1. We have audited the attached Balance Sheet of as at 31st March
2008, 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.
2. 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 a reasonable basis for
3. As required by the Companies (Auditors Report) Order, 20d3 issued
by the Central Government of India in terms, of sub-section (4A) of
Section 227 of the Companies Act, 1956, we enclose in the Annexure a
Statement on the matters specified in paragraphs 4 and 5 of the said
4. Further to our comments in the Annexure referred to paragraph (3)
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 account as required by law have
been kept by the company so far as appears from our examination of
those books ;
c. The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d. In our opinion, these account have been prepared in compliance with
the applicable accounting standards referred to in sub-section (3C) of
section 211 of the Act;
e. On the basis of written representations received from the
Directors, as on 31st March, 2008 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2008 from being appointed as a Director in terms of clause
(g) of Sub-Section (1) of Section 274 of the Companies Act, 1956;
f. The said accounts 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, 2008;
ii. In the case of the Profit and Loss Account, of the profit of the
Company for the year ended on that date; and
iii. In the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT (REFERRED TO IN OUR REPORT OF EVEN
i. a. The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
b. The Management at reasonable intervals has physically verified
these Fixed Assets and no material discrepancies were noticed on such
c. No substantial part of Fixed Assets has been disposed off during
ii. As there is no inventory, accordingly clause 4(ii) of the
Companies (Auditors Report) Order, 2003 is not applicable to the
iii. a. According the information and explanations given to us, the
Company has not taken unsecured / secured loans from parties covered in
the register maintained under Section 301 of the Companies Act, 1956.
b. According the information and explanations given to us, the Company
has not granted unsecured loans to any parties covered in the register
maintained under section 301 of the Companies Act, 1956.
iv. 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
purchase of inventory, fixed assets and also for the sale of goods.
During the course of our audit, no major weakness has been noticed in
the internal control.
v. a. Based on the audit procedures applied by us and according to
information and explanations provided by the management, we are of the
opinion that all the transactions that needed to be entered into the
register in pursuance of Section 301 of the Act have been so entered.
b. According to the information and explanations given to us, there
are no transactions in excess of Rs. 5 lacs in respect of any party &
hence the question of reasonable price in respect of such transaction
with regards to prevailing market prices does not arise.
vi. In our opinion and according to the information given to us the
Company has not accepted deposits from the public and the provisions of
Section 58A and 58AA of the Act, rules framed there under and other
relevant directives issued the Reserve Bank of India are not applicable
to the Company.
vii. In our opinion the Company has an Internal Audit System
Commensurate with its size and nature of its business.
viii. The Company is not required to maintain Cost records as
prescribed by Central Government under Clause