Report on the Financial Statements
We have audited the accompanying fnancial statements of Ladderup
Finance Limited, which comprise the Balance Sheet as at March 31, 2013
and the Statement of Proft and Loss and Cash Flow Statement for the
year then ended, and a summary of signifcant accountng policies and
other explanatory informaton.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparaton of these fnancial
statements that give a true and fair view of the fnancial positon,
fnancial performance and cash fows of the Company in accordance with
the Accountng Standards referred to in sub-secton (3C) of secton 211 of
the Companies Act, 1956 (''''the Act). This responsibility includes the
design, implementaton and maintenance of internal control relevant to
the preparaton and presentaton of the fnancial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Our responsibility is to express an opinion on these fnancial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditng issued by Insttute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedure to obtain audit evidence about
the amounts and disclosures in the fnancial statements. The procedures
selected depend on the auditor''s judgement, including the assessment of
the risk of material misstatement of the fnancial statements, whether
due to fraud and error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparaton and
fair presentaton of the fnancial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluatng and appropriateness of accountng policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluatng the overall presentaton of the fnancial statements.
We believe that the audit evidence we have obtained is sufcient and
appropriate to provide a basis for our audit opinion.
In our opinion and to the best of our information and according to the
explanations given to us, the fnancial statements give the informaton
required by the Act in the manner so required and give a true and fair
view in conformity with the accountng principles generally accepted in
a) In the case of the Balance Sheet, of the state of afairs of the
Company as at March 31, 2013;
b) In the case of the Statement of Proft and Loss, of the proft for the
year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash fows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 (the
Order) issued by the Central Government of India in terms of
sub-secton (4A) of secton 227 of the Act, we give in the annexure a
statement on the maters specifed in the paragraphs 4 and 5 of the
2. As required by secton 227(3) of the Act, we report that:
(a) We have obtained all the informaton and explanatons, which to the
best of our knowledge and belief were necessary for the purpose of our
(b) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as it appears from our examinaton of
(c) The Balance Sheet, Statement of Proft & Loss, and Cash Flow
Statement dealt with by this report are in agreement with the books of
(d) In our opinion, the Balance Sheet, Statement of Proft and Loss and
Cash Flow Statement, comply with the Accountng Standards referred to in
sub-secton (3C) of secton 211 of the Companies Act, 1956
(e) On the basis of writen representatons received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualifed as on March 31, 2013, from being
appointed as a director in terms of clause (g) of subsecton (1) of
secton 274 of the Companies Act, 1956;
ANNEXURE TO AUDITORS REPORT
Annexure referred to in Paragraph 1 of the Auditors Report to the
members of Ladderup Finance Limited for the year ended 31st March,
As required by the Companies (Auditors Report) Order, 2003 and
amendments thereto and according to the informaton and explanatons
given to us during the course of the audit and on the basis of such
checks of the books and records as were considered appropriate we
i) a) The Company has maintained proper records showing full partculars
including quanttatve details and situaton of fxed assets.
b) As explained to us, all the fxed assets have been physically verifed
by the management during the year and in our opinion the interval of
physical verifcaton is reasonable. No material discrepancies have been
notced on such physical verifcaton.
c) The Company has not disposed of any fxed assets during the year.
ii) a) Since the Company does not have any inventory, the clauses 4
(ii) (a) (b) and (c) of the said Order are not applicable to the
(iii) a) The Company has granted unsecured loan (receivable on call
basis) to its three subsidiaries covered in the register maintained
under section 301 of the Companies Act, 1956. The aggregate maximum
amount outstanding during the year was Rs. 57,08,720/- and year end
balance of such loans was Rs. 29,04,668/-.
b) The rate of interest and other terms & conditons on which the loans
have been granted are prima facie, not prejudicial to the interest of
c) In view of our comments in para iii (a) & (b) above, clauses 4 (iii)
(c) and (d) of the said Order are not applicable.
d) The Company has not taken unsecured loans from parties covered in
the register maintained under secton 301 of the Companies Act, 1956.
e) In view of our comments in para (iii) (d) above, clause 4 (iii) (f)
and (g) of the said Order is not applicable to the Company.
(iv) In our opinion and according to the informaton and explanaton
given to us there is adequate internal control system commensurate with
the size of the Company and the nature of its business with regard sale
of services. During the course of our audit, we have not observed any
contnuing failure to correct major weaknesses in internal control
v) a) Based on our audit procedures performed by us, we are of the
opinion that partculars of contracts or arrangements referred to in
Secton 301 of the Act have been entered in the register required to be
maintained under that secton.
b) The transacton made in pursuance of such contracts or arrangements
have been made at prices which are reasonable having regards to
prevailing market prices at the relevant tme.
(vi) The Company has not accepted any deposits from the public.
(vii) The Company does not have a formal internal audit system but its
fnancial and other internal checks, ensures proper recording of the
(viii) The Central Government has not prescribed for maintenance of
cost records under secton 209(1) (d) of the Companies Act, 1956 for the
(ix) a) The Company is regular in depositng undisputed statutory dues
including income tax and service tax with appropriate authorites. There
are no arrears of outstanding of these dues as at the last day of the
fnancial year for a period of more than six months from the date they
became payable. The laws relatng to provident fund, employee state
insurance, sales tax, wealth tax, custom duty, excise duty and cess do
not apply to the Company for the year under report.
b) According to the informaton and explanatons given to us, the Company
has no dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom
Duty, Excise Duty and Cess which have not been deposited on account of
disputes with the related authorites.
(x) The Company does not have accumulated losses at the end of the
fnancial year. The Company has not incurred cash losses during the
current fnancial year and in the immediately preceding fnancial year.
(xi) The Company has not defaulted in repayment of its dues to banks
and fnancial insttutons.
(xii) The Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures or other securites.
(xiii) The provisions of any Special Statute applicable to Chit Fund,
Nidhi or Mutual Benefit Fund/ Societes are not applicable to the
(xiv) Based on the records examined by us, the Company is maintaining
proper records of the transactions and contracts and timely entries
have been made in respect of all the securities transactions and the
same have been held by the Company in its own name except to the
exempton , if any , granted under Secton 49 of the Act.
(xv) The Company has not given any guarantees for loan taken by others
from banks and financial insttutons.
(xvi) The Company has applied the term loans during the year for the
purpose they were obtained.
(xvii) On an overall examinaton of the balance sheet of the Company, we
report that no funds raised on short-term basis have been used for long
(xviii) The Company has not made any preferental allotment of shares to
the partes and companies covered in the register maintained under
Secton 301 of the Act.
(xix) The Company has not issued any debentures during the year.
(xx) The Company has not raised any money by way of public issue during
(xxi) There were no frauds on or by the Company notced or reported
during the course of our audit during the year.
Place : Mumbai For Khurdia Jain & Co.
Date : 27th May, 2013 Chartered Accountants
Firm Regn. No.: 120263W
Mem No : 33615