We have audited the attached Balance Sheet of AEONIAN INVESTMENTS
COMPANY LIMITED, MUMBAI, as at 31st March, 2012, the related Profit &
Loss Account for the year ended on that date annexed thereto, and the
Cash Flow Statement for the year ended on that date, which we have
signed under reference to this report. These financial statements are
the responsibility of the management of the Company. Our responsibility
is to express an opinion on these financial statements based on our
We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes,
examining on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall presentation of the
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
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 the Annexure a statement
on the matters specified in paragraphs 4 and 5 of the said Order to the
Further to our comments in the Annexure referred to above, we report
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
b) In our opinion, proper books of accounts, as required by law, have
been kept by the Company, so far as it appears from our examination of
the Books of the Company;
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the Books of accounts
of the Company;
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956, to the extent applicable.
e) On the basis of written representations received from the Directors
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 read together with the
notes thereon gives 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 the case of Balance Sheet of the state of affairs of the Company
as at 31st March, 2012.
ii) in the case of Profit & Loss A/c of the Profit 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 referred to in the Auditor''s Report on the Accounts of
AEONIAN INVESTMENTS COMPANY LIMITED for the year ended 31st March,
1. In our opinion and according to the information and explanations
given to us, the nature of the Company''s business / activities during
the year are such that clauses ii, xiii, xvi, xvii, xviii, xix, xx are
not applicable to the Company.
2. In respect of its fixed assets :
a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
b) As explained to us, the same have been physically verified by the
Management during the year. As per the information and explanations
given to us, no discrepancies were noticed on such physical
verification as compared with the Books of Accounts.
c) The Company has not disposed off substantial part of fixed assets
during the year.
3. The Company has not taken any loans from parties listed under the
register maintained under Section 301 of the Companies Act 1956. The
company has granted a loan to a Company listed under the register
maintained under Section 301 of the Companies Act 1956. The year end
balance of these loans aggregate to Rs 6,55,18,981/- and the maximum
amount outstanding during the year being Rs 6,55,54,104/-. In our
opinion and according to the information and explanations given to us,
the rate of interest and other terms and conditions of the loan given
by the Company are not, prima facie, prejudicial to the interest of the
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 nature of its business
with regard to the purchase of inventory and fixed assets and for the
sale of goods and services, if any and there have been no major
weakness in the internal control procedure.
5. To the best of our knowledge and belief and according to the
information and explanations given to us, in respect of transactions
entered in the register maintained in pursuance of Section 301 of the
Companies Act, 1956:
a) all the transactions that needed to be entered into the register
have been so entered.
b) the transactions made in pursuance of such contracts or arrangements
have been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
6. In our opinion and according to the information and explanations
given to us the Company has not accepted any deposits within the
meaning of Section 58A, 58AA or any other relevant provisions of the
Companies Act, 1956 and the rules framed there under.
7. In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of its business.
8. The requirements of maintaining cost accounts and records as
prescribed by the Central Government under section 209 (1) (d) of the
Companies Act, 1956 are not applicable to the Company.
9. According to the information and explanations given to us in
respect of statutory and other dues the Company has been regular in
depositing undisputed statutory dues, including income tax, wealth tax,
whenever applicable, with the appropriate authorities during the year.
The following dues have not been deposited on account of pending
Nature of Dues Amount (Rs) Nature of dispute and
Forum where pending
Income Tax 401,640/ Rectification u/s. 154 pending
with Assessing Officer
10. The Company does not have any accumulated losses as at the end of
the financial year. The Company has not incurred cash losses during the
current and immediately preceding financial year.
11. According to the information and explanations given to us, the
Company has not obtained any borrowings from any bank, financial
institutions, or by way of debentures.
12. According to the information and explanations given to us and
based on the documents and records produced to us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other investments.
13. In respect of dealing in shares, securities, debentures and other
investments, in our opinion and according to the information and
explanations given to us, proper records have been maintained of the
transactions and contracts and timely entries have been maintained
therein. The shares, securities, debentures and other securities have
been held by the Company, in its own name.
14. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantees for loans taken
by others from banks and financial institutions.
15. Based upon the audit procedures and information and explanations
given by the management, we report that no fraud on or by the Company
has been noticed or reported during the course of our audit.
for RAVI A. SHAH & ASSOCIATES
Ravi A. Shah, Proprietor
Mumbai, 11th May 2012 Membership No. 116667, Firm No.: 125079W