We have audited the attached Balance Sheet of GANON TRADING & FINANCE
COMPANY LIMITED as at 31st March, 2012 and also the Statement of Profit
and Loss and Cash Flow Statement for the year ended on that date
annexed thereto, 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.
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.
1. As required by the Companies (Auditor''s Report) Order, 2003 as
amended by Companies (Auditor''s Report) (Amendment) Order, 2004 issued
by the Department of Company Affairs, in terms of Section 227(4A) of
the Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in the paragraphs 4 & 5 of the said Order.
2. Further to our comments on the Annexure referred to in paragraph 1
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 purposes 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 our examination of those
c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
statement dealt with by this report are in agreement with the books of
d) In our opinion, the Balance Sheet, Statement of Profit & Loss and
Cash Flow statement dealt with by this report comply with the
Accounting Standards referred in subsection (3C) of Section 211 of the
Companies Act, 1956;
e) On the basis of the written representations received from the
directors as on 31 st 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 1 of Section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
explanations given to us, the said financial statements together with
the 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 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, 2012;
ii) in the case of Statement of Profit and Loss, of the profit for the
year ended on that date; and
iii) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
ANNEXURE referred to in paragraph (1) of our Report of even date on the
Accounts for the year ended 31st March, 2012 of GANON TRADING & FINANCE
1. The Company does not have any fixed assets and hence the question
of maintaining records, physical verification & disposal of the same
does not arise.
2. a. Shares in custody of the Company have been physically verified
by the management at reasonable intervals. For shares held with the
custodian and depository participant, statements from them have been
obtained on a regular basis.
b. In our opinion, the procedures of verification of inventory
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 is maintaining proper records of inventory. The
discrepancies noticed on reconciliation of physical inventories as
compared to book records have been properly dealt with in the books of
3. (a) The Company has, during the year, not granted any loans,
secured or unsecured,
to companies, firms or other parties covered in the register maintained
u/s.301 of the Companies Act, 1956. Accordingly, the clause 4(iii)(b)
to (d) of the Order are not applicable.
(b) The Company has taken interest free unsecured loan from a party
covered in the register maintained u/s.301 of the Companies Act, 1956.
The maximum amount involved during the year was Rs.2.00 Crores & the
year-end balance of loan taken from such party was Rs. NIL/-.
(c) In our opinion, the other terms and conditions on which the loan
was taken is not prima facie prejudicial to the interest of the
(d) As per the information made available to us, the aforesaid loan
taken by the Company was repayable on demand.
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 sale of shares (inventory). There is no purchase of inventory and
fixed assets. The Company does not provide any services. During the
course of our audit, no major weaknesses have been observed in the
internal control system.
5. a) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangement 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 explanation
given to us, there are no transactions in pursuance of contacts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 aggregating during the year to Rs.500000/-
(Rupees Five Lacs only) or more in respect of any party.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits to which the
provisions of section 58A, 58AA or any other relevant provisions of the
Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules,
7. The Company does not have formal system of internal audit, but
there are adequate checks & controls at all levels.
8. The provisions of Section 209 (1 )(d) of the Companies Act, 1956
regarding maintenance of Cost records is not applicable to the Company.
9. (a) In our opinion and according to the information and
explanations given to us, the
Company has been regular in depositing undisputed statutory dues with
the appropriate authorities.
(b) In our opinion and according to the information & explanations
given to us, there are no statutory dues which have not been deposited
on account of any dispute.
10. The Company does not have accumulated losses at the end of the
year and the Company has not incurred cash losses during the current
and in the immediately preceding financial year.
11. In our opinion & according to the information & explanation given
to us, the Company has not taken any loans from financial institution
or bank or through issue of debentures. Therefore, the question of
repayment or default does not arise.
12. 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
14. In respect of Company''s activity for dealing in shares, proper
records have been maintained in regard to the transactions and
contracts and timely entries have been made therein. The shares have
been held by the Company in its own name.
15. The Company has not given any guarantee for loans taken by others
from banks or financial institutions.
16. The Company has not taken any term loan during the year &,
therefore, provisions of Clause (xvi) of CARO, 2003 is not applicable
to the Company.
17. According to information & explanations given to us and on overall
examination of Balance Sheet of the Company, we report that Company has
not raised any short term loan during the year.
18. The Company has not made any preferential allotrqent of shares to
parties and companies covered in the register maintained under Section
301 of the Act.
19. The Company did not have any outstanding debentures during the
20. The Company has not raised any money by way of public issues
during the year.
21. According to the information and explanations given to us and to
the best of our knowledge & belief, no fraud on or by the Company has
been noticed or reported by the Company during the year.
For K K KHADARIA & CO
(Firm Reg. NO.105013W)
PLACE: MUMBAI PARTNER
DATED: 29th May, 2012 M.N0.44162