We have audited the attached Balance Sheet of Rushil Decor Ltd., as at
31st March, 2012, the Profit and Loss Statement and the Cash Flow
Statement 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 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 the overall financial statement
presentation. We believe that our audit provides reasonable basis for
As required by The Companies (Auditor''s Report) Order, 2003 & the
Companies (Auditors Report) (Amendment) Order 2004, 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 a statement on
the matters specified in paragraph 4 and 5 of the said order.
Further to our comments in the Annexure referred to above, we report
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
(ii) In our opinion , proper books of accounts as required by law have
been kept by the Company so far as it appears from our examination of
(iii) The Balance Sheet, Profit and Loss Statement and Cash Flow
Statement dealt with by this report are in agreement with the books of
(iv) In our opinion the Balance sheet, Profit and Loss Statement and
Cash Flow Statement dealt with this Report comply with the accounting
standards referred to in sub-section(3C) of section 211 of Companies
(v) On the basis of written representation received from the directors
as on 31st March, 2012 and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March,
2012 from appointed as director in terms of clause (g) of sub-section
(1) of section 274 of the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts 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 Profit & Loss Statement, of the Profit for the
Year ended on that date
c) In the case of the Cash Flow Statement, of the cash flows, for the
Year ended on that date.
ANNEXURE TO AUDITORS'' REPORT
REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE
(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) According to the information and explanations given to us, the
fixed assets have been physically verified by the management during the
year in a phased periodical manner which, in our opinion, is reasonable
having regard to the size of the Company and nature of the assets. No
material discrepancies were noticed on such verification.
(c) In our opinion, the Company has not disposed off substantial part
of its fixed assets during the year and the going concern status of the
Company is not affected.
(ii) In respect of inventories:
(a) As explained to us, the inventories have been physically verified
by the management at reasonable intervals during the year. In our
opinion, the frequency of such verification is reasonable having regard
to the size of the Company and the nature of its business.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) On the basis of our examination of the records of the company we
are of the opinion that the company has maintained proper records of
inventory. The discrepancies noticed on verification between physical
stocks and the book records were not material .
(iii) In respect of loan from/to parties referred to in section 301 of
The Companies Act, 1956;
(a) The Company has taken loan from Six Parties covered in register
maintained under section 301 of the Companies Act, 1956. The maximum
amount involved during the year was Rs. 25,38,335/- and the year end
balance of loan taken from such parties was Rs. 23,99,383/-.
(b) In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from parties listed in the register
maintained under section 301 of The Companies Act, 1956 are not, prima
facie, prejudicial to the interest of the Company.
(c) As regards loan taken by the company, terms of the repayment have
not been stipulated and hence the question of any overdue amount does
(d) The company has not granted Unsecured Loans to any party covered
under register maintained u/s 301 of the Companies Act, 1956.
(iv) In our opinion, and according to the information and explanation
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 inventory, fixed assets and with
regards to the sale of goods.
During the course of audit, no major weakness have been noticed in the
(v) In respect of particulars of contracts or arrangements referred to
in Section 301 of Companies Act, 1956;
(a) In our opinion and according to the information & explanations
given to us, 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 section 301 of the Companies
(b) In our opinion, and according to information and explanation given
to us, the transactions of purchase of goods & materials, sales of
goods, materials, made in pursuance of contract or arrangements entered
in the register maintained under section 301 of the Companies Act, 1956
aggregating during the year Rs. 5.00 Lacs or more in respect of such
parties have been made at prices which are reasonable having regard to
the prevailing market prices for such goods, materials, or the prices
at which the transactions for similar goods, materials, have been made
with other parties
(vi) In our opinion and according to the information and explanations
given to us, the Company has compiled with the provisions of section
58A and 58AA or any other relevant provision of the Companies Act, 1956
and the Companies (Acceptance of Deposits) Rules, 1975 with regard to
the deposits accepted from public.
(vii) The company has appointed in-house Chartered Accountant as its
internal auditor for the year under review. In our opinion, the company
has an internal audit system commensurate with the size and nature of
(viii) The Central Government has prescribed maintenance of cost
records under section 209(i)(d) of the companies act,1956. On the basis
of report received from the practicing cost accountant, we are of the
opinion that company has prima facie maintained prescribed records and
accounts. We have not, however made detailed examination of the same.
(ix) a) According to the information and explanations given to us, the
Company is generally regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, Employees'' State
Insurance, Income tax, Value Added Tax, Commercial Tax, Service Tax,
Wealth tax, Custom Duty, Excise Duty, Cess and other material statutory
dues applicable to it. There are no undisputed statutory dues as
referred to above as at 31st March 2012 outstanding for a period of
more than six months from due date they become payable.
b) The company has no disputed statutory dues that have not been
deposited on account of matters pending before appropriate authority.
(x) The Company does not have accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
covered by our audit and in the immediately preceding financial year.
(xi) According to information & explanations given to us, the company
has not generally defaulted in repayment of dues to Banks / Financial
(xii) In our opinion and according to the information and explanations
given to us, the Company has not granted loans and advances on the
basis of security by way of pledge of shares, debentures and other
(xiii) In our opinion, the Company is not a Chit Fund or a Nidhi/Mutual
(xiv) In our opinion, the Company is not dealing or trading in shares,
securities, debentures and other investments.
(xv) In our opinion, the terms & conditions on which the company has
given guarantee for loans taken by others from Banks or financial
institutions are prima facie, not prejudicial to the interest of the
(xvi) In our opinion and according to the Information & explanations
given to us the term loans have been broadly applied for the purpose
for which they were raised.
(xvii) 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 there are no funds raised on short-term basis that
have been used for long-term investment.
(xviii) The Company has not made any preferential allotment of shares
during the year under review.
(xix) The Company has not issued any debentures during the year under
(xx) The Management has disclosed on the end use of money raised by
public issue and the same has been verified by us.
(xxi) According to the information & explanations given to us, no fraud
on or by the company has been noticed or reported during the course of
Place : Ahmedabad For Parikh & Majmudar
Date : 26th May, 2012 Chartered Accountants
[Dr. Hiten M. Parikh]
M. No. 040230
Firm Reg. No. 107525W