We have audited the attached Balance Sheet of HIMALCHULI FOOD PRODUCTS
LTD. formerly known as SAHELI LEASING AND INDUSTRIES LTD. AS ON 31st
march 2012, Statement of profit and Loss Account and also the Cash Flow
statement for the period ended on that date and annexed thereto. These
financial statements are responsibility of company''s management. Our
responsibility is to express an opinion on these financial statement
based on our audit.
We concluded our audit in accordance with 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
the material misstatement. 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 management as well as evaluating
the overall financial presentation. We believe that our audit provides
a reasonable basis for our opinion.
The accounts of the company have been prepared on the basis that it is
a going concern. The company has accumulated losses which have been
increased due to losses during the year. Further, the company is not
engaged in trading and manufacturing activities during the year and has
financial instability being working capital borrowing form banks under
settlement. The ability of the company to continue as going concern is
dependent upon the results of the management measures to meet the
contingencies and implementation of those measures. Its future
profitability and its financial viability, on which we are unable to
express any opinion presently.
Further to our comments in this report and Notes we state that :- 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
audit. ii. In our opinion proper books of accounts as required by the
law has been kept by the company so far as it appears form our
examination of the books.
iii. The Balance Sheet and profit and Loss account and Cash Floe
Statement referred to in this report are in agreement with the books of
accounts. iv. In our opinion, the Statement of profit and Loss,
Balance Sheet and cash Flow Statement comply with the accounting
standards referred to in sub section (3c) of section 211 of The
Companies Act 1956.
v. On the basis of written representation received form the directors
of the company and taken on record by the Board of Directors, we report
that no director is disqualified as on march 31, 2012 form being
appointed as director in terms of clause (g0 of sub section (1) of
section 274of 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 to gather with Notes on Accounts and the Significant
Accounting Policies give the information required by The Companies Act
1956, in the manner so required and subject to above with their
corresponding effects on the profits for the period and the period end
state of affairs to the extent the financial effects of such deviation
also give true and fair view. :-
a) In case of the Balance Sheet, of the state of affairs of the company
as on March, 31 2012.
b) In the case of Statement of profit and Loss of the lOSS for the
period ended on that date.
c) In the case of cash Flow Statement of the cash flow for the year
ended on that date.
As required by the Companies (Auditors'' Report) order 2003, issued by
the company Law Board in terms of section 227(4A) of The Companies Act
1956 and on the basis of such checks as we considered appropriate and
according to the information and explanation given to us during the
course of our audit, we further report that
1. FIXED ASSETS
As explained to us there is no fixed assets of the company, hence
question of maintaining quantitative details and situation of the fixed
assets and physical verification by management at reasonable frequency
during the year does not arise.
As explained to us , there is no inventory during the year, hence the
question of physical verification by the management at reasonable
frequency during the year does not arise.
3. In respect of loan. 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 following are the particulars of loans taken by the company.
Name of party Relation with Amount Year End
Party Rs. Balance
Omprakash R Agarwal HUF Director 15000 15000
Vivek O Goel HUF Director 25000 25000
Vivek O Goel Director 180000 1755000
Sahelli Vastra Udyog
Ltd. Company in which 85000 408465
Kay Bee Texpin Ltd Company in which 85000 1685000
Omprakash R Agarwal Director 1504000 3444000
b) The company has not granted any loan during the year.
c) In our opinion and according to information and explanation given to
us the rate of interest wherever applicable and other terms and
conditions are not prima facie prejudicial to the interest of the
company. The loans taken for granted by company are interest free.
d) As informed to us, the company is regular in re paying the principal
amounts as stipulated and has been regular in the payment of interest,
where ever applicable. The parties have repaid the principal amounts
as stipulated and have been regular in payment of interest wherever
e) These loans taken for granted by the company are repayable on demand
and mostly interest and therefore the question of overdue amounts do
4. INTERNAL CONTROL
In our opinion and according to information and explanation given to
us, there are adequate internal control procedures commensurate with
the size of company and the nature of business with regard to the fixed
assets. During the course of our audit, no major weakness has been
noticed in the internal controls.
5. INRESPECT OF TRANSACTIONS COVERED UNDER SECTION 301 OF THE
COMPANIES ACT, 1956
a) Based on the audit procedures applied by us and according to the
information and explanation provided by the management, we are of the
opinion that the transactions that need to be entered into the register
maintained under section 301 have been so entered.
b) In our opinion and according to information and explanation given to
us, the transactions made in pursuance to contracts or arrangements
entered in the registers maintained under section 301 and exceeding the
value of five lac rupees in respect of any party during the period have
been made at prizes which are reasonable having regard to the
prevailing market prices at relevant time.
6. The company has accepted deposits in nature of current account
transaction loan form the corporate bodies and shareholders and
directors and friends of the directors during the period and
consequently to the extent the provisions of section 58A and 58AA of
The Companies Act 1956 and rules framed there under are in pour opinion
applicable. Such Referred deposits have been accepted in compliance
with the provisions of section 58A and 58AA and rules framed there
7. In our opinion, the company has neither formal internal audit
system nor the work was entrusted to any outside agency as such but its
control procedure ensures reasonable commensurate with size and nature
of its business.
8. The central government has not prescribed maintenance of cost
records under section 209(1)(d) of The Companies Act 1956.
9. IN RESPECT OF STATUTORY DUES
a) In our opinion and according to records of the company, the company
has no liabilities of Provident Fund and ESI.
b) According to the information and explanation given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, custom duty and excise duty were outstanding as at 31-03-2012 for
a period of more than six months from the date they become payable.
c) According to the records of the company, there are no dues of sales
tax, income tax, customs tax, wealth tax, excise duty/cess which have
not been deposited on account of any dispute.
10. The company has accumulated losses at the end of financial period
and such losses are more than 50% of its net worth shown in the end of
its financial statements. Further, the company has incurred loss of
Rs.76,17,905/- during the financial period covered by our audit. The
company has incurred cash loss of Rs.76,17,905/- in current financial
year and the company has not incurred losses in immediately preceding
11. In our opinion and according to information and explanation given
to us no loans and advances have been granted on the basis of security
by way of pledge of shares, debentures or other securities.
12. In our opinion and according to the information and explanation
given to us the nature of activities of the company does not attract
special statute applicable to chit fund and nidhi/mutual/benefit
13. The company has not undertaken any dealing /trading in shares,
securities, debentures or other investments during the period. However
the company purchased investments with a view to hold such investments
and earn income form dividend or interest there on or with an intension
of strategic stack in sister concerns. In our opinion this clause of
CARO is not applicable to such investments of the company.
14. According to the information and explanation given to us the
company has not given any guarantee for loans taken by others form
15. The company has not raised any term loan during the year.
16. According to the information and explanation given to us and over
all 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.
17. During the period the company has not made any preferential
allotment of shares to parties and companies covered in register
maintained under section 3014 of The Act.
18. During the period covered by our audit report, the company has not
issued any debentures.
19. The company has not raised any money by way of public issue during
20. Based on audit procedures and information and explanations given by
management, we report that no fraud on or by the company has been
noticed or reported during the course of our audit.
For and on behalf of
C.S.Jariwala & Co.
FRN – 114906W
Anuj C Jariwala- Partner
Membership Np. 109919
Surat June 20, 2012.