We have audited the attached Balance Sheet of ATHARV ENTERPRISES
LIMITED as at March 31,2012 and also the Profit and Loss Account 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.
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 amount 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
1. As required by the Companies (Auditor''s Report) Order, 2003 issued
by the Central Government in terms of Section 227 (4A) of the Companies
Act, 1956, we give in the Annexure a statement on the matters specified
in the said order.
2. Further to our comments in the Annexure referred to in paragraph 1
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 examination of the
c) The Balance Sheet and Profit and Loss account dealt with by this
report are in agreement with the books of account.
d) 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 (3 C) of Section 211 of the Companies Act, 1956 as are
applicable to the company.
e) On the basis of confirmations received from the directors concerned
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 under clause (g) of Sub-section (1) of Section
274 of the Companies Act, 1956.
f) i. No provision has been made in respect of the following
receivables/investments recovery in respect of which is highly
irregular and uncertain:
1. Sunchemie Industries P Ltd Rs. 9,17,421.24
ii. Attention is invited to Note No.14 in respect of Employee Benefits.
Subject to the comments there in, in our opinion and to the best of our
information and according to the explanation given to us, the said
accounts read together with Notes thereon, give the information
required by the Companies Act, 1956 in the manner so required and give
a true fair view in conformity with the accounting principles generally
accepted in India.
iii. In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2012.
iv. In the case of Profit and Loss Accounts, of the Profit for the year
ended on the date and
v. In so far as it relates to the Cash Flow Statement of the Cash Flow
of the Company for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
(Referred to in paragraph 1 of our Report of even date)
1. In respect of its assets
a) The Company has maintained records showing full particulars
including quantitative details of Fixed Assets. Cars and the loans
taken in respect there of are in the individual names of the directors.
b) As explained to us, fixed assets have been physically verified by
the management during the year, which in our opinion is reasonable,
having regard to the size of the Company and nature of the assets. No
material discrepancies were noticed in such physical verification.
c) In our opinion, the Company has not disposed of substantial part of
fixed assets during the year and the going concern status of the
Company is not affected.
2. In respect of Inventories:
a) As explained to us, Inventories have been physically verified by the
management at regular intervals during the year.
b) In our opinion, and according to information and explanation given
to us, 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 has maintained proper records of inventories. As
explained to us, there were no material discrepancies noticed on
physical verification of inventory as compared to the book records.
3. In respect of loans, secured or unsecured, granted by the Company
to/from companies, firms or other parties covered in the registered
maintained under Section 301 of the Companies Act,1956:
a) The Company has not given any loans to parties listed in the
register maintained under Section 301.
b) The Company has taken following loans from parties listed in the
register maintained under Section 301. However no interest is paid to
As at 31-03-2012 outstanding
during the year
J C Gadia (Director) 4,25,000 4,25,000
Green Fuel Tech 19,28,606 19,28,606
(Partnership Concern where Company is Partner)
c) In our opinion and according to our information and explanation
given to us, the terms and conditions on which the loans are taken are
not, prima facie, prejudicial to the interest of the Company.
d) Since the said loans being payable on demand and being interest free
the question of regularity of payment of interest/principle does not
e) There are no overdue amounts in respect of loans taken by the
4. In our opinion and according to our information and explanation
given to us, there are adequate internal control procedure commensurate
with the size of the Company and the nature of its business for the
purchase of inventory, fixed assets and also for the sale of the goods.
During the course of our audit, we have not observed any major
weaknesses in internal controls.
5. In respect of transactions covered under Section 301 of the
Companies Act, 1956:
a) In our opinion and according to the information and explanation
given to us, the transactions made in purchase of contracts on
arrangements, that under Section 301 of the Companies Act, 1956 have
been so entered.
b) In our opinion and to the best of our information and knowledge the
transactions have been made at prices which appear as per information
available with the company.
6. The Company has not accepted any deposits from the public.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. The Central Government has not prescribed maintenance of Cost
Records under Section 209, (1) (d) of the Companies Act, 1956 for the
9. In respect of statutory dues:
a) According to the records of the Company undisputed statutory dues
including Income-Tax, sales tax and other statutory dues have been
generally regularly deposited with the appropriate authorities except
for some minor delays in depositing TDS. According to the information
and explanation given to us, no undisputed amounts payable in respect
of the aforesaid dues were outstanding as at 31 March, 2012 for a
period of more than six months form the date of becoming payable. The
company is not liable to Provident fund, Investor Education and
Protection Fund, ESI, Wealth Tax, Custom Duty and Cess as certified by
10. The accumulated losses of the company are not more than fifty
percent of its worth Company at the end of the financial year under
report and has not incurred any cash losses during the financial year
covered by our audit or in the immediately preceding financial year.
11. The company has not defaulted in repayment of dues to banks. It
does not have any liabilities towards financial institution or
12. In our opinion and according to the information and explanation
give to us, no loans and advances have been granted by the company on
the basis of security by way of pledge of shares, debentures and other
13. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/Society. Therefore clause 4 (xiii) of the Companies
(Auditor''s Report) Order.2003 is not applicable to the Company.
14. The Company has maintained proper records of the transactions and
contracts of dealing in shares, securities, debenture and other
investments with timely entries having been made therein. Certain
shares are not in the name of the company inasmuch as they stand given
as a security for financial facilities/credit trade facilities.
15. Based on our audit procedures and as per information given to us
the Company has not given guarantees for loans taken by others from
banks or financial institutions.
16. Based on our audit procedures and as per information given to us
the company has not raised any term loans during the year.
17. According to the information and explanations given to us and on
overall examination of the Balance Sheet of the Company, we are of the
opinion that the company has not utilized any short term resources for
investment in long term assets.
18. In our opinion and to the best of our information and knowledge,
the prices at which the Company has made preferential allotment of
shares to parties and companies covered in the Register maintained
under section 301 of the Companies Act, 1956 are not prejudicial to the
interest of the company.
19. The Company has not issued any debentures.
20. The Company has not raised any money by way of public issue during
21. In our opinion and according to the information and explanation
given to us, no fraud on /or by the Company has been noticed or
reported during the year, that causes the financial statement to be
For and on behalf of
SANJAY VHANBATTE & CO.
FRN: 112996 W
Sanjay M. Vhanbatte
Date : 14.06.2012