We have audited the attached Balance Sheet of AJCON GLOBAL SERVICES
LIMITED as at 31st March 2011 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 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 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, 2011 and taken on records 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 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 lndia:
i) In the case of Balance sheet, of the state of affairs of the Company
as at 31st March 2011,
ii) In the case of the Profit & Loss Account, 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 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 quantitative details and situation of fixed
b) As explained to us, physical verification of a major portion of
fixed assets as at 31st March, 2011 was conducted by the management
during the year. In our opinion,the frequency 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) Based on the information and explanation given by the management and
on the basis of audit procedures performed by us, we are of the opinion
that the Company has not disposed off substantial part of its fixed
assets which could affect the going concern status of the Company.
2. In respect of inventories,
a) Company''s inventory comprises of only the shares and securities. The
Management during the year has physically verified those stocks which
were not in dematerialized form and the rest were verified through
Demat statements of depositaries.In our opinion the frequency 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 loans and advance to
a Subsidiary Company and an Associate Enterprise .At the year end the
outstanding balance of such loans granted to Subsidiary Company was Rs
9.00 lacs and the Associate Company Rs. NIL. The maximum amount
outstanding during the year was Rs.106.03 lacs.
b) In our opinion the terms & conditions of such loans are prima facie
not prejudicial to the interest of the Company.
c) The loans given were not due for repayment at the year end; there
fore thequestion of overdue principal amount does not arise.
d) The Company has not taken any loan, secured or unsecured from
Companies, Firms and other parties covered in the register maintained
under section 301 of the Companies Act 1956 hence requirement of
clauses 4(iii) (f) and (g) of the Companies (Auditors'' Report) order
2003 are not applicable.
4. In our opinion and according to the information and explanation
given to us, there are adequate 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
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 the opinion that the transactions that need to be entered in to
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 payable in respect of taxes, wealth tax, service
tax, sales tax, customs duty, excise duty, and any other statutory dues
have generally been deposited regularly with the concerned authorities.
Based on information furnished to us, there are no undisputed statutory
dues as on 31st March, 2011 which are outstanding for a period
exceeding six months from the date they became payable.
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 client''s
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. To the best of our knowledge and belief and according to the
information and explanations given to us, no term loans were raised by
the Company during the year; therefore question of utilization for
stated purpose does not arise.
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 during the year.
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
For BHATTER & CO.
Firm Reg. NO.131092W
307, Tulsiani Chambers
Nariman Point Mumbai, 400021