We have audited the attached Balance Sheet of SJ Corporation Limited as
at 31 st March, 2012 and both the Profit and Loss Statement and the
Cash Flow Statement for the year ended on that date, 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 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
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, we give in trie Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said order.
Further to our comments in the Annexure referred to above, we report
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 account as required by the law have
been kept by the company, so far as appears from our examination of
c. The Balance Sheet and Profit & Loss Account dealt with by this
report are in agreement with the books of account.
d. In our opinion, the Balance Sheet and Profit & Loss Account dealt
with by this report comply with the accounting standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956;
e. Based on representations made by all the directors of the company
and the information and explanation as made available, directors of the
company do not prima facie have any disqualification as referred to in
clause (g) of sub-section (1) of section 274 of the Companies Act,
f. 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 :
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 Profit and Loss Statement, of the Profit for the
year ended on that date; and
iii. in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS'' REPORT
(Referred to in Para 2 of our report of even date) To the members of SJ
CORPORATION LIMITED Mumbai
i. a. The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
b. All the assets have not been physically verified by the management
during the year but there is a regular programme of verification which,
in our opinion, is reasonable having regard to the size of the company
and the nature of its assets. No material discrepancies were noticed on
c. During the year, the company has not sold substantial part of fixed
assets so as to affect its going concern status.
ii. a. The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
b. 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. The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
iii. The company has neither granted nor taken any loans, secured or
unsecured to/from any companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
iv. 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 with regard to purchases of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal controls.
v. a. According to the information and explanations given to us, we are
of the opinion that the transactions that need to be entered into the
register maintained under section 301 of the Companies Act, 1956 nave
been so entered. b. In our opinion and according to information and
explanations given to us, there are no transactions aggregating to Rs.
5,00,000/- or more during the year in respect of any party in pursuance
of contracts or arrangements entered in the register maintained u/s 301
of the Companies Act, 1956.
vi.In our opinion and according to the information and explanations
given to us, the Company did not accept any deposit in contravention of
sections 58A and 58AA of the Companies Act, 1956 and the Companies
(Acceptance of Deposits) Rules, 1975.
vii.In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
viii.The Central Government has not prescribed maintenance of cost
records u/s 209(1 )(d) of the Companies Act, 1956 for any of the
product of the company.
ix. a. The company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education and protection fund, employees'' state insurance
fund, income tax, sales tax, wealth tax, custom duty, excise duty cess
and other material statutory dues wherever applicable to it.
b. According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, custom duty, excise duty and cess were in arrears, as at 31 st
March, 2012 for period of more than six months from the date they
c. As per records of the company and in accordance with the information
and explanation given to us, there are no dues of sales tax, income
tax, custom duty, wealth tax, excise duty and cess which have not been
deposited on account of any dispute.
x. The Company does not have any accumulated losses. The company has
neither incurred cash losses during the current financial year nor
immediately preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution, bank or debenture holders.
xii.The company has not granted any loans and/or 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
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
xiv.The company has maintained proper records of transactions and
contracts in respect of trading in securities, debentures and other
investments and timely entries have been made therein. All investments
in shares and other securities have been held by the company in its own
xv. The company has not given guarantees for loans taken by others from
banks or financial institutions. xvLThe company has not taken any term
xvi.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 nave been used for long-term
investment. No long-term funds have been used to finance short-term
assets except permanent working capital.
xviii.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.
xix.During the year the company had not issued any debentures.
xx.According to information and explanation given to us the company has
not raised money by public issue, therefore, requirement for commenting
on the end use of money raised by public issue does not arise.
xxi.Accordinq to the information and explanations given to us, no fraud
on or by the company has been noticed or reported during the course of
For RAVI & DEV
(FRN : 108752W)
Membership No. 82325
May 25, 2012