I. We have audited the attached Balance Sheet of Ritesh Properties and
Industries Limited as at 31st March 2012 and also the Statement of
Profit & Loss Account for the year ended on that date Annexed thereto
and the 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 opinion on these financial
statements based on our audit.
II. We have 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 mis-statement. 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
III. We report that:-
1. As required by Companies (Auditors'' Report) Order, 2003 issued by
the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956, we annex hereto a statement on the matters
specified in paragraphs 4 & 5 of the said Order.
2. Further to our comments in the Annexure referred to in paragraph
(1) above, we report as under:
(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 the
(c) The Balance Sheet, Statement of Profit & Loss Account and Cash Flow
Statement, referred to in this report, are in agreement with the books
(d) On the basis of written representations received from the Directors
as on 31st March 2012 and taken on record by the Board of Directors, we
report that none of the Director is 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;
(e) In our opinion the Balance Sheet, the Statement of Profit & Loss
and the Cash Flow Statement referred to in this report comply with the
Accounting Standards referred to in sub section (3C) of Section 211 of
the Companies Act, 1956; and
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said statement of accounts, read with
notes thereon as given in the Notes on Accounts
1. Depreciation :- Depreciation on Fixed Assets have not been
calculated on the rates as per Schedule XIV of the Companies Act, 1956,
however, it had been calculated and provided as per the rates
prescribed in Income Tax Act, 1961 as consistently been provided year
after year in past.
Give the information required by the Companies Act, 1956 in the manner
so required and give a true and fair view in conformity with the
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 & Loss Account, of the
Profit for the year ended on that date; and
iii. In the case of Cash Flow Statement, of the Cash flow for the year
ended on that date.
ANNEXURE TO AUDITORS'' REPORT
(Referred to in Paragraph (1) 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.
b) As explained to us, all the fixed assets have been physically
verified by the management in phased periodical manner which in our
opinion is reasonable having regard to the size of the company and
nature of its fixed assets. No material discrepancies were noticed on
c) As per the information and explanations given to us, the company has
not disposed off any substantial part of its fixed assets during the
2. a) Inventories have been physically verified by
the management at reasonable intervals during the year/at the year end.
b) As explained to us, the procedure of physical verification of the
stocks refer to in (a) above followed by the management, in our opinion
are reasonable and adequate in relation to the size of the company and
the nature of its business.
c) In our opinion and according to the information and explanations
given to us, the company is maintaining proper records of its
inventories and there were no material as compared to two companies in
previous year which are duly recorded as compared to the books of
3. a) The Company during the year under audit
has taken loan from one Company and one individual in the register
maintained under Section 301 of the companies Act, 1956. The year-end
aggregate balance of such loans taken from such parties was Rs.2017.58
Lacs (Previous Year Rs.975.37 Lacs). There are four (previous year
four) Companies covered in the register maintained under Section 301 of
the Companies Act, 1956, to which the company has granted loans. The
year-end aggregate balance of loans granted to such parties was
Rs.691.83 Lacs (Previous Year Rs. 787.10 Lacs).
b) The company has given loans to wholly owned subsidiaries of the
Company. In respect of the said loans, the maximum amount outstanding
at any time during the year and by year end is Rs.1755.07 Lacs
(Previous year Rs. 1460.09 Lacs).
c) In our opinion and according to the information and explanations
given to us, the rate of interest, where applicable, and other terms
and conditions of loans given by the company are not prima facie
prejudicial to the interest of the company.
d) In respect of the said loans, the same payable / receivable on
demand and there is no repayment schedule. The interest, where
applicable, is payable/receivable on demand. In respect of interest,
there are no overdue amounts.
e) In respect of said loans, there are no overdue amount.
4. In our opinion and according to the information 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 also for the sale of goods and services.
5. (a) In our opinion and according to the
informations and explanations provided to us by the management, the
transactions that need to be entered in to the register maintained
under section 301 of Companies Act, 1956 have been so entered.
(b) The company has no transaction exceeding to Rs.5,00,000/- or more
with the parties to be entered in to the register maintained u/s 301 of
the Companies Act, 1956.
6. According to the information and explanations given to us, the
company has not accepted any deposits from the public. Therefore, the
provisions of Clause (vi) of paragraph 4 of the Order are not
applicable to the Company.
7. In our opinion, the Company has an adequate internal audit system
commensurate with the size of the company and nature of its business.
8. Maintenance of cost records has not been prescribed by the Central
Clause (d) of sub section (1) of Section 209 of the Companies Act, 1956
for the type of industry carried on by the company.
9. a) According to the records of the Company, the
Company is generally regular in depositing with the appropriate
authorities the undisputed statutory dues including Income Tax, Sales
tax, Wealth Tax, Custom Duty, Excise duty and other Statutory dues.
b) According to the information and explanations given to us, no
undisputed amounts are payable in respect of such statutory dues were
outstanding as at 31st March, 2012 for a period of more than six months
from the date they become payable.
c) According to the information and explanations given to us and on the
basis of our examination of the books of accounts, as on this date,
there are no dues payable in respect of Income tax, Wealth Tax, Sales
Tax, Custom Duty. Excise Duty and any other statutory dues which are in
dispute and have not been deposited with appropriate authorities
10. The company has issued subscribed and fully paid up Share Capita I
of Rs. 1159.10 lacs and credit balance of Rs.853.09 iacs in Reserve &
Surplus by the year ended on 31st March, 2012 after adjusting the
accumulated losses of Rs. 1679.84 lacs. During the year ended under
audit, it has earned cash profit (after tax) of Rs. 123.46 lacs
(Previous year Rs.623.17 lacs).
11. Based on our Audit procedure and on the information and
explanation given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to bank.
12. According to the information and explanations given tc us. the
company has not granted any loans and advances on the basis of
securities by way of pledge of shares, debentures and other securities.
13. The company is not a chit fund or a nidhi / mutual benefit
fund/society. Therefore, the provision of Clause (xiii) of paragraph 4
of the Order is not applicable to the Company,
14. According to information and explanations given to us. the company
has maintained proper records of investments. All investments are being
held by the company in its own name,
15. According to information and explanations given to us, the company
has not given guarantees for loans taken by others from the bank or
16. The company has not taken any term loan during the year.
17. Based on 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 there are no funds raised on short term basis which have
been used for long term investment.
18. Based on the audit procedures performed and the information and
explanations given to us by the management, we report that the company
has not made any preferential allotment of shares/ debentures to
parties and companies covered in the Register maintained under section
301 of the Companies Act, 1956.
19. During the year under audit the company has no outstanding
liability towards debentures.
20. The Company has not raised any money by public issue during the
21. In our opinion and according to the informations and explanation
given to us, no informations fraud on or by the Company has been
noticed or reported during the year.
For S. M. Mathur & Co.
(Firm Registration No. 006588N)
Place: New Delhi (S. M. Mathur)
Dated: 27.08.2012 Prop.