1. We have audited the attached balance sheet of Ceejay Finance
Limited as at March 31, 2011, the profit & loss account and also 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 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 [Auditors’ 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 in paragraph 3
above, we report that :
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief, were necessary for the purposes of
(ii) 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 the
(iii) The balance sheet, profit and loss account and cash flow
statement dealt with by this report are in agreement with the books of
(iv) In our opinion, the balance sheet, profit & loss account and cash
flow statement dealt with by this report comply with accounting
standards referred to in sub section (3C) of section 211 of the
Companies Act, 1956.
(v) On the basis of the written representations received from
directors, as on 31st March 2011, and taken on record by the Board of
Directors, we report that none of the Directors 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, on
the said date.
(vi) 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:
(a) in the case of the balance sheet, of the state of affairs of the
company as at 31st March, 2011;
(b) in the case of the profit & loss Account, of the ‘Profit’ of the
company for the year ended on that date;
(c) in the case of the cash flow statement, of the cash flows for the
year ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR AUDITORS’ REPORT TO THE
MEMBERS OF CEEJAY FINANCE LIMITED, ON THE FINANCIAL STATEMENTS FOR THE
YEAR ENDED 31ST MARCH, 2011.
(i) (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
(b) As explained to us, the said 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 its
assets. No material discrepancies were noticed on such physical
(c) The company has not disposed off substantial part of fixed assets
during the year.
(ii) The company’s nature of operations does not require it to hold
inventory. Accordingly, para 4(ii) of the Companies (Auditor’s Report)
Order, 2003 is not applicable.
(iii) According to information and explanation given to us :
(a) the company has not granted any loans, secured or unsecured to
parties covered in the register maintained under section 301 of the
(b) the company has taken unsecured loans from two parties covered in
the register maintained under section 301 of the Act. The maximum
amount involved during the year and year end balance of loans taken
from such parties is Rs. 843.50 lacs
(c) the rate of interest and other terms and conditions of such loans
taken by the company, in our opinion are prima facie not prejudicial to
the interest of the company.
(d) in respect of loans taken by the company, the interest payments are
regular and the principal amount is repayable on demand.
(iv) 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 with regard to purchase of fixed assets and sale of services.
There is no purchase of inventory and sale of goods. During the course
of our audit, we have not observed any continuing failure to correct
major weaknesses in internal controls.
(v) In respect of contracts or arrangements referred to in Section 301
of the Companies Act, 1956:
(a) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements referred to
in section 301 of the Act, have been entered in the register required
to be maintained under that section.
(b) In our opinion and according to the information and explanations
given to us, there are no transactions made in pursuance of contracts
or arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 aggregating during the year to Rs. 500,000/- or
more in respect of any party.
(vi) In our opinion and according to the information and explanations
given to us, the company has complied with the provisions of
Non-Banking Financial Acceptance of Deposits (Reserve Bank) Directions,
1977 and the Non Banking Financial Companies Acceptance of Deposits
(Reserve Bank) Directions,1988. We are informed that no order has been
passed by the Company Law Board or National Company Law Tribunal or
Reserve Bank of India or any Court or any other Tribunal.
(vii) In our opinion, the company has an internal audit system
commensurate with the size of the company and the nature of its
(viii) The Central Government has not prescribed the maintenance of
cost records under Section 209 [d] of the Companies Act, 1956.
(ix) (a) The company wherever applicable, is regular in depositing
provident fund, investor education & protection fund, income tax, sales
tax, wealth tax, service tax, excise duty, cess and other statutory
dues to appropriate authorities.
Further, since the Central Government has till date not prescribed the
amount of cess payable under section 441A of the Companies Act, 1956,
we are not in a position to comment upon the regularity or otherwise of
the company in depositing the same.
(b) According to the information and explanations given to us, no
undisputed amount in respect of aforesaid statutory dues were
outstanding for the period of more than six months from the date they
(c) According to the information and explanations given to us, there
are no dues of sales tax/ income tax/ custom duty/ wealth tax/ excise
duty/ service tax/ cess which have not been deposited on account of any
(x) The company has no accumulated losses and has not incurred any cash
losses during the current financial year or in immediately preceding
(xi) The company has not defaulted in repayment of dues to the banks.
The company has not obtained any borrowing from financial institutions
or by way of debentures.
(xii) In our opinion and according to the information and explanation
given to us, no loans and advances have been granted on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii) The company is not a chit fund, nidhi, mutual fund or a society.
Accordingly, Para 4(xiii) of the order is not applicable.
(xiv) According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments. Accordingly Para (xiv) of the order is not
(xv) As per the information and explanations given to us the company
has not given any guarantee for loans taken by others from banks or
(xvi) The Company has not obtained any term loan.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short-term basis have been used for long-term
(xviii) During the year, 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.
(xix) According to the information and explanations given to us, the
company has not issued any debentures during the year.
(xx) The company has not raised any money by way of public issue during
(xxi) To the best of our knowledge and belief and according to the
information and explanation given to us, no fraud on or by the company
was noticed or reported during the year.
For Kantilal Patel & Co.
Firm Regn. No. 104744W
Mayank S. Shah
Date:May 30, 2011 Membership No.: 44922