Mar 31, 2015
1. We have audited the accompanying standalone financial statements of
R.J.Shah & Company Limited ('the Company"), which comprise the Balance
Sheet as at March 31,2015, 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 Standalone Financial Statements
2. The Company's Board of Directors is responsible for the matters
stated in section 134(5) of the Companies Act, 2013 ("tire 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
Rule7 of the Companies (Accounts) rules 2014, This responsibility also
includes maintenance of adequate accounting records in accordance with
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 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
3. Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
4. 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
thereunder.
5. 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.
6. An audit involves performing procedures to obtain audit evidence
about toe 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 of toe 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 control
system over financial reporting and the operating effectiveness of such
controls. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by toe Company's Directors, as well as evaluating toe
overall presentation of the financial statements.
7. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the
standalone financial statements.
Opinion
8. In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid standalone financial
statements give the information required by the Act in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India of the state of
affairs of the company as at 31st March, 2015 and its profit and its
cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
9. As required by 'the Companies (Auditor's Report) Order 2015',
issued by the Central Government of India in terms of sub section (11)
of section 143 of the Act (hereinafter referred to as "order"), 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 give in the Annexure a statement on the
matters specified in paragraph 3 and 4 of the order.
10. As required by section 143(3) of the Act, we report that
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
b) In our opinion, proper books of accounts as required by law have
been kept by the company so far as it appears from our examination of
those books.
c) The Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d) In our opinion, toe afore said standalone financial statements
comply with toe Accounting Standards specified under section 133 of the
Act read with Rule 7 of the Companies(Accounts) Rules, 2014.
e) On the basis of the written representations received from toe
directors as on 31st March, 2015 taken on record by toe board of
directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of section 164(2) of toe
Act
f) With respect to the other matters to be included in the Auditor's
report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules,2014, in our opinion and to the best of our information and
according to the explanations given to us:
1) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements, refer to Note no.14.2 &
Note no.26 to the financial statements.
2) The Company did not have any long term contracts including
derivative contracts for which there were any material foreseeable
losses.
3) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
company.
ANNEXURE TO INDEPENDENT AUDITOR'S REPORT
Referred to in paragraph 9 of the Independent's Auditor Report of even
date to the members of R.J.Shah & Company Limited on the standalone
financial statements as of and for the year ended March 31,2015
I a) The Company has maintained proper records showing lull particulars
including quantitative details of fixed assets except that of Furniture
and Fixture and scientific Apparatus..
b) A major portion of the fixed assets have been physically verified by
the management during the year, in our opinion the tfrequency of
verification of the fixed assets By the management is reasonable having
regards to size of the company and the nature of its assets. As reported
by the management no material discrepancies were noticed on such
verifications
II a) As explained to us, the inventory has been physically verified
during the year by trie management, in our opinion, the frequency of
verification is reasonable
b) In our opinion and according to the information and explanation
given to us procedure of physical verification of inventories followed
by the management, reasonable and adequate in relation to the size of
the Company and the nature of its business.
c) In our opinion and according to the information and explanation
given to as the company is maintaining proper records of inventory, The
discrepancies noticed on verification between physical stocks and the
book records were not material and have been property dealt with in the
books of accounts.
III As per the information and explanation given to us, the Company has
not granted any loans, seemed or unsecured, to any Companies, firms or
other parties covered in the register maintained under section 189 of
the Companies Act 2013.
IV In our opinion and according to the information and explanation
given to us, there is an adequate internal control system commensurate
with the size of the Company and nature of its business with regards to
the purchase of inventory and fixed assets and for the work done and
services. During The course of our audit, we have not observed any
continuing failure to correct major weaknesses in the internal control
system of the Company.
V The Company has not accepted any deposits from public within the
meaning of section 73 and 74 of the Act and the rules framed thereunder
to the extent notified.
VI As per the information and explanation given by the management, lire
Central Government has not prescribed for the maintenance of Cost
records under section 148(1) of the Companies Act. 2013, therefore the
provision under this clause are not applicable to the Company,
VII a) As per the information and explanation given to us and records of
the company examined by us, in out opinion the Company is regular in
depositing the undisputed statutory dues including Provident Fund,
Employees Slate Insurance. Income Tax, Sales Tax, Wealth Tax, Service
Tax. Custom Duty and other Statutory dues applicable to it, with the
appropriate authorities.
b) According to the information and explanations given to us there are
no dues of income Tax, Wealth Tax, Sales lax. Service Tax, Custom Duty
and Cess which has not been deposited on account of any dispute
c) The amount required to be transferred to investor Education and
Protection Fund has been transferred within stipulated time, in
accordance with the relevant provisions of the Companies Act 1986 and
Rules made thereunder'
VIII The Company does not have any accumulated losses as ai the end of
the financial year and the company has not incurred cash losses during
the current and the immediately preceding financial year.
IX In our opinion and according to information and explanation given to
us. the company has not defaulted in the repayment of dues to financial
institutions, banks and debentures holders at the balance sheet date
X According to the Information and explanation given to us, the company
has not given any guarantee tor loan taken by others from Banks and
Financial Institutions.
XI The Company has not raised any term loan during the year
XII During the course of our examination of the books and records of
the Company, earned out in accordance with the generally accepted
auditing practices in India, and according to the infoimation and
explanations given to us, we have neither come across any instance of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of any such case by the management.
For N.S.Bhatt and Associates For Maganlai & Company
Chartered Accountants Chartered Accountants
Firm Registration No:130891W Firm Registration No:10573lW
N.S.Bhatt Mukesh C Bhatt
(Partner) (Proprietor)
Membership No.: 010149 Membership No 014092
Place: Mumbai
Date::29th May, 2015
Mar 31, 2014
Report on the Financial Statements : We have audited the accompanying
financial statements of R.J.Shah & Company Limited ("the Company*),
which comprise the Balance Sheet as at March 31, 2014, and the
Statement of Profit and Loss and Cash Flow Statement for the year then
ended, and a summary of significant accounting policies and other
explanatory information. - .
Management''s Responsibility for the Financial Statements : 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.
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. 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, 2014;
b) in the case of the Statement of the Profit and Loss , of the profit
for the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government ofIndia 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 Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
(Referred to in paragraph (1) of our report of even date) In respect of
its fixed assets
a) The Company has maintained proper records showing full particulars
including quantitative details of fixed assets except that of Furniture
and Fixture and scientific Apparatus.
b) A major portion of the fixed assets have been physically verified by
the management during the year. In our opinion the frequency of
verification of the fixed assets by the management is reasonable having
regards to size of the company and the nature of its assets. As
reported by the management no material discrepancies were noticed on
such verifications.
c) In our opinion and according to the information and explanation
given to us, a substantial part of the fixed assets has not been
disposed off by the company during the year and the going concern
status of the company is not affected.
II In respect of its inventories:
a) As explained to us, the inventory has been physically verified
during the year by the management In our opinion, the frequency of
verification is reasonable.
b) In our opinion and according to the information and explanation
given to us procedure of physical verification of inventories followed
by the management, reasonable and adequate in relation to the size of
the Company and the nature of its business.
c) In our opinion and according to the information and explanation
given to us, the company is maintaining proper records of inventory.
The discrepancies noticed on verification between physical stocks and
the book records were not material and have been properly dealt with in
the books of accounts.
HI In respect of unsecured loans granted by the company to the
companies -covered in the register under section 301 of the companies
act, 1956 and according to the information and explanation given to
us:-
a) During the year, the Company has not given any loans, secured or
unsecured to - companies, firms and other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
Therefore, the provisions of sub clauses (a) to (d) of clause 4(iii)
of CARO are not applicable to the company.
b) The Company has not taken any loans, secured or unsecured, from
companies, firms and other parties covered in the register maintained
under section 301 of the Companies Act, 1956. Therefore, the provisions
of sub clauses (e), (f) and (g) of clause 4(iii) of CARO are not
applicable to the company.
IV In our opinion and according to the information and explanation
given to us, there is an '' adequate internal control system
commensurate with the size of the Company and nature of its business
with regards to the purchase of inventory and fixed assets and for
the work done and services. During The course of our audit, we have
not observed any continuing failure to correct major weaknesses in
the internal control system of the Company.
V . In respect of transactions entered in the register maintained in
pursuance of section 301 of the Companies Act, 1956
a) Based on audit procedures applied by us, to the best of our
knowledge and belief and according to the information and explanations
given to us, we are of the opinion that the transactions that need to
be entered into the register maintained under section 301 have been so
entered.
b) 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 of
the Companies Act, 1956 and exceeding the value of rupees five lacs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices of the relevant
time.
VI In our opinion and according to the information and explanations
given to us he Company has complied with the provisions of section
58A and 58AA and any other relevant provisions of the Companies Act,
1956 and rules made there under with regard to the deposit accepted
from the public. As informed to us, no order has been passed by the
Company Law Board or National Company Law Tribunal or Reserve Bank of
India or any Court or any other Tribunal.
VII In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
VIII As informed to us the Central Government has not prescribed the
maintenance of cost records by the Company under section 209 (1) (d)
of the Companies Act, 1956, therefore the provision of clause 4 (viii)
of the Companies (Auditor''s Report) Order, 2003 is not applicable to
the Company.
IX a) According to the information and explanation given to us and the
records of the company examined by us, in our opinion the company is
generally regular in depositing the undisputed statutory dues includ
-ing Provident Fund, Investor Education and Protection Fund, Employees
State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax,
Custom Duty, Excise Duty, Cess and Other material Statutory dues as
applicable with the appropriate authorities during the year.
b) According to the information and explanations given to us no
undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales
Tax, Service Tax, Custom Duty and Cess were in arrears as at 31st March,
2014 for a period of more than six months from the date of they became
payable.
c) According to the information and explanations given to us there are
no dues of Income Tax, Wealth Tax, Sales Tax, Service Tax, Custom Duly
and Cess which has not been deposited on account of any dispute.
X The Company does not have any accumulated losses as at the end of the
financial year and the company has not incurred cash losses during the
current and the immediately preceding financial year.
XI In our opinion and according to information and explanation given to
us, the company has not defaulted in the repayment of dues to financial institutions, banks and debentures holders at the balance sheet date.
XII According to the information and explanation given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
XII The Company is not a chit fund, nidhi or mutual benefit fund /
society. Therefore the provisions of clause 4 (xiii) of the Companies
(Auditor Report) Order 2003. are not applicable to the Company.
XIV In our opinion, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the clause 4
(xiv) of the Companies (Auditor Report) Order 2003. are not applicable
to the Company.
XV According to the information and explanation given to us, the
company has not given any guarantee for loan taken by others from Banks
and Financial Institutions.
XVI The Company has not obtained any term loans. Therefore, the
provisions of clause 4 (xvi) of the Companies (Auditors Report) Order
2003 are not applicable to the Company.
XVII According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
investment. No long term funds have been used to finance short term
assets except, permanent working capital.
XIII According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the register maintained urider section 301 of
the Companies Act, 1956 during the year and the question of whether the
price at which the shares have been issued in prejudicial to the
interest of the company does not arise.''
XIX The company has not raised any money by issue of debentures and
hence the question of securities have been created in respect of the
debenture issue does not arise.
XX The Company has not raised money by any public issues during the
year and hence the question of disclosure and verification of end use
of such money does not arise.
XXI To the best of our knowledge and beliefs and according to the
information and explanations given to us, no material fraud on or by
the Company was noticed or reported during the year.
For N.S.Bhatt and Assocaites For Maganlal & Company
Chartered Accountants Chartered Accountants
Firm Registration No:130891W Firm Registration No:105731W
N.S.Bhatt Mukesh C Bhatt
(Partner) (Proprietor)
Membership No.:010149 Membership No.014092
Place: Mumbai
Date "SO* May, 2014
Mar 31, 2012
1. We have audited the attached Balance Sheet of R. J. SHAH & COMPANY
LIMITED, as at 31st March, 2012 and also the Statement of Profit and
Loss and the Cash Flow Statement of the company for the year ended on
that date, both annexed thereto. These financial statements are the
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audit;
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and the significant estimates
made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditor's Report) Order 2003 as
amended by Companies (Auditor's Report)(Amended) Order 2004 issued by
the Central Government of India in terms 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 we considered appropriate and
according to the information and explanations given to us, we give in
the Annexure a statement on the matter specified in paragraphs 4 and 5
of the said order
4. Further to our comments in the Annexure referred to in paragraph
(3) above, we report
a). We have obtained all the information and explanations, which to
the best of our knowledge and belief were necessary for the purpose of
audit
b) In our opinion, proper books of accounts 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 and the
Cash Flow Statement dealt with by this report are in agreement with the
books of accounts;
d). In our opinion, the Balance Sheet the Statement of Profit and Loss
and the Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956, to the extent applicable.
e). On the basis of written representations received from the
directors, as on 31st March, 2012, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March, 2012 from being appointed as a Director in terms of clause
(g) of subsection (1) of section 274 of the Companies Act, 1956.
f). In our opinion, and to the best of our information and according
to the explanations given to us, the said financial statements give the
information required by the Companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India;
i. in the case of Balance Sheet, of the state of affairs of the
Company as at 31st March. 2012;
ii. in the case of the Statement of Profit and Loss, the Profit of the
Company for the year ended on that date and
iii. in the case of the Cash Flow Statement, of the Cash Flows of the
Company for the year ended on that date
ANNEXURE TO THE AUDITOR'S REPORT
Referred to in paragraph 3 of our report of even date on the accounts
for the year ended 31st
March, 2012 of the R. J. SHAH & COMPANY LIMITED.
I. a. The Company has maintained proper records showing full
particulars including
quantitative details of Fixed Assets except that of Furniture and
Fixture and Scientific Apparatus.
b. A major portion of fixed assets have been physically verified by
the Management during the year. In our opinion the frequency of
verification of the fixed assets by the management is reasonable having
regard to the size of the Company and nature of it's assets. As
reported by the Management no material discrepancies were noticed on
such verification.
c. In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
off by the Company during the year and the going concern status of the
Company is not affected..
II. a. As explained to us, the inventory has been physically verified
during the year by the
management. In our opinion, the frequency of verification is
reasonable.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of it's business.
c. In our opinion and according to information and explanations given
to us, the company is maintaining proper records of inventory. The
discrepancies noticed on verification between physical stocks and the
book records were not material and have been properly dealt with in the
books of accounts.
III. In respect of unsecured loans granted by the Company to companies
covered in the Register under Section 301 of the Companies Act, 1956
and according to the information and explanations given to us:-
a. During the year, the Company has not given any loans, secured or
unsecured to companies, firms and other parties covered in the register
maintained under Section 301 of the Act. Therefore, the provisions of
sub clauses (a) to (d) of clause 4(iii) of CARO are not applicable to
the Company.
b. The Company has not taken any loans, secured or unsecured, from
Companies, firms or other parties listed in the register maintained
under Section 301 of the Companies Act, 1956. Therefore, the provisions
of sub-clauses (e),(f) and (g) of clause 4(iii) of CARO are not
applicable to the Company. .
IV. In our opinion and according to the information and explanations
given to us there is an adequate internal control system commensurate
with the size of the company and nature of it's business with regard
to the purchase of inventory and fixed assets and for the work done and
services. During the course of our audit, we have not observed any
continuing failure to correct major weakness in internal control
system.
V. In respect of transactions entered in the register maintained in
pursuance of section 301 of the Companies Act, 1956.
a. Based on audit procedures applied by us, to the best of our
knowledge and belief and according to the information and explanations
given to us we are of the opinion that the transactions that needed to
be entered in to the register maintained under section 301 have been so
entered .
b. In our opinion and according to the information and explanations
given to us, the transactions entered in the register maintained under
section 301 and exceeding during the year by rupees five lacs in
respect of each party, the transactions have been made at prices which
are prima facie reasonable having regard to the prevailing market
prices at the relevant time.
VI. In our opinion and according to the information and explanations
given to us the company has complied with the provisions of section 58A
and 58AA and any other relevant provisions of the Companies Act, 1956
and rules made there under with regard to the deposits accepted from
the public. As informed to us, no order has been passed by the
Company Law Board or National Company Law Tribunal or Reserve Bank of
India or any Court or any other Tribunal. ,
VII. In our opinion, the company has an internal audit system
commensurate with the size and nature of it's business.
VIII. As informed to us the Central Government has not prescribed the
maintenance of cost records under section 209 (1 )(d) of the Companies
Act, 1956 for the year under review.
IX. a. According to the information and explanations given to us and
the records of the company
examined by us. In our opinion the company is generally regular in
depositing the undisputed statutory dues including Provident Fund,
Investor Education and Protection Fund, Employee's State Insurance,
Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise
Duty, Cess and other material statutory dues as applicable with the
appropriate authorities during the year.
b. According to the information and explanations given to us no
undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales
Tax, Service Tax, Customs Duty and Cess were in arrears as at 31st
March, 2012 for a period of more than six months from the date they
become payable.
c. According to the information and explanations given to us, there
are no dues of Sale Tax, Income Tax, Custom Duty, Wealth Tax, Service
Tax, Excise Duty and Cess which has not been deposited on account of
any dispute.
X. The company does not have any accumulated losses as at the end of
the financial year and the company has not incurred cash losses during
the current and the immediately preceding financial year.
XI. In our opinion and according to information and explanations given
to us, the company has not defaulted in the repayment of dues to
financial institutions, banks and debenture holders at the balance
sheet date.
XII. According to the information and explanations given to us, the
company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
XIII. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause (XIII) of
the Order is not applicable to the company.
XIV. In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
clause (XIV) of the order is not applicable to the company.
XV. Accordingly 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. The company has not obtained any term loans. Accordingly clause
(XVI) of the order is not applicable to the company. Ã
XVII. According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that the 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.
XVIII. According to the information and explanations given to us, the
company has not made any preferential allotment of shares to parties
and companies covered under register maintained under section 301 of
the companies Act, 1956 during the year and the question of whether the
price at which the shares have been issued is prejudicial to the
interest of the company does not arise.
XIX. The company has not raised any money by issue of debentures and
hence the question of securities have been created in respect of the
debenture issue does not arise.
XX. The company has not raised money by any public issue during the
year and hence the question of disclosure and verification of end use
of such money does not arise.
XXI. To the best of our knowledge and belief and according to the
information and explanations given to us, no material fraud on or by
the company has been noticed or reported during the year.
PLACE:MUMBAI FOR MAGANLAL & COMPANY
DATED: 30Ã MAY 2012 CHARTERED ACCOUTNANT
MEMBERSHIP NO. 14092 {Registration No. 105731W).
MUKESH C BHATT PROPRIETOR
Mar 31, 2010
1. We have audited the attached Balance Sheet of R.J. SHAM & COMPANY
LIMITED, as at 31sl March, 2010 and also the Profit and Loss Account
and the Cash Flow Statement for the year ended on that date both
annexed thereto. These financial statements are the responsibility of
the Companys management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India.
Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe
that our audit provides a reasonable basis for our opinion.
3. As required by the Companies (Auditors Report) Order 2003 as
amended by Companies (Auditors Report) (Amended) Order 2004 issued by
the Central Government.of India in terms 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 we considered appropriate and
according to the information and explanations given to us, we give in
the Annexure a statement on the matter specified in paragraphs 4 and 5
of the said order.
4. Further to our comments in the Annexure referred to in paragraph
(3.) above, we report that
a. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
Audit;
b. In our opinion, proper books of accounts 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 Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
accounts;
d. In our opinion, the Balance Sheet and the Profit and Loss account
and Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956, to the extent applicable.
e. On the basis of written representations received from the
directors, as on 31st March, 2009, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31sl March, 2010 from being appointed as a Director in terms of clause
(g) of subsection (1) of section 274 of the Companies Act, 1956.
f. In our opinion, and to the best of our information and according to
the explanations given to us, the said accounts, subject to and read
together with notes there on, of schedule 18 give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India;
i) in the case of Balance Sheet, of the state of affairs of the Company
as at 31sl March, 2010;
ii) in the case of Profit and Loss Account of the Profit for the
year ended on that date and
iii) in the case of Cash Flow Statement, of the Cash Flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
Referred to in paragraph 3 of our report of even date on the accounts
for the year ended 31s1 March 2010 of the R. J. SHAH & COMPANY LIMITED.
I. a The Company has maintained proper records showing full
particulars including quantitative
details of Fixed Assets except that of Furniture and Fixture and
Scientific Apparatus.
b. A major portion of fixed assets have been physically verified by the
Management during the year. In our opinion the frequency of
verification of the fixed assets by the management is reasonable having
regard to the size of the Company and nature of its assets. As
reported by the Management no material discrepancies were noticed on
such verification.
c. In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
off by the Company during the year.
II. a As explained to us, the inventory has been physically verified
during the year by the management. In our opinion, the frequency of
verification is reasonable.
b. In our opinion the procedures of physical verification of inventory
followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
c. In our opinion and according to information and explanations given
to us. the company has maintained proper records ol inventory. The
discrepancies noticed on verification between physical stock and the
book records were not material and have been properly dealt with in
the books of accounts.
III. a. The Company has accepted Unsecured Loans from One Company
covered in the registea maintained under section 301 of the Companies
Act, 1956. The maximum amount involved during the year was Rs. Fifty
thousand and the year end balance of loans taken from such Party was
Rs. Fifty thousand. The Company has not granted any loans secured or
unsecured to the Companies covered in the register maintained under
section 301 of the Companies Act, 1956.
b. In our opinion the rate of interest and other terms and conditions
on which loans have been taken from the Companies listed in the
register maintained under section 301 of the Companies Act, 1956 are
not prima facie, prejudicial to the interest of company.
c.The Company is regular in repaying the principal amounts as
stipulated and has been regular in repayment of interest.
d.There is no overdue amount of loan taken from the companies listed in
the register maintained under section 301 of the Companies Act, 1956.
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 nature of its business with regard to
the purchase of inventory and fixed assets and for the work done.
During the course of our audit, we have not observed any major weakness
in the internal controls system.
V. In respect of transactions entered in the register maintained in
pursuance of section 301 of the Companies Act, 1956.
a. Based on audit procedures applied by us, to the best of our
knowledge and belief and according to the information and explanations
given to us we are of the opinion that the transactions that needed to
be entered in the register maintained under section 301 have been so
entered.
b.In our opinion and according to the information and explanations
given to us, the transactions entered in the register maintained under
section 301 and exceeding during the year by rupees five lacs in
respect of each party, the transactions have been made at prices which
are prima facie reasonable having regard to the prevailing market
prices at the relevant time.
VI. In our opinion and according to the information and explanations
given to us, the company has complied with the proxisions of section
58A and 58AA and any other relevant provisions of the Companies Act,
1956 and rules made there under with regard to the deposits accepted
from the public. As informed to us, no order has been passed by the
Company Law Board or National Company Law Tribunal or Reserve Bank of
India or any Court or any other Tribunal.
VII. In our opinion, the company has jn internal audit system
commensurate with the size and nature of its business.
VIII. As informed to us, the Central Government has not prescribed the
maintenance of cost records under section
209(l)(d) of the Companies Act, 1!û56 for the year under review. IX.
a. According to the information and explanations given to us and the
records of the company examined by us, in our opinion the company is
generally regular in depositing the undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Employees
State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty, Cess and other material statutory dues as
applicable with the appropriate authorities during the year.
b. According to the information and explanations given to us no
undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales
Tax, Service Tax, Customs Duty and Cess were in arrears as at 31*
March,2009 for a period of more than six months from the date they
become payable, except undisputed dues of vat having various due dates
of payment aggregating to Rs. 11,25,651/- for the period beginning lst
April, 2009 to 30th September, 2009. This amount was in arrear as on
31st March, 2010 for a period of more than six months from the date
they became payable and were deposited with the appropriate authorities
on 25th May,2010.
c. According to the information and explanations given to us, there
are no dues of sales tax, income tax, custom duty, wealth tax., service
tax, excise duty and cess which has not been deposited on account of
any dispute.
X. The company does not have any accumulated losses as at the end of
the financial year and the company has not incurred cash losses during
the current and the immediately preceding financial year.
XI. In our opinion and according to information and explanations given
to us the company has not defaulted in the repayment of dues to
financial institutions, banks and debenture holder as at the balance
sheet date.
XII. According to the information and explanations given to us, the
company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
XIII In our opinion, the Company is not a chit fund or a nidhi mutual
benefit fund/society. Accordingly the clause (XIII) of the Order is not
applicable to the company.
XIV In our opinion, the company is not dealing in or trading in shares,
securities debentures and other investments. Accordingly, the Clause
(XIV) of the order is not applicable to the company.
XV 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 The Company has not obtained any term loans. Accordingly clause
(XVI) of the order is not applicable to the company.
XVII According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short term basis have been used for long term
investment. No long term funds have been used to finance short term
assets except permanent working capital.
XVIII According to the information and explanation given to us, the
company has not made any preferential allotment of shares to parties
and the companies covered under register maintained under section 301
of the Companies Act, 1956 during the year and the question of whether
the price at which the shares have been issued is prejudicial to the
interest of the company does not arise.
XIX The Company has not raised any money by issue of debentures and
hence the question of securities have been created in respect of the
debenture issue does not arise.
XX The company has not raised money by any public issue during the year
and hence the question of disclosure and verification of end use of
such money does not arise.
XXI To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
has been noticed or reported during the year.
PLACE : MUMBAI FOR MAGANLAL & COMPANY
DATED : 31st May 2010 CHARTERED ACCOUNTANTS
MEBERSHIP NUMBER 14092 (MUKESH C. BHATT)
PROPRIETOR