1. We have audited the attached Balance Sheet of Manaksia Limited as
at 31st March'' 2011 and the relative Profit & Loss account and Cash
Flow Statement of the Company for the year ended on that date annexed
there to, all of which we have signed under reference to this report.
These financial statements are the responsibility of the management of
the Company. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. These 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 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 presentation of the
financial statement. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditors'' Report) Order, 2003, issued
by the Government of India in terms of Section 227(4A) of the Companies
Act, 1956 and on the basis of such checks as we considered appropriate
and according to the information and explanations given to us, we set
out 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
a. We have obtained all the information and explanation, which to the
best of our knowledge and beliefs 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 so far as appears from our examination of
c. The Balance Sheet and Profit & Loss Account referred to in this
report are in agreement with the books
d. In our opinion, the Profit & Loss Account, Balance Sheet and Cash
Flow Statement 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 representation received from the Directors,
and taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2011 from being appointed as director in
terms of clause (g) of Section 274(1) of the Companies Act, 1956;
f. In our opinion and to the best of our knowledge and according to
the explanations given to us, the said accounts read together with
notes thereon attached thereto, give the information required by the
Companies Act, 1956 in the manner so required and present a true and
i. In the case of the Balance Sheet, of the State of Affairs of the
Company as at 31st March, 2011; and
ii. In the case of the Profit & Loss Account, of the Profit for the
year ended on that date.
iii. In case of the Cash Flow Statement of the cash flows for the year
ended on that date.
Annexure to Auditors'' Report
Referred to in Paragraph 3 of our report of even date
1. In respect of its fixed assets :
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b. The fixed assets were physically verified during the year by the
Management in accordance with a regular programme of verification
which, in our opinion, provides for physical verification of all the
fixed assets at reasonable intervals. According to the information and
explanation given to us, no material discrepancies were noticed on such
c. The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
2. In respect of its inventories:
a. As explained to us, the inventories were physically verified during
the year by the Management at reasonable intervals.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed bythe Management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of inventories
and no material discrepancies were noticed on physical verification.
3. The company has not taken or given any loans, secured or unsecured
from companies, firms or other parties 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, having regard to the explanations that some of the items
purchased are of special nature and suitable alternative sources are
not readily available for obtaining comparable quotations, there is an
adequate internal control system commensurate with the size of the
Company and the nature of its business with regard to purchases of
inventory and fixed assets and the sale of goods and services. During
the course of our audit, we have not observed any major weaknesses in
such internal controls system.
5. In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Companies Act,1956, to
the best of our knowledge and belief and according to the information
and explanations given to us:
a. The particulars of contracts or arrangements referred to Section
301 that needed to be entered in the Register maintained under the said
Section have been so entered.
b. Where transaction is in excess of Rs. 5 Lakhs in respect of any
party during the period, the transactions have been made at prices
which are prima facie reasonable having regard to the prevailing market
prices at the relevant time.
6. According to the information and explanations given to us, the
Company has not accepted any deposit from the public during the year.
Therefore the provisions of clause (vi) of the Companies (Auditors''
Report) Order 2003 are not applicable.
7. In our opinion, the Company has an adequate internal audit system
commensurate with the size and nature of its business.
8. According to the information and explanations given to us and to
the best of our knowledge, the Central Government has not prescribed
the maintenance of cost records under Section 209 (1) (d) for any
product of the Company.
9. According to the information and explanations given to us in
respect of statutory dues:
a. The Company has generally been regular in depositing undisputed
dues, including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income Tax, Sales tax, Wealth Tax, Service
Tax, Customs Duty, Excise Duty, Cess and other material statutory dues
applicable to it with the appropriate authorities.
b. There were no undisputed amounts payable in respect of Income Tax,
Wealth Tax, Customs Duty, Excise Duty, Cess and other material
statutory dues in arrears as on 31st March, 2011 for a period of more
than six months from the date they became payable.
c. Details of dues of Income Tax, Sales Tax, Service Tax, Custom
Duty, Excise Duty and Cess which have not been deposited as on 31st
March, 2011 on account of disputes are given below:
Statute Nature of Forum where Dispute Amount
Dues is Pending involved
Central Excise Duty Hon''ble High Court, 99.32
1944 CESTAT 7.50
Additional Commissioner, 21.53
Joint Commissioner, 0.31
Deputy Commissioner, 7.97
Director General of 5.00
Appellate Commissioner 11.30
Tribunal of Central 4.97
Superintendent of 0.31
Service Tax Superintendent of 51.92
Sales Sales Tax W.B.Commercial Taxes 409.86
Tax/VAT Appellate and
Act Revisional Board,
Deputy Commissioner of
Income Income Tax C.IT (Appeals) 73.53
Tax Act, Demand
Municipal Municipal Haldia Municipality, 67.90
Act, Tax West Bengal
Act,1962 Customs Duty Commissioner of Customs. 15.15
Taxation Stamp Duty Commissioner of Haldia 49.45
10. The Company has no accumulated losses and has not incurred any
cash losses during the financial year covered by our audit or in the
immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
banks, financial institutions, debenture holders.
12. In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
13. In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore, clause 4(xiii) of the Companies
(Auditors'' Report) Order 2003 is not applicable to the Company.
14. The Company has maintained proper records of transactions and
contracts in respect of trading in securities, mutual fund, debentures
and other investments and timely entries have been made therein. All
shares, debentures, mutual fund and other investments have been held by
the Company in its own name.
15. The Company has given guarantees for loans taken by others from
banks or financial institutions. According to the information and
explanations given to us, we are of the opinion that the terms and
conditions thereof are not prima-facie prejudicial to the interests of
16. In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purpose for which
they were obtained.
17. In our opinion and according to the information and explanations
given to us and on an overall examination of the Balance Sheet, we
report that funds raised on short term basis have not been used during
the year for long term investment.
18. The Company has not made any preferential allotment of share to
parties and companies covered in the register maintained under section
301 of the Companies Act ,1956.
19. According to the information and explanation given to us the
Company has not issued any secured debentures during the year under
20. The management has disclosed the end use of money raised by public
issue and the same has been verified by us.
21. To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no fraud on the
Company has been noticed or reported during the year.
For SRB & Associates
Firm Regn. No: 310009E
M No: 056121
Date : 30th Day of May, 2011
Place : Kolkata