We have audited the attached Balance Sheet of M/s VERTICAL INUSTRIES
LIMITED (formerly known as LA MANSION GRANITES LIMITED) as at 31st
March 2012 and the related Profit & Loss Account and 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 the audit in accordance with the 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
1. As required by Companies (Auditors report) Order, 2003, issued by
the Central Government of India in terms of sub - section 4(A) of
Section 227 of The Companies Act, 1956 we enclose in the Annexure
''A'' a statement on the matters specified in paragraphs 4 and 5 of
the said order.
2. Further to our comments in the Annexure ''A'' referred to in
paragraph 2 above, we report 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
ii. 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
iii. The Balance sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
iv. In our opinion, the Balance Sheet, Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in sub-Section (3c) of the Section 211
of the Act;
v. On the basis of written representations received from the
directors, as on 31st March 2011 and taken on record by the Board of
Directors, none of the directors are 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 Act;
3. In our opinion, and to the best of our information and explanations
given to us, the said accounts read with the notes thereon give the
information required by the Companies Act, 1956 in the manner so
required and give a true & fair view:
a. In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2012 and
b. In the case of the Profit and Loss of Account, of the LOSS for the
year ended on that date and
c. In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE ''A'' TO THE AUDITORS'' REPORT
The Annexure referred to paragraph 2 of our report to the members of
Limited (formerly known as La Mansion Granites Limited) (the
Company) for the year
ended March 31st 2012 we report that:
i. Since the company is not holding fixed assets, the sub clauses (a),
(b) and (c) are not applicable.
ii. a) The inventories have been physically verified by management
reasonable intervals during the year; and
b) In our opinion, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business; and
c) The Company is maintaining proper records of inventory. The
discrepancies noticed during the physical verification of inventory as
compared to the books of record were not material and have been
properly dealt with in the books of accounts.
iii. Since the company has not granted any loans to companies, firms or
other parties covered in register maintained under section 301 of the
Act, the sub clauses (a) to (d) are not applicable; and
e) The Company has not taken unsecured loan from parties covered in the
registrar maintained under Section 301 of the Companies Act, 1956,
Hence, this clause is not applicable.
f) The rate of Interest and other terms and conditions of the aforesaid
loan are not prejudicial to the interests of the company; and
g) In our opinion, The payment of principal amount and interest are
iv. In our opinion and according to the information and explanations
given to us, there is an internal control commensurate with the size of
the Company and the nature of its business for the purchase of
inventory, fixed assets and for the sale of goods. During the financial
year, the Company did not undertake any activity of sale of services.
During the course of our audit, we were not observed any major
weaknesses in the internal control system.
v. According to the information and explanations given to us, there
are no contracts or arrangements referred to in Section 301 of the
Companies Act, 1956 that need to be entered in the register required to
be maintained under section,
vi. The company has not accepted any deposits from the public during
the year. Therefore, the provisions of clause (vi) of the Companies
(Auditors'' Report) Order, 2003 are not applicable to the Company.
vii. Since the company''s paid up capital and reserves is less than
Rs. 50,00,000/- and the company''s turnover is less than
5,00,00,000/-, this clause is not applicable to this company.
viii. According to the information and explanations given to us, the
Central Government has not prescribed maintenance of Cost records under
Section 209(i)(d) of the Companies Act, 1956. Accordingly clause
4(viii) of the order is not applicable.
ix. a) According to the records of the Company, undisputed statutory
Provident Fund, Investor Education and Protection Fund, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and
any other material statutory dues have been generally regularly
deposited with the appropriate authorities. According to the
information and explanations given to us, no undisputed amounts payable
in respect of the aforesaid dues were 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
and Excise Duty which have not been deposited on account of any
x. The company has accumulated losses exceeding 50% of its net worth.
The company has incurred cash losses during the financial year covered
by our audit and cash losses immediately preceding financial year.
xi. Based on our audit procedures and on the information and
explanations given by the management, no such loans were taken by the
Company during the year under the audit.
xii. In our opinion and according to the explanations given to us and
based on the information available, no loans and advances have been
granted by the Company on the basis of security by way of pledge of
shares, debentures and other securities.
xiii. In our opinion and according to the information and explanations
given to us, the Company is not a chit fund or a nidhi/mutual benefits
fund/society. Therefore, the sub clauses (a) to (d) of this clause are
xiv. According to the information and explanations given to us, the
Company is not dealing in or trading in Shares, Securities, debentures
and other investment.
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 institution.
xvi. Since the company has not taken any term loans, this clause is not
xvii. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, there are
no funds raised on short-term basis during the year under audit and
hence the question of using the same for long-term investment does not
xviii. Since the company has not made any preferential allotment of
shares to parties and companies covered in the Register maintained
under section 301 of the Act, this clause is not applicable.
xix. According to the information and explanation given to us, the
Company has not issued any debentures during the year under audit.
Hence the question of security or charges against debentures does not
xx. Since the company has not raised money from public, the question
of disclosure of end use of money does not arise.
xxi. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the year.
For P S Nagaraju &Co.,
Place : Hyderabad CA P S Nagaraju
Date : 23.05.2012 Partner