ANNUAL REPORT 2005-2006
To The Members of
Nam Credit & Investment Consultants Limited
1. We have audited the attached Balance Sheet of NAM CREDIT & INVESTMENT
CONSULTANTS LIMITED as at 31st March 2006 and the Profit and Loss Account
for the period ended on that date annexed thereto and the Cash Flow
Statement for the period ended on that date. 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.
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 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 our opinion and report thereto:
3. 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 the books and records of the
company, as we considered appropriate, and in terms of the information and
explanations given to us, we enclose in the annexure a statement on the
matters specified in paragraph 4 and 5 of the said order to the extent
applicable to the company.
4. Further to our comments in annexure referred to in 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 purpose 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 such books.
(c) The Balance Sheet and Profit & Loss Account 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 dealt with by this report, comply with the Accounting Standards
referred in sub - section 3(C) of section 211 of the companies Act, 1956.
(e) On the basis of written representations received from the directors as
on 31.03.2006 and taken on record by the Board of Directors, we report that
none of the directors is disqualified as on 31.03.2006 from being appointed
as directors 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 statements of accounts together with the
notes appearing in Schedule of Notes, 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 2006;
ii) In the case of Profit and Loss Account, of the profit for the period
ended on that date, and;
iii) In the case of Cash Flow Statement, of the cash flows for the period
ended on that date.
For NEERAJ GUPTA & CO.
Membership No. 87004
Place : New Delhi
Dated : 30th August, 2006
ANNEXURE TO THE AUDITORS' REPORT
Referred to in paragraph 3 of our report of even date,
(i) (a) The company has generally maintained proper records showing
particulars including quantitative details and situation of fixed assets.
(b) As explained to us, the Fixed Assets are physically verified by the
management at reasonable intervals in a phased verification programme,
which in our opinion, is reasonable having regard to the size of the
company and the nature of its business. No material discrepancies were
noticed on such verification.
(c) During the year, the company has not disposed off any part of its Fixed
Assets so as to affect its going concern.
(ii) (a) The inventory has been physically verified during the year by the
management. In our opinion, the frequency of verification is reasonable.
(b) In our opinion, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to the
size of the company and the nature of its business.
(c) On the basis of our examination of the inventory records, in our
opinion, the company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared to
book records were not material.
(iii) According to the information and explanations given to us, the
company has neither granted nor taken any loans, secured or unsecured
to / from companies, firms or other parties, covered in the register
maintained under section 301 of the Companies Act, 1956, except Rs. 20
Lakhs given to a body corporate which is without any stipulation regarding
repayment. In the absence of any terms and conditions of repayment or
otherwise, we are unable to comment whether the same is prejudicial to the
interest of the Company or not.
(iv) 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 purchases
of inventory, fixed assets and with regard to the sale of goods, During the
course of our audit, no major weakness has been noticed in internal
(v) (a) On the basis of the audit procedures performed by us and according
to the information, explanations and representations given to us, we are of
the opinion that, the transactions in which directors were interested as
contemplated under section 297 and sub-section (6) of section 299 of the
Companies Act, 1956, and which were required to be entered in the register
maintained under section 301 of the Companies Act, 1956, have so entered.
(b) According to the information and explanations given to us, transactions
exceeding the value of Rs. 5,00,000/- have been made at prices which are
reasonable having regard to the prevailing market prices at the relevant
(vi) The company has not accepted any deposits as defined under sections
58A of the Companies Act, 1956 and the Companies (Acceptance of Deposits)
(vii) In our opinion, the company has an internal audit system commensurate
with the size and nature of its business.
(viii) According to the information and explanations given to us,
maintenance of cost records have not been prescribed by the Central Govt.
under section 209 (1) (d) of the Companies Act, 1956.
(ix) (a) According to the records of the company, in our opinion the
company is generally regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, investor education and
protection fund, employee's state insurance, income tax, sales tax, wealth
tax, custom duty, excise duty, cess and any other statutory dues applicable
(b) According to the information and explanations given to us, there are no
undisputed amount payable in respect of income tax, sales tax, customs
duty, wealth tax and excise duty were outstanding as on 31st March, 2006
for a period of more than six months from the date becoming payable.
(x) The company has no accumulated losses as at 31st March, 2006 and it has
not incurred any cash losses during the financial year ended on that date
or in the immediately preceding financial year.
(xi) According to the records of the company examined by us and the
information and explanations given to us, the company has not defaulted in
repayment of dues to any financial institution or bank or debenture holders
as at the balance sheet date.
(xii) The company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii) In our opinion, the company is not a chit fund or a nidhi / mutual
benefit fund / society.
(xiv) In respect of shares, securities, debentures and other investments,
dealt in or traded by the company, proper records have been maintained in
respect of transactions and contracts, and timely entries have been made
(xv) According to the information and explanations given to us, the company
has not given any guarantee for loans taken by others, from banks or
financial institutions during the year.
(xvi) The Company has not obtained any term loans during the current year.
(xvii) Based on the information and explanations given to us and on an
overall examination of the balance sheet of the company, in our opinion,
there are no funds raised on a short term basis which have been used for
long term investment and vice versa.
(xviii) According to the information and explanations given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the Act
during the year.
(xix) According to the information and explanations given to us, during the
period covered by our audit report, the company has not issued any
(xx) The company has not raised money by way of public issues during the
(xxi) Based on the audit procedures performed and information and
explanations given to us, we report that no fraud on or by the company has
been noticed or reported during the course of our audit.
For NEERAJ GUPTA & CO.
Membership No. 87004
Place : New Delhi
Dated : 30th August, 2006