1. We have examined the attached Balance Sheet of NEPTUNE EXPORTS
LIMITED as at 31st March, 2012 and also the Statement of Profit and
Loss for the year ended on that date annexed hereto. 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.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standard 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
3. As required by Companies (Auditor''s 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 as annexure a
statement on the matters specified in paragraphs 4 & 5 of the said
4. Further to our comments in the Annexure referred to in paragraph 3
above we report that :
i. (a) The Company has filed suit against one of its Ex-Director for
recovery of sums, which include cash in hand of Rs. 46,173.87.
b) No provision has been made in the counts in respect of advances
amounting to Rs. 3,89,179.00 and SecurityDeposit of Rs. 12000.00, which in
our opinion are doubtful of recovery.
The cumulative effect of (a) &(b) may adversely effect the profit for
the year as well as year end net assets to the extent of Rs. 4,47,352.87.
ii. Subject to what has been stated in 4(i) above -
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 accounts, as required by law, have
been kept by the company, so far as appears from our examination of
c) The Balance Sheet and Statement of Profit and Loss dealt with by
this report are in agreement with the books of accounts.
d) In our opinion, the Balance Sheet and the Statement of Profit and
Loss dealt with by this report comply with the Accounting Standards
referred to in sub-section 3C of Section 211 of the Companies Act,
e) On the basis of written representation received from the Directors
and taken on record by the Board of Directors, we report that none of
the Directors were disqualified as on 31.03.2012 from being appointed
as a Director in terms of clause (g) of sub-section 274 of the
Companies Act, 1956.
In our opinion and to the best of our information and according to the
explanations given to us the said accounts together with schedule and
notes give the information required by the Companies Act, 1956, in the
manner so required and give a true and fair view in conformity with
accounting principles generally accepted in India:
(i) in the case of Balance Sheet, of the state of affairs of the
company as at 31st March, 2012
(ii) in the case of the Statement of Profit and Loss of the Profit for
the year ended on that date and
(iii) in the case of the Cash Flow Statement, of the cash flow for the
year ended on that date.
ANNEXURE TO THE AUDITORS'' REPORT
(Referred to in paragraph 3 of our report of even date)
1. a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets. The fixed assets have been physically verified by the
management at reasonable intervals. Material discrepancy was not
noticed on such verification. In our opinion the frequency of
verification is reasonable.
b) None of the fixed assets have been revalued during the year.
c) According to the information and explanations furnished to us, we
are of the opinion that the company has not disposed off any
substantial parts of its fixed assets.
2. The company did not have any physical stock during the year.
3. The company has neither granted nor taken any loan secured or
unsecured to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
4. In our opinion, formed on the basis of the information and
explanations given to us the internal control procedure for the
purchase of inventory and Fixed Assets and sale of goods is adequate
and commensurate with the size of the company and nature of its
business. We have neither come across nor have been informed of any
continuing failure to correct major weaknesses in the aforesaid
internal control procedure.
5. a) According to the information and explanations given to us, we
are of the opinion there are no transactions that need to be entered in
the register maintained under section 301 of the Companies Act, 1956.
b) According to the information and explanations given to us, we are of
the opinion there is no transaction made in pursuance of a contract or
arrangement entered in the register in pursuance of Section 301 of the
Companies Act, 1956.
6. The Company has not accepted deposits from the public as per
provisions of Section 58A and 58AA of the Companies Act, 1956.
7. The Company has an internal audit system commensurate with its size
and nature of its business.
8. We have been informed that maintenance of cost records has not been
prescribed by the Central Government under section 209(1 )(d) of the
Companies Act, 1956 in respect of the company''s activities.
9. a) According to the information and explanations given to us and
the records of the company examined by us, we were of the opinion that
the company is regular in depositing the undisputed statutory dues.
b) According to the information and explanations given to us, the
Company has not deposited following dues on account of dispute with
Name of Nature of Amount Period to which Forum where
Statute Dues Rs. the amount dispute is
Tax Income Tax 9,27,052/- 2001-02 ITAT
Act, 1961 17,36,488/- 2002-03 ITAT
3,07,736/- 2006-07 CIT (A)
10. The Company has no accumulated losses as on 31st March, 2012. The
company has not suffered cash loss in the financial year ended 31st
March, 2012.The company did not suffer cash loss in the financial year
ended on 31st March 2011.
11. The company has not defaulted in repayment of dues to a financial
institution or bank or debenture holders.
12. The Company has not granted any loan or advances on the basis of
security by way of pledge of any of shares, debentures and other
13. The provisions of any special statute applicable to chit
fund/mutual benefit fund/societies are not applicable to the company.
14. In our opinion the company is not a dealer or trader in share,
securities, debenture and other securities.
15. The Company has not given any guarantee for loans taken by others
from banks or financial institution.
16. The Company has not obtained any term loan.
17. The Company has not raised any short term funds.
18. The Company has not made any allotment of shares during the year.
19. The Company has not issued any debenture during the year.
20. The Company has not raised any money by public issues during the
21. During the course of our examination of the books and records of
the company carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
material fraud on or by the company, noticed or reported during the
year nor have we been informed of such case by the management.
For L.B.JHA& CO., CALCUTTA
Place Kolkata Proprieter
Date : 18th May, 2012 Membership No.: 050290