1. We have audited the attached Balance Sheet of Fusion Fittings
(India ) Ltd as at 31st March, 2011 together with the Profit & 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 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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the companies (Auditor''s 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 give 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 above we report
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
b) 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 the
c) The Balance Sheet, Profit and Loss Account and cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the Balance Sheet, Profit and Loss Account and the
cash Flow Statement dealt with by this Report comply with the
Accounting Standards referred to in Sub-section (3C) of Section 211 of
the companies Act, 1956;
e) On the basis of the written representations received from the
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.
f) 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 read with the Schedules and Notes thereon, 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:
i) in the case of the Balance Sheet, of the state of affairs of the
company as at 31st March, 2011;
ii) in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
iii) in the case of the cash Flow Statement, of the cash flows for the
year ended on that date.
Annexure to the Auditor''s report
Annexure referred to in paragraph (3) of the Auditor''s Report of even
date to the Members of Fusion Fittings (India) Ltd for the year ended
31st March, 2011.
1 (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
(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 between the book
records and the physical inventory were noticed in respect of the
assets physically verified.
(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 The company had no inventory.
3 The company has not granted or taken any loans, secured or unsecured,
to any company, firm or other party covered in the register maintained
under section 301 of the companies Act, 1956.
4 In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the company and the nature of its business with regard
to purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, no major weakness has been
noticed in the internal control system in respect of these areas.
5 (a) According to the information and explanations given to us, we are
of the opinion, that the transactions that needed to be entered into
the register maintained under section 301 of the companies Act, 1956
have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangement entered in the register maintained under section 301 of the
companies Act,1956 exceeding the value of Rupees five lakhs in respect
of any party during the year have been made at prices, which are
reasonable having regard to the prevailing market prices at the
6 The company has not accepted any deposits from the public to which
the provisions of Section 58A & Section 58AA or any other relevant
provisions of the companies Act, 1956 and the Rules framed there under
7 The Company did not have any internal audit system.
8 To the best of our knowledge and according to the information and
explanations given to us, the central Government has not prescribed the
maintenance of cost records under Section 209(1) (d) of the companies
9 (i) Undisputed statutory dues including Provident Fund, Investor
Education and Protection Fund, Employees State Insurance, Income Tax,
Sales Tax, Wealth Tax, Service Tax, custom Duty, Excise Duty, cess have
been regularly deposited with the appropriate authorities.
(ii) According to the information and explanations given to us, no
undisputed amounts payable in respect of Income-Tax, Sales-Tax, Wealth
Tax, Service Tax, custom Duty, Excise Duty and cess were outstanding at
the year end for a period of more than six months from the date they
(iii) According to the record of the company and information and
explanation given to us, there were no disputed dues outstanding as at
31st March, 2011 in respect of Sales Tax, Income Tax, custom Duty,
Wealth Tax, Service Tax, Excise Duty and cess.
10 The company has no accumulated losses as at 31st March 2011. The
company has not incurred cash losses during the year nor in the
immediately preceding financial year.
11 In our opinion and according to the information and explanation
given to us, the company has not defaulted in repayment of dues to
financial institutions, bank or debenture holder.
12 According to the information and explanations given to us, the
company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13 In our opinion, the company is not a chit fund or a nidhi/ mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the companies (Auditor''s Report) Order, 2003 are not applicable to the
14 In our opinion, the company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the companies (Auditor''s Report) Order,
2003 are not applicable to the company.
15 In our opinion and according to the information and explanation
given to us, the term and conditions on which the company has given
guarantees for loans taken by others from banks or financial
institutions are not prejudicial to the interest of the company.
16 The company has not raised any term loan during the year.
17 According to the information and explanations given to us and on an
overall examination of the Balance Sheet and cash Flow Statement of the
company, we report that no funds raised on short-term basis have been
used for long term investments.
18 The company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the companies Act, 1956, during the year.
19 No secured debenture were issued by the company. Therefore, no
securities have been created.
20 The company has not raised any money by a public issue during the
21 According to the information and explanation given to us, no fraud
on or by the company has been noticed or reported during the year.
For K. K. Jain & Co.
Firm Registration No. 002465N
(R. K. Mittal)
Partner M. No. 95459
Place : Delhi
Date : 28 May, 2011