We have audited the attached balance sheet of M/S. RAJESH EXPORTS
LIMITED as on 31st March 2012, and the Profit and Loss account and Cash
Flow Statement of the company for the year ended on that date annexed
thereto. 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 have conducted our audit in accordance with the 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 the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
We report as follows
1. As required by the Companies (Auditor''s Report) Order, 2003 issued
by the Central Government in terms of sub-section (4A) of Section 227
of the Companies Act, 1956, and on the basis of such checks and
verification of the books of accounts as we consider necessary and to
the best of our knowledge and according to the information and
explanations given to us during the course of our audit, we enclose in
the Annexure a statement on the matters specified in paragraphs 4 and 5
of the said order.
2. Further to our comments in the Annexure referred to in Paragraph 1
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, the company has kept proper books of account as
required by law so far as appears from our examination of the books.
c) The Balance Sheet, Profit and Loss account and cash Flow Statement
dealt with by this report are in agreement with the books of accounts.
d) In our opinion, the Profit and Loss account, Cash Flow Statement and
Balance Sheet comply with mandatory Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956.
e) On the basis of written representations received from the directors,
and taken on record by the Board of Directors, we report that none of
the directors are disqualified as on 31st March 2012 from being
appointed as a director in terms of Clause (g) of sub section (1) of
Section 274 of the Companies Act, 1956;
f) In our opinion and to the best of our knowledge and according to the
information and explanations given to us, the said accounts give
information required by the Companies Act, 1956, in the manner so
required and read with other Notes annexed to the audited accounts give
a true and fair view in conformity with the accounting principles
generally accepted in India:
i) In the case of the balance sheet, of the state of affairs of the
company as on 31st March 2012 and
ii) In the case of the Profit and loss account, of the Profit for the
year ended on that date;
iii) In the case of cash flow statement, of the cash flow of the company
for the year ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 1 OF THE REPORT OF EVEN DATE OF THE
AUDITOR''S TO THE MEMBERS OF M/S. RAJESH EXPORTS LIMITED, BANGALORE, ON
THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH 2012.
1. (a). The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets but identification mark on the individual assets is not
(b). The Company has drawn up a programme of Physical verification of
Fixed Assets which in our opinion is reasonable having regard to the
size of the Company and the nature of its assets. Fixed assets were
physically verified by the management during the year and no material
discrepancies were noticed on such verification.
(c). There was no disposal of substantial part of fixed assets during
the year and therefore, it does not affect the going concern
2. As explained to us, Inventories held by the company have been
physically verified by the management at regular intervals during the
In our opinion and according to the information and explanations given
to us, the procedures of physical verification followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of its business.
The Company has maintained proper records of inventories. As explained
to us, there were no discrepancies noticed on physical verification of
inventory as compared to the book records.
3. As per the information and explanations furnished by the
Management, the company has not granted any loans to companies or other
parties listed in the register maintained under section 301 of the
Companies Act, 1956.
The Company has taken loan from the parties listed in the register
maintained under section 301 of the companies Act, 1956. These loans
were taken from three parties and the amount outstanding as at the year
end is Rs.385995372/- and maximum amount taken at any time of the year
is Rs.460707638/-. The rate of interest and other terms and conditions
of these loans taken are not prima facie prejudicial to the interest of
the company. The payment of principle amount and interest thereon are
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, for the purchase of inventory and fixed assets and for the
sale of goods and services. During the course of our audit, no major
weakness has been noticed in the internal control system of the company
in respect of this area.
5. (a). In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
referred to in section 301 of the companies Act, if any, have been
entered in the register maintained under section 301 the companies Act,
(b). The transactions made in pursuance of such contracts or
arrangements, exceeding the value of rupees five lakhs in respect of any
part during the year, if any, have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
6. The company has accepted deposits from an individual and the
directives issued by the Reserve Bank of India and the provision of
Section 58A and 58AA or any other relevant provisions of the Companies
Act 1956 and the rules framed there under, where applicable, have been
complied with. The Company Law Board has not passed any order with
regard to public deposits.
7. In our opinion, the company has it''s own internal audit system
commensurate with the size and the nature of its business.
8. The company has maintained cost records and accounts as prescribed
by the Central Government under section 209(1)(d) of the Companies Act,
1956. We have broadly reviewed the accounts and records of the company
in this connection and are of the opinion that prima facie the
prescribed accounts and records have been made and maintained. However,
we have not made a detailed examination of the same.
9. According to the records of the Company, the Company is generally
regular in depositing undisputed statutory 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 statutory dues, as applicable to it,
with the appropriate authorities.
According to the information and explanations give to us, no undisputed
amounts payable in respect of aforesaid dues were outstanding at the
year end for a period of more than six months from the date they become
payable. Based on information and explanations given to us, we furnish
hereunder the particulars of disputed aforesaid dues,
Name of Nature of Amount in Period to
which Forum where
the Statute the dues Rs. the amount
relates dispute is
Karnataka Sales Sales Tax 1,54,702 2001-02 First
--Do-- --Do-- 1,00,000 2002-03 --Do--
--Do-- --Do-- 2,24,355 2003-04 --Do--
Tax Act Income Tax 26,23,25,771 2007-08 The
Income Tax Act Income Tax 18,84,18,119 2008-09 The
Karnataka ESI 89,27,290 04/2000 to
Karnataka ESI 37,78,409 04/06 to
Service Tax Service Tax 3,67,24,590 2006-07 The
and penalty Customs,
10. The Company has no accumulated losses and has not incurred any
cash losses during the financial year covered by the audit or in the
immediately preceding financial year.
11. As per information furnished by the management, the company has
not defaulted in repayment of dues to banks, financial institutions and
12. According to the information and explanations given to us, the
Company has maintained adequate documents and records in cases where
the Company has granted loans on the basis of security by way of pledge
of shares, debenture and other securities.
13. The company is not a chit fund or a nidhi /mutual benefit
fund/society and hence clause 4 (xiii) of Companies ( Auditor''s Report)
Order 2003 is not applicable to the company.
14. In our opinion, the company is not a dealer or a trader in shares,
securities, debentures and other investments.
15. The company has not given guarantees for loans taken by others
from banks or financial institutions.
16. The Company did not have any outstanding term loans at the end of
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
investment by the company.
18. 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.
19. The company has not created any security or charge in respect of
20. The company has not raised any money through a public issue during
For V. SIVASANKAR & CO,
Firm Regn. No. 0108395
Place : Bangalore (CA VIJAYA SIVASANKAR.P)
Date : 30-5-2012 Prop.