We have audited the attached Balance sheet of ARDI INVESTMENT AND
TRADING COMPANY LIMITED, as at 31st March, 2010 and also the Profit and
Loss Account and Cash Flow Statement for the year ended on the 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.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
As required by the Companies (Auditor''s Report) Order, 2003 issued by
the Central Government 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.
Further to our comments in the Annexure referred to above, we report
i. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
ii. 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
iii. The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account;
iv. In our opinion, the Balance Sheet and Profit and Loss Account dealt
with by this report comply with the accounting standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956;
v. 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 are disqualified as on 31st March,
2010 from being appointed as 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, subject to the 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 31st March, 2010.
b. In the case of Profit and Loss Account, 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.
ANNEXURE TO THE AUDITORS'' REPORT
Annexure referred to in paragraph 3 of the Auditors'' Report of even
date to the Members of ARDI INVESTMENT AND TRADING COMPANY LIMITED on
the accounts for the year ended 31st March, 2010.
i. The Company does not own any Fixed Assets.
ii. There was no Inventory in the Company during the year.
iii. The Company has neither granted nor taken any loans, secured or
unsecured to/from companies, firms or other parties covered in the
register maintained under Section 301 of the Act.
iv. In our opinion, and according to 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 purchase of inventory and fixed assets and for
sale of goods. During the course of our audit, no major weakness has
been noticed in the internal controls.
v. a) According to the information and explanations given to us, we
are of the opinion that no transactions has been entered into by the
Company that requires entry into the register maintained under Section
301 of the Companies Act, 1956.
b) In our opinion and according to the information and explanations
given to us, no transactions exceeding the value of Rupees Five Lacs in
respect of any party have been made in pursuance of contracts or
arrangements entered in the register maintained u/s 301 of the
Companies Act, 1956.
vi. The Company has not accepted any deposits from the public within
the meaning of the provision of Section 58A and 58AA of the Companies
vii. In our opinion, the Company has an internal audit system
commensurate with the size of the Company and the nature of its
viii. The Central Government has not prescribed maintenance of cost
records u/s 209(1)(d) of the Companies Act, 1956 in respect of the
ix. a) According to the information and explanations given to us and
records examined by us, the Company is regular in depositing, with the
appropriate authorities, undisputed statutory dues including Income
Tax, Cess and other statutory dues.
b) According to information and explanations given to us, no undisputed
arrears of statutory dues were outstanding as on 31st March, 2010 for a
period of more than six months from the date they became payable.
c) According to the information and explanations given to us, there are
no dues of sales tax, income tax, customs duty, wealth tax, excise duty
and cess which have not been deposited on account of any dispute.
x. The Company has made net profit during the year. The Company has
not incurred cash losses during the financial year covered by our audit
and immediately preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to any
financial institutions or banks or debenture holders as at the date of
the Balance Sheet.
xii. In our opinion and according to the information and explanations
given to us, the Company has not granted any loans and advances on the
basis of security by way of pledge of shares, debentures and other
xiii. In our opinion, the Company is not a chit fund or a nidhi/mutual
fund/society. Therefore, the provisions of clause 4(xiii) of the
Companies (Auditor''s Report) Order, 2003 are not applicable to the
xiv. The Company has not given any guarantee for loans taken by others
from bank or financial institutions.
xv. The Company neither applied nor received any term loan during the
xvi. The Company has not used funds raised on short-term basis for
long term investment and vice versa.
xvii. The Company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under Section
301 of the Act.
xviii. The Company has not issued any Debentures during the Financial
xix. The Company has not raised any fund during the Financial Year by
way of public issue.
xx. In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the course of our audit.
For S. Chandulal & Co.
Suresh C. Shah
M.No. : 37266
Place : Mumbai
Date : 01st September, 2010