We have audited the attached Balance Sheet of ZODIAC- JRD-MKJ LIMITED
as at 31st March, 2011 and also the Profit & Loss Account for the year
ended on that date annexed thereto and cash flow statement for the
period ended on that date. These financial statements are the
responsibility of Company''s management. Our responsibility is to
express 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 mis-statement. An audit includes
examining, on a test basis, evidence supporting the amounts &
disclosures in financial statements. An Audit also includes assessing
the accounting principles used & 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 the Manufacturing and Other Companies (Auditors
Report) Order, 1988 issued by the Central Government of India in terms
of Section 227 (4A) of the Companies Act 1956, as per information &
explanation given to us, we give in the Annexure, a statement on the
matters specified in Paragraph 4 & 5 of the said Order.
2. Further to our comments in the Annexure referred to in Paragraph 1
above, we report that:
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
(b) 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
the books of the Company.
(c) The Balance Sheet and Profit and Loss Account referred to in this
report are in agreement with the books of accounts.
(d) In our opinion, the Balance Sheet & Profit & Loss account dealt
with by this report comply with the accounting standards referred to in
Sec.211 (3C) of the Companies Act, 1956.
(e) On the basis of written representations, received from the
directors as on 31st March, 2011 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March, 2011 from being appointed as a director in terms and
section 274(1) (g) 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 gives 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 the Company''s
affairs as at 31st March, 2011 and
(ii) In the case of Profit and Loss Account of the profit for the year
ended on that date.
(iii) In the case of Cash Flow statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITOR''S REPORT
(Referred to in paragraph 2 of our report of even date on the accounts
for the year ended 31st March, 2011 of ZODIAC - JRD - MKJ LIMITED.)
1. In respect to Fixed Assets :
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets. All fixed
assets have been physically verified by the management at periodical
intervals during the year which, in our opinion , is reasonable having
regard to the size of the company and the nature of its assets.
According to the information and explanations given to us, no material
discrepancies were noticed on such verification.
(b) There was no disposal of fixed assets during the year.
2. In respect to its inventories :
(a) As explained to us, the management has conducted physical
verification of inventory at reasonable intervals.
(b) According to the information and explanations given to us, the
procedures of physical verification of stocks followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of its business.
(c) In our opinion & according to the information and explanations
given to us the company has maintained proper records of inventory and
no material discrepancies were noticed on physical verification.
3. According to information and explanations given to us, the company
has not granted / taken any loans, secured or unsecured to/from
companies, firms or other parties covered in register required to be
maintained under section 301 of the Companies Act, 1956.
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, for the purchase of inventory and fixed assets and for the
sale of goods. During the course of our audit, no major weakness has
been noticed in the internal controls.
5. (a) In our opinion and according to the information and
explanations given to us, there are the transactions made in pursuance
of contract or arrangements, that need to be entered into the register
required to be maintained under section 301 of the Companies Act, 1956
have been so entered.
(b) In our opinion and according to the information and explanations
given to us, there are no transactions in pursuance of contract or
arrangements entered in the register to be maintained under Section 301
of the Companies Act, 1956 aggregating during the year to Rs.
5,00,000/- (Rupees Five Lacs Only) or more in respect of any party.
6. The Internal Audit of the company has been carried out by an
independent firm of Chartered Accountants. In our opinion, the
internal audit functions carried out have been commensurate with the
size and nature of its business.
7. We have been informed that the Central Government has not
prescribed maintenance of cost records under section 209(1) (d) of the
Companies Act, 1956.
8. According to the records of the Company, the Company is regular in
depositing statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees'' State Insurance, Income-tax, Sales-tax,
Customs Duty, Excise Duty, cess and other statutory dues applicable to
it with the appropriate authorities. According to the information and
explanations given to us, no undisputed amounts payable in respect of
Income- tax, wealth tax, sales-tax, customs duty and excise duty were
outstanding at the year end for a period of more than six months from
the date they became payable.
9. The Company has no accumulated losses at the end of the financial
year and it has not incurred any cash losses during the current and
immediately preceding financial year.
10. The Company does not have any borrowings from financial
institution, bank and by way of debentures.
11. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Therefore, the provisions of clause 4 (xii) of the Companies (Auditor''s
Report) Order,2003 are not applicable to Company.
12. In our opinion and according to the information and explanations
given to us, the nature of activities of the Company does not attract
any special statute applicable to chit fund and nidhi / mutual benefit
funds / societies.
13. In respect of dealing in securities and other investments, in our
opinion and according to the information and explanations given to us,
proper records have been maintained of the transactions and contracts
and timely entries have been made therein. The securities and other
investments have been held by the Company in its own name.
14. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by its subsidiaries
and associates from banks or financial institutions.
15. The Company did not have any term loans outstanding during the
16. We have been informed by the management and on overall examination
of the Balance Sheet of the company, we report that the funds have not
been raised on short-term basis and or long term during the current
financial year .Surplus funds of the company which were not required
for immediate utilization have been gainfully invested in Mutual Fund,
Liquid Fund and investments,
17. The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the Companies Act, 1956.
18. The Company has not issued any debentures during the year.
19. The Company has not raised any money through a public issue during
20. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the course of our
For ARUN GANATRA & CO.,
Place : Mumbai (A. L. GANATRA)
Dated : 18-8-2011 Proprietor
Membership No. 031720