1. We have audited the attached Balance sheet of IDEAL OPTICS LIMITED
as at 31st March, 2012 and the related Profit & Loss Account 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.
2. We conduct 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
3. As required by the Companies (Auditor''s Report) Order, 2003 as
amended by Companies (Auditor''s Report) amendment Order, 2004 (together
with the order) issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Companies Act, 1956, we annex
here to 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 and information and explanations provided to us, we report
1) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of the
2) In our opinion, proper books of accounts as required by the law have
been kept by the Company so far as it appears from our examination of
3) The Balance Sheet, Profit & Loss Account and the Cash Flow Statement
referred to in this report are in agreement with the books of accounts
of the company.
4) In our opinion, these financial statements comply with the
Accounting Standards referred to in sub section (3C) of section 211 of
the Companies Act 1956, except as stated in para 6(a) and (b) below.
5) 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 (1) of section 274 of the Companies Act 1956.
6) In our opinion and to the best of our information and according to
the explanations given to us, the accounts together with the notes
thereon of schedule 12 and in particular; 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;
a) In the case of the Balance Sheet, of the State of affairs of the
Company as at 31st March, 2012. and
b) In the case of Profit and Loss Account, of the profit for the year
ended on 31st March, 2012.
Re: IDEAL OPTICS LIMITED: Annexure referred to in paragraph 3 of our
report even date.
1. (a) Proper records showing full particulars including quantitative
details and situation of Fixed Assets of the company are being updated
(b) The management physically verifies the fixed assets of the Company.
No material discrepancies were noticed on verification.
(c) All the fixed assets of the company have been disposed off during
2. (a) At the end of the year company have no inventory.
(b) The Inventories are valued at cost or market value, which is lower.
(c) Inventories have been physically verified by the management at
regular intervals during the year.
3. (a) The company has not taken any loans from Companies, Firms or
other parties other than directors; Register maintained under section
301 of the Act. No amount was borrowed from the directors of the
company during the year & other financial institutes.
(b) In our opinion, the terms and conditions, on which loans have been
taken from companies, firms or other parties listed in the register
maintained under section 301 of the Companies Act 1956 and from the
companies under the same management, are not, prima facie, prejudicial
to the interest of the company.
(c) The Principal amount and interest has been repaid as stipulated.
(d) There are no overdue payments.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business, with regard to purchases of plant and machinery, equipment
and other assets and with regard to the sale of goods.
5. (a) According to the information and explanation given to us, we
are of the opinion at the transactions that need to be entered into the
register maintained under section 301 of the Act, have been so entered.
(b) In our opinion and according to the information and explanation
given to us, There is no any transaction more than Rs. 500000/ or more
of purchase of goods and materials and sale of goods, materials and
services, made in pursuance of contracts or arrangements entered in the
registers maintained under section 301 and aggregating during the year
in respect of each party, so this provision is not applicable.
6. In our opinion and according to the information and explanation
given to us, the company has not accepted any deposits; hence the
provision of section 58A of the Companies Act 1956 and Companies
(acceptance of Deposits) Rules, 1975 with regard to the deposits
accepted from the public are not applicable.
7. In our opinion, the company has no required any internal audit
system commensurate with the size and nature of its business.
8. The Central Government has not prescribed for maintenance of cost
records under section 209(1) (d) of the Companies Act, 1956 for the
products of the Company.
9. (a) According to the information and explanation given to us, the
company is generally regular in depositing with the appropriate
authorities, undisputed statutory dues including Provident Fund, ESIC,
Income Tax, Sales Tax, Excise Duty, Cess and any other material
statutory dues applicable to it
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, custom duty, excise duty and cess were outstanding, as at 31st
March'' 2012 for a period of more than six months from the date they
10. The company have any accumulated losses of Rs. 4,56,36,205/-. The
company has not incurred cash losses during the financial year covered
by our audit and 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 or banks.
12. According to the information and explanations given to us, the
company has not granted loans and advances on the basis of securities
by way of pledge of shares, debentures and other securities. Therefore
the provisions of clause 4(xii) of the Companies (Auditors Report)
order, 2003 are not applicable to the company.
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 (Auditors 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. Therefore the
provisions of clause 4(xiv) of the Companies (Auditors Report) order,
2003 are not applicable to the company.
15. As informed to us, the company has not given any guarantee for
loans taken by others from banks or financial institutions.
16. According to the information and explanations given to us, and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short-term basis have been used for Long-term
assets. No long-term funds have been used to finance short-term assets.
17. The company has not made any preferential allotment of shares to
companies, firms or other parties listed in the register maintained u/s
301 of the Companies Act.
18. The company has not issued any debentures.
19. During the period covered by our audit report, the company has not
raised any money by public issue.
20. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the company
has been noticed or reported during the course of our audit.
Date : 30th May, 2012 For, Vishves A. Shah & Co.
Place : Ahmedabad Chartered Accountants
Firm No. 121356W
(Vishves A. Shah)
M. No. 109944