1. We have Audited the attached Balance Sheet of INANI MARBLES &
INDUSTRIES LTD as at 31st MARCH 2012 and also the annexed Profit & Loss
Statement and the Cash Flow- Statement for the year ended on that date.
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 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 misstatements An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in 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 (Auditors 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 enclose in the Annexure here
to a statement on the matters specified in paragraphs 4 and 5 of the
4. Further to our comments in the Annexure referred to 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 such
c) The Balance Sheet and Profit & Loss account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts;
d) In our opinion, the Balance Sheet and Profit & Loss account and cash
flow statement dealt with by this report comply with the mandatory
Accounting Standards referred in sub-section (3C) of section 211 of the
Companies Act, 1956;
e) 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 term of clause (g) of
sub-section(l) of section 274 of the Companies Act, 1956;
f) In our opinion and to the best of our information and according to
explanation given to us, the said accounts together with the notes in
Note 2, 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 2012;
ii) In the case of the Profit & Loss Statement of the Profit, of the
Company for the year ended on that date.
iii) In the case of Cash Flow Statement of the cash flows of the
Company for the year ended on that date.
ANNEXURE TO THE AUDITORS'' REPORT
Referred to in paragraph 3 of our report of even date.
1. (a) The Company has maintained proper records showing full
particulars including quantitative details & situations of the fixed
assets. The situation of the moveable assets used in the mining
activity keeps on changing from Mines sites depending upon requirements
for a particular contract.
(b) A substantial portion of the Fixed Assets have been physically
verified by the management during the year and in our opinion the
frequency of verification is reasonable having regard to the size of
the Company, the nature of its assets. According to the information
given to us and to the best of our knowledge.no material discrepancies
were noticed on such physical verification.
(c) The Company has not disposed of a substantial part of the fixed
assets during the year.
2. (a) As explained to us the inventory has been physically verified
during the year by the management.
(b) In our opinion 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 its business.
(c) The Company is maintaining proper records of inventory. No material
discrepancies noticed on physical verification between the physical
stock and the book records
3. The Company has not granted nor taken any loans, secured or
unsecured to/from companies, firm or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
Accordingly, sub clause (b), (c) and (d) are not applicable.
4. In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the company and nature of its business
with regard to purchase of inventory, Fixed Assets and with regards to
the sale of goods. During the course of our audit we have not observed
any continuing failure to correct major weaknesses in internal
5. (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered in to
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 such transactions made in
pursuance of contracts or arrangements entered in registers maintained
under section 301 of the Company Act, 1956 and exceeding value of Rs.
500000/- during the year in respect of each party, have been made at
prices which are reasonable having regard to the prevailing market
prices at the relevant time.
6. The Company has not accepted any deposits from the public in terms
of Section 58A and 58AA of the Act and the rules framed there under.
7. In our opinion the company has an internal audit system
commensurate with the size and nature of its business.
8. No cost records have been prescribed by the Central Govt.
9. (a) According to the record of the company is regular in depositing
with appropriate authorities undisputed statutory dues including
provident fund, investor education protection fund, employees state
insurance, income tax, sales tax, wealth tax. custom duty, excise duty,
cess and other material , statutory dues applicable to it.
(b) According to the information & explanation given to us, no
undisputed amounts payable in respect of income-tax, wealth tax, sales
tax, custom duty, excise duty and cess were in arrears, as at the last
day of the financial year for a period of more than six month from the
date they became payable.
(c) As per records produced before us the dues of Income Tax, Sales
Tax. Customs Duty, Wealth Tax, Excise Duty and Cess which have not been
deposited on account of any dispute are stated hereunder:
Statute Period to which Forum Where dispute Amount
amount relates is pending (Rs. in Lacs)
Income Tax F.Y. 2002-03 Income Tax Appellate.
Tribunal. Mumbai 8.89
10. The Company does not have any accumulated losses and has not
incurred any cash losses during the financial year covered by our audit
or in the immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution, bank or debenture holders.
12. The Company has not granted loans and advances on the basis of
securities by way of pledge of shares, debentures and other securities.
There is no question of maintaining adequate records.
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 investment, 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 the company has not given any guarantee for loans
taken by others from bank or financial institutions.
16. The Company has not taken any term loans and hence, our
requirement of reporting regarding application of term loans in terms
of Clause (xvi) of the order does not arise.
17. According to the information and explanation given to us and on an
overall examination of the Balance Sheet of the Company we report that
the no funds raised on short-term basis have been used for long term
investment. No long-term funds have been used to finance short-term
assets except permanent working capital.
18. According to the information and explanation given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
19. According to the information and explanations given to us, during
the period covered by our audit report, the Company has not created any
security in respect of debentures issued.
20. The Company has not raised any money by way of public issues
during the year; therefore there is no need for any disclosure required
in clause 4(XX).
21. 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.
For: Jagdish Rathi & Associates For: Nyati Mundra & CO.
Chartered Accountants Chartered Accountants
(Reg.No. 004623C ) (Reg.No. 008153C)
CA J. C. Rathi CA R. K. NYATI
M.N. 039303 M.N. 070692
Place : Chittorgarh
Date : 30th May, 2012