1. We have audited the attached Balance Sheet of BHAGWANDAS METALS
LIMITED, as at 31st March, 2012 and also the Profit and Loss Account
for the year ended on that date annexed thereto and the cash flow
statement for the year ended on that date. 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
2. We have 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
3. As required by the Companies (Auditor''s Report) Order, 2003 as
amended by the Companies (Auditor''s Report) (Amendment) Order, 2004,
issued by the 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 matter specified in paragraphs 4 and 5 of the said
4. Further to our comments in the Annexure referred to in paragraph 3
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 account as required by law have
been kept by the Company so far as it appears from our examination of
c. The Balance Sheet, Profit and Loss Account and Cash Flow statement
dealt with by this report are in agreement with the books of account;
d. In our opinion, the Balance Sheet, the Profit and Loss Account and
the 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;
e. On the basis of the written representation received from the
Directors, as on 31st March 2012 and taken on record by the Board of
Directors, 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 financial statements together
with the notes thereon, give the in formation 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, 2012; and
ii. In the case of Profit & Loss Account, of the profit of the Company
for the year ended on that date.
iii. In the case of cash flow statement, of the cash flow for the year
ended on that date.
ANNEXURE TO THE AUDITOR''S REPORT
(Referred to in Paragraph (3) of our report of even date)
In terms of the information and explanations given to us and books and
records examined by us in normal course of audit and to the best of our
information and belief, we state that:
1) a. The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
b. The fixed assets were physically verified during the year and no
discrepancies were noticed during such verification.
c. The Company has not sold substantial portion of Fixed Assets during
2) a. The management has conducted physical verification of inventory
at reasonable intervals.
b. The procedures of physical verification of stocks followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
c. On the basis of our examination of records of inventory, in our
opinion, the Company has maintained proper records of inventory and the
discrepancies noticed on physical verification between physical stock
and the book records were not material in relation to the operations of
3) The Company has neither granted nor taken any loans secured or
unsecured, from Companies, firms, or other parties listed in the
Register maintained under Section 301 of the Companies Act, 1956. As
the Company has not granted/taken any loans, secured or unsecured,
to/from parties listed in the registers maintained under Section 301 of
the Companies Act, 1956 paragraphs iii (b) (c) (d) (e) & (f) of the
Order, are not applicable.
4) In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory, fixed assets and for the sale
of goods and services. Further, on the basis of our examination and
according to the information and explanations given to us, we have
neither come across nor have we been informed of any instance of major
weaknesses in the aforesaid internal control procedures.
5) a. According to the information and explanations given to us we are
of the opinion that the transactions that need to be entered into the
register maintained under Sections 301 of the Companies Act, 1956 have
been so entered.
b. In our opinion and according to the information and explanations
given to us, the transactions in pursuance of contracts or agreements
entered into the register maintained under section 301 of the act have
been made at prices which are generally reasonable considering the
strategic relationship and having regard to the prevailing market
prices at the relevant time.
6) The Company has not accepted any deposits under the provisions of
Section 58A and 58AA of the Companies Act, 1956 and the rules framed
7) The internal audit for the Company has been carried out during the
year and the system and procedures adopted by the Company is adequate
commensurate with the size and nature of the Company.
8) To the best of our knowledge, the Central Government has not
prescribed the maintenance of cost records under Section 209 (1) (d) of
the Companies Act 1956 for the products of 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 Company is regular in depositing undisputed statutory
dues including Provident fund, investor education and protection fund,
employees state insurance, Income Tax, Sales Tax, Wealth tax, Service
Tax, Customs duty, Excise duty, Cess and other material statutory dues
as applicable with the appropriate authorities.
b. As at 31 st March 2012 according to the records of the Company and
information and explanations given to us, there is no undisputed dues
on account of Sales Tax, Income Tax, Excise Duty, Wealth Tax, Service
Tax, Customs duty and Cess which is outstanding for a period of more
than 6 months from the date they became applicable.
10) Based of our audit procedures and information and explanations
given by the management the Company has not defaulted in repayment of
dues to any financial institutions or Bank.
11) According to the information and explanations given to us and based
on the documents and records produced 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 securities.
12) The Company is not a chit fund or a nidhi mutual benefit
fund/society. Therefore, the provisions of clause 4 (xiii) of the
Companies (Auditor''s Report) (Amendment) Order, 2004 are not applicable
to the Company.
13) In our opinion the company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly to the
provisions of clause 4 (xiv) of the Companies (Auditors Report)
(Amendment) Order, 2004 are not applicable to the Company.
14) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
15) According to the information and explanations given to us, the
loans have been applied for the purpose for which they were obtained.
16) According to the information and explanations given to us, and on
an overall examinations of the Balance Sheet and Cash Flow Statement of
the Company, we report that no funds raised on short term basis have
been used for long term investment.
17) The Company has not made any preferential allotment of shares to
parties or Companies covered in the register maintained under section
301 of the Companies Act, 1956.
18) The Company has not issued any debentures during the year.
19) The Company has not raised any money through a public issue during
20) Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported that during the course of our
For R.R.MORE & Co.
C.A. RAJA RAM MORE
Membership No. 21233
Date : 27.07.2012