We have audited the attached Balance Sheet of MONNET INDUSTRIES LIMITED
as at 31st March, 2011 and Profit & Loss Account for the Year Ended 31st
March, 2011 annexed thereto 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.
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 misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in financial statements. An audit also includes assessing
the accounting principles used and significant estimates made by the
management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
1 As required by the Companies (Auditor''s Report) order, 2003 as
amended by the Companies (Auditor''s Report) (Amendment) order 2004
issued by the Central Government in terms of Section 227(4A) of the
Companies Act, 1956, we enclose in the annexure a statement on the
matters specified in the paragraphs 4 & 5 of the said order to the
extent applicable to the Company.
2.Further to our comments in the annexure referred to in paragraph 1
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 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 such
c)The Balance Sheet and the Profit & Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
d) In our opinion, the profit and loss account and balance sheet and
Cash Flow Statement 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 records by the Board of Directors, we report that, none of
the director is disqualified as on 31 st March, 2011 from being
appointed as Director u/s 274(1)(g) 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
Significant Accounting Policies and other Notes thereon in Schedule
give the information as required by the Companies Act, 1956 in the
manner so required and give true and fair view in conformity with
accounting principles generally accepted in India :-
i) In the case of the Balance Sheet of the State of affairs of the
Company as at 31.03.2011.
ii) In the case of the Profit & Loss Account of the profit for the Year
Ended on that date.
iii) In the case of Cash Flow Statement of the cash flows for the Year
ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 1 OF THE AUDITORS'' REPORT ON ACCOUNTS
FOR THE YEAR ENDED 31st MARCH 2011
1.a)The Company has maintained proper records to show full particulars
including quantitative details and situation of fixed assets.
b) As explained to us, major fixed assets have been physically verified
by the management during the year. We have been informed that the
discrepancies noticed on such verification as compared to book record
were not material and have been properly dealt with in the books of
account. In our opinion the frequency of verification is reasonable.
c) As the Company has not disposed off any of the fixed assets during
the year, paragraph 4 (i) (c) of the said order is not applicable.
2. The Company has no stocks during the year under audit.
3. According to the information and explanations given to us, the
Company has neither granted nor taken any loans, secured or unsecured
to/From Companies, firms or other Parties covered in the register
maintained under section 301 of the Companies Act 1956. Accordingly,
paragraph 4 (iii) (b), (c) and (d) of the order are not applicable.
4. In our opinion and according to the information and explanations
given to us there are adequate internal control procedures commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventories, fixed assets and with regard to the sale of
goods. During the course of audit, no major weakness has been noticed
in the underlying internal controls.
5. a) In our opinion and according to information and explanations
given to us the transactions that needed to be entered in the register
maintained under section 301 of the Act have been entered in the
b) As per information and explanations given to us aforesaid
transactions exceeding the aggregate amount of Rupees five lacs in
respect of each Party made during the year, have been made at prices
which are reasonable having regard to the prevailing market price at
the relevant time.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits within the
meaning of provisions of section 58A and 58AA of the Companies Act,
1956 and the Companies (Acceptance of Deposits) Rules, 1975.
7. In our opinion and according to the information and explanations
given to us, the Company has adequate internal audit system
commensurate with its size and nature of its business.
8. We are informed that the Central Government has not prescribed the
maintenance of cost records under section 209(1)(d) of the Companies
9. As per information and explanations given to us the Company has been
regular in depositing the undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employees State
Insurance, Income Tax, Sales Tax, and other statutory dues with the
appropriate Authorities. There are no undisputed statutory dues at the
year end outstanding for a Year of more than six months from the date
they become payable.
10. The accumulated losses of the company as at the end of the year are
less than the 50% of the net worth of the company. The company has not
incurred cash loss during the year under audit and in the immediately
preceding financial year.
11. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Paragraph 4 (xii) of the order is not applicable.
12. According to the information and explanations given to us, the
company has not given any guarantees for loans taken by others from
banks for financial institutions during the year.
13. According to the information and explanations given to us the
company has not taken any term loans during the year.
14. During the year the Company has not made any preferential allotment
of shares to parties and Companies covered in the Register maintained
u/s 301 of the Companies Act 1956. As such paragraph 4 (xviii) of the
order is not applicable.
15. Since the Company has not raised money by way of Public Issue
during the year paragraph 4 (xx) of the order is not applicable.
16. Based upon the audit procedures performed and information and
explanations given by the management, we report that, no fraud on or by
the Company has been noticed or reported during the course of our audit
for the year ended 31.03.2011.
17. Other clauses of the order are not applicable to the Company for
the year under report.
For O.P. BAGLA & CO.
Firm Regn. No. 000018N
PLACE : NEW DELHI
DATED : 03/08/2011