We have audited the attached Balance Sheet of ASSOCIATED STONE
INDUSTRIES (KOTAH) LTD. as at March 31st, 2012 and also Profit and Loss
Account and Cash Flow statement of the Company 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.
1. We conducted our audit in accordance with the auditing standards
generally accepted in India. These 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 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
2. As required by the Companies (Auditors'' Report) Order, 2003
issued by the Central Government of India in terms of Section 227 (4A)
of the Companies Act, 1956 of India (the Act) and on the basis of such
checks as we considered appropriate and according to the information
and explanations given to us, we set out in the Annexure a statement on
the matters specified in paragraphs 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 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 appears from our examination of
(c) The Balance Sheet and Profit & Loss Account and cash flow statement
dealt with by this report are in agreement with the books of accounts.
(d) In our opinion the Balance Sheet , Profit and Loss Account and Cash
Flow statement dealt with by this report comply with the mandatory
Accounting Standards referred to in sub-section 3C of section 211 of
the Companies Act, 1956, to the extent applicable.
(e) In our opinion, and based on information and explanations given to
us, none of the directors are disqualified as on 31st March, 2012 from
being appointed as 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 together with the notes
there on and attached there to give in the prescribed manner the
information required by the Act and give 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 case of the Profit & Loss Account, of the profit of the Company
for the year ended on that date and:
iii. In the case of the Cash Flow statements, of the cash flows for the
year ended on that date.
ANNEXURE TO AUDITORS'' REPORT
[Referred to in paragraph 2 of the auditors'' report of even date to
the members of The Associated Stone Industries (Kotah) Ltd.
on the accounts for the year ended 31st March, 2012.]
1) a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
b) The fixed assets of the Company are physically verified by the
management according to a phased programme designed to cover all the
items over a period of three years, which in our opinion, is reasonable
having regard to the size of the Company and nature of its assets.
Pursuant to such programme, a physical verification was carried out
during the year and this revealed no material discrepancies.
c) During the year, the Company has not disposed off substantial part
of fixed assets.
2) a) The inventory lying at all location except in transit and third
parties has been physically verified during the year by the management.
In our opinion, the frequency of verification is reasonable.
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 nature of its business.
c) On the basis of our examination of the records we are of the opinion
that the Company is maintaining proper records of inventory.
d) The discrepancies noticed on physical verification were not material
and the same have been properly dealt with in the books of accounts.
3) According to the information and explanations given to us, the
Company has not granted or taken any loans, secured/ unsecured to/from
Companies, Firm or other parties covered in the Register maintained
under Section 301 of the Companies Act, 1956.
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 purchase of inventory and fixed assets and for the sale of
During the course of our audit, no major weakness has been noticed in
the internal controls.
5) a) On the basis of representation made by the management and
scrutiny of books of accounts carried out by us, the information that
need to be entered in the Register in pursuance of 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, transactions during the year exceeding the value of five
lakh rupees in respect of any party which required to be entered in the
register u/s 301 of Companies Act, 1956 have been made at prices which
are reasonable having regard to prevailing market prices at the
6) In our opinion and according to the information and explanations
given to us the Company has compiled with the directives issued by the
Reserve Bank of India and the provision of Section 58A and 58AA of the
Act and the Companies (Acceptance of Deposit) Rules, 1975 with regard
to the deposits accepted from the public. As per information and
explanations given to us, no order under the aforesaid sections has
been passed by the Company Law Board on the Company.
7) In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
8) Rule for maintenance of cost records prescribed under Section 209
(1) (d) of the Act is not applicable to the Company.
9) a) According to the information and explanations given to us and
according to the books and records as produced and examined by us, in
our opinion, the undisputed statutory dues in respect of provident
fund, investor education and protection fund, employees'' state
insurance, income-tax, wealth tax, sales tax, customs duty, excise duty
and other material statutory dues as applicable, have been regularly
deposited by the Company during the year with the appropriate
b) As at March 31, 2012, according to the records of the Company and
the information and explanations given to us, the following are the
particulars of disputed dues (provided/contingent liability, as
appropriate) on account of sales-tax, income-tax, custom duty,
wealth-tax, service tax, excise duty and cess matters that have not
been deposited on account of a dispute-
Name of the Nature Amount Period to which Forum where
statute of the (Rs the amount dispute is
dues Lacs.) relates pending
The Income Lease 19.02 1951 to 1962 High Court
Tax Act, 1961 Payment
Sales Tax Act Entry Tax 339.47 January 2007 High Court
to March 2012
Cess Matters Land Tax 229.73 2006 to 2012 DIG Registration
Royalty 8.61 1977-78, Mining Dept/
1990-91, High Court
10) The Company has not incurred any cash loss during the financial
year covered by our audit and the immediately preceding financial year
and has no accumulated loss.
11) The Company has not defaulted in repayment of dues to financial
Institution / Bank / Debenture holders.
12) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13) The Company is not a chit fund, nidhi of mutual benefit fund /
14) The Company is not dealing or trading in shares, securities,
debentures and other investments.
15) The Company has not given any guarantee for loans taken by others
from banks or financial institution, the terms & conditions, whereof,
in our opinion, are prima facie prejudicial to the interest of the
16) According to the information and explanation given to us, term
loans availed by the Company were prima facie, applied during the year
for the purposes for which the loans were obtained.
17) According to the cash flow statement and other records examined by
us and the information and explanations given to us, on an overall
basis, funds raised on short term basis have prima facie, been not used
during the year for long term investment and vice versa.
18) The Company has not made any issue of shares during the year.
19) The Company has not issued debenture during the year.
20) The Company has not made any public issue during the year.
21) Based upon the audit procedures performed and information and
explanations given by the management, no fraud on or by the Company has
been noticed or reported during the course of audit.
for B.L.Ajmera & Co.
Dated: 31st May, 2012 Sd/-