1. We have audited the attached Balance Sheet of GUJARAT FOILS LIMITED
as at 31st March, 2012, Statement of Profit and Loss and the 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 management of the Company. Our
responsibility is to express an opinion on these financial statements
based on our audit.
2. We 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 (Auditors'' Report) Order, 2003 (the
Order) issued by the Central Government of India 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 paragraphs 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 our examination of the
books of the Company;
c. The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement referred to in this report are in agreement with the books of
d. In our opinion, the Balance Sheet, Statement of Profit and Loss and
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, 2012 and taken on record by the Board of
Directors, we report that none of the directors is prima-facie
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
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true & fair view in accordance 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, 2012.
ii) In the case of the Statement of Profit & Loss of the Profit 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 the Auditors'' Report
i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets on the basis of available information
(b) The fixed assets of the Company 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
the nature of its assets. No material discrepancies were noticed on
such physical verification.
(c) The Company has not disposed of any substantial/major part of fixed
assets during the year therefore the question of affecting the going
concern principle of the Company do not arise.
ii) (a) Physical verification of inventory has been conducted at
reasonable intervals during the year by the management.
(b) In our opinion and according to the information 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 the business.
(c) The Company has maintained proper records of inventory. No material
discrepancies were noticed on physical verification of inventories as
compared to the book records.
iii) (a) The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.Accordingly, paragraphs
4(iii)(b), (c) and (d) of the Order, are not applicable.
(b) The Company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956. Accordingly, paragraphs
4(iii) (f) and (g) of the Order are not applicable.
iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory and fixed assets and for the sale of goods and
service. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in the internal control
v) (a) in our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements that need to be entered in the register maintained under
Section 301 of the Companies Act have been so entered.
(b) The transactions made in pursuance of contracts or arrangements
entered in the register under section 301 have been made at prices
which are reasonable having regard to prevailing market prices at the
vi) The company has not accepted any deposits from the public which
falls within the provisions of section 58 A, 58 AA or any other
relevant provisions of the Companies Act, 1956. Therefore the
Provisions of Clause (vi) of paragraph 4 of the Order are not
applicable to the Company.
vii) In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
viii) The maintenance of cost records has been prescribed by the
Central Government under Section 209 (1) (d) of the Companies Act, 1956
and such accounts and cost records have been made and maintained.
ix) (a) The Company is regular in depositing 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 and other statutory dues with the
(b) There are no dues of Income tax, Sales Tax, Wealth Tax, Service
Tax, Customs Duty, Excise Duty or Cess outstanding on account of any
x) The Company has no accumulated losses as at 31st March, 2012 and the
Company has not incurred any cash losses during the financial year
covered by our audit or in the immediately preceding financial year.
xi) The Company has not defaulted in repayment of dues to any financial
institutions / banks.
xii) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii) The Company is not a chit fund or a nidhi / mutual benefit fund
/society. Accordingly, Clauses (xiii)(a) to (d) of paragraph 4 of the
Order are not applicable to the Company.
xiv) In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
xv) According to the information & explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
xvi) The term loans were applied for the purpose for which the loans
xvii) In our opinion and according to the information and explanations
given to us, there are no Funds raised on a short term basis which have
been used for long term investment.
xviii)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.
xix) The Company has not issued any debentures during the year.
xx) The Company has not raised any funds by way of public issue during
xxi) No fraud on or by the Company has been noticed or reported during
For H. R. AGARWAL & ASSOCIATES
Firm Regn. No. 323029E
CA. Hari Ram Agarwal
Place: Mumbai Partner
Date : 30th May 2012 M.No. FCA 057625