We have audited the attached Balance Sheet of Lyons Corporate Market
Limited as , at 31st March, 2009 and also the Profit and Loss Account
for the year ended on that date annexed thereto. These financial
statements are the responsibility of the Companys management. Our
responsibility is to express an opinion on these financial statements
based on our audit.
We have 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 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
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 a statement
on the matters specified in paragraphs 4 and 5 of the said Order.
Further to our comments in the Annexure referred to above, we report
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 accounts as required by law have
been kept by the Company so far as appears from our examination of
c) The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of accounts;
d) In our opinion, theBalance 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;
e) On the basis of written representations received from the Directors,
as on 31st March, 2009 and taken on record by the Board of Directors,
we report that none of the Director is disqualified as on 31st March.
2009 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 Balance Sheet, Profit & Loss
Account and Cash Flow Statement;
(i) in the case of Balance Sheet, of the state of affairs of the
Company as at 31st March, 2009; and
(ii) in the case of Profit and Loss Account, of the Profit for the year
ended 31 st March 2009, and
(iii) in the case of Cash Flow Statement, of the Cash Flow for the year
ended on that date. .
ANNEXURE TO THE AUDITORS REPORT
Statement referred to in paragraph 3 of our report of even date to the
members of M/s Lyons Corporate Market Limited on the accounts for the
year ended 31st March, 2009.
In terms of the information and explanations given to us and the books
and records examined by us in normal course of audit and to the best of
our knowledge and belief, we state that:
I. a) The Company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
b) The Fixed Assets of the Company except assets given on lease have
been physically verified by the management at reasonable intervals. No
material discrepancies have been noticed on such verification.
c) None of the Fixed Assets have been sold/disposed off during the year
II. a) Stock of Shares physically lying with the Company has been
verified by the management at reasonable intervals. No material
discrepancies have been noticed on such verification. Further the
Company has received confirmations of shares lying with depository
participants at regular intervals.
b) In our opinion, the procedures of physical verification of stocks
followed by the Management are reasonable and adequate in relation to
the size of the Company and nature of its business.
c) The Company is maintaining proper records of inventory. No material
discrepancies have been noticed on such verification.
III. As informed to us, the company has neither granted noUaken any
loans, secured or unsecured to/from companies, firms or other parties
listed in the register maintained under section 301 of the Companies
Act, 1956 and as such clauses (iii) (a) to (iii) (g) of the Companies
(Auditors Report) Order 2003 are not applicable.
IV. In our opinion and according to the information and explanations,
given to us there is an adequate internal control system commensurate
with the size of the Company and nature of its business with regard to
purchase of shares, fixed assets and with regard to sale of shares.
During the course of our Audit, we have not observed any continuing
failure to correct major weaknesses in internal controls.
V. a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered, if
any, into the register maintained under section 301 of the. companies
Act, 1956 have been so entered.
b) According to the information and explanations given to us, there are
no transaction of purchase of shares and materials and sale of shares,
materials and services made in pursuance of contracts or arrangements
with any party entered in the register maintained under Section 301 of
the Companies Act, 1956 for value aggregating to Rs. 5,00,000/- or more
during the year under review.
VI. The Company has not accepted any deposits from the public during
the year within the meaning of Section 58A and Section 58AA of the
Companies Act, 1956 and the rules framed there under with regard to the
deposits accepted from the public. No order has been passed by the
Company Law Board, National Company Law Tribunal or Reserve Bank or any
Court or any other Tribunal.
VII. In our opinion there is an adequate internal Audit system
commensurate with the size of the Company and nature of its business.
VIII. According to the information and explanations given to us, the
central Government has not prescribed the maintenance of cost records
under sections 209(l)(d) of the companies Act, 1956, for any of the
products of the company.
IX. a) As explained to us, the Provident Fund Scheme and Employees
State Insurance Scheme are not applicable to the Company.
b) According to the information given to us, no undisputed amounts
payable in respect of Income Tax, Sales Tax, Wealth Tax, Service Tax,
Customs Duty and Excise Duty and Cess were in arrears, as at 31s1
March, 2009 for the period exceeding six months from the date they
c) According to the information and explanations given to us, there are
no dues of Sales Tax, Income Tax, Service Tax, Customs Duty, Wealth
Tax, Excise Duty and Cess, which have not been deposited on account of
X. In our opinion the accumulated losses of the Company are not more
than 50% of the net worth. The Company has incurred not incurred cash
losses during the financial year covered by our audit but incurred cash
losses in the immediately preceding financial year.
XI. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to bank
with whom transactions have been made during the year.
XII. The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
XIII. The Company is not a chit fund, nidhi/mutual benefit fund and
therefore the requirements pertaining to such class of companies is not
applicable. Therefore, the provisions of clause 4(xiii) of the
Companies (Auditors Report) Order 2003 are not applicable to the
XIV. The Company has maintained proper records of transactions and
contracts in respect of trading in shares and other securities and
timely entries have been made therein. The Investments are held by the
Company in its own name except to the extent exemption provided under
section 49 of the Companies Act, 1956.
XV. The Company has not given any guarantee for loans taken by others
from banks or financial institutions.
XVI. The Company has not taken any term loans during the year.
XVII. According to the informations and explanations given to us and on
overall examination of the Balance Sheet of the company we report that
no Funds raised on short term basis which have been used for long term
XVIII.The Company has not made any preferential allotment of shares
during the year 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 and
therefore the question of creating security in respect thereof does not
XX. The Company has not made any public issues during the year and
therefore the question of disclosing the end use of money does not
XXI. According to the information and explanations given no fraud on or
by the company has been noticed or reported during the year.
For R. K. LAKHOTIA & ASSOCIATES
Place: Kolkata R.K.LAKHOTIA
Date: 30th June, 2009 Partner
Membership No. 61096