1. We have audited the attached Balance Sheet of EMMSONS INTERNATIONAL
LIMITED (the Company) as at 31st March, 2012 and also related Profit
and Loss Account and 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 have 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 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
(together the Order) issued by the Central Government of India in
terms of sub- section (4A) of section 227 of the Companies Act I956 of
India (the Act) and on the basis of such checks of books and records
of the Company as we considered appropriate and according to
information and explanations given to us, 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 purpose of our
(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
(iii) The Balance Sheet, Profit and Loss Account and Cash Flow
Statement, dealt with by this report, are in agreement with the books
of account ;
(iv) In our opinion, the Balance Sheet, Profit and Loss Account and
Cash Flow Statement, dealt with by this report, comply with the
accounting standards referred to in sub-section (3C) of section 211 of
(v) On the basis of written representations received from the
directors, as on 31st March, 2012, and taken on record by the Board of
Directors, we report that 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 (I) of section 274 of the Act;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements together
with notes thereon and attached thereto, give the information required
by the Act, 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, 2012
(b) in the case of the Profit and Loss Account, of the profit for the
year ended on that date and
(c) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO AUDITOR''S REPORT Referred to Paragraph 3 of our report of
even date attached
I a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation
of the assets.
b) According to information and explanation given to us, the fixed
assets of the Company have been physically verified by the management
at reasonable intervals during the year. No material discrepancies have
been noticed on such verification.
c) In our opinion and according to the information and explanations
given to us, there was no substantial disposal of fixed assets by the
Company during the year.
II a) As explained to us, the inventory has been physically verified by
the management at reasonable intervals during
the year. In our opinion, the frequency of such verification is
reasonable considering size and nature of the business.
b) In our opinion and according to information and explanation given to
us, the procedures of physical verification of inventory, followed by
the management, are reasonable and adequate
c) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory and no
material discrepancies as compared to book records were noticed on
III We are informed that the Company has not granted or taken any
secured or unsecured loans from/to companies / firms or other parties
covered in the register maintained under Section 301 of the Companies
Act 1956. Therefore the provisions of paragraph 4(iii)(b)(c)(e)(f) &
(g) of the above said order are not applicable to the company.
IV In our opinion and according to information and explanation given to
us, there are adequate internal control procedures commensurate with
the size of the Company and nature of its business for purchase of
inventory and fixed assets and sale of goods. Further, on the basis of
our examination of the books and records of the Company, and according
to information and explanations given to us, we have not observed any
continuing failure to correct major weaknesses in the aforesaid
internal control system.
V a) In our opinion and according to information and explanation given
to us, the particulars of contracts or
arrangements referred to in section 301 of the Act that need to be
entered in the register required to be maintained under that section
have been so entered.
b) In respect of the transactions made in pursuance of such contracts
or arrangements and exceeding value Rupees Five Lacs in respect of any
party during the year, because of the absence of the comparable prices
and variation in the quality of the goods involved, we are unable to
comment whether the transactions were made at prevailing market prices
at the relevant time.
VI In our opinion and explanation given to us, the Company has not
accepted any deposit from the public within the meaning of sections 58A
and 58AA of the Act and rules framed there under.
VII In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
VIII To the best of our knowledge and as explained, the maintenance of
the cost records have not been prescribed by the Central Government
under section 209(l)(d) of the Act, for any of the products of the
IX a) According to the information and explanations given to us and the
records of the Company examined by us, in
our opinion, the Company is regular in depositing the undisputed
statutory dues including provident fund, employee''s state insurance,
Income Tax, VAT, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Cess
and other statutory dues as applicable with appropriate authorities.
b) There are no disputed liabilities in respect of PF, ESI, Income Tax,
Sales Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and other
statutory dues which are outstanding as at 31st March, 2012 except
No. Period of
of demand Appeal Pending Before
1 AY 2004-05 Rs. 1.67
lacs Demand under
Income Tax Act ITAT Delhi Bench
2 AY 2004-05 Rs. 6.92
lacs Demand under
Income Tax Act ITAT Delhi Bench
3 AY 2008-09 Rs. 10.11
lacs Demand under
Income Tax Act Rectification
X There are no accumulated losses of the Company as at 3i.03.20i2. The
Company has also not incurred any cash losses during the financial year
ended on that date and in the immediately preceding financial year.
XI As per explanation and information provided to us, the Company has
not defaulted in repayment of dues to any financial institution and
banks as at the balance sheet date.
XII According to the information and explanations given to us and based
on the documents and records produced to us, the Company has not
granted loan and advances on basis of security by way of pledge of
shares, debentures, other securities. Therefore the provisions of the
clause 4(xxii) of the said order not applicable to the company.
XIII The Company is not the chit fund or the Nidhi Mutual Benefit fund
/ society. Accordingly, the provisions of clause 4(xiii) of the said
order are not applicable to the Company.
XIV Accordingly to the information and explanation given to us, Company
is dealing in shares and proper records have been maintained for all
transactions. We report the company is making timely entries of the
transactions and all shares have been held by the company in its own
XV In our opinion and according to the information and explanations
given to us, the Company has given guarantee for loans taken by others
from banks or financial institutions and terms and conditions whereof
are not prejudicial to the interest of Company.
XVI In our opinion and according to information given to us, term loan
availed by Company were prima facie applied by Company for the purpose
for which they were obtained.
XVII As per information and explanation given to us and overall
examination of balance sheet of the Company, we report that funds
raised on short term basis have prima facie not being used for long
term investment and vice versa.
XVIII As per information and explanation given to us the Company has
made a conversion of equity warrants into equity shares to the parties
and companies covered in the register maintained under section 30i of
the Companies Act and the price of such issue is not prejudicial to the
interest of the company.
XIX As per information and explanation given to us the Company has not
issued any debentures and no security has been created against the
XX As per the information and explanation given to us, the company has
not raised money by public issue during the year ending 3i.03.20i2.
XXI Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
information & explanation given to us by the management, we report that
no fraud on or by the company has been noticed or reported during the
For SURESH & ASSOCIATES
(CA NARENDRA ARORA)
M. No. 088256
Date : i 4.08.20i2
Place : New Delhi