Mar 31, 2015
We have audited the accompanying financial statements of SVC Resources
Limited ('the Company'), which comprise the Balance Sheet as at March
31, 2015, the Statement of Profit and Loss and the Cash Flow Statement
for the year then ended, and a summary of significant accounting
policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the preparation of
these financial statements in terms of the requirements of the
Companies Act, 2013 ('the Act') 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.
The respective Board of Directors of the Company are responsible for
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the respective assets of the
Company and for preventing and detecting frauds and other
irregularities; the selection and application of appropriate accounting
policies; making judgements and estimates that are reasonable and
prudent; and the 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, which have been used for
the purpose of preparation of these financial statements by the Board
of Directors of the Company.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
While conducting the 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 thereunder.
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. Page 37 of 51
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation and presentation 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 control system over financial reporting and
the operating effectiveness of such controls. An audit also includes
evaluating the appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the Company's Board
of Directors, as well as evaluating the overall presentation of the
financial statements.
Basis for Disclaimer of Opinion
So far as information and explanations given to us, the Old Management
of the Company was removed in an Extraordinary General Meeting held on
January 11, 2014 and supported by the an order of the Company Law
Board, Delhi dated April 4, 2014.
Thereafter, the Old Management did not hand over books of accounts,
statutory records, minutes books, bank statements, subsidiary details
and any other records/documents to the New Management. Since then, the
New Management of the Company is engaged in a legal battle with the Old
Management. As such, the Company does not have books of accounts or any
other records.
In this regard, the Company had filed petition with the Company Law
Board, Delhi. The case was decided in favour of the New Management on
June 4, 2015. However, the New Management are yet to receive the books
of accounts and other records of the company from the Old Management.
We have not been able to access the books of accounts and other records
of the company; the elements making up the Balance Sheet and the
Statement of Profit and Loss and Cash Flow.
Disclaimer of Opinion
Because of the significance of the matters described in the Basis of
Disclaimer of Opinion paragraph, we have not been able to obtain
sufficient appropriate audit evidence to provide a basis for an audit
opinion. Accordingly, we do not express an opinion on the financial
statements.
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, based on the comments in the auditors' report of
the Company, we give in the Annexure a statement on the matters
specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143 (3) of the Act, we report, to the extent
applicable, that:
a. Due to the effects of the matter described in the Basis for
Disclaimer of Opinion paragraph, we have sought but not obtained any of
the information and explanations which to the best of our knowledge and
belief were necessary for the purposes of our audit of the financial
statements.
b. Due to the effects of the matter described in the Basis for
Disclaimer of Opinion paragraph, we do not express an opinion on
whether proper books of account as required by law relating to
preparation of the financial statements have been kept.
c. Due to the effects of the matter described in the Basis for
Disclaimer of Opinion paragraph, we are able to opine on whether the
Balance Sheet, the Statement of Profit and Loss, and the Cash Flow
Statement dealt with by this Report are in agreement with the relevant
books of account maintained for the purpose of preparation of the
financial statements.
d. Due to the effects of the matter described in the Basis for
Disclaimer of Opinion paragraph, we do not express an opinion on
whether the financial statements comply with the 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 the
Directors of the Company as on March 31, 2015, taken on record by the
Board of Directors of the Company, none of the Directors of the Company
is disqualified as on March 31, 2015 from being appointed as a Director
in terms of Section 164 (2) of the Act.
f. With respect to the other matters to be included in the Auditors'
Report in accordance with Rule 11 of the Companies (Audit and
Auditor's) Rules, 2014:
i. Due to the effects of the matter described in the Basis for
Disclaimer of Opinion paragraph, we do not express an opinion on
whether the Company has disclosed the impact of pending litigations on
the financial position in its financial statements as of March 31,
2015.
ii. Due to the effects of the matter described in the Basis for
Disclaimer of Opinion paragraph, we do not express an opinion on
whether the Company has made provisions in its financial statements, as
required under the applicable law or accounting standards, for material
foreseeable losses on long term contracts.
iii. Due to the effects of the matter described in the Basis for
Disclaimer of Opinion paragraph, we do not express an opinion on
whether there has been any delay in transferring amounts, required to
be transferred, to the Investor Education and Protection Fund by the
Company
Annexure to Independent Auditors' Report
(Referred to in paragraph 1 under "Report on Other Legal and Statutory
Requirements" section of our report of even date)
1. In respect of the fixed assets of the Company:
a. Due to the effects of the matter described in the Basis for
Disclaimer of Opinion paragraph, we do not express an opinion on
whether the respective entities have maintained proper records showing
full particulars, including quantitative details and situation of fixed
assets.
b. Due to the effects of the matter described in the Basis for
Disclaimer of Opinion paragraph, we do not express an opinion on
whether the fixed assets were physically verified during the year by
the Management of the respective entities in accordance with a regular
programme of verification which provides for physical verification of
the fixed assets at reasonable intervals.
2. In respect of the inventories of the Company:
a. Due to the effects of the matter described in the Basis for
Disclaimer of Opinion paragraph, we do not express an opinion on
whether the inventories were physically verified during the year by the
Management of the Company at reasonable intervals.
b. Due to the effects of the matter described in the Basis for
Disclaimer of Opinion paragraph, we do not express an opinion on
whether the procedures of physical verification of inventories followed
by the respective Management were reasonable and adequate in relation
to the size of the Company and the nature of their business.
c. Due to the effects of the matter described in the Basis for
Disclaimer of Opinion paragraph, we do not express an opinion on
whether the Company has maintained proper records of its inventories.
3. Due to the effects of the matter described in the Basis for
Disclaimer of Opinion paragraph, we do not express an opinion on
whether the Company has granted any loans, secured or unsecured, to
companies, firms or other parties covered in the Registers maintained
under Section 189 of the Act by the respective entities.
4. Due to the effects of the matter described in the Basis for
Disclaimer of Opinion paragraph, we do not express an opinion on
whether there is an adequate internal control system commensurate with
the size of the Company and the nature of their business respectively
with regard to purchase of inventory and fixed assets and the sale of
goods and services.
5. Due to the effects of the matter described in the Basis for
Disclaimer of Opinion paragraph, we do not express an opinion on
whether the Company has accepted deposits during the year and do not
have any unclaimed deposits.
6. The provisions of clause 3 (vi) of the Order are not applicable to
the Company as the Company is not covered by the Companies (Cost
Records and Audit) Rules, 2014.
7. According to the information and explanations given to us, in
respect of statutory dues of the Company:
a. Due to the effects of the matter described in the Basis for
Disclaimer of Opinion paragraph, we do not express an opinion on whether
the Company has generally been regular in depositing undisputed
statutory dues, including Provident Fund, Employees' State Insurance,
Income Tax, Sales Tax and Value Added Tax, Wealth Tax, Service Tax,
duty of Customs, duty of Excise, Cess and other material statutory dues
applicable to it with the appropriate authorities.page 40 0f 51
b. Due to the effects of the matter described in the Basis for
Disclaimer of Opinion paragraph, we do not express an opinion on
whether there were no undisputed amounts payable in respect of
Provident Fund, Employees' State Insurance, Income Tax, Sales Tax and
Value Added Tax, Wealth Tax, Service Tax, duty of Customs, duty of
Excise, Cess and other material statutory dues in arrears as at March
31, 2015 for a period of more than six months from the date they became
payable.
c. Due to the effects of the matter described in the Basis for
Disclaimer of Opinion paragraph, we do not express an opinion on
whether there were no dues of Income Tax, Sales Tax, Value Added Tax,
Service Tax, Wealth Tax, duty of Customs, duty of Excise and Cess which
have not been deposited as at March 31, 2015 on account of dispute.
d. Due to the effects of the matter described in the Basis for
Disclaimer of Opinion paragraph, we do not express an opinion on
whether the Company has been regular in transferring amounts to the
Investor Education and Protection Fund in accordance with the relevant
provisions of the Companies Act, 1956 and Rules made thereunder within
time.
8. The Company has accumulated losses. The Company has incurred cash
losses during the financial year covered by our audit and in the
immediately preceding financial year.
9. Due to the effects of the matter described in the Basis for
Disclaimer of Opinion paragraph, we do not express an opinion on
whether the Company has defaulted in repayment of dues to a bank during
the year and did not have any amount outstanding to financial
institutions or debenture holders.
10. Due to the effects of the matter described in the Basis for
Disclaimer of Opinion paragraph, we do not express an opinion on
whether the Company has given guarantees for loans taken by others from
banks and financial institutions. Therefore, the provisions of the
clause 3 (x) of the Order are not applicable to the Company.
11. Due to the effects of the matter described in the Basis for
Disclaimer of Opinion paragraph, we do not express an opinion on
whether the Company has availed any term loan during the year.
12. Due to the effects of the matter described in the Basis for
Disclaimer of Opinion paragraph, we do not express an opinion on
whether any fraud on or by the Company has been noticed or reported
during the year.
However, suspected frauds were detected in the previous year's audit of
the Company which, when confirmed, can have significant effect on the
financial statements of the Company. We reproduce the observations made
in the previous year's Audit Report;
"The order of the Company Law Board dated June 4, 2015 has created
doubts over the genuineness of the balances of loans and advances taken
and given, creditors, debtors and cash. We suspect that the Old
Management conducted fraudulent activities against the Company. The
Company has already filed a complaint against the Old Management with
the Economic Offences Wing (EOW). The exact nature of the frauds is not
ascertainable because of the significance of the matters described in
the Basis of Disclaimer of Opinion Paragraph."
For D N Khatri & Associates
Chartered Accountants
Firm Registration No. 133251W
Place Mumbai Deepesh Khatri
Proprietor
Date September 2, 2015 Membership No. 143579
Mar 31, 2014
We have audited the accompanying financial statements of SVC Resources
Limited ('the Company'), which comprises of the Balance Sheet as at
March 31st, 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 fair presentation of the financial statements
that are free from material misstatements, whether due to fraud or
error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit in accordance with the Standards on
Auditing issued by the Institute of Chartered Accountants of India.
Because of the matters described in the Basis for Disclaimer of Opinion
Paragraph, however, we were not able to obtain sufficient appropriate
audit evidence to provide a basis for an audit opinion.
Basis for Disclaimer of Opinion
We were appointed auditors of the Company on January 23th, 2015. So far
as information and explanations given to us, the Old Management of the
Company was removed in an Extraordinary General Meeting held on January
11th, 2014 and supported by the an order of the Company Law Board,
Delhi dated April 4th, 2014.
Thereafter, the Old Management did not hand over books of accounts,
statutory records, minutes books, bank statements, subsidiary details
and any other records/documents to the New Management. Since then, the
New Management of the Company is engaged in a legal battle with the Old
Management. As such, the Company does not have books of accounts or any
other records.
In this regard, the Company had filed petition with the Company Law
Board, Delhi. The case was decided in favour of the New Management on
June 4th, 2015. However, the New Management are yet to receive the
books of accounts and other records of the company from the Old
Management.
We have not been able to access the books of accounts and other records
of the company; the elements making up the Balance Sheet and the
Statement of Profit and Loss and Cash Flow.
Disclaimer of Opinion
Because of the significance of the matters described in the Basis of
Disclaimer of Opinion paragraph, we have not been able to obtain
sufficient appropriate audit evidence to provide a basis for an audit
opinion. Accordingly, we do not express an opinion on the financial
statements.
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
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. The order of the Company Law Board dated June 4th, 2015 has created
doubts over the genuineness of the balances of loans and advances taken
and given, creditor and debtors. The Company has already filed a
complaint against the Old Management with the Economic Offences Wing
(EOW).
3. As required by section 227(3) of the Companies Act, 1956, we report
that;
a. As described in the Basis of Disclaimer Opinion paragraph, we were
unable to obtain all the information and explanations which to the best
of our knowledge and belief were necessary for the purpose of our
audit.
b. Due to the possible effects of the matter described in the Basis
for Disclaimer of Opinion paragraph, we are unable to state whether
proper books of accounts as required by law have been kept by the
Company.
c. Due to the possible effects of the matter described in the Basis
for Disclaimer of Opinion paragraph, we are unable to state whether the
Balance Sheet, Statement of Profit and Loss and Cash Flow Statement
dealt with by this Report are in agreement with the books of accounts.
d. Due to the possible effects of the matter described in the Basis
for Disclaimer of Opinion paragraph, we are unable to state whether the
Balance Sheet, Statement of Profit and Loss and Cash Flow Statement
comply with the accounting standards referred to in sub-section (3C) of
section 211 of the Act.
e. On the basis of written representations received from the New
Management as on January 23, 2015, all the directors as on March 31,
2014 are disqualified, from being appointed as a director in terms of
clause (g) of sub-section (1) of section 274 of the Act. All directors
of the Company as on March 31, 2014 were superseded by the directors
appointed in an Extraordinary General Meeting and confirmed by the
Company Law Board, Delhi by an order dated April 4, 2014.
f. Since the Central Government has not issued any notification as to
the rate at which 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.
Annexure to Auditor's Report
Referred to in Point No. 1 of the Paragraph "Report on Other Legal and
Statutory Requirements" of our report of even date
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that;
Particulars Auditor's
Remarks
(i) a) Whether the company is maintaining proper See Note
records showing full particulars, including (1)
quantitative details and situation of fixed
assets;
(b) Whether these fixed assets have been See Note
physically verified by the management at (1)
reasonable intervals; whether any material
discrepancies were noticed on such
verification and if so, whether the same
have been properly dealt with in the books
of accounts;
(c) If a substantial part of fixed assets have See Note
been disposed of during the year, whether (2)
it has affected the going concern;
(ii) (a) Whether physical verification of See Note
inventory has been conducted at (1)
reasonable intervals by the management;
(b) Are the procedures of physical verification See Note
of inventory followed by the management (1)
reasonable and adequate in relation to the
size of the company and the nature of its
business. If not, the inadequacies in such
procedures should be reported;
(c) Whether the company is maintaining proper See Note
records of inventory and whether any (1)
material discrepancies were noticed on
physical verification and if so, whether
the same have been properly dealt with
in the books of accounts;
(iii)(a) Has the company granted any loans, See Note
secured or unsecured to companies, firms (1)
or other parties covered in the register
maintained under section 301 of the Act.
If so, give the number of parties and
amount involved in the transactions; and
(b) Whether the rate of interest and other See Note
terms and conditions of loans (1)
given by the company, secured or
unsecured, are prima facie prejudicial to
the interest of the company; and
(c) Whether receipt of the principal amount and See Note
interest are also regular; (1)
and
(d) If overdue amount is more than rupees one See Note
lakh, whether reasonable steps have been (1)
taken by the company for recovery of the
principal and interest;
(e) Has the company taken any loans, secured See Note
or unsecured from companies, firms or other (1)
parties covered in the register maintained
under section 301 of the Act. If so, give
the number of parties and amount involved
in the transactions; and
(f) Whether the rate of interest and other See Note
terms and conditions of loans (1)
taken by the company, secured or
unsecured, are prima facie
prejudicial to the interest of the
company; and
(g) Whether payment of the principal amount See Note
and interest are also regular. (1)
(iv) Is there an adequate internal control See Note
system commensurate with the size of (1)
the company and the nature of its business,
for the purchase of inventory and
fixed assets and for the sale of goods and
services. Whether there is a continuing
failure to correct major weaknesses in
internal control system.
(v) (a) Whether the particulars of contracts or See Note
arrangements referred to in section 301 (1)
of the Act have been entered in the
register required to be
maintained under that section; and
(b) Whether the transactions made in pursuance See Note
of such contracts or arrangements have (1)
been made at prices which are reasonable
having regard to the prevailing market
prices at the relevant time;
(This information is required only in
case of transactions exceeding the value
of five lakh rupees in respect of any
party and in any one financial year).
(vi) In case the company has accepted deposits See Note
from the public, whether the directives (1)
issued by the Reserve Bank of India and
the provisions of section 58A, 58AA or
any other relevant provisions of the Act
and the rules framed there under, where
applicable, have been complied with.
If not, the nature of contraventions
should be stated. If an order has been
passed by the Company Law Board or
National Company Law Tribunal or Reserve
Bank of India or any Court of any other
Tribunal whether the same has been
complied with or not?
(vii) In the case of listed companies and/or See Note
other companies having paid-up capital (1)
and reserves exceeding Rs. 50 lakhs as
at the commencement of the financial
year concerned, or having an average
turnover exceeding five crore rupees for
a period of three consecutive financial
years immediately preceding the
financial year concerned, whether the
company has an internal audit system
commensurate with its size and nature
of its business;
(viii) Where maintenance of cost records has See Note
been prescribed by the Central (3)
Government under clause (d) of
sub-section (1) of section 209 of the Act,
whether such accounts and records have
been made and maintained;
(ix)(a) Is the company regular in depositing See Note
undisputed dues including Provident Fund, (4)
Investor Education and Protection Fund,
Employees' State Insurance, Income-tax,
Sales-tax, Wealth Tax, Service Tax, Custom
Duty, Excise Duty, cess and any other
statutory dues with the appropriate
authorities and if not, the extent of
the arrears of outstanding statutory dues
as at the last day of the financial year
concerned for a period of more than six
months from the date they became payable,
shall be indicated by the auditor.
(b) In case of dues of Income-tax/Sales-tax/ See Note
Wealth Tax/Service Tax/Custom (1)
Duty/Excise Duty/cess have not been
deposited on account of any
dispute, then the amounts involved and
the forum where dispute is
pending shall be mentioned.
(A mere representation to the Department
shall not constitute a dispute)
(x) Whether in case of a company which has See Note
been registered for a period not less (5)
than five years, its accumulated losses
at the end of the financial year are not
less than fifty percent of its net worth
and whether it has incurred cash losses
in such financial year and in the
immediately preceding financial year;
(xi) Whether the company has defaulted in See Note
repayment of dues to a financial (1)
institution or bank or debenture holders?
If yes, the period and amount of
default to be reported;
(xii) Whether adequate documents and records See Note
are maintained in cases where the (1)
company has granted loans and advances
on the basis of security by the way
of pledge of shares, debentures and other
securities. If not, the deficiencies to
be pointed out.
(xiii) Whether the provisions of any special See Note
statute applicable to chit fund have (1)
been duly complied with? In respect of
nidhi/mutual benefit fund/societies;
(a) Whether the net-owned funds to deposit See Note
liability ratio is more than (1)
1:20 as on the date of balance sheet;
(b) Whether the company has complied with See Note
the prudential norms on (1)
income recognition and provisioning
against sub- standard/doubtful/loss
assets;
(c) Whether the company has adequate See Note
procedures for appraisal of credit (1)
proposals/requests, assessment of
credit needs and repayment
capacity of the borrower;
(d) Whether the repayment schedule of See Note
various loans granted by the nidhi (1)
is based on the repayment capacity
of the borrower;
(xiv) If the company is dealing or trading See Note
in shares, securities, debentures and (1)
other investments, whether proper
records have been maintained of the
transactions and contracts and
whether timely entries have been made
therein; also whether the shares,
securities, debentures and other
investments have been held by the
company, in its own name except to the
extent exemption, if any, granted
under section 49 of the Act;
(xv) Whether the company has given any See Note
guarantee for loans taken by others (1)
from bank or financial institutions,
the terms and conditions whereof are
prejudicial to the interest of the
company;
(xvi) Whether term loans were applied for See Note
the purpose for which loans were (1)
obtained;
(xvii) Whether the funds raised on short-term See Note
basis have been used for long term (1)
investment. If yes, the nature and
amount to be indicated;
(xviii) Whether the company has made any See Note
preferential allotment of shares to (1)
parties and companies covered in the
Register maintained under section 301
of the Act and if so whether the price
at which shares have been issued is
prejudicial to the interest of the
company;
(xix) Whether security or charge has been See Note
created in respect of debentures issued; (1)
(xx) Whether the management has disclosed See Note
on the end use of money raised by (1)
public issue and the same has been
verified;
(xxi) Whether any fraud on or by the company See Note
has been noticed or reported during (1)
Notes:
1. Because of the significance of the matters described in the Basis
of Disclaimer of Opinion paragraph, we have not been able to obtain
sufficient appropriate audit evidence to provide a basis for an audit
opinion. Accordingly, we do not express an opinion on this matter.
2. The Washery Plant at Jabalpur does not exist in its location and
has been written off. Hence a significant part of fixed assets has been
disposed off during the year. Its effect on the going concern
assumption cannot be ascertained.
3. The Company is engaged in trading of minerals. As per section
209(1)(d) of the Act, maintenance of cost records has not been
prescribed for the same.
4. Because of the significance of the matters described in the Basis
of Disclaimer of Opinion paragraph, we have not been able to obtain
sufficient appropriate audit evidence to provide a basis for an audit
opinion. Accordingly, we do not express an opinion on this matter.
However, the Balance Sheet of the Company shows outstanding Income Tax
Provision of Rs. 107,57,718/- and Tax Deducted at Source liability of
Rs. 1,92,000/-.
5. The accumulated losses of the Company as on 31st March, 2014 are
more than its net worth. The company has incurred cash losses in
financial year 2013-14 as well as financial year 2012-13.
6. The order of the Company Law Board dated June 4th, 2015 has created
doubts over the genuineness of the balances of loans and advances taken
and given, creditors, debtors and cash. We suspect that the Old
Management conducted fraudulent activities against the Company. The
Company has already filed a complaint against the Old Management with
the Economic Offences Wing (EOW). The exact nature of the frauds is not
ascertainable because of the significance of the matters described in
the Basis of Disclaimer of Opinion Paragraph. However, fraudulent
activities are suspected in the following cases;
Particulars Amount of Suspected Fraud (Rs.)
Unsecured Loans (Liabilities) 32,466,553.00
Washery Plant (Asset) 10,825,216.00
Cash Balance (Asset) 582,147.00
For D N Khatri & Associates
Chartered Accountants
Firm Registration No. 133251W
Place Mumbai Deepesh Khatri
Proprietor
Date July 29, 2015 Membership No. 143579
Mar 31, 2013
We have audited the attached Balance Sheet of SVC Resources Limited as
at 31st March 2013 and also the Profit & Loss Account for the year
ended on that day annexed hereto. 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.
We have conducted our audit in accordance with auditing standards
generally accepted in India. Those standards required that we plan &
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 included
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.
a. As required by the Companies (Auditors'' Report) Order, 2003 issued
by the Department of the Company Affairs in terms of section 227 (4A)
of the Companies Act 1956, we enclose in the Annexure, a statement on
the matter specified in the said order to the extent applicable;- b.
Further to our comments in the annexure referred to in paragraph 1
above Â
(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 are
not available since they are not available but our audit is based upon
available records in so far as it appears from our examination of those
books.
(c). The Balance Sheet, Profit & Loss Account 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, Profit & Loss Account and Cash
Flow Statement together with notes of accounts dealt with by this
report comply with the accounting standards referred to in sub-section
(3C) of section 211 of the Companies Act 1956.
(e). On the basis of written representations received from the
directors, as on 31st March 2013, and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March 2013 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act 1956.
(f). In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, give the information
required by the Companies Act 1956, and give a true and fair view
inconformity with the accounting principles generally accepted in India
:- 1. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2013;
2. in the case of the Profit and Loss Account, of the loss for the year
ended on that date;
3. in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO THE AUDITOR''S REPORT (Referred to in paragraph 1 of our
report of even date)
1. (a) The Company has maintained proper books of records showing full
particulars of assets on the basis of previous balance sheet data and
the same are written off.
(b) None of the fixed assets have been revalued during the year.
2. (a) As per the information and explanations given to us, the company
has no inventories as on the 31st March, 2013.
3. (a) According to the information and explanation given to us and on
the basis of records furnished before us, the Company has not granted
any loans, secured or unsecured to companies, firms or other parties
covered in the register maintained under section 301 of the Companies
Act, 1956.
(b) In view of above, clause 4(iii) (a), (b), (c) and (d) of Companies
(Auditors Report) Order, 2003 are not applicable.
(c) According to the information and explanation given to us and on the
basis of records furnished before us for verification, the Company has
taken loans, secured or unsecured from companies, firms or other
parties covered in the register maintained under section 301 of the
Act.
4. In our opinion and according the information & explanations given to
us, there are adequate internal control procedures commensurate with
the size of the company and nature of business with regard to purchase
and sales. During the course of Audit, we have not observed any
continuing failure to correct major weakness of internal audit.
5. (a) In our opinion and according to the information and explanations
given to us, the particulars of contract or arrangements that were
required to be entered in the register maintained under section 301 of
the Companies Act, 1956 have been so entered in the said register.
(b) In respect of transactions entered exceeding the value of five lacs
in the register maintained in pursuance of section 301 of the Companies
Act 1956, according to information and explanation given to us, the
transactions made pursuance of such contracts or arrangements have been
made at prices which are prima-facie reasonable having regard to
prevailing market prices at the relevant time.
6. The company has not accepted any deposits from the public hence
clause 4(vi) of Companies (Auditors Report) Order 2003 is not
applicable.
7. The company has adequate Internal Control System, on broadly
reviewing the same and information and explanation given to us by the
management, we are of the opinion that the internal audit is
commensurate with the size of the Company and the nature of business.
8. We are informed that the Central Government has not prescribed
maintenance of cost records under section 209(1) (d) of the Companies
Act 1956 in respect to products dealt with by the company.
9. (a) In our opinion and according to the information and explanations
given to us, undisputed statutory dues including Provident Fund,
Investors Education & Protection Fund, Employees State Insurance
Scheme, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty,
Cess and any other statutory dues have been regularly deposited in time
during the year with appropriate authorities and there are no
undisputed statutory dues payable for a period of six months from the
date they became payable as at 31st March 2013.
(b) According to the information and explanation given to us there are
no disputes pending before the authorities in respect of Sales Tax,
Income Tax, Custom Duty and CESS.
10. The Company has accumulated losses as at the end of financial year
and has incurred cash losses in the current financial year and in the
immediate preceding financial year.
11. According to the records made available to us and the information
and explanation given to us by the management, the Company has not
defaulted in repayment of any dues to financial institutions or banks
but there has been a default in repayment of principal and payment of
interest to a on Non Banking Financial Company.
12. According to the information and explanation given to us, the
Company has not granted any loans & advances on the basis of security
by the way of pledge of shares, debentures and other securities.
13. In our opinion, the Company is not chit fund, nidhi, mutual fund
and societies and accordingly clause 4 (xiii) of companies (Auditors
Report) order, 2003 is not applicable.
14. In our opinion and according to the information and explanation
given to us, the Company has kept adequate records of its transactions
and contracts in shares, securities, debentures and other investments
are held in the name of the company.
15. In our opinion and according to the information and explanation
given to us, the Company has not given guarantees for loans taken by
others from banks & financial institutions. Accordingly clause 4 (xv)
of the Companies (Auditors'' Report) Order, 2003 is not applicable.
16. In our opinion and according to the information and explanation
given to us, the Company has not obtained any term loan, accordingly
clause 4 (xvi) of Companies (Auditors'' Report) Order, 2003 is not
applicable.
17. According to the information and explanation given to us and on the
basis of and overall examination of the Balance Sheet of the Company,
no funds raised on short term basis have been utilized for long term
investment and vice versa.
18. During the period, the company has not issued any debentures.
Accordingly clause 4 (xix) of Companies (Auditors'' Report) Order, 2003
is not applicable.
19. The Company has not raised any money through a Public Issue during
the year under audit. Accordingly clause 4 (xx) of Companies (Auditors''
Report) Order, 2003 is not applicable.
20. During the course of examination of the books and records of the
Company, carried out in accordance with generally accepted auditing
practices in India, and according to the information and explanation
given to us, we have come across any instance of fraud on the Company
noticed or reported during the period which have been informed by the
management.
For D P Agarwal & Co
Chartered Accountants
sd/-
Place: Mumbai D P Agarwal
Date: 5th August, 2013 Membership No.035500
Mar 31, 2012
We have audited the attached Balance Sheet of SVC Resources Limited as
at 31st March 2012 and also the Profit & Loss Account for the year
ended on that day annexed hereto. 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.
We have conducted our audit in accordance with auditing standards
generally accepted in India. Those standards required that we plan &
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 included
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.
a. As required by the Companies (Auditors'' Report) Order, 2003
issued by the Department of the Company Affairs in terms of section 227
(4A) of the Companies Act 1956, we enclose in the Annexure, a statement
on the matter specified in the said order to the extent applicable;-
b. Further to our comments in the annexure referred to in paragraph 1
above -
(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, Profit & Loss Account 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, Profit & Loss Account and Cash
Flow Statement together with notes of accounts dealt with by this
report comply with the accounting standards referred to in sub-section
(3C) of section 211 of the Companies Act 1956.
(e). On the basis of 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 sub-section (1) of section 274 of the Companies Act 1956.
(f). In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, give the information
required by the Companies Act 1956, and give a true and fair view
inconformity with the accounting principles generally accepted in
India:-
1. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2012;
2. in the case of the Profit and Loss Account, of the profit for the
year ended on that date;
3. in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO THE AUDITOR''S REPORT (Referred to in paragraph 1 of our
report of even date)
1. (a) The Company has maintained proper books of records showing full
particulars including quantitative details and situations of fixed
assets.
(b) As per the information and explanations given to us, the Company
has carried out physical verification of fixed assets during the year.
In our opinion, the frequency of such verification is reasonable.
(c) None of the fixed assets have been revalued during the year.
2. (a) As per the information and explanations given to us, the
company has carried out physical verification of Inventories during the
year. In our opinion, the frequency of such verification is reasonable.
(b) In our opinion, and according to the information and explanation
given to us, the procedure of physical verification of stock followed
by the management is reasonable and adequate in relation to the size of
the company and nature of its business.
(c) As per information and explanation given to us, no material
discrepancies have been noticed on physical verification of stock as
compared to the records.
(d) In our opinion and on the basis of our examination, the valuation
of the stock is fair and proper in accordance with the normally
accepted accounting principles.
3. (a) According to the information and explanation given to us and on
the basis of records furnished before us, the Company has not granted
any loans, secured or unsecured to companies, firms or other parties
covered in the register maintained under section 301 of the Companies
Act, 1956.
(b) In view of above, clause 4(iii) (a), (b), (c) and (d) of Companies
(Auditors Report) Order, 2003 are not applicable.
(c) According to the information and explanation given to us and on the
basis of records furnished before us for verification, the Company has
not taken any loans, secured or unsecured from companies, firms or
other parties covered in the register maintained under section 301 of
the Act.
(d) In the view of above, clause 4(iii)(e), (f) and (g) of Companies
(Auditors Report) Order, 2003 are not applicable.
4. In our opinion and according the information & explanations given
to us, there are adequate internal control procedures commensurate with
the size of the company and nature of business with regard to purchase
and sales. During the course of Audit, we have not observed any
continuing failure to correct major weakness of internal audit.
5. (a) In our opinion and according to the information and
explanations given to us, the particulars of contract or arrangements
that were required to be entered in the register maintained under
section 301 of the Companies Act, 1956 have been so entered in the said
register.
(b) In respect of transactions entered exceeding the value of five lacs
in the register maintained in pursuance of section 301 of the Companies
Act 1956, according to information and explanation given to us, the
transactions made pursuance of such contracts or arrangements have been
made at prices which are prima-facie reasonable having regard to
prevailing market prices at the relevant time.
6. The company has not accepted any deposits from the public hence
clause 4(vi) of Companies (Auditors Report) Order 2003 is not
applicable.
7. The company has adequate Internal Control System, on broadly
reviewing the same and information and explanation given to us by the
management, we are of the opinion that the internal audit is
commensurate with the size of the Company and the nature of business.
8. We are informed that the Central Government has not prescribed
maintenance of cost records under section 209(1) (d) of the Companies
Act 1956 in respect to products dealt with by the company.
9. (a) In our opinion and according to the information and
explanations given to us, undisputed statutory dues including Provident
Fund, Investors Education & Protection Fund, Employees State Insurance
Scheme, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty,
Cess and any other statutory dues have been regularly deposited in time
during the year with appropriate authorities and there are no
undisputed statutory dues payable for a period of six months from the
date they became payable as at 31st March 2012.
(b) According to the information and explanation given to us there are
no disputes pending before the authorities in respect of Sales Tax,
Income Tax, Custom Duty and CESS.
10. The Company does not have any accumulated losses as at the end of
financial year and has not incurred cash losses in the current
financial year and in the immediate preceding financial year.
11. According to the records made available to us and the information
and explanation given to us by the management, the Company has not
defaulted in repayment of any dues to financial institutions or banks.
12. According to the information and explanation given to us, the
Company has not granted any loans & advances on the basis of security
by the way of pledge of shares, debentures and other securities.
13. In our opinion, the Company is not chit fund, nidhi, mutual fund
and societies and accordingly clause 4 (xiii) of companies (Auditors
Report) order, 2003 is not applicable.
14. In our opinion and according to the information and explanation
given to us, the Company has kept adequate records of its transactions
and contracts in shares, securities, debentures and other investments
are held in the name of the company.
15. In our opinion and according to the information and explanation
given to us, the Company has not given guarantees for loans taken by
others from banks & financial institutions. Accordingly clause 4 (xv)
of the Companies (Auditors'' Report) Order, 2003 is not applicable.
16. In our opinion and according to the information and explanation
given to us, the Company has not obtained any term loan, accordingly
clause 4 (xvi) of Companies (Auditors'' Report) Order, 2003 is not
applicable.
17. According to the information and explanation given to us and on the
basis of and overall examination of the Balance Sheet of the Company,
no funds raised on short term basis have been utilized for long term
investment and vice versa.
18. During the period, the company has not issued any debentures.
Accordingly clause 4 (xix) of Companies (Auditors'' Report) Order,
2003 is not applicable.
19. The Company has not raised any money through a Public Issue during
the year under audit. Accordingly clause 4 (xx) of Companies
(Auditors'' Report) Order, 2003 is not applicable.
20. During the course of examination of the books and records of the
Company, carried out in accordance with generally accepted auditing
practices in India, and according to the information and explanation
given to us, we have neither come across any instance of fraud on or by
the Company noticed or reported during the period nor we have been
informed of any such instances by the management.
For D P Agarwal & Co
Chartered Accountants
Place: Mumbai Sd/-
D P Agarwal
Date: December 1, 2012 Membership No.035500
Mar 31, 2011
We have audited the attached Balance Sheet of SVC Resources Limited as
at 31st March 2011 and also the Profit & Loss Account for the year
ended on that day annexed hereto. 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.
We have conducted our audit in accordance with auditing standards
generally accepted in India. Those standards required that we plan &
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 included
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.
a. As required by the Companies (Auditors' Report) Order, 2003 issued
by the Department of the Company Affairs in terms of section 227 (4A)
of the Companies Act 1956, we enclose in the Annexure, a statement on
the matter specified in the said order to the extent applicable;
b. Further to our comments in the annexure referred to in paragraph 1
above -
(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, Profit & Loss Account 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, Profit & Loss Account and Cash
Flow Statement together with notes of accounts dealt with by this
report comply with the accounting standards referred to in sub-section
(3C) of section 211 of the Companies Act 1956.
(e). On the basis of written representations received from the
directors, as on 31st March 2011, and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March 2011 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act 1956.
(f). In our opinion and to the best of our information and according
to the explanations given to us, the said accounts, give the
information required by the Companies Act 1956, and give a true and
fair view in conformity with the accounting principles generally
accepted in India :-
1. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2011;
2. in the case of the Profit and Loss Account, of the profit for the
year ended on that date;
3. in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
For Prem Mishra & Co
Chartered Accountants
Prem Lata Mishra
Place: Mumbai Partner
Date: September 2, 2011 Membership No.92733
ANNEXURE TO THE AUDITOR'S REPORT
(Referred to in paragraph 1 of our report of even date)
1. (a) The Company has maintained proper books of records showing full
particulars including quantitative details and situations of fixed
assets.
(b) As per the information and explanations given to us, the Company
has carried out physical verification of fixed assets during the year.
In our opinion, the frequency of such verification is reasonable.
(c) None of the fixed assets have been revalued during the year.
2. (a) As per the information and explanations given to us, the
company has carried out physical verification of Inventories during the
year. In our opinion, the frequency of such verification is reasonable.
(b) In our opinion, and according to the information and explanation
given to us, the procedure of physical verification of stock followed
by the management is reasonable and adequate in relation to the size of
the company and nature of its business.
(c) As per information and explanation given to us, no material
discrepancies have been noticed on physical verification of stock as
compared to the records.
(d) In our opinion and on the basis of our examination, the valuation
of the stock is fair and proper in accordance with the normally
accepted accounting principles.
3. (a) According to the information and explanation given to us and on
the basis of records furnished before us, the Company has not granted
any loans, secured or unsecured to companies, firms or other parties
covered in the register maintained under section 301 of the Companies
Act, 1956.
(b) In view of above, clause 4(iii) (a), (b), (c) and (d) of Companies
(Auditors Report) Order, 2003 are not applicable.
(c) According to the information and explanation given to us and on the
basis of records furnished before us for verification, the Company has
not taken any loans, secured or unsecured from companies, firms or
other parties covered in the register maintained under section 301 of
the Act.
(d) In the view of above, clause 4(iii)(e), (f) and (g) of Companies
(Auditors Report) Order, 2003 are not applicable.
4. In our opinion and according the information & explanations given
to us, there are adequate internal control procedures commensurate with
the size of the company and nature of business with regard to purchase
and sales. During the course of Audit, we have not observed any
continuing failure to correct major weakness of internal audit.
5. (a) In our opinion and according to the information and
explanations given to us, the particulars of contract or arrangements
that were required to be entered in the register maintained under
section 301 of the Companies Act, 1956 have been so entered in the said
register. (b) In respect of transactions entered exceeding the value
of five lacs in the register maintained in pursuance of section 301 of
the Companies Act 1956, according to information and explanation given
to us, the transactions made pursuance of such contracts or
arrangements have been made at prices which are prima-facie reasonable
having regard to prevailing market prices at the relevant time.
6. The company has not accepted any deposits from the public hence
clause 4(vi) of Companies (Auditors Report) Order 2003 is not
applicable.
7. The company has adequate Internal Control System, on broadly
reviewing the same and information and explanation given to us by the
management, we are of the opinion that the internal audit is
commensurate with the size of the Company and the nature of business.
8. We are informed that the Central Government has not prescribed
maintenance of cost records under section 209(1) (d) of the Companies
Act 1956 in respect to products dealt with by the company.
9. (a) In our opinion and according to the information and
explanations given to us, undisputed statutory dues including Provident
Fund, Investors Education & Protection Fund, Employees State Insurance
Scheme, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty,
Cess and any other statutory dues have been regularly deposited in time
during the year with appropriate authorities and there are no
undisputed statutory dues payable for a period of six months from the
date they became payable as at 31st March 2011.
(b) According to the information and explanation given to us there are
no disputes pending before the authorities in respect of Sales Tax,
Income Tax, Custom Duty and CESS.
10. The Company does not have any accumulated losses as at the end of
financial year and has not incurred cash losses in the current
financial year and in the immediate preceding financial year.
11. According to the records made available to us and the information
and explanation given to us by the management, the Company has not
defaulted in repayment of any dues to financial institutions or banks.
12. According to the information and explanation given to us, the
Company has not granted any loans & advances on the basis of security
by the way of pledge of shares, debentures and other securities.
13. In our opinion, the Company is not chit fund, nidhi, mutual fund
and societies and accordingly clause 4 (xiii) of companies (Auditors
Report) order, 2003 is not applicable.
14. In our opinion and according to the information and explanation
given to us, the Company has kept adequate records of its transactions
and contracts in shares, securities, debentures and other investments
are held in the name of the company.
15. In our opinion and according to the information and explanation
given to us, the Company has not given guarantees for loans taken by
others from banks & financial institutions. Accordingly clause 4 (xv)
of the Companies (Auditors' Report) Order, 2003 is not applicable.
16. In our opinion and according to the information and explanation
given to us, the Company has not obtained any term loan, accordingly
clause 4 (xvi) of Companies (Auditors' Report) Order, 2003 is not
applicable.
17. According to the information and explanation given to us and on
the basis of and overall examination of the Balance Sheet of the
Company, no funds raised on short term basis have been utilized for
long term investment and vice versa.
18. During the period, the company has not issued any debentures.
Accordingly clause 4 (xix) of Companies (Auditors' Report) Order, 2003
is not applicable.
19. The Company has not raised any money through a Public Issue during
the year under audit. Accordingly clause 4 (xx) of Companies (Auditors'
Report) Order, 2003 is not applicable.
20. During the course of examination of the books and records of the
Company, carried out in accordance with generally accepted auditing
practices in India, and according to the information and explanation
given to us, we have neither come across any instance of fraud on or by
the Company noticed or reported during the period nor we have been
informed of any such instances by the management.
For Prem Mishra & Co
Chartered Accountants
Prem Lata Mishra
Place: Mumbai Partner
Date: September 2, 2011 Membership No.92733
Mar 31, 2010
We have audited the attached Balance Sheet of SVC Resources Limited
(formerly known as Pace Textiles Limited) as at 31st March 2010 and
also the Profit & Loss Account for the year ended on that day annexed
hereto. 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.
We have conducted our audit in accordance with auditing standards
generally accepted in India. Those standards required that we plan &
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 included
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.
a. As required by the Companies (Auditors Report) Order, 2003 issued
by the Department of the Company Affairs in terms of section 227 (4A)
of the Companies Act 1956, we enclose in the Annexure, a statement on
the matter specified in the said order to the extent applicable;
b. Further to our comments in the annexure referred to in paragraph 1
above -
(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, Profit & Loss Account 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, Profit & Loss Account and Cash
Flow Statement together with notes of accounts dealt with by this
report comply with the accounting standards referred to in sub- section
(3C) of section 211 of the Companies Act 1956.
(e). On the basis of 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 (1) of section 274 of the Companies Act 1956.
(f). In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, give the information
required by the Companies Act 1956, and give a true and fair view in
conformity with the accounting principles generally accepted in India
:-
1. In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2010.
2. In the case of the Profit and Loss Account, of the profit for the
year ended on that date.
3. 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 1 of our report of even date)
1. (a) The Company has maintained proper books of records showing full
particulars including quantitative details and situations of fixed assets.
(b) As per the information and explanations given to us, the Company
has carried out physical verification of fixed assets during the year.
In our opinion, the frequency of such verification is reasonable.
(c) None of the fixed assets have been revalued during the year.
2. (a) As per the information and explanations given to us, the
company has carried out physical verification of Inventories during
the year. In our opinion, the frequency of such verification is
reasonable.
(b) In our opinion, and according to the information and explanation
given to us, the procedure of physical verification of stock followed
by the management is reasonable and adequate in relation to the size of
the company and nature of its business.
(c) As per information and explanation given to us, no material
discrepancies have been noticed on physical verification of stock as
compared to the records.
(d) In our opinion and on the basis of our examination, the valuation
of the stock is fair and proper in accordance with the normally
accepted accounting principles.
3. (a) According to the information and explanation given to us and on
the basis of records furnished before us, the Company has not granted
any loans, secured or unsecured to companies, firms or other parties
covered in the register maintained under section 301 of the Companies
Act, 1956.
(b) In view of above, clause 4(iii) (a), (b), (c) and (d) of Companies
(Auditors Report) Order, 2003 are not applicable.
(c) According to the information and explanation given to us and on the
basis of records furnished before us for verification, the Company has
not taken any loans, secured or unsecured from companies, firms or
other parties covered in the register maintained under section 301 of
the Act.
(d) In the view of above, clause 4(iii)(e), (f) and (g) of Companies
(Auditors Report) Order, 2003 are not applicable.
4. In our opinion and according the information & explanations given
to us, there are adequate internal control procedures commensurate with
the size of the company and nature of business with regard to purchase
and sales. During the course of Audit, we have not observed any
continuing failure to correct major weakness of internal audit.
5. (a) In our opinion and according to the information and
explanations given to us, the particulars of contract or arrangements
that were required to be entered in the register maintained under section
301 of the Companies Act, 1956 have been so entered in the said register.
(b) In respect of transactions entered exceeding the value of five lacs
in the register maintained in pursuance of section 301 of the Companies
Act 1956, according to information and explanation given to us, the
transactions made pursuance of such contracts or arrangements have been
made at prices which are prima-facie reasonable having regard to
prevailing market prices at the relevant time.
6. The company has not accepted any deposits from the public hence
clause 4(vi) of Companies (Auditors Report) Order 2003 is not
applicable.
7. The company has appointed a firm of Chartered Accountants, to carry
out internal audit functions, on broadly reviewing the Audit Reports
furnished before us and information and explanation given to us by the
management, we are of the opinion that the internal audit is
commensurate with the size of the Company and the nature of business.
8. We are informed that the Central Government has not prescribed
maintenance of cost records under section 209(1) (d) of the Companies
Act 1956 in respect to products dealt with by the company.
9. (a) In our opinion and according to the information and
explanations given to us, undisputed statutory dues including Provident
Fund, Investors Education & Protection Fund, Employees State Insurance
Scheme, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty, Cess
and any other statutory dues have been regularly deposited in time during
the year with appropriate authorities and there are no undisputed statutory
dues payable for a period of six months from the date they became payable
as at 31st March 2010.
(b) According to the information and explanation given to us there are
no disputes pending before the authorities in respect of Sales Tax,
Income Tax, Custom Duty and CESS.
10. The Company does not have any accumulated losses as at the end of
financial year and has not incurred cash losses in the current
financial year and in the immediate preceding financial year.
11. According to the records made available to us and the information
and explanation given to us by the management, the Company has not
defaulted in repayment of any dues to financial institutions or banks.
12. According to the information and explanation given to us, the
Company has not granted any loans & advances on the basis of security
by the way of pledge of shares, debentures and other securities.
13. In our opinion, the Company is not chit fund, nidhi, mutual fund
and societies and accordingly clause 4 (xiii) of companies (Auditors
Report) order, 2003 is not applicable.
14. In our opinion and according to the information and explanation
given to us, the Company has kept adequate records of its transactions
and contracts in shares, securities, debentures and other investments
are held in the name of the company.
15. In our opinion and according to the information and explanation
given to us, the Company has not given guarantees for loans taken by
others from banks & financial institutions. Accordingly clause 4 (xv)
of the Companies (Auditors Report) Order, 2003 is not applicable.
16. In our opinion and according to the information and explanation
given to us, the Company has not obtained any term loan, accordingly
clause 4 (xvi) of Companies (Auditors Report) Order, 2003 is not
applicable.
17. According to the information and explanation given to us and on
the basis of and overall examination of the Balance Sheet of the
Company, no funds raised on short term basis have been utilized for
long term investment and vice versa.
18. During the period, the company has not issued any debentures.
Accordingly clause 4 (xix) of Companies (Auditors Report) Order, 2003
is not applicable.
19. The Company has not raised any money through a Public Issue during
the year under audit. Accordingly clause 4 (xx) of Companies (Auditors
Report) Order, 2003 is not applicable.
20. During the course of examination of the books and records of the
Company, carried out in accordance with generally accepted auditing
practices in India, and according to the information and explanation
given to us, we have neither come across any instance of fraud on or by
the Company noticed or reported during the period nor we have been
informed of any such instances by the management.
For JAIN ANIL & ASSOCIATES
Chartered Accountants
Sd/-
Place: Mumbai ANIL JAIN
Date: May 29, 2010 Proprietor