We have audited the attached Balance Sheet of VINYOFLEX LIMITED as at
31st March, 2010, the Profit & Loss Account and Cash Flow Statement of
the Company 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 those
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 over all financial statement
presentation. We believe that our audit provides reasonable basis for
1. As required by the Companies (Auditor''s Report) Order, 2003 issued
by the Central Government in terms of Section 227(4A) of the Companies
Act, 1956 and on the basis of such checks of books and records as we
considered appropriate and according to the Information and
explanations given to us during the course of audit, we enclose in the
Annexure hereto a statement on the matters specified in paragraphs 4 &
5 of the said order.
2. Further to our comments in the Annexure referred to in para 1
a. We have obtained all the information and explanation which to the
best of our knowledge and belief where necessary for the purpose of our
b. 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
c. The Balance Sheet and Profit & Loss Account Cash Flow Statement
dealt with by this report are in agreement with books of accounts of
d. In our opinion and to the best of our information the Balance
Sheet, Profit & Loss Account and Cash Flow Statement of the Company
dealt with by this report have been prepared in Compliance with the
applicable Accounting Standards referred to in Section 211 (3C) of the
Companies Act, 1956.
e. On the basis of written representations received from the directors
as on 31 March, 2010 and taken on record by the board of directors, we
report that none of the directors of the Company is disqualified as on
31 March, 2010 from being appointed as director in terms of clause (g)
of sub- section (1) of Section 274 of the Companies Act, 1956.
f. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with
Significant Accounting Policies and 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 :
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010: (ii) In the case of Profit & Loss
Account, of the Profit of the Company for the year ended on that date:
and (iii) In the case of Cash Flow Statement, of the cash flow of the
Company for the year ended on that date.
ANNEXURE TO AUDITORS'' REPORT
Statement referred to in paragraph 3 of the Auditors'' Report of even
date to the Members of VINYOFLEX LIMITED on the accounts for the year
ended 31st March, 2012 The comments given herein below are based on the
data compiled by the Company in order to comply with the requirements
of the new order from the effective date. On the basis of such checks
as considered appropriate and in terms of the information and
explanations given to us, we state as under:
1. i) The Company has maintained proper records showing full
particulars, including quantitative details and situations of fixed
ii) The fixed assets have been physically verified by the management as
per the policy of conducting the verification. No material
discrepancies were noticed on such verification. In our opinion, the
frequency of verification is reasonable, having regards to the size of
the Company and nature of its business. iii) During the year Company
has not disposed off any substantial/major part of fixed assets.
2. i) Physical verification of inventories has been conducted at
reasonable intervals during the year by the management.
ii) In our opinion and according to the information and explanations
given to us, 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.
iii) The Company is maintaining proper records of inventory. In our
opinion, discrepancies noticed en physical verification of inventory as
compared to book records were riot material and they have been properly
dealt with in the books of account.
3. i) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under Sector 301 of the Companies Act, 1956.
The Company has taken unsecured loans from companies, firms or other
parties covered in the register maintained under Section 301 of the
Companies Act, 1956. The number of parties and amount involved in the
transactions is as follow :-
Number of Parties Amount of loans taken Amount of loans involved
Rs. Lacs (Balance as at 31.03.2011)
1 Rs. 22.00 lac Rs. 22.00 lac
ii) In our opinion, the rate of interest and other terms and conditions
of unsecured loans taken by the Company, are not, prima facie,
prejudicial to the interest of the Company
iii) In respect of unsecured loans taken by the Company, where
stipulations have been made, the repayments of the principal amount and
interest have been regular.
iv) There is no overdue amount outstanding of the unsecured loans taken
by the Company or interest thereon as at the date of the Balance Sheet.
4 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 purchase of inventory and fixed assets and for
the sale of goods. During the course of our audit, we have not
observed any continuing failure to correct major weakness in internal
5 a) According to information and explanation given to us, the
transactions made in pursuance of contracts or arrangements, that need
to be entered into the register maintained under Section 301, of the
Companies Act, 1956 have been recorded in the register.
b) According to information and explanation given to us, the
transactions referred to under sub clause (a) above, which exceeds Rs.
500000/- in each case have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
6 In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
58A and 58AA or any other relevant provisions of the Companies Act,
1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard
to the deposits accepted from the public. According to the information
and explanations given to us, no order has been passed by the Company
Law Board or National Company Law Tribunal or Reserve Bank of India or
any court or any other Tribunal on the Company in respect of the
7 The Company has an internal audit system, which in our opinion,
commensurate with the size and the nature of its business.
8 Maintenance of cost records has not been prescribed by the Central
Government under clause (d) of sub-section (1) of section 209 of the
Companies Act, 1956.
9 The Company is regular in depositing undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees'' State insurance, Income Tax, Sales Tax, Wealth Tax, Custom
Duty, Excise Duty, Cess and other statutory dues with appropriate
authorities. There are no arrears of outstanding statutory dues as at
the last day of the financial year for a period of more than six months
from the date those became payable.
10 The Company does not have any accumulated loss as on 31st March,
2010. The Company has not incurred any cash losses during the financial
year covered by our audit and in immediately preceding financial year.
11 Based on our audit procedure and on the information and explanations
given by the management, we are of opinion that the Company has not
defaulted in repayment of dues to any financial institution, bank or
12 The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities
and therefore the question of maintenance of documents and records in
respect thereof does not arise.
13 Clause (xiii) of the Order is not applicable to the Company as the
Company is not a chit fund company or nidhi/mutual benefit fund
14 Clause (xiv) of the Order is not applicable as the Company is not
dealing or trading in shares, securities, debentures and other
15 According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from Bank
or financial institution
16 According to information and explanations given to us no fresh term
loan has been obtained by the Company during the year.
17 According to the information and explanations given to us and on an
overall examination of the balance sheet and cash flows statement of
the Company and after placing reliance on reasonable assumptions made
by the Company for classification of long term and short term usages of
the fund, we report that the Company has not utilised funds raised on
short term basis for long term investment.
18 The Company has not made any preferential allotment of shares during
the year to the parties and companies covered in the register
maintained under section 301 of the Companies Act, 1956.
19 The Company has no debentures.
20 The Company has not raised any money by public issues during the
year covered by our report.
21 Based on the audit procedures performed and according to the
information and explanation given and representations made by the
Management, we report that no fraud on or by the Company has been
noticed or reported during the year.
For Gadhia Karachiwala & Co.
(Registration No. 102887W)
(C. V. Gadhia)
M. No. 11504
Date : 30-05-2012
Place : Rajkot