1. We have audited the attached Balance Sheet of EURO ASIA EXPORTS
LTD. as at 31st March, 2012 together with the Profit & Loss Account of
the company for the year ending 31st March, 2012 annexed thereto. 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. Those stan- dards 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 issued
by the Central Government of India, in terms of section 227 (4A) 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:-
4.1 We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
4.2 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
4.3 The Balance Sheet and Profit & Loss Account dealt with by this
report are in agreement with the books of account;
4.4 In our opinion, the Balance Sheet and Profit & Loss Account dealt
with by this report comply with the accounting standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956;
4.5 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;
4.6 In our opinion, and to the best of our information and according to
the explanations given to us, the said accounts read with the
accounting policies, and the notes appearing thereon and attached
thereto 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, and
ii) in the case of the Profit & Loss Account, of the Loss of the
Company for the year ended on that date .
ANNEXURE TO THE AUDITORS REPORT OF EURO ASIA EXPORTS LTD. FOR THE YEAR
(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 and situation of its fixed
(b) All the assets have not been physically verified by the management
during the year but there is a regular programme of verification 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
(c) No substantial parts of fixed assets have been disposed off during
2. (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
(b) The procedure of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size and
nature of the business of the company.
(c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
3. (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.
(b) The company has not taken any loan, secured or unsecured from
company, firm or other parties required to be listed in the register
maintained under Section 301 of the Companies Act, 1956.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedure commensurate
with the size of the company and the nature of its business with regard
to sale of goods. During the course of our audit, we have not observed
any continuing failure to correct major weakness in internal control
system of the company.
5. (a) According to the information and explanations given to us, we
are of the opinion that the particulars of all contracts or
arrangements that need to be entered into the register maintained under
section 301 of the Companies Act, 1956 have been so entered.
(b) The company has not made any transaction with firms, companies or
other parties in which the Directors are interested exceeding Rs.
5,00,000/- in value as listed in the register maintained under section
301 of the Act.
6. According to the information and explanations given to us, the
company has not accepted any deposits from the public during the year
under review within the meaning of the directives issued by the Reserve
Bank of India and provisions of Section 58A of the Companies Act,1956.
7. The company has an Internal Audit system commensurate with the size
of the company and nature of its business.
8. The maintenance of cost records has not been prescribed by the
Central Government under Clause-(d) of Sub Clause-(1) of Sec-209..
9. (a) According to the records of the company, the company has been
regular in depositing undisputed statutory dues including Income - tax
and any other statutory dues with the appropriate authorities.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax and any other
statutory dues were in arrears, as at 31st March, 2012 for a period of
more than six months from the date they become payable.
10. The accumulated losses of the company as at 31st March, 2012 are
more than 50% of its net worth and the company has incurred cash loss
during the financial year under review against cash profit for the
immediately preceding 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 and banks.
12. The Company has not granted any Loans or Advances on the basis of
securities by way of pledge of shares, debentures and other securities.
13. In our opinion, the company is not a chit fund or nidhi/mutual
benefit/society Therefore, the provisions of clause 4(xiv) of The
Companies (Auditor''s Report) Order, 2003 are not applicable to the
14. In our opinion, proper records of the trading of securities and
other investments have been maintained by the company and timely
entries have been made therein . The investments are held by the
company in its own name except to the extent of exemption granted under
section 49 of Companies Act, 1956.
15. According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from
banks or financial institutions.
16. The company has not obtained any term loan and accordingly no
comment has been made in respect of matters specified under clause(XVI)
of The Companies (Auditor''s Report) Order 2003.
17. According to the information and explanations given to us and on
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
18. According to the information and explanations given to us, the
company has not made any preferential allotment of shares to parties
covered in the register maintained under section 301 of the Act.
19. Since the company has not issued any debenture and accordingly
there is no question of creation of any securities in respect of
20. Company has not raised any money by way of public issue.
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 audit.
For Rajesh Mani & Associates
Firm Regd. No.
Place : Delhi
Date : 30.05.2012