1. We have audited the attached Balance Sheet of CHARMS INDUSTRIES
LTD. as at 31st March, 2012 and also the Statement of Profit and Loss
and the 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.
2. We conducted our audit in accordance with the 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 the management, as well as evaluating the overall financial
statements presentation. We believe that our audit provides a
reasonable basis for our opinion.
3. As required by the manufacturing and other Companies (Auditor''s
Report) order, 2004 (together the Order) issued by the Central
Government of India in terms of sub-section (4A) of section 227 of the
Companies act, 1956, and on the basis of such checks of the books and
records of the Company as we considered appropriate and according to
the information and explanations given to us, we enclose in the
Annexure a statements on the matters specified in paragraphs 4 and 5 of
the said order.
4 (a) We have obtained all the information and explanations, which to
the best of our knowledge and belief were necessary for the purposes of
(b) 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
(c) The Balance sheet, the Statement of Profit and Loss and Cash Flow
Statement dealt with this report are in agreement with the books of
(d) In our opinion, the Balance Sheet and the Statement of Profit and
Loss and Cash Flow Statement dealt with by this report comply with the
applicable Accounting Standards referred to in Section 211 (3C) of the
Companies Act, 1956.
(e) On the basis of written representations received from the
directors, as on 31st March, 2012 and taken on records by the Board of
Directors, we report that none of directors is disqualified as on 31st
March, 2012 from being appointed as director in terms of clauses (g) of
subsection (1) of section 274 of the Companies Act, 1956.
(g) 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 and attached thereto give in the prescribed
manner the information required by the Act and a true and fair view in
conformity with the accounting principles generally accepted in India,
subject to Para : 6 of Note 16 ( regarding loans/advances and
especially of old loan amounts Rs. 16,66,674/-, which has been
considered as good of recovery by the management but due to no recovery
till date, they appears to be doubtful and due to its non-provision,
the profit of the year has been overstated to that extent.
i) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2012 AND
ii) In the case of the Profit and Loss Account, of the Profit of the
year ended on that date.
iii) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH (1) OF THE AUDITOR''S REPORT TO THE
MEMBERS OF CHARMS INDUSTRIES LIMITED FOR THE YEAR ENDED MARCH 31,
1. FIXED ASSETS:-
i) The Company has maintained the record of Fixed Assets showing full
particulars of quantitative details and location.
ii) The same have physically verified and no discrepancy has been
iii) During the year, none of the Fixed Assets have been sold.
2. NATURE OF BUSINESS:-
The Company is doing the business as Money Changer (Trading in Foreign
Currency & Travellers'' Cheques & Software Services) Under the
Circumstances, the following matters are not applicable:-
i) Procedure for the purchases of stores/raw materials & finished
products and its compression with record.
ii) Physical verification of above items.
iii) Maintenance of records of scrap/waste generated from the
iv) Maintenance of Cost Records.
v) Valuation of above items.
3. According to the information and explanations given to us the
Company has not granted any loans to companies covered in the register
maintained under Section 301 of the Companies Act, 1956.
4. According to the information and explanations given to us, the
Company has not taken any loans from companies, firms or other parties
listed in the register maintained under Section 301 (1B) of the
Companies Act, 1956.
5. According to the information and explanations given to us, the
Company has not accepted any deposits from the public. Therefore, the
provisions of Clause (vi) of the Companies (Auditor''s Report) Order,
2003 are not applicable to the Company.
6. According to the information and explanations given to us, no
personal expenses of employees or directors have been charged to
revenue account, other than those payable under contractual obligations
or in accordance with generally accepted business practice.
7. The company is not a sick industrial company within the meaning of
clause (0) of sub-section (1) of Section 3 of the Sick Industrial
Companies (Special Provisions) Act, 1956.
8. Since the Company is not a chit fund or nidhi/mutual benefit
fund/society, paragraph 4 (xiii) of the order is not applicable.
9. As the Company is not dealing or trading is shares, securities,
debentures and other investments, paragraph 4 (x iv) of the order is
10. According to the records of the Company examined by us and on the
basis of information & explanations give to us, the Company has:
i) Not taken any loans from bank or financial institution.
ii) Not granted any loans and advances on the basis of security by way
pledge of shares, debentures and other securities during the year.
iii) Not given any guarantee for loans taken by others or financial
institutions during the year.
11. Based upon the audit procedures performed and information &
explanations given by the management, no fraud on or by the Company has
been notice during the year under audit.
For, Praful N Shah & Co.
Praful N. Shah
M. No. :-15591
Place : Ahmedabad
Date : 14/06/2012