1) We have audited the attached Balance Sheet of GAGAN GASES Limited (
the Company ) as at March 31 ,2012, and the Profit and Loss Account for
the year ended on that date annexed thereto and the Cash Flow Statement
for the year ended on that date, which we have signed under reference
to this report. 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 auditing standards
generally accepted in India. These 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 , as
amended by the companies (Auditors Report) (Amendment) order 2004
(together the order) issued by the Government of India Ministry of
Finance 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 paragraph 4 and 5 of the said order.
4) Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
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 account as required by law have
been kept by the Company so far as appears from examination of those
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 Cash
Flow Statement dealt with by this report comply with the Accounting
Standards refereed to in section 211 (3C) of the Act;
e. On the basis of the written representations received from the
Directors, as on 31st March 2012 and taken on record by the Board of
Directors of the Company, none of the Directors is disqualified as on
March 31, 2012 from being appointed as Director is terms of section 274
(1) (g) of the Act;
f. In our opinion and to the best of our information and according to
the explanations given to us, the Balance Sheet, Profit & Loss Account
and the Cash Flow Statement together with the notes thereon and annexed
thereto give in the prescribed manner, the information required by the
Act and also 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 on March 31, 2012 and
(ii) in the case of the Profit and Loss account, of the loss of the
company 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 AUDITOR''S REPORT
Statement as required by Companies (Auditors'' 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, 1956, of
India (the ''Act'') :
1. i. The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
ii. Fixed assets except LPG cylinders have been physically verified by
the management at reasonable intervals during the year. LPG cylinders
being in the physical possession of consumers and dealers which are
verified in routine as and when these pass through the company for
refilling. We have not noted any discrepancies on such verification.
iii. No substantial part of fixed assets have been disposed off during
2. i. As per records produced before us and in accordance with
Management representation Physical verification of inventory has been
conducted at reasonable intervals by the management.
ii. The procedures of physical verification of inventory followed by the
management is reasonable and adequate in relation to the size of the
company and the nature of its business.
iii. The company is maintaining proper records of inventory. No Material
discrepancies noticed on physical verification .
3. The company has not granted loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 301 of the Act. The company has taken loans, secured or
unsecured form companies, firms or other parties covered in the
register maintained under section 301 of the Act. Terms and conditions
were prima facie not prejudicial to the interest of the company.
4. There is adequate internal control procedure commensurate with the
size of the company and the nature of its business, for the purchase of
inventory fixed assets and for the sale of goods and services. There is
no continuing failure to correct major weakness in internal controls.
5. We are informed that transaction during the year that need to be
entered into a register in pursuance of section 301 of the Act have
been so entered. The transaction have been made at prices which are
prima facie reasonable having regard to the prevailing market prices at
6. The company has not accepted deposits from the public where the
directives issued by RBI and the provisions of sec. 58A, 58AA or any
other relevant provision of the Act and rule framed there under where
7. The company have followed in-house internal audit system
commensurate with its size and nature of its business as applicable to
8. On the basis of information given to us by management of the
company, maintenance of cost records has not prescribed by the central.
government under clause (d) of sub section (I) of section 209 of the
9. As per the books and records as produced before us and in accordance
with Management representation , the company is regular in depositing
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employee State Insurance, Income Tax, Sales Tax.
Wealth Tax, Service Tax, Custom Duty, Excise Duty for the year
2011-2012 (whichever is applicable ) which have not been deposited on
account of dispute.
10. The company has accumulated losses as at march 31, 2012 exceeds 50%
of net worth of the company but the company has not incurred any cash
losses during the current year as well as immediately preceding
11. As per the books and records as produced before us and in
accordance with Management representation the Company has not defaulted
in repayment of any dues to bank .
12. The company is not involved in business of granting loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. The company is not involved in business of chit fund.
14 .The company is not dealing or trading in shares, securities,
debentures and other investment.
15. The company has not given any guarantee for loans taken by others
from bank or financial institutions.
16. On the basis of books of accounts and declaration given by the
management, the company has not taken terms loans during the year under
audit hence clause not applicable for comment.
17. On the basis of books of accounts and declaration given by the
management, the company has not utilized the funds raised on short
terms basis for long term investment
18. As per the books and records as produced before us and in
accordance with Management representation the company has not made any
preferential allotment of shares to parties and companies covered in
the Register maintained under section 301 of the Act.
19. As per the books and records as produced before us and in
accordance with Management representation no debentures were issued
during the year by the company.
20. The company has not raised capital through public issue during the
21. 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 M/s Dilip K. Neema & Associates
(Dilip K. Neema)
Place : INDORE
Date : 26.05.2012