We have audited the attached Balance Sheet of PYRAMID TRADING AND
FINANCE Ltd. At 31st March, 2012 and the Profit and Loss Account 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.
1. 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 misstatements. 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 our opinion. ''
2. As required by the 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 in the annexure
hereto a statement on the matters specified in paragraphs 4 & 5 of the
3. Further to our comments in the annexure referred to in paragraph 2
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 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, Profit & Loss A/C and cash flow statement dealt
with by this report are in agreement with the books of accounts,
d) In our opinion the Balance Sheet, Profit & Loss A/C and Cash Flow
statement dealt with by this report comply with the mandatory
accounting standards referred in sub-section (3C) of section 211 of the
Companies Act, 1956.
e) In our opinion, and based on the information & explanations given to
us, non of the directors are disqualified as on 31ST MARCH 2012 from
being appointed as
f) In our opinion, and best of our information & according to the
explanations given to us, the said accounts read to-gather with the
Significant accounting policies and other notes thereon, subject to
note no. 2(b) on the notes on accounts for non payment and provision of
annual listing fees to Stock exchange for year 2001-2010, give the
information required by the Companies Act, 1956, in the manner so
required, and present a true and fair view, in conformity with the
accounting principles generally accepted in India.
i) In so far as it relates to Balance Sheet, of the state of affairs of
the company as at 31ST MARCH 2012,
ii) In so far as it relates to the Profit and Loss Account, of the Loss
of the company for the year ended on that date,
1. The company does not possess any fixed asset during the year under
audit, hence the said clause is not applicable.
2. In respect of loans, secured or unsecured, granted or taken by the
Company to / from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956:
a) The Company has taken loans from companies , firms or other parties
listed in the register maintained under section 301 of the Companies
Act, 1956, the rate of interest and other terms and conditions are not
prima facie prejudicial to the interest of the company.
b) The Company has granted interest free loans and advances to
companies listed in the register maintained under section 301 of the
companies act. However as per information and explanation given to us
the loans granted are not prejudicial to the interest of the company
since these are given out of interest free borrowings from other
c) Parties to whom loans and advances in the nature of loans have been
given by the company are repaying the principal amounts as stipulated
and are regular in the payment of interest wherever applicable.
3. 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 for its service activities.
4. The Company does not have any internal audit system operating
during the year under review.
5 In respect of transactions covered under Section 301 of the Companies
a) In our opinion and according to the information and explanations
given to us, the transactions it made in pursuance of contracts or
arrangements, that needed to be entered into in the register maintained
under Section 301 of the Companies Act, 1956 have been so entered.
b) In our opinion and according to the information and explanations
given to us, there are no transactions in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1946 aggregating to Rs. 5,00,000/- (Rupees Five Lacs
only) or more in respect of any party during the year.
6 In our opinion and according to the information and explanations
given to us, the company has not accepted any deposit, from public
during the year.
7 As informed to us, the maintenance of Cost Records has not been
prescribed by Central Government under Section 209 (1) (d) of the
Companies Act, 1956 for any of the products manufactured by the
8 According to the records of the Company, undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income-Tax, Sales-Tax, wealth Tax, Customs
Duty, Excise Duty, Cess and other statutory dues if payable have been
regularly deposited with the appropriate authorities wherever
applicable .According to the information and explanations given to us,
no undisputed amounts payables in respect of the aforesaid dues were
outstanding as at 31st March 2010, for a period of more than six months
from the date of becoming payable, except that the company has not paid
profession tax, and that there are no undisputed statutory dues
pending before appropriate authorities.
9 The company has no accumulated losses during the financial year
covered under audit, however company has incurred cash losses during
the current financial / preceding years
10 Based on our audit procedures and according to the information and
explanation given to us, we are of the opinion that the Company has not
defaulted in repayment of dues to financial institutions, banks or any
11 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
12 In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund / society, Therefore, clause 4(xiii) of the Companies
(Auditor''s Report) Order 2003 is not applicable to the Company.
13 The Company is not presently dealing in or trading in shares,
securities, debentures and other investments and proper records have
been maintained for shares, securities, debentures and other securities
which are held by company in its own name.
14 According to the information and explanations given to us and the
representations made by the management, the Company has not given
guarantee for loans taken by others from any bank or financial
institution during the year under review .
The Company has not raised any term loans during the year under review.
16 According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, we are of the
opinion that the Company has not utilised from short term sources
towards acquisition of fixed assets. No long term funds has been used
to finance short term assets.
17 During the year, the Company has not made any preferential allotment
of shares to parties and companies covered in the Register maintained
under Section 301 of the Companies Act, 1956.
18 The Company has not issued any debentures.
19 The Company has not raised any money by way of public issue during
20 In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year, that causes the financial statements to be materially
21 In our opinion Other Clauses of the said order are not applicable to
the company for the year under review.
Place : Mumbai For N. D. KAPUR & CO.
Dated : 1/08/2012 Chartered Accountants
Firm Regn.No. 001196N
S. K. AGRAWAL
M. No. : 13968.