We have audited the attached Balance Sheet of AJCON GLOBAL SERVICES
LIMITED as at 31st March 2009 and also the Profit and loss Account
and Cash Flow Statement for the year ended on that date, annexed
thereto. These financial statements are the responsibility of the
Companys 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
the reasonable basis for our opinion.
1. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government in terms of Section 227 (4A) of
the Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in Paragraphs 4 and 5 of the said Order.
2 Further to our comments in the Annexure referred to in
Paragraph 2 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
b) In our opinion, proper books of account as required by law, have
been kept by the Company so far as appears from our examination of
c) The Balance Sheet, Profit & Loss account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the Balance Sheet, Profit & Loss account and Cash
Flow Statement comply with the accounting standards referred to in sub
section (3C) of Section 211 of the Companies Act, 1956 to the extent
applicable to the Company,
e) On the basis of written representations received from the Directors
as on 31st March, 2009 and taken on records by the Board of Directors,
we report that none of the Directors is disqualified as on 31st March
2009 from being appointed as a Director in terms of clause (g) of the
sub section (1) of the 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 with the
Significant Accounting Policies and other 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 Balance sheet, of the state of affairs of the Company
as at 31st March 2009, ii) In the case of the Profit & Loss Account, of
the profit for the year ended on 31st March 2009, iii) In the case of
the Cash Flow Statement, of the cash flows for the year ended on 31st
ANNEXURE TO AUDITORS REPORT
(Referred to in Paragraph (1) of our report of even date)
1 a) The Company has maintaining proper records showing full
particulars including guantitative details and situation of fixed
b) As explained to us, physical verification of a major portion of
fixed assets as at 31st March, 2009 was conducted by the management
during the year. In our opinion, the freguency of physical verification
is reasonable having regard to the size of the nature of its assets. No
material discrepancies were noticed on such physical verification
c) During the year, the Company has not disposed off any Fixed Assets
and therefore the going concern status of the Company is not affected
2 In respect of inventories,
a) Companys inventory comprises of only the shares and securities. The
Management during the year has physically verified those stocks which
were not in dematerialised form and the rest were verified through
demat statements of depositaries. In our opinion the freguency of such
verification was reasonable.
b) The Company has maintained proper records of inventories. As
explained to us, there was no material discrepancies noticed on
physical verification of inventories as compared to the book record
3. In respect of loans, secured or unsecured, granted or taken by the
Company to and from companies, firms or other parties covered in the
Register maintained under Section 301 of the companies Act, 1956;
a) The Company has granted interest free unsecured ioans of Rs. 77.79
lacs ( Rs. 72.96 Lacs) tc its subsidiary Company. There are nc
stipulations as regards repayment of the said loan amount and hence the
question of overdue amounts does not arise.
b) The loans granted to the companies listed in the Register maintained
u/s 301 are repayable on demand Accordingly there are no overdue
amounts more than Rs.1.00 Lacs in respect of loans granted to any of
the Companies, firms or other parties listed in the Registrar
maintained u/s 301 of the Companies Act, 1956.
4. In our opinion and according to the information and explanation
given to us there are adeguate internal control procedures commensurate
with the size of the Company and the nature of its business for the
purchases of equipments and other assets and with regards to the sale
of goods During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control.
5. a) To the best of our knowledge and belief and according to the
information and explanations given to us by the management, we are of
opinion that the transactions that need to be entered into the register
maintained under section 301 of the Companies Act, 1956 have been so
entered. b) in our opinion and according to the information and
explanation given to us the transactions made in pursuance of contracts
and arrangements referred to in (a) above and exceeding the value of
Rs.5.00 Lacs with any party during the year have been made at prices
which are reasonable having regard to the prevailing market prices at
the relevant time
6. The Company has not accepted any deposits from public.
7 In our opinion, the Company has an internal audit system commensurate
with the size of the Company 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 for any of
the services rendered by the Company.
9. According to the information and explanation given to us, the
undisputed amounts payabie in respect of taxes, wealth tax, service
tax, saies tax. customs duty, excise duty, and any other statutory
dues have generally been deposited regularly with the concerned
10. The Company does not have any carry forward losses and also not
incurred cash loss either during the year or in the immediately
preceding financial year.
11 According to the information and explanation given to us, the
Company has not defaulted in scheduled repayment of dues to banks and
12 Based on our examination of the records and the information and
explanation given to us, the Company has not granted any loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities. However, as regards the clients
shares and securities taken as margin, the Company has maintained
13. In our opinion the Company is not a chit fund or a nidhi / mutual
benefit fund or society.
14. The Company is dealing and trading in securities, derivatives and
other instruments and has maintained proper records of the transactions
and contracts and timely entries are made therein. All the shares,
securities, debentures and other securities have been held by the
Company in its own name except to the extent of exemption granted under
Section 49 of the Act.
15. According to the information and explanation given to us, the
Company has not given any guarantee for loans taken by others from Bank
or Financial Institutions.
16. According to the information and explanations given to us, the
Company has prepaid the term loan from Bank during the year.
17. 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 have been used for long-term
investment and vice versa.
18. During the year, the Company has not made preferential allotment
to the parties and companies covered in the Register maintained under
section 301 of the Companies Act, 1956,
19. The Company has not issued any Debentures.
20. The Company has not raised any money through public Issue during
21. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
29th June,2009 Membership No. 2057