1. We report that we have audited the attached Balance Sheet of ABC
INDIA LIMITED as at 31st March, 2012, and the Statement of Profit and
Loss and also the Cash Flow Statement for the year 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 these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provided a reasonable basis for
3. As required by the Companies (Auditors'' Report) Order, 2003 as
amended, and issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Companies Act, 1956, (the*Act)
and on the basis of such checks of the books and records of the Company
as we considered appropriate and according to the information and
explanations given to us during the course of audit we enclose in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of
the said Order so far as the same are applicable, on the facts and
circumstances to the Company.
4. Further to our comments in the Annexure referred to above, we
report that: .
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
(ii) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books, and proper returns adequate for the purposes of our audit
have been received from the branches not visited by us.
(iii) The Balance Sheet and Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
(iv) In our opinion, the Balance Sheet,-Statement of Profit and Loss
and Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
(v) On the basis of written representations received from the directors
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.
(vi) 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, 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 31 st March, 2012;
(b) in the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Re: ABC INDIA LIMITED
Referred to in paragraph 3 of our report of even date.
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
(b) All the assets have not been physically verified by the management
during the year but there is a regular programme of verification which,
in our opinion, is reasonable having regard to the size of the Company
and the nature of its assets. No material discrepancies were noticed on
(c) During the year, the Company has replaced a portion of its Fixed
Asset in the regular course business and disposed off one of its non
productive office premises and a vacant plot. In our opinion and
according to the information and explanations given to us sale of such
assets has not affected the going concern status of the Company.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
(b) 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) The Company is maintaining proper records of inventory. No material
discrepancies were noticed on verification between the physical stocks
and the book records.
(iii) (a) The Company has not granted any loan, secured or unsecured,
to companies, firms or other parties covered in the register maintained
under section 301 of the Act. Therefore, the provisions of sub
clause(b) to (d) to clause (iii) are not applicable to the Company.
(b) The Company has not taken any loan, secured or unsecured, from
companies, firms or other parties covered in the register maintained
under section 301 of the Act. Therefore the provisions of sub clause
(f) and (g) of clause (iii) are not applicable to the company.
(iv) In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the company and the nature of its business for
purchases of inventory and fixed assets and for sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
referred to in section 301 of the Companies Act, 1956 that need to be
entered in the register maintained under that section have been so
(b) No transaction exceeding the value of rupees five lacs have been
made in pursuance of contracts referred to in section 301 of the
Companies Act 1956.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposit from the public.
Therefore the provisions of clause (vi) are not applicable to the
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) Maintenance of cost records has not been prescribed by the
Central Government under clause (d) of sub section (1) of section 209
of the Companies Act, 1956.
(ix) (a) The Company is generally regular in depositing undisputed
statutory dues including Provident Fund, Employee''s State Insurance,
Investors Education and Protection Fund, Income Tax, Sales Tax, Wealth
Tax, Service Tax, Custom Duty, Excise Duty, Cess and any other
statutory dues applicable to it with the appropriate authorities. No
undisputed amounts payable in respect of aforesaid dues were
outstanding as at 31st March, 2011 for a period of more than six months
from the date they become payable.
(b) According to the information and explanations given to us, there
are no material dues on account of Sales Tax, Wealth Tax, Service
Tax,Custom Duty, Excise duty,Cess and any other statutory dues that
have not been deposited with appropriate authorities on account of any
(x) The Company has no accumulated losses at the end of the financial
year and it has not incurred cash loss in such financial year and in
the immediately preceeding financial year.
(xi) In our opinion and as per information and explanations given to
us, the Company has not defaulted in repayment of dues to financial
institutions or banks and it has no debenture holders.
(xii) In our opinion and as per information and explanations-given to
us, the Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii) As per information and explanations given to us the Company is
not a chit fund or a Nidhi or a mutual benefit fund/society.
Therefore, the provisions of clause (xiii) are not applicable to the
(xiv) As per information and explanations given to us, the Company is
not dealing in or trading in shares, securities, debentures and other
investments. Accordingly, the provisions of clause (xiv) are not
applicable to the Company.
(xv) In our opinion terms and conditions on which the Company has given
guarantees for loan or other facilities taken by others from banks or
financial institutions, are prima-facie not prejudicial to the interest
of the Company.
(xvi) According to information and explanations given to us term loans
were applied for the purpose for which they were obtained
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, funds
raised on short-term basis have not been used for long-term investment.
(xviii) According to the information and explanations given to us the
Company has not made any preferential allotment of shares to parties
and companies covered in the Register maintained under section 301 of
the Companies Act ,1956.
(xix) The Company had no outstanding debentures in the year.
(xx) The Company has not raised any money by public issues.
(xxi) To the best of our knowledge and belief and according to the
information and explanations given to us, no significant fraud on or by
the Company was noticed or reported during the year.
For AGARWAL KEJRIWAL & CO.
Firm''s Registration No. 316112E
Place: Kolkata Partner
Date : 28th May, 2012 Membership No. 52474