We have audited the attached Balance Sheet of M/s DESH RAKSHAK
AUSHDHALAYA LIMITED, HARIDWAR as at 31st March 2012 and the relative
manufacturing, Trading, Profit & Loss Account & Cash & Fund Flow
Statement for the year ended on 31.3.2012 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 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 our opinion. .
As required by the companies (Auditor''s report) order 2003, issued by
the Central Govt, of India in terms of sub-section (4A) of section 227
of the Companies Act, 1956 we enclose in the annexure hereto a
statement on the matters specified in paragraph 4 & 5 of the said
Further to our comments in the Annexure referred to above, we report
(i) We have obtained all the information and explanations which is to
the best of our knowledge and belief were necessary for the purpose of
(ii) In our opinion, proper books of accounts as required by law have
been kept by the company, so far as appears from our examination of
(iii) The Balance Sheet and , Statement of Profit & Loss Account and
Cash Flow Statement dealt with by this report are in agreement with the
books of accounts.
(iv) In our opinion, the Balance Sheet, Statement of Profit & Loss
Account and Cash Flow Statement dealt with by this report are in
compliance with the accounting standards referred to in sub-section
(3C) of section 211 of the Companies Act, 1956.
(v) On the basis of written representations received from the Directors
as on March 31, 2012 and taken on record by the Board of Directors, we
report that none of the Director is disqualified as on March 31, 2012
from being appointed as Director in term of clause (g) of sub-section
(1) of Section 274 of the Companies Act, 1956.
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
Significant Accounting Policies and other notes thereon give the
information''s 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 Balance Sheet of the state of affairs of the company
as at 31st March 2012.
b. In the case of Statement of Profit & Loss account of the profit for
the year ended 31.3.2012.
c. In the case of the cash flow statement, of the cash flow for the
year ended on that date.
M/S DESH RAKSHAKAUSHDHALAYA LIMITED, HARIDWAR (ANNEXURE TO AUDITOR''S
Referred to in paragraph 3 of our report of even date;
1 .a The company has maintained proper records to show full particulars
including quantitative details and situations of its fixed assets.
b. As explained to us, the fixed assets have been physically verified
by the management during the year in a phased periodical manner, 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 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 its 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 the information''s and explanations
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 the 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 or taken by the
company to/from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
a. The Company had taken the Unsecured loans covered in the register
maintained under section 301 of the Companies Act, 1956 & already
returned the Secured loans of Banks etc. Some Unsecured loans has been
regrouped. The maximum amount involved during the year aggregating to
Rs. 62.83 lacs at the beginning of the year and the year end balance of
loans taken from such parties was Rs. 41.01 lacs. The Company has not
granted loans to the parties during the year.
b. In our opinion, the rate of interest and other terms and conditions
on which loans secured or unsecured have been taken from/granted to
companies, firms or other parties listed in the registers maintained
under section 301 are not, prima facie, prejudicial to the interest of
the company. However, no interest has been charged on the loans given
/granted to the parties.
c. The company is regular in repaying the principal amounts as
stipulated and also regular in the payment of interest.
d. There are overdue amount of loans taken from or granted to
companies, firms or other parties listed in the registers maintained
under section 301 of the Companies Act, 1956.
4. In our opinion and according to the information''s 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 purchases of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, no major
weakness has been noticed in the internal controls,
5. No transactions covered under Section 301 of the Companies Act,
6. In our opinion and according to the information and explanations
given to us, there are no transactions 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. 500000/-
(Rs. five lacs only) or more in respect of any party.
7. The company has not accepted any deposits from the public during
8. In our opinion the company has an interna! audit system
commensurate with the size and nature of its business.
9. We have broadly reviewed the books of accounts relating to
materials, labour and other items of cost maintained by the company
pursuant to the Rules made by the Central Government for the
maintenance of cost records under section 209 (1)(d) of the Companies
Act, 1956 and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. We have not,
however, made a detailed examination cf the same.
10. In respect of statutory dues:
a. According to the records of the company, the company is regular in
depositing with appropriate authorities undisputed statutory dues
including employees'' state insurance, income tax, sales tax, excise
duty and other statutory dues applicable to it. The company has
deposited PF up to November 2012 only.
b. According to the information''s and explanations given to us, no
undisputed amount payable in respect of income tax, wealth tax, sales
tax and excise duty were outstanding as at 31st March, 2012 for a
period of more than six months from the date they became payable.
c. According to the records of the company, there are no dues of sales
tax, income tax, excise duty which have not been deposited on account
of any dispute.
11. The company has accumulated losses and there is no any cash loss
during the financial year covered by our audit.
12. Based on our audit procedures and according to the information and
explanation given by the management, we are of the opinion that the
company is not defaulted in repayment of dues of the banks.
13. In our opinion and according to the information and explanations
given 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
securities. 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
14. Based on our examination of the records and evaluation of the
related internal controls, we are of the opinion that proper records
have been maintained of the transaction and contracts and timely
entries have been made in those records. We also report that the
company has invested in the shares only and nothing has been invested
in securities and debentures.
15. The company has not given any guarantee for loans taken by others
from bank or financial institutions.
16. The company has not raised any new term loans during the year. The
loans outstanding Were applied for the purposes for which they were
17. 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
investment. No long term funds have been used to finance short term
assets except working capital.
18. 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.
19. The company has not created securities in respect of debentures
20. The Company has not raised any money by way of public issue during
21. In our opinion and according to the information''s and explanations
given to us by the management no fraud on or by the company has been
noticed or reported during the course of our audit.
FOR AND ON BEHALF OF
M/S ANIL JAIN & CO.
PLACE: HARDWAR (ANIL KUMAR JAIN )
DATED: 28.5.2012 PROPRIETOR