We have audited the annexed Balance sheet of OMNI DYE CHEM EXPORTS
LTD., as at 31/03/2010 and the Profit and Loss Account for the year
ended on that date annexed thereto and the Cash flow 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 the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating overall financial statement
presentation. We believe that our audit provides a reasonable basis for
1. This report does includes a statement on the matters specified in
paragraph 4 of the Companies (Auditor''s Report) Order, 2003, issued by
the department of company affairs, in terms of section 227 (4A) of the
companies Act, 1956.
2. Further to Our comments in the annexure referred to in paragraph 1
above, I state 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 books of accounts as required by the law have been
kept by the Company so far as it appears from the examination of such
(c) In Our opinion, the Company has not followed the provisions of
Section II of Part II of Schedule XIII to the Companies Act, 1956.
(d) The Balance Sheet and the Profit and Loss Account and cash flow
statement, dealt with by this report, are in agreement with the said
books of accounts;
(e) In Our opinion the Balance Sheet and Profit & Loss Account and cash
flow statement comply with the accounting standards referred to in Sub
Section 3(c) of Section 211 of the Companies Act, 1956.
(f) On the basis of written representation received from the directors
as of 31/03/2010 and taken on record by the board of directors, We
report that none of the directors is disqualified as of 31/03/2010 from
being appointed as a director in terms of clause (g) of sub section (1)
of Section 274 of the Companies Act, 1956.
(g) In Our opinion and to the best of Our information and according to
the explanations given to us, read with notes on Accounting and
Accounting Policies generally accepted in India, the said accounts give
the information required by the Companies Act, 1956, in the manner so
required give a true and fair view.
(i) In the case of the Balance Sheet, of the State of Affairs of the
Company as at 31/03/2010 and;
(ii) In the case of the Profit and Loss Account, of the Loss of the
Company for the year ended on that date.
(iii) In case of Cash flow statement, cash flow of the company for the
year ended on that date
ANNEXURE TO THE AUDITORS'' REPORT
1. In respect of its fixed assets:
(a) The company has not maintained proper records showing full
particulars including quantitative details and situation of fixed
assets. We have been informed that this exercise is in process
(b) Fixed assets have been physically verified by the management at
reasonable intervals; No material discrepancies were noticed on such
(c) No substantial part of fixed assets have been disposed off during
the year, and hence no question of affecting going concern.
2. In respect of its inventories:
(a) We have been informed by the management that physical verification
of inventory has been conducted at reasonable intervals by the
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) Company is maintaining proper records of inventory. No material
discrepancies were noticed on physical verification.
3. In respect of loans granted and taken to / from parties covered in
the register maintained u/s 301 of the Companies Ad; 1956.
(a) The company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
u/s 301 of the companies Act-1956.
(b) Not Applicable
(c) Not Applicable
(d) Not Applicable
(e) The company has taken loans, secured or unsecured, from companies,
firms or other parties covered in the register maintained under Section
301 of the Companies Act 1956 or from the company under same management
as defined under section 370(1-B)
No. of parties: 1 Amount: Rs. 15,00,000.
(f) In our opinion and according to the information and explanation
given to us, the rate of interest and other terms and conditions for
such loans are not prima facie prejudicial to the interest of the
(g) In respect of loans taken, repayment of principal amount and
interest have been regular.
4. In respect of internal control
In our opinion and according to the information and explanations given
to us there is adequate internal control system commensurate with the
size of the company and the nature of its business, for the purchase of
inventory and fixed assets and for the sale of goods and services.
During the course of audit, We have not observed continuing failure to
correct major weaknesses in internal control system.
5. In respect of contracts or arrangements need to be entered into a
register maintained u/s 301 of the Companies Act, 1956
(a) According to the information and explanation given to us, we are of
the opinion that the particulars of contracts or arrangements referred
to in section 301 of the companies Act 1956 have been entered in the
register required to be maintained under that section.
(b) In our opinion and according to the information and explanation
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the companies Act 1956 are made at price which are reasonable having
regard to prevailing market prices at the relevant time.
6. In respect of deposits from public
No deposits within the meaning of Sections 58A and 58AA or any other
relevant provision of the Act and rules farmed thereunder have been
accepted by the Company.
7. In respect of internal audit system
In our opinion, the Company has an internal audit system commensurate
with its size and nature of business.
8. In respect of maintenance of cost records
The Company is not required to maintain cost cecords pursuant to the
Rules made by the Central Govenment for the maintenance of cost records
under Section 209 (l)(d) of the Act
9. In respect of statutory dues
(a) The company is regular in depositing the undisputed statutory dues
including privident fund, investor education protection fund,
employees'' state insurance, income tax, sales, tax wealth tax, service
tax, custom duty, excise duty. Cess and other material statutory dues
applicable to the Company with the appropriate authorities. No
undisputed amounts payable in respect of the aforesaid statutory dues
were outstanding as at the last day of the financial year for a period
of more than six months from the date they became payable.
(b) According to the records of the Company, there are no dues of
Income tax, sales tax, customs duty, wealth tax, service tax, excise
duty, sales tax and cess that have been not been deposited on amount of
10. In respect of accumulated losses and cash losses
The company''s accumulated losses at the end of the financial year are
less than 50% of its net worth and it has not incurred cash losses in
the current and immediately preceding financial year.
11. In respect of dues to financial institution / banks / debentures
The company has not defaulted in repayment of dues to financial
histitution, bank or debenture holders.
12. In respect of loans and advances granted on the basis of security
The company has not granted loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. In respect of provisions applicable to Chit fund
In our opinion and according to information and explanations given to
us the company is not chit fund or nidhi or mutual benefit
fund/society. Therefore the provisions of clause 4(xiii) of the Order
are not applicable to the company. Hence further sub sections xiii(a),
xiii(b), xiiii(c), xiii(d) are not applicable to the company.
14. In respect of dealing or trading in shares, securities, debentures
and other investment
According to information and explanations given to us the company is
not dealing in or trading in shares, securities, debentures and other
investments. Accordingly, the provisions of dause 4(xiv) of the Order
are not applicable to the company.
15. In respect of guarantee given for loans taken by others
On the basis of records examined by us and information provided by the
management, we are of the opinion that the company has not given
guarantees for loans taken by others from banks or financial
16. In respect of application of term loans
In our opinion, the term loans raised by the company during the year
have been applied for the purpose for which it was raised.
17. In respect of fund used
Based on an overall examination of the Balance Sheet of the company and
a review of the consolidated fund ftaw statement for the year, we
report that no funds raised on short-term basis have been used for
18. In respect of preferential allotment of shares
The company has not made any preferential allotment of shares to
parties and companies covered in the register maintained u/s 301 of the
Act, during the year.
19. In respect of securities created for debentures
The company has not issued any debentures during the year. Therefore
provisions of clause 4(xix) of the Order are not applicable to the
20. In respect of end use of money raised by public issues
The company has not raised any money from the public during the year
21. In respect of fraud
According to the information and explanation given to us, no fraud on
or by the company has been noticed or reported during the year.
For MEHRA ANIL & ASSOCIATES
Reg. No. :117692W
Dated: 31/08/2010 (Proprietor)