We have audited the attached Balance Sheet of Ladderup Finance Limited
as at 31st March, 2012 and also the annexed Statement of Profit and
Loss and 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.
1 We conducted 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 misstatements. 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
2. As required by the Companies (Auditors Report) Order, 2003 and
amendments thereto issued by the Central Government of India in terms
of Section 227(4A) of the Companies Act, 1956, we annex hereto a
statement on the matters specified in the paragraphs 4 and 5 of the
3. Further to our comments in the Annexure referred to above, we
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 as it appears from our examination of such books.
c) The Company''s Balance Sheet and Statement of Profit & Loss and the
Cash Flow Statement dealt with by this report are in agreement with the
books of account.
d) In our opinion and to the best of our information and according to
the explanations given to us, the said Balance Sheet and the Statement
of Profit and Loss and the Cash Flow Statement comply in all material
aspects with the Accounting Standards referred to in Section 211(3C) of
the Companies Act, 1956.
e) On the basis of written representation received from the directors
as on 31st March, 2012 and taken on record by the Board, 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.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with
other notes thereon 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 case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012 and
(ii) In case of the Statement of Profit and Loss, of the profit of the
Company for the year ended on that date.
(iii) In case of Cash flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO AUDITORS REPORT
Annexure referred to in Paragraph 2 of the Auditors Report to the
members of Ladderup Finance Limited
for the year ended 31st March, 2012.
As required by the Companies (Auditors Report) Order, 2003 and
amendments thereto and according
to the information and explanations 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
particulars including quantitative
details and situation of fixed assets.
b) As explained to us, all the fixed assets have been physically
verified by the management during the year and in our opinion the
interval of physical verification is reasonable. No material
discrepancies have been noticed on such physical verification.
c) The Company has not disposed off substantial fixed assets during the
(ii) a) The inventories of shares & securities have been physically
verified by the management
during the year at reasonable intervals.
b) The procedures of physical verification of the 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 has maintained proper records of inventories and no
discrepancies have been noticed on physical verification of inventories
as compared to book records.
(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
72,99,172/- and year end balance of such loans was Rs.. 20,08,045/-.
b) The rate of interest and other terms & conditions on which 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 Section 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 information and explanation
given to us there is adequate
internal control system commensurate with the size of the Company and
the nature of its business
with regard to sale of services. During the course of our audit, we
have not observed any continuing
failure to correct major weaknesses in internal control systems.
v) a) Based on our audit procedures performed by us, we are of the
opinion that particulars of contracts or arrangements referred to in
Section 301 of the Act have been entered in the register required to be
maintained under that section.
b) The transaction 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 time.
(vi) The Company has not accepted any deposits from the public.
(vii) The Company does not have a formal internal audit system.
However, according to the information
and explanations given to us, operating control systems are
commensurate with the size of the Company and nature of its business.
(viii) The Central Government has not prescribed for maintenance of
cost records under Section 209(1)(d) of the Companies Act, 1956 for the
(ix) a) The Company is regular in depositing undisputed statutory dues
including Income Tax and
Service Tax with appropriate authorities. There are no arrears of
outstanding of these dues as at the last day of the financial year for
a period of more than six months from the date they became payable. The
laws relating to Provident Fund, Investor Education Protection 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 information and explanations 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 authorities.
(x) The Company does not have accumulated losses at the end of the
financial year. The Company has not incurred cash losses during the
current financial year and in the immediately preceding financial year.
(xi) The Company has no dues to any financial institution, bank or
debenture holders except in respect of vehicle loans.
(xii) The Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures or other securities.
(xiii) The provisions of any Special Statute applicable to Chit Fund,
Nidhi or Mutual Benefit Fund/ Societies 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
exemption, if any, granted under Section 49 of the Act.
(xv) The Company has not given any guarantees for loan taken by others
from banks and financial institutions.
(xvi) The Company has applied the term loans during the year for the
purpose they were obtained.
(xvii) 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 investments.
(xviii) The Company has not made any preferential allotment of shares
to parties and companies covered in the register maintained under
Section 301 of the Companies Act, 1956.
(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) We report that no fraud on or by the Company has been noticed or
reported during the year.
For Khurdia Jain & Co.
Firm Regn. No.: 120263W
Place : Mumbai Partner
Date : 26th May, 2012 Mem No : 33615