Mar 31, 2015
We have audited the accompanying financial statements of Swasti
Vinayaka Art And Heritage Corporation Limited ("the Company"), which
comprises of 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 Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash fows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under. We conducted our
audit in accordance with the Standards on Auditing specifed under
Section 143(10) of the Act. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015 and its Profit and its cash fow for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specifed in paragraphs 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet and the Statement of Profit and Loss dealt with
by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the 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 the
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:
i. The Company does not have any pending litigations which would impact
its financial statements.
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii. There were no amounts that were required to be transferred to the
Investor Education and Protection Fund by the Company during the year.
Referred to in paragraph 1 on Report on Other Legal and Regulatory
Requirements in our report of even date to the members of SWASTI
VINAYAKA ART AND HERITAGE CORPORATION LIMITED on the financial
statement for the year ended on March 31, 2015, we report that:
(i) (a) The company has a maintained proper record showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a regular programme of physical Verification of its
fixed assets by which fixed assets are verified in a phased manner over
a period of one year. In accordance with this programme, certain fixed
assets were verified during the year and no material discrepancies were
noticed on such Verification. In our opinion, this periodicity of
physical Verification is reasonable having regard to the size of the
Company and the nature of its assets.
(ii) (a) The inventories have been physically verified during the year
by the management. In our opinion, the frequency of physical
Verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures for 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, the Company has maintained proper records of
inventory. The discrepancies between the physical stocks and the book
stocks were not material and have been properly dealt with in the books
of account.
(iii) The company has not granted any secured or unsecured loans to any
party covered in the register maintained under section 189 of the
Companies Act, 2013. Therefore the requirements of sub-clause (a) and
(b) of clause (iii) of Paragraph 3 are not applicable to the Company.
(iv) There is an adequate internal control system commensurate with the
size of the company and the nature of its business for the sale of
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system.
(v) The Company has not accepted any deposits from public in terms of
section 73 of the Companies Act, 2013. We are informed that no order
has been passed by Company Law Board or National Company Law Tribunal
or Reserve Bank of India or Court or any other tribunal. Accordingly,
the Company has complied with the provisions of section 73 to 76 of the
Companies Act, 2013.
(vi) Central Government has not prescribed/specified the maintenance of
cost records under sub-section (l) of section 148 of the Companies Act,
2013, hence clause (vi) of Paragraph 3 is not applicable to the
company.
(vii) (a) According to the information and explanations given to us,
the Company is generally regular in depositing undisputed statutory
dues including provident fund, employees' state insurance, income-tax,
service tax and any other statutory dues with the appropriate
authorities.
(b) According to the information and explanations given to us, there
are no dues of income-tax, service tax, wealth tax, which have not been
deposited on account of any dispute.
(c) There is no amount required to be transferred to investor education
and protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules made there under.
(viii) The Company does not have any accumulated losses at the end of
the financial year and has not incurred cash losses in the financial
year and in the immediately preceding financial year.
(ix) Based on our audit procedures and on the information and
explanation give to us by the management, we are of the opinion that
the company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
(x) In our opinion and according to the information and explanation
give to us, the company has not given any guarantee for loans taken by
others from banks or financial institutes.
xi) In our opinion and according to the information and explanation
give to us, the company has not obtained any term loans during the year
hence clause (xi) of Paragraph 3 is not applicable to the company.
(xii) 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
was noticed or reported during the course of our audit.
For SANJAY RAJA JAIN & CO.
Chartered Accountants
FRN No. 120132W
SANJAY RAJA JAIN
Partner
M. No. 108521
Place : Mumbai
Date: May 30, 2015
Mar 31, 2013
Report on Financial Statements
We have audited the accompanying financial statements of Swasti
Vinayaka Art And Heritage corporation Limited ("the Company"),
which comprise the Balance Sheet as at March 31, 2013, and the
Statement of Profit and Loss and Cash Flow Statement for the year then
ended, and a summary of significant accounting policies and other
explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
(b) in the case of the Statement of Profit and Loss, of the profit/
loss for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
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 sub-section (3C) of section 211 of the Companies Act, 1956;
e. on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
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.
1. a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets on the basis of available information.
b) As explained to us, the fixed assets have been physically verified
by the management during the year in a phased periodical manner, which
in our opinion is reasonable, having regard to the size of the Company
and nature of its assets. No material discrepancies were noticed on
such physical verification.
c) In our opinion, the Company has not disposed of substantial part of
fixed assets during the year and asset sold do not affect its going
concern.
2. a) As explained As explained to us, inventories have been
physically verified by the management at regular intervals during the
year.
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 its business.
c) In our opinion and according to the information and explanation
given to us, the Company has maintained proper records of inventories.
As explained to us, there were no material discrepancies noticed on
physical verification of inventory as compared to the book records
3. In respect of loans, secured or unsecured taken or granted by the
Company from/ to companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956 :
a. The Company has taken loans from 5 (Five) (P.Y. Five) parties
covered in the register maintained U/s. 301 of the Companies Act, 1956
aggregating to Rs. 5,32,30,000/- (P.Y. Rs. 7,24,00,409/- ) during the
year and yearend balance is Rs. 6,52,50,000/- ( Previous Year
8,62,35,000/-) and maximum amount involved during the year is
Rs.9,68,74,551/- (P.Y. Rs.10,37,74,551/-)
b. The company has granted loan to 1 (one) (P.Y.one) parties covered
in the register maintained U/s. 301 of the Companies Act, 1956.
aggregating to Rs. 31,00,000/- (P.Y. Rs. 3,96,00,000/-) during the year
and yearend balance is Rs. NIl ( Previous Year 1,16,00,000/-) and
maximum amount involved during the year is Rs. 1,17,23,283/- (P.Y. Rs.
2,41,91,687/-)
c. In our opinion and according to the information and explanations
given to us, the rate of interest, wherever applicable and other Terms
and Conditions are not prima facie prejudicial to the interest of the
Company.
d. There is no overdue amount in respect of loans given/ taken by the
Company and as same is repayable on demand.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory, fixed assets and also for the
sale of goods. During the course of our audit, we have not observed any
major weaknesses in internal controls. 5. a) In our opinion and
according to the information and explanations given to us, the
transactions made in pursuance of contracts or arrangements, that
needed to be entered into in the register maintained under Section 301
of the Companies Act, 1956 have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions in pursuance of contracts or arrangements
entered in the register maintained under Section 301 of the Companies
Act, 1956 and exceeding Rs. 5,00,000/- (Rupees Five Lakhs only) in
respect of any party during the year have been made at price, which are
reasonable having regard to prevailing market price at the relevant
time.
6. As explain to us the Company has not accepted any deposits from the
public within the meaning of Section 58A and 58AA of the Companies Act,
1956 and the Rules framed there under.
7. In our opinion, the internal audit system of the Company is
commensurate with its size and nature of its business.
8. According to information and explanations provided to us, the
company is not required to maintain cost record U/s. 209(1)(d) of the
Companies Act, 1956.
9. a) According to the information and explanation given to us, and
records being made available to us, there have no disputed statutory
dues except for income tax for the assessment year 2006-2007 for which
appeal has been filed with appropriate authorities. According to the
information and explanations given to us, no undisputed amounts payable
as at 31st March, 2013 for a period of more than six months from the
date of becoming payable.
b) In our opinion and according to the information and explanations
given to us, there is no dues of services tax, wealth tax, and cess
which have been not deposited on account of any dispute.
10. The Company has no accumulated losses and has not incurred cash
loss during the financial year covered by our audit
11. Based on our audit procedures and according to the information and
explanation given to us, we are of the opinion that the Company has not
defaulted in repayment of dues to banks.
12. In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the company on
the basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore, clause 4(xiii) of the Companies
(Auditor''s Report) Order 2003 is not applicable to the Company.
14. The Company has maintained proper records of transaction and
contracts in respect of trading in securities, debentures and other
investments and timely entries have been made therein. All shares,
debentures and other investments have been held by the company in its
own name.
15. According to information and explanation given to us and to the
best of knowledge, the Company has not given guarantees for loans taken
by others from banks or financial institutions.
16. In our opinion and according to information and explanation given
to us, a company has not received any Term Loan except overdraft
facility during the year.
17. According to the information and explanation given to us, and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that the Company has not raised funds from Short Term
sources and utilized the same towards Long Term investments.
18. During the year, the Company had not made any preferential
allotment of shares to parties and companies covered in the register
maintained U/s. 301 of the Companies Act, 1956.
19. According to information and explanation given to us, the Company
has not issued any secured debentures during the year.
20. The Company has not raised any money by way of public issue during
the year.
21. In our opinion and according to the information and explanation
given to us, no fraud on or by the Company has been noticed or reported
during the year that causes the financial statements to be materially
misstated.
For SANJAY RAJA JAIN & co.
CHARTERED ACCOUNTANTS
Firm Reg. No. 120132W
SANJAY RAJA JAIN
Place : Mumbai. (PARTNER)
Date : 30th May 2013 Membership No. 108513
Mar 31, 2012
We have audited the attached Balance Sheet of SWASTI VINAYAKA ART AND
HERITAGE CORPORATION LIMITED, Mumbai asat31st March 2012 and the Profit
and Loss Account for the period ended on that date annexed thereto.
These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on the
financial statements based on our audit.
1. 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 misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in Financial Statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall Financial
Statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
2. As required by the Companies (Auditor's Report) Order 2003 issued
by the Central Government of India in terms of Sub-section (4A) of
section 227 of the Companies Act, 1956, we enclose in Annexure hereto a
Statement on the matters specified in paragraph 4 and 5 of the said
Order.
3. Further to our comments in the Annexure referred to in paragraph 2
above, we report that :
(a) We have obtained all the information and explanation 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 dealt with by this
report are in agreement with the books of accounts;
(d) In our opinion, Balance Sheet and Profit and Loss Account dealt
with by this report comply with the mandatory Accounting Standard
referred to in sub-section (3C) of Section 211 of the Companies Act,
1956.
(e) In our opinion, and to the best of our information and explanations
given to us none of the directors are disqualified as on 31st March,
2012 from being appointed as directors in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956.
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
Significant Accounting Policies and other notes thereon give the
information required by the Companies Act, 1956, in the manner so
required, and present a true and fair view, in conformity with the
accounting principles generally accepted in India :
(i) In so far as it relates to Balance Sheet, of the state of affairs
of the Company as at 31st March, 2012;
(ii) In so far as it relates to the Profit and Loss Account, of the
Profit of Company for the year ended on that date; and
(iii) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO AUDITORS' REPORT
(Referred to in Paragraph 2 of our report of even date)
1. a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets on the basis of available information.
b) As explained to us, the fixed assets have been physically verified
by the management during the year in a phased periodical manner, which
in our opinion is reasonable, having regard to the size of the Company
and nature of its assets. No material discrepancies were noticed on
such physical verification.
c) In our opinion, the Company has not disposed of substantial part of
fixed assets during the year.
2. a) As explained to us, inventories have been physically verified by
the management at regular intervals during the year.
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 its business.
c) In our opinion and according to the information and explanation
given to us, the Company has maintained proper records of inventories.
As explained to us, there were no material discrepancies noticed on
physical verification of inventory as compared to the book records.
3. The company has taken loans from parties listed in the register
maintained U/s. 301 of the Companies Act, 1956. The year end balance of
loan taken from such parties was Rs. 870.28 lacs. The Company has
granted loans to Companies, Firms or other parties as listed in the
register maintained under section 301 and / or to the Companies under
the same management as defined under sub-section (1B) of Section 370 of
the Companies Act, 1956. The year end balance of loan given to such
parties was Rs. 117.23 lacs
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business.
5. a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements, that needed to be entered into in the register maintained
under Section 301 of the Companies Act, 1956 have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding Rs. 5,00,000/- (Rupees Five Lacs
only) in respect of any party during the year have been made at price,
which are reasonable having regard to prevailing market price at the
relevant time.
6. As explain to us the Company has not accepted any deposits from the
public within the meaning of Section 58A and 58AA of the Companies Act,
1956 and the Rules framed there under.
7. In our opinion, the internal audit system of the Company is
commensurate with its size and nature of its business.
8. The company is not required to maintain cost record U/s. 209(1)(d)
of the Companies Act, 1956.
9. a) According to the information and explanation given to us, and
records being made available to us, there have no disputed statutory
dues except for income tax for the assessment year 2006-2007 for which
appeal has been filed with appropriate authorities. According to the
information and explanations given to us, there is no undisputed
amounts payable as at 31st March, 2012 for a period of more than six
months from the date of becoming payable.
b) According to the information and explanations given to us and
according to the books and records as produce and examined by us, there
is no dues of service tax, wealth tax, and cess which have not been
deposited on account of any dispute.
10. The Company has no accumulated losses and has not incurred any
cash losses during the Financial Year covered by our audit.
11. Based on our audit procedures and according to the information and
explanation given to us, we are of the opinion that the Company has not
defaulted in repayment of dues.
12. In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the company on
the basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore, clause 4(xiii) of the Companies
(Auditor's Report) Order 2003 is not applicable to the Company.
14. In our opinion and according to the information and explanation
give to us and according to the books and records as produce and
examined by us, the Company has maintained proper records of
transactions and contracts in respect of trading in securities and
other investments and timely entries have been made therein. All shares
and other investments have been held by the Company in its own name.
15. According to information and explanation given to us and to the
best of knowledge, the Company has not given guarantees for loans taken
by others from banks or financial institutions during the year.
16. In our opinion and according to information and explanation given
to us, a company has not taken terms loan during the year.
17. According to the information and explanation given to us, and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that the Company has not raised funds from Short Term
sources and utilized the same towards Long Term investments and
vice-versa.
18. During the year, the Company has not allotted any equity shares to
parties and companies covered in the register maintained U/s. 301 of
the Companies Act, 1956.
19. According to information and explanation given to us, the Company
has not issued any secured debentures during the year.
20. The Company has not raised any money by way of public issue during
the year.
21. In our opinion and according to the information and explanation
given to us, no fraud on or by the Company has been noticed or reported
during the year, that causes the financial statements to be materially
misstated.
For SANJAY RAJA JAIN & CO.
CHARTERED ACCOUNTANTS
FRN - 120132W
SANJAY RAJA JAIN
Place : Mumbai. (Partner)
Date : 26th May, 2012. Membership No. 108513
Mar 31, 2010
We have audited the attached Balance Sheet of SWASTIVINAYAKA GEMS
CORPORATION LIMITED, Mumbai as at 31 st March 2010 and the Profit and
Loss Account for the period ended on that date annexed thereto. These
financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on the
financial statements based on our audit.
1. 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 misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in Financial Statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall Financial
Statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
2. As required by the Companies (Auditors Report) Order 2003 issued
by the Central Government of India in terms of Sub-section (4A) of
section 227 of the Companies Act, 1956, we enclose in Annexure hereto a
Statement on the matters specified in paragraph 4 and 5 of the said
Order.
3. Further to our comments in the Annexure referred to in paragraph 2
above, we report that:
(a) We have obtained all the information and explanation 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 dealt with by this
report are in agreement with the books of accounts;
(d) In our opinion, Balance Sheet and Profit and Loss Account dealt
with by this report comply with the mandatory Accounting Standard
referred to in sub-section (3C) of Section 211 of the Companies Act,
1956.
(e) In our opinion, and to the best of our information and explanations
given to us none of the directors are disqualified as on 31 st March,
2010 from being appointed as directors in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956.
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
Significant Accounting Policies and other notes thereon give the
information required by the Companies Act, 1956, in the manner so
required, and present a true and fair view, in conformity with the
accounting principles generally accepted in India:
(i) In so far as it relates to Balance Sheet, of the state of affairs
of the Company as at 31 st March, 2010;
(ii) In so far as it relates to the Profit and Loss Account, of the
Profit of Company forthe year ended on that date; and
(iii) In the case of the Cash Flow Statement, of the cash flows forthe
year ended on that date.
(REFERRED TO IN PARAGRAPH 2 OF OUR REPORT OF EVEN DATE,)
1) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets on the basis of available information.
b) As explained to us, the fixed assets have been physically verified
by the management during the year in a phased periodical manner, which
in our opinion is reasonable, having regard to the size of the Company
and nature of its assets. No material discrepancies were noticed on
such physical verification.
c) In our opinion, the Company has not disposed of substantial part of
fixed assets during the year.
2) a) As explained to us, inventories have been physically verified by
the management at regular intervals during the year.
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 its business.
c) In our opinion and according to the information and explanation
given to us, the Company has maintained proper records of inventories.
As explained to us, there were no material discrepancies noticed on
physical verification of inventory as compared to the book records
3) The company has taken loans from parties listed in the register
maintained U/s. 301 of the Companies Act, 1956. The year end balance of
loan taken from such parties was Rs. 736.25 lacs. The Company has
granted loans to Companies, Firms or other parties as listed in the
register maintained under section 301 and / or to the Companies under
the same management as defined under sub- section (1B) of Section 370
of the Companies Act, 1956. The year end balance of loan given to such
parties was Rs. 73.24 lacs
4) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business.4)l n our opinion and according to the information and
explanations given to us, there are adequate internal control
procedures commensurate with the size of the company and the nature of
its business with regard to purchases of inventory, fixed assets and
with regard to the sale of goods. During the course of our audit, we
have not observed any continuing failure to correct major weaknesses in
internal controls.
5) a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or arrangements,
that needed to be entered into in the register maintained under Section
301 of the Companies Act, 1956 have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding Rs. 5,00,000/- (Rupees Five Lacs
only) in respect of any party during the year have been made at price,
which are reasonable having regard to prevailing market price at the
relevant time.
6) As explain to us the Company has not accepted any deposits from the
public within the meaning of Section 58A and 58AA of the Companies Act,
1956 and the Rules framed there under.
7) In our opinion, the internal audit system of the Company is
commensurate with its size and nature of its business.
8) The company is not required to maintain cost record U/s. 209(1 )(d)
of the Companies Act, 1956.
9) a) According to the information and explanation give to us and
according
to the books and records as produce and 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, wealth tax, service tax, and
other material statutory dues as applicable with the appropriate
authorities.
b) According to the information and explanations given to us and
according to the books and records as produce and examined by us, there
is no dues of service tax, wealth tax, and cess which have not been
deposited on account of any dispute.
10) The Company has no accumulated losses and has not incurred any cash
losses during the Financial Year covered by our audit.
11) Based on our audit procedures and according to the information and
explanation given to us, we are of the opinion that the Company has not
defaulted in repayment of dues.
12) In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the company on
the basis of security by way of pledge of shares, debentures and other
securities.
13) In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore, clause 4(xiii) of the Companies
(Auditors Report) Order 2003 is not applicable to the Company.
14) In our opinion and according to the information and explanation
give to us and according to the books and records as produce and
examined by us, the Company has maintained proper records of
transactions and contracts in respect of trading in securities and
other investments and timely entries have been made therein. All shares
and other investments have been held by the Company in its own name.
15) According to information and explanation given to us and to the
best of knowledge, the Company has not given guarantees for loans taken
by others from banks orfinancial institutions during the year.
16) In our opinion and according to information and explanation given
to us, a company has taken terms loan Rs. 300 Lacs during the year.
17) According to the information and explanation given to us, and on an
overall examination of the Balance Sheet of the Company, we are of the
opinion that the Company has not raised funds from Short Term sources
and utilized the same towards Long Term investments and vice-versa.
18) During the year, the Company has not allotted any equity shares to
parties and companies covered in the register maintained U/s. 301 of
the Companies Act, 1956.
19) According to information and explanation given to us, the Company
has not issued any secured debentures during the year.
20) The Company has not raised any money by way of public issue during
the year.
21) In our opinion and according to the information and explanation
given to us, no fraud on or by the Company has been noticed or reported
during the year, that causes the financial statements to be materially
misstated.
For SANJAY RAJA JAIN & CO.
Chartered Accountants
SANJAY RAJA JAIN
Place: Mumbai (Partner)
Dated : 17th May 2010 Membership No. 108513