We have audited the attached Balance Sheet of Rodium Realty Limited as
at 31st March 2012, and also the Statement of Profit and Loss and the
cash flow statement for the year ended on that date annexed thereto
which we have signed under reference to this report. 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 generally accepted auditing
standards 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
As required by the Companies (Auditor''s Report) Order, 2003 (the
Order) issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Companies Act, 1956 (the ''Act'')
we give in the annexure a statement on the matters specified in
paragraphs 4 and 5 of the Order.
Further to our comments referred to above, we report that:
1. We have obtained all the information and explanations, which to the
best of our knowledge belief were necessary for the purpose of our
2. In our opinion, proper books of account, as required by law, have
been kept by the Company so far as appears from our examination of
3. The Balance Sheet, Statement of Profit and Loss and Cash Flow
statement dealt with by this report are in agreement with the books of
4. In our opinion, the Balance Sheet, Statement of Profit & Loss and
Cash Flow statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956;
5. On the basis of written representations received from the Directors
as on 31st March 2012 and taken on record by the Board of Directors and
on the basis of examination and records of the company, we report and
certify that none of the Directors is disqualified as on 31 March, 2011
from being appointed as a Director in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956 on the said
6. In our opinion and to the best of our information and according to
the explanations given to us, the said Accounts read together with
notes thereon, 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;
a) in the case of the Balance Sheet, of the State of Affairs of the
Company as at 31st March 2012;
b) in the case of the statement of Profit and Loss, of the Profit for
the year ended on that date; and
c) in the case of the Cash Flow Statement, of the Cash Flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS1 REPORT
(Referred to in our report of even date to the members of RODIUM REALTY
LIMITED as at and for the year ended 31st March, 2012).
i) In respect of its Fixed Assets:
a) The company has maintained proper records showing full particulars,
including quantitative details and situation of Fixed Assets;
b) As explained to us, the assets have been physically verified by the
management, which in our opinion is reasonable, considering the size
and the nature of its business. The frequency of verification is
reasonable and discrepancies noticed on such physical verification have
been properly dealt with in the books of account;
c) The company has not disposed off any part of its Fixed Assets during
ii) In respect of its inventories:
a) The inventory has been physically verified by the management during
the year. In our opinion, the frequency of verification is reasonable;
b) The procedures of physical verification of inventory followed by the
management are, in our opinion, reasonable and adequate in relation to
the size of the company and nature of its business;
c) The company is maintaining proper records of inventory. As informed,
no material discrepancies were noticed on such physical verification.
iii) a) The company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956. Accordingly the clauses
4(iii) (b) to (d) of the Order are not applicable;
b) The company has taken unsecured loans from 10 parties covered in the
register maintained under section 301 of the Companies Act, 1956. The
maximum amount involved during the year and the year end balance of
loans taken from such parties were Rs. 208,749,547/- and Rs.
c) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms & conditions are not
prima facie prejudicial to the interest of the company.
d) The principal and interest payments in respect of the said loans
iv) In our opinion 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 for
the sale of goods and services. During the course of our audit, no
major weakness has been noticed in internal control system, in respect
of these areas.
v) a) Based on the audit procedure applied by us and according to the
information, explanations and representation given to us, we are of the
opinion that particulars of contracts or arrangements referred to in
section 301 of the Companies Act, 1956 that need to be entered in the
register maintained under that section have been so entered.
b) According to the information and explanations 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
exceeding the value of Rs.5 lakhs in respect of each party, the
transactions have been made at prices which are, prima facie,
reasonable having regard to the prevailing market prices at the
relevant time, where comparable market price exists.
vi) In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits from public
within the meaning of section 58 A and 58 AA of the Companies Act, 1956
and Rules framed there under.
vii) The Company has appointed a firm of Chartered Accountants to carry
out the internal audit of its operations. In our opinion, the company''s
internal audit system is commensurate with the size and nature of its
viii) We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government for
maintenance of cost records under section 209(1)(d) of the Act, and are
of the opinion that prima facie the prescribed accounts and records
have generally been made and maintained. We have not, however, made a
detailed examination of the records with a view to determine whether
they are accurate or complete.
ix) a) 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 with appropriate authorities, where applicable.
According to the information and explanations given to us, there are no
undisputed amounts payable in respect of such statutory dues which have
remained outstanding as at 31st March, 2012 for a period of more than
six months from the date they became payable.
b) According to the information and explanations given to us, there are
no dues of Sales tax, Income tax, Custom duty, Wealth tax, Service Tax,
Excise duty and Cess that have not been deposited on account of any
x) The accumulated losses at the end of the financial year are less
than fifty percent of the net worth of the Company. Further, the
Company has not incurred cash losses in the current financial year and
in the immediately preceding financial year.
xi) The company has not defaulted in repayment of its dues to banks.
The company does not have any borrowings from financial institutions or
by way of debentures.
xii) The company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures or other securities.
xiii) The provisions of any special statute applicable to Chit Fund,
Nidhi or Mutual Benefit Fund / Societies are not applicable to the
xiv) According to the information and explanations given to us, the
company is not dealing or trading in shares, securities, debentures or
other investments except for investments in mutual funds, where the
company has maintained proper records, timely entries have been made
and the investments are held in the name of the company.
xv) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from
banks and financial institutions.
xvi) On the basis of the records examined by us we have to state that,
the company has, prima facie, applied the Hire Purchase loans for the
purposes for which they were obtained. The company does not have any
other term loans.
xvii) 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
xviii) The company has not made any preferential allotment of shares
during the year to parties and companies covered in the register
maintained under section 301 of the companies Act, 1956.
xix) The company has not issued any debentures during the year.
xx) The company has not raised any money by way of public issue during
xxi) On the basis of our examination 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.
For M. M. NISSIM AND CO.
FRN No. (ICAI Reg. No.107122W)
August 29, 2012 Partner
Mumbai Mem. No. 36490