1. We have audited the attached Balance Sheet of KIDUJA INDIA LIMITED
as at 31st March, 2012 and also the Profit and Loss Statement and the
Cash Flow Statement for the year ended on that date, 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 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 (Auditor''s Report) Order, 2003,
issued by the Central Government of India in terms of sub-section (4A)
of Section 227 of the Companies Act, 1956 (hereinafter referred to as
the ''Act''), 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 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
(c) The Balance Sheet, Profit and Loss Statement and Cash Flow
Statement dealt with by this report are in agreement with the books of
(d) In our opinion, the Balance Sheet, Profit and Loss Statement and
Cash Flow Statement dealt with by this report comply with the
accounting standards prescribed by the Companies (Accounting Standards)
Rules, 2006, to the extent applicable except for recognition of
actuarial liabilities in respect of Gratuity (Point No. 5 in Note No.
(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 terms of Section 274 (1) (g)
of the Act;
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements read
together with Significant Accounting Policies and the accompanying
notes to financial statements, give the information required by the Act
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 and Loss Statement, of the loss of the
Company 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 3 OF AUDITORS'' REPORT OF EVEN DATE
ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2012 OF
KIDUJA INDIA LIMITED
On the basis of such checks as we considered appropriate and according
to the information and explanations given to us during the course of
audit, we state that:
1. a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed assets.
b) All fixed assets have been physically verified by the management at
reasonable intervals during the year and no discrepancies were noticed
on such verification.
c) No fixed assets have been disposed off during the year.
2. a) The inventory of shares has been held in dematerialized form and
are verified with the Demat account statements at reasonable intervals.
b) The procedures for 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 has maintained proper records of inventory and no
discrepancies were noticed on physical verification.
3. a) During the year, the Company has taken interest free loans from
three Companies covered in the register maintained under Section 301 of
the Act, terms and conditions whereof, are prima facie, not prejudicial
to the interest of the Company. Maximum amount due during the year
Rs.500, 827,000 (including Opening Balance of Rs.385, 425,000) and the
year-end balance is Rs.385, 597,000.
b) During the year, 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 Act.
4. There is adequate internal control system commensurate with the
size of the Company and the nature of its business with regard to
purchase of shares, fixed assets and for sale of shares except as
stated in para no.7 below. During the course of our audit, no major
weaknesses have been noticed in the internal control system.
5. According to the information and explanations given to us, there
was no contract or agreement entered into during the year that needs to
be entered in the register required to be maintained in pursuance of
Section 301 of the Act.
6. During the year, the Company has not accepted any deposit within
the meaning of Section 58A, 58AA and other relevant provisions of the
Act and rules framed thereunder and read with NBFC regulations issued
by Reserve Bank of India from time to time.
7. The Company does not have any system. However, as explained,
effective internal control is being exercise departriVenrally.
8. In respect of Company''s activities the central /Government has not
prescribed maintenance of cost records under of the Act.
9. a) According to the records of the Company, it is generally regular
in depositing undisputed statutory dues including Provident Fund,
Investor Education and Protection Fund, Income Tax, Wealth Tax, Sales
Tax, Service Tax, Custom Duty, Cess and other material statutory dues
with the appropriate authorities. There are no undisputed amounts
payable in respect of such statutory dues which have remained
outstanding as at 31st March, 2012 for a period of more than six months
from the date they became payable.
b) According to the information and explanations given to us, there are
no dues of income tax, wealth tax, sales tax, service tax, custom duty,
excise duty and cess which have not been deposited on account of any
10. The accumulated losses of the Company as at the end of the
financial year are more than 50% of its net worth. The Company has not
incurred cash loss during the preceding year but has incurred cash loss
during the current financial year.
11. According to the information and explanations given to us, the
Company has not defaulted in repayment of dues to banks.
12. During the year, 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. The Company is not a chit fund or a nidhi / mutual fund benefit
fund/society. Therefore, the provisions of Clause 4(xiii) of the Order
are not applicable to the Company.
14. The Company has kept adequate records of its transactions and
contracts in respect of dealing in shares, securities and timely
entries have been made therein. All the shares and securities have been
held in the name of the Company.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loan taken by others from banks
or financial institutions.
16. According to the information and explanations given to us, the
Company has not obtained any term loan during the year.
17. According to the information and explanations given to us and on
overall examination of the cash flow statements and balance sheet of
the Company, in our opinion, funds raised on short term basis have,
prima facie, not been used for long-term investment.
18. During the year, 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.
19. The Company has not raised any money by way of issue of
20. The Company has not raised any money by way of public issue during
21. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India and according to the information and
explanations given to us, we have neither come across any instances of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management.
For LODHA & CO.
Date: 29th June, 2012 Membership No.38323
Firm Registration No.: 301051E