Act, 1956;
v. On the basis of the written representation received from directors
as on 31st March, 2012 and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March
2012 from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act. 1966 and
vi. In our opinion and to the best of our information and according to
the explanation given to us, the said accounts read together with the
significant accounting policies and notes appearing 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,
(a) In the case of the Balance sheet, of the state of affairs of the
Company as at 31st March, 2012
(b) In the case of the Profit and Loss Account, of the loss for the
year ended on that date, and (c) In case of the Cash Flow Statement, of
the cash flows for the year ended on that date.
ANNEXURE TO AUDITOR'S REPORT
On the basis of checks as considered appropriate and in terms of the
information and explanations given to us, we state as under:
(i) FIXED ASSETS:
(a) The Company has maintained proper records showing full particulars
including quantitative details and situation of Fixed Assets.
(b) As explained to us. the Fixed Assets have been physically verified
by the management during the year in a phased manner, which in our
opinion is reasonable having regard to the size of the Company and
nature of its Assets. No material discrepancies were noticed on such
verification.
(c) During the year, the Company has not disposed of any
substantial/major part of Fixed Assets, and therefore going concern
status of the Company is not affected.
(ii) INVENTORIES:
(a) As explained to us, the inventories have been physically verified
during the year by the management. In our opinion, having regard to the
nature and location of stocks, the frequency of the physical
verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, 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. As
explained to us there were no material discrepancies noticed on
physical verification of inventory as compared to the book records and
the same have been property dealt with in the books of account.
(iii) LOANS:
(a) The Company has granted interest free advance to parties covered in
the register maintained under Section 301 of the Companies Act 1956, as
detailed in the Related Party Disclosure at Note No. - 28 of the Notes
Forming Parts of Accounts,
(b) According to the Information and explanations given to us and in
our opinion the terms and condition on which such advances have been
given to parties listed in register maintained under section 301 of the
Companies Act are not prima facie prejudicial to the interest of the
Company.
(c) The parties are regular in repaying the advances, or they are
either being adjusted or being repaid regularly.
(d) In view of the above answer to clause "c", this clause is not
applicable.
(e) The Company has not accepted any interest free loan from any party
covered under register maintained under Section 301 of the Companies
Act. In view of the same, clause iii(f) and iii(g) of the Order are not
applicable to the Company.
(iv) INTERNAL CONTROL PROCEDURES:
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 inventory and Fixed Assets and for the sale of goods &
services. During the course of our audit, no major weakness has been
noticed in the internal controls.
(v) TRANSACTION WITH RELATED PARTY:
Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the particulars of contracts or arrangement with related
party that need to be entered into the Register maintained under
Section 301 have been so entered.
In our opinion and according to the information and explanations given
to us, the transactions made in pursuance to such contracts or
arrangements and exceeding the value of five lakh rupees have been
entered into during the financial year at prices which are reasonable
having regard to the prevailing market prices at relevant times.
(vi) PUBLIC DEPOSITS:
The Company has not accepted any deposits from the public.
(vii) INTERNAL AUDIT
As per information and explanation given to us, in our opinion the
Company has an Internal Audit System commensurate with size and nature
of business of the Company.
(viii) COST RECORDS:
The Company has not maintained any cost records prescribed by the
Central Government pursuant to the rules made by the Central Government
under section 209(1)(d) of the Companies Act 1956, in respect of the
products of the Company.
(ix) STATUTORY DUES;
(a) According to the information and explanations given to us and the
records examined by us, the Company is generally regular in depositing
with appropriate authorities undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Employees'
State Insurance Contribution, Income Tax, Wealth Tax, Customs Duty,
Excise Duty, Service Tax and other material statutory dues wherever
applicable. According to the information and explanations given to us,
no undisputed arrears of statutory dues were outstanding as at 31st
March, 2012 for a period of more than six months from the date they
became payable.
(b) According to the information and explanations given to us, the
disputed arrears of statutory dues outstanding as at 31st March 2012
have been resolved and crystallised after the Balance Sheet date and
have been duly provided for as detailed in Note No. - 16 to the Annual
Accounts.
(x) ACCUMULATED LOSSES:
The Company has an accumulated loss of Rs. 1,69,16,834/- (Previous Year
Rs. 74,48,118/-) at the end of the financial year under reference.
However, the accumulated loss does not exceed 50% of the Net Worth of
the Company. The Company has not incurred any cash loss either during
the year under reference or in the previous year
(xi) REPAYMENT OF DUES OF FINANCIAL INSTITUTIONS:
Based on our audit procedures and the information and explanations
given to us. we are of the opinion that the Company has not defaulted
in repayment of dues to the financial institution or bank.
(xii) LOANS & ADVANCES AGAINST SHARES, DEBENTURES AND OTHER SECURITIES:
Based on our examination of the records and according to the
information and explanations given to us, the Company has not granted
any loans and/or advances on the basis of security by way of pledge of
shares, debentures and other securities.
(xiii) CHIT FUND COMPANY OR NIDHI/MUTUAL BENEFIT FUND/SOCIETY:
In our opinion, the Company is not a Chit Fund or a Nidhi/Mutual
Benefit Fund/Society. Therefore clause (xiii) of the Order is not
applicable to the Company.
(xiv) MAINTENANCE OF RECORDS FOR DEALING/TRADING IN SHARES, SECURITIES,
DEBENTURES & OTHER INVESTMENTS:
The Company is not dealing or trading in shares, securities, debenture
or other investments. Hence Clause (xiv) of the Order is not applicable
to the Company.
(XV) GUARANTEE:
According to the information and explanations given to us, the Company
has not given any guarantee for loans taken by others from banks and
financial institutions.
(xvi) UTILIZATION OF TERM LOAN FUND:
The Company has not raised any new Term Loan during the year, the Term
Loan outstanding at the beginning of the year were applied/utilized for
the purpose for which they were raised.
(xvii) MISMATCH BETWEEN SHORT TERM/LONG TERM FUNDS:
According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, we are of the
opinion that the Company has not utilized fund raised on short- term
bases for Investment on Long Term bases.
(xviii) PREFERENTIAL ALLOTMENT OF SHARES:
During the year the Company has allotted 1,50,000 Equity Shares of Rs.
10/- each to Shri Milan Desai and 1,50.000 Equity Shares of Rs. 10/-
each to M/s Tanushir Mercantile Private Limited, both at a Premium of
Rs. 16/- per share on a preferential basis.
( During the Previous Year, at the Extra Ordinary General Meeting held
on 7th March 2011. The Company has obtain approval of the members for
Preferential Allotment of 8,50,500 shares of Rs. 10/- each at a premium
of Rs. 5/- per share being consideration towards acquisition of License
to use Patents of Maximaa Proyurveda at Rs. 1.27.57,500/-. These shares
have been allotted on 18th May 2011. In view of pending allotment of
these shares as on 31st March 2011, the amount of Share Premium of Rs.
5/- per share is transferred to Share Premium Account in Note - 2 of
the Balance Sheet. The amount of Share Capital of Rs. 10/- per share is
shown under the head Equity Shares Allotment Account in Note - 2 of the
Balance Sheet.)
(xix) CREATION OF SECURITIES FOR ISSUE OF DEBENTURE:
During the year under audit, the Company has not issued any debentures.
(xx) END USE OF MONEY RAISED BY PUBLIC ISSUE:
During the year under audit, the Company has not raised any money by
public issues,
(xxi) FRAUD ON OR BY THE COMPANY:
As per the information and explanations given to us, no fraud on or by
the Company has been noticed or reported during this year, which causes
the financial statements to be materially misstated.
For D. D. Desai & Associates
Chartered Accountants
D. D. Desai
Proprietor
M. No. : 042031
F. R. No. : 102297W
Place : Valsad
Date : 14th August, 2012
Mar 31, 2010
We have audited the attached Balance Sheet of MaxiMaa Systems Ltd as at
31th March 2010 and the Profit and Loss Account for the year ended on
that date annexed thereto and also the cash flow statement for the year
ended on that date. These financial statements are the responsibility
of the Companys management. Our responsibility is to express an
opinion on these financial statments based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements ore 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.
As required by the Companies (Auditors Report) Order. 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 Annxure a statement
on the masters specified in paragraphs 4 and 5 of the said Order
Further to our comments in the Anncxure 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 purpose of our
audit.
b) In our opinion, proper boots of accounts as required by law. have
been kept by the Company, so for as it appears from examination of such
books.
C) The Balance Sheet and the Profit & Loss Account referred to in this
report are In agreement with the books of accounts.
d) In our opinion the Balance sheet and Profit & loss Account, comply
with the Accounting Standards as referred to in sub section (3C) of
section 211 of the Companies Act 1956, to the extent applicable.
e) On the basis of written representations received from the directors,
as on 31st March 2010 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 31st March 2010
from being appointed
as a director in terms of clause (g) of sub-section (I) of section 274
of the Companies Act, 1956:
In our opinion, and to the best of our information and according to the
explanation given to us, the said Balance Sheet and the Profit & Loss
Account read together with the Dotes thereon give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
I. in so far as it relates to the Balance sheet, of the state of affairs
of the Company as ai 31st March. 2010.
II.in so far as it relates to the Profit and Loss Account, the Loss of
the Company for the year ended on that Date, and
III.in the case of Cash Flow Statement, of the cash flow for the year
ended on that dote.
ANNEXURE TO AUDITORS REPORT
On the basis of checks as considered appropriate and in terms of the
information and explanations given to us we report as under:
(i) FIXED ASSETS:
(a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) As explained to us the fixed assets have been physically verified
by the management during the year in a phased manner, which in our
opinion is reasonable having regard to the size of the company and
nature of its .assets. No material discrepancies Were noticed on such
verification.
(c) During the year, the Company has not disposed of any
substantial/major part of fixed assets, and going concern status
of the company is not affectcd.
(ii) INVENTORIES:
(a) As explained to us. the inventories have been physically verified
during the year by the management In our opinion, having regard
to the nature and location of stocks. the frequency of the
physical verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us. procedures of physical verification of inventory
followed by the management arc rcasonable 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. As
explained to us there wen: no material discrepancies noticed on
physical verification of inventory as compared to the book records
and the same have been properly dealt with in the books of account
(iii) LOANS:
(a) The Company has granted interest free advance to one party, and no
interest free loan has been granted to any parly covered In the
register maintained under Section 301 of the Companies Act 1956
(b) According to the information and explanations given to us and in
our opinion the terms and condition on whih such advances have been
given to parties listed in register maintained under section 301
of the Companies Act arc not prima facie prejudicial to the
interest of the company.
(c) The paries are regular in repaying the advances, or they are either
being adjusted or being repaid regularly.
(d) In view of the above answer to clause "e" this clause is not
applicable.
(e) The Company has inherited on amalgamation interest free lonn from
one party covered under register maintained under Section 301 of the
Companies Act.
(f) The rate of interest & other terms & conditions of loan token by
company are not prime facie prejudicial to the interest of the company.
(g) The payment of principal amount is regular. The question of payment
of Interest does not arise in view of the fact this loon is intered
free.
(iv) INTERNAL CONTROL PROCEDURES:
In our opinion and according to the information and explanations given
to us, there arc adequate internal control procedures commensurate with
the size of the Company and the nature of its business with regard 10
purchase of inventory and fixed assets and for the sale of goods &
services. During the course of our audit. no major weakness has been
noticed in the internal controls.
(v) TRANSACTION WITH RELATED PARTY:
Based on the audit procedures applied by us and according to (Ik
information and explanation provided by the management, we are of the
opinion that the particular* of contracts or arrangement with related
pany that need to be entered into the Register maintained under Section
301 have been so entered
In our opinion and according to the information and explanations given
to us, the transaction made in pursuance of contracts or arrangements
entered in the Register maintained under Section 301 and exceeding the
value of live lakh rupees 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) PUBLIC DEPOSITS:
The company has not accepted any deposits from the public.
(vii) COST RECORDS:
As explained to us the Central Government has not prescribed the
maintenance of Cost Records Under Section 209(1) (d) of the Companies
Act 1956. in respect of the Companys products.
(viii) STATUTORY DUES:
(a) According to the information and explanations given to us and the
records examined by us, the Company is generally regular in depositing
with appropriate authorities undisputed siututory dues including
provident fund, investor education and protection fond, employees
state insurance, income-tax. wealth-tax, customs duty, excise-duty.
service lax. cess and other material statutory dues wherever applicable
except Sales-tax, of Rs. 11.24 lacs According to the information and
explanations given to us, no undisputed arrears of statutory dues were:
outstanding as at 31st March, 2010 for a period of more than six months
from the dale they became payable, except Sales Tax of Rs. 11,24 lacs.
The According to the information and explanations given to us. no
disputed arrears of dues were outstanding as at 31st March 2010
(ix) ACCUMULATED LOSSES:
Accumulated locsses of the company at the end of the financial year
under reference of Rs. 1.21.81 811.
(x) REPAYMENT Of DUES Of FINANCIAL INSTITUTIONS:
Based on our Audit procedures and the information and explanations
given to us, we arc of the opinion that the company has not defaulted
in repayment of dues to the financial institution or break.
(xi) LOANS & ADVANCES AGAINST SHARES. DEBENTURES AND OTHER SECURITIES;
Based on our examination of the records and according to the
information and explanations given to us, the Company has not granted
any loans and/or advances on the basis of security by way of pledge of
shares debentures and other securities.
(xii) CHIT FUND COMPANY OR NIDHI/MUTUAL BENEFIT FUND/SOCIETY:
In our opinion, the Company is not 41 chit fund of a nidhi/mual benefit
fund/society therefore clause (xlii) of the Order & not applicable to
the Company
(xiii) MAINTENANCE OF RECORDS FOR DEALINGTRADING IN SHARES. SECURITIES,
DEBEN1VRE5 & OTHER INVESTMENTS: The Company is not dealing or trading
in shares securities, debenture or other investments hence the Clause
(xiv) of the Order is not applicable lo the Company.
(xiv) GUARANTEE:
According to the information and explanations given to us the Company
has not given any guarantee for loans taken by others from banks and
financial instractions
(xv) UTILIZATION OF TERM LOAN FUND:
The Company has not raked any new term Loan during the year, the terml
loon outstanding at the beginning of the year were: applied fertiliized
for the purpose for which they were raided-
(xvi) MISMATCH BETWEEN SHORT TERM/LONG TERM FUNDS;
According to the information and explanation given to us and of an
overall examination of the Balance Shed of the Company, we arc of the
opinion thai the company has not utilized fund raised on short-term
base for Investment on Long Term bases.
(xvii) PREFERENTIAL ALLOTMENT OF SHARK;
The Company has not made any preferential allotment of shares during
the year.
(xviii) CREATION OF SECURITIES FOR ISSUE OF DRBENTURE;
During the year covered by our audit report, the company has not issued
and debentures.
(xix) END USE OF MONEY RAISED BY PUBLIC ISSUE;
The Company has not raised any money by public issues during the year.
(XX) FRAUD ON OR BY THE COMPANY:
As per the information and explanntions given to us, no fraud an or by
the company has been noticed or reportied during this yeat, which
causes the financial statements to be matenrilly misstated.
For H. P. SHAH ASSOCIATES
H. P. SHAH
PROPRIETOR
CHARTERED ACCOUNTANTS Place :Vapl
MEMBERSHIP No. 39093 Date : 14/08/2010