We have audited the attached Balance sheet of THE BHARAT LINE LIMITED
as at 31st March'' 2012 and 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 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 the management'' as well as evaluating the overall financial
statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
1. As required by the Companies (Auditors Report) Order'' 2003 (as
amended) issued by the Central Government in the terms of Section
227(4A) of the Companies Act'' 1956'' we annex hereto a statement on
matters specified in paragraphs 4 and 5 of the said Order.
2. Our other observations are as under:
2.1 No Provision is made for Bonus to employees for the year.
3. Further to the above :
3.1 We have obtained all the information and explanations'' which'' to
the best of our knowledge and belief'' were necessary for the purpose of
3.2 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
3.3 The Balance Sheet'' and the Profit & Loss Account dealt with by this
report are in agreement with the Books of Accounts.
3.4 In our Opinion'' the Balance Sheet and the Profit & Loss Account
comply with the accounting standards as referred to in Sub-Section 3C
of Section 211 of die Companies Act'' 1956 & Subject to our other
observations in point no. 2 above.
3.5 Based on representations made by all the Directors of the Company
and the information and explanations as made available'' we report that
no Director of the Company is disqualified from being appointed as
Director of the Company under Section 274 (1) (g) of the Companies Act''
3.6 In our opinion and to the best of our information and according to
the explanations given to us'' the Balance Sheet and the Profit & Loss
Account subject to our other observation in point no. 2 above'' the said
accounts together with the notes there on and attached thereto'' 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 case of the Balance Sheet of the state of affairs of the Company
as at 31st March'' 2012.
(b) In the case of the Statement of Profit & Loss'' of the Profit for
the year ended on that date.
ANNEXURE TO AUDITORS''REPORT
The Annexure referred to in paragraph 1 of the Auditors Report to the
members of The Bharat Line Limited for the year ended March 31''2012. We
1. (a) The Company has maintained proper records showing full
quantitative details and situation of fixed assets.
(b) The management has physically verified all die fixed assets at the
year end'' which in our opinion'' is reasonable having regard to the size
of the Company and the nature of its assets. No discrepancies were
noticed on such verifications.
(c) During the year'' die Company has not disposed off any major part of
its fixed assets.
2. The Company does not carry inventory. Accordingly'' clauses 4(ii) of
die Companies (Auditor''s Report) Order'' 2003 (''the Order'') are not
3. (a) The company has not granted any loans secured or unsecured to
firms or odier Parties Covered in die register maintained under section
301 of die Companies Act'' 1956. Hence Clause 3(b) (c) & (d) of the
order is not applicable.
(b) The Company has not taken any loans'' secured or unsecured from
Companies'' firms or odier parties covered in die register maintained
under section 301 of die Act.'' Accordingly clause 3 (f) and (g) is not
4. In our opinion and according to die information and explanations
given to us'' mere is an adequate internal control system commensurate
widi die size of die Company and die nature of its business for die
purchase of fixed assets. The activities of die Company do not involve
purchase of inventories and die sale of goods. We have not noted any
continuing failure to correct major weakness in die internal controls
during die course of die audit.
5. (a) According to die information and explanation given to us'' there
transactions tiiat need to be entered in die register maintained under
section 301 of the Act.
(b) As explained to us'' die Company has not entered into any
transactions exceeding die value of Rs. Five lakhs in respect of any
party during die year. Accordingly'' clause 4(v)(b) of die order is not
6. The Company has not accepted any deposits from die public to which
die provision of section 58A and section 58AA of die Companies Act''
1956 and die rules framed there under apply.
7. The company''s paid up capital is below Rs.50 lacs and turnover is
below Rs.5 crores and therefore clause 4(vii) of die order regarding
internal audit system is not applicable.
8. According to the information and explanation given to us'' die
Central Government has not prescribed die maintenance of die cost
records under Section 209(1) (d) of die Companies Act'' 1956 in respect
of services carried out by die Company. Accordingly'' clause 4(viii) of
the Order is not applicable.
9. (a) According to the information and explanation given to us'' and
on the basis of our
examination of die books of accounts die company has been regular in
depositing widi appropriate audiorities undisputed statutory dues
including Provident Fund'' Investor Education and Protection Fund''
Income tax and any odier statutory dues. There are no such dues
outstanding as at 31st March 2012 for a period of more dian six mondis
from the date they became payable in respect of above.
(b) According to die information and explanations given to us'' mere are
no dues in respect of Provident Fund'' Investor Education & Protection
Fund and other statutory dues diat have not been deposited widi
appropriate authority on account of disputes except for income tax
pending with commissioner of Income Tax which are given below:
The Company has neither accumulated losses as on 31st March 2012 nor
has it *HJ incurred any cash losses during the financial year under
review as well as in the immediately preceding financial year.
11. Based on our audit procedure and on the basis of information and
explanations given by the management'' we are of the opinion that the
company has not defaulted in the repayment of dues to banks. The
Company did not have any outstanding debenture or any outstanding loans
from any financial institutions during the year.
12. The company has not granted any loans and advances on the basis of
security by way of pledge of shares'' debentures and any other
securities. Accordingly'' clause 4(xii) of the order is not applicable.
13. The company is not a chit fund'' nidhi'' mutual benefit fund or a
society. Accordingly'' clause 4(xiii) of the order is not applicable.
14. The Company is not dealing or trading in shares'' securities''
debentures and other investments. Accordingly'' clause 4(xiv) of the
order is not applicable.
15. According to the information and explanations given to us'' the
Company has not given any guarantees for loans taken by others from
bank or financial institutions. Accordingly'' clause 4(xv) of the order
is not applicable.
16. In our opinion'' the term loans have been applied for the purpose
for which they were raised.
17. According to the information and explanations given to us'' no
funds are raised on short term basis'' Accordingly'' clause 4(xvii) of
the order is not applicable.
18. The Company has not made any preferential allotment of shares to
parties and Companies covered in register maintained under section 301
of the Act during the year. Accordingly'' clause 4(xviii) of the order
is not applicable.
19. The Company has not issued any debentures. Accordingly'' clause
4(xix) of the order is not applicable.
20. The Company has not raised any money by public issues during the
year accordingly'' clause 4(xx) of the order is not applicable.
21. According to the information and explanations given to us'' by the
management'' we report that no frauds on or by the Company has been
noticed or reported during the year.
For Vatsaraj & Co.
Dated: 23.08.2012 CA MAYUR KISNADWALA
Firm Reg. No. 111327W