1. We have audited the attached Balance Sheet of ASSOCIATED MARMO AND
GRANITES LIMITED as at 31st March 2011 and also the Profit & Loss
Account and 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 provides a reasonable basis for
3. 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
4. Further to our comments in the Annexure referred to above, we report
1. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
2. 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
3. The Balance Sheet, Profit & Loss Account and cash flow statement
dealt with by this report are in agreement with the books of account.
4. 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.
5. 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 Director''s 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.
6. 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:
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2011;
(ii) In the case of the Profit & Loss Account, 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.
On the basis of such checks, as we considered appropriate and as per
the information and explanation given to us, we further report as
1. (a) The company has generally maintained proper records showing
particulars, including quantitative details and situation of fixed
(b) As explained to us, fixed assets were physically verified by the
management at reasonable intervals, which, in our opinion, is
reasonable looking to the size of the Company and the nature of its
business. According to the information and explanation given to us any
discrepancies noticed on physical verification have been adjusted in
the books of accounts.
(c) The company has not disposed off any substantial part of its fixed
assets so as to affect its going concern.
2. (a) As explained to us, inventories have been physically verified by
the management during the year under reference.
(b) The procedures explained to us, which are followed by the
management are in our opinion, reasonable and adequate in relation to
the size of the Company and nature of its business.
(c) On the basis of our examination of the inventory records of the
Company we are of the opinion, that the Company is maintaining proper
records of its inventory. Discrepancies, which were noticed on physical
verification of inventory as compared to book records, have been
properly dealt with in the books of accounts.
3. (a) The Company has taken unsecured loan from Companies, firms, or
other parties listed in the register maintained under section 301 of
the Companies Act, 1956 and from the Companies under same management as
defined under section 370(1B) of the Companies Act, 1956.
(b) In our opinion having regard to the long term involvement with the
Company and considering the explanation given to us in this regard the
term and conditions are not prima facie, prejudicial to the interest of
(c) The Company has not granted loans and advances (unsecured) to
Companies, firms, or other parties listed in the register maintained
under section 301 of the Companies Act, 1956 and to the Companies under
same management as defined under section 370(1B) of the Companies Act,
4. In our opinion and according to the information and explanation
given to us, there are generally adequate internal control procedure
with the size of the Company and the nature of its business with regard
to the purchase of inventory, fixed assets and for sale of goods.
During the course of our previous assessment, no major weakness in
internal control had come to our notice.
5. (a) On the basis of audit procedure performed by us and according to
the information, explanation and representation given to us, we are of
the opinion, the transactions to be entered in the register maintained
under section 301 of the said Act, have been so entered.
(b) In our opinion and according to the information and explanation
given to us, the transaction with the aforesaid parties stated in
clause 5(a) with whom transactions exceeding value of Rupees Five lacs
have been entered into during the financial year are at prices which
are reasonable having regard to the prevailing market prices at the
6. The Company has not accepted any deposit from public within the
meaning of section 58A of the Companies Act, 1956 and the rules framed
7. In our opinion, the Company has an internal audit system
commensurate with the size of the Company and the nature of its
8. The Central Government has not prescribed maintenance of cost
records under section 209(l)(d) of the Companies Act, 1956.
9. According to the record of the Company, the Company is generally
regular in depositing undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employee''s State
Insurance, Income Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and
other statutory dues applicable to it with to the appropriate
authorities. There are no undisputed amounts payable in respect of
income Tax, Wealth Tax, Sales Tax, Custom Duty and Excise Duty which
were outstanding, at the year ended for a period more than six months
from the date they became payable.
10. The Company''s accumulated losses at the end of the financial year
are less than fifty percent of its net worth and the Company has not
suffered any cash losses in the current year and previous year.
11. On the basis of records examined by us and the information and
explanations given to us, the Company has not defaulted in repayment of
dues to the financial institutions and banks.
12. As explained to us, the Company has not granted any loans or
advances on the basis of security by way of pledge of shares,
debentures or any other securities.
13. As informed and explained to us, the Company has not dealt /
traded in securities or debentures during the year. In our opinion and
according to the information and explanations given to us, proper
records have been maintained of the transactions and contracts relating
to dealing/ trading in shares and other investments and timely entries
have been made therein. The shares and other investments have been held
by the Company in its own name.
14. According to the information and explanations given to us the
Company has not given any guarantee for loans taken by its associates
or subsidiaries from bank or financial institutions.
15. On the basis of the records examined by us, and relying on the
information complied by the Co. for co-relating the funds raise to the
end use, we have to state that funds raised on a short term basis have
not been used for long term investment and vice versa.
16. 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.
17. The Company has not raised any money by public issue during the
18. According to the information and explanations given to us, and to
the best of our knowledge and belief no fraud on or by the Company has
been noticed or reported by the company during the year.
For KUNAWAT & ASSOCIATES.
Place: Pasoond (Raj.)
Date: 28th May, 2011. Partner