We have audited the attached Balance Sheet of M/s BHOLANATH
INTERNATIONAL LIMITED as at 31st March, 2010signed by us under
reference to this report and also the annexed Profit and Loss Account
of the company for the year ended on that date. 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 a reasonable basis for
our opinion.
As required by the Companies (Auditors Report) Order, 2003 issued by
the Central Government of India in terms of sub-section (4A) of section
227 of the Companies Act, 1956 and on the basis of such checks of the
books and records as we considered necessary and appropriate and
according to the information and explanation given to us during the
course of the audit, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said order to the extent
applicable.
Further to our comments in the Annexure referred to above, we report
that:
a) We have obtained all the information and explanation which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of accounts as required by law have been
kept by the Company so far as appears from our examination of those
books.
c) The Balance Sheet and Profit & Loss Account dealt with by this
report are in agreement with the books of account produced before us.
d) Subject to valuation of stock of wool waste taken otherwise than at
cost, and disclosures in respect of related party transactions claims
to be not applicable to this company, in our opinion, the Balance Sheet
and Profit and Loss Account dealt with by this report comply with the
Accounting Standards referred to in Sub-section (3C) of Section 211 of
the Companies Act, 1956.
e) On the basis of written representations received from the directors,
as on 31st March, 2010 and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March,
2010 from being appointed as a director 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 accounts read with 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, 2010 and;
(II) In the case of Profit & Loss Account, of the profit of the Company
for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
(In reference to paragraph 3 of our report of even date to the members
of M/S. BHOLANATH INTERNATIONAL LIMITED on the financial statements for
the year ended 31.03.2010)
1 a. The company has maintained proper records to show full
particulars including quantitative details and situation of its fixed
assets on the basis of available information.
b. The fixed assets have been physically verified during the year by
the management and no material discrepancies were noticed on such
Physical verification.
c. Based on scrutiny of the records of the company and the information
& explanations received by us, we report that there was no sale of
fixed assets during the financial year ended 31st March 2010
substantial or otherwise. Hence the question of reporting whether the
sale of any substantial part of fixed assets has affected the going
concern of the company does not arise.
2 a. As per consistence practice, the inventory has been physically
verified by the management at the
year end. In our opinion the frequency of verification needs to be
improved having regard to the size of the Company and nature of its
business.
b. In our opinion and according to the information and explanations
given by the management, the procedures followed are reasonable and
adequate in relation to size of the company and nature of its business.
c. In our opinion the company is maintaining proper records of
inventory. As explained to us, no material discrepancies were noticed
on physical verification of inventory as compared to the book records.
3. In respect of loans, secured or unsecured, granted or taken by the
company to/from companies, firms or other parties covered in the
register maintained under Section 301 of the companies act, 1956;
a. The company has taken loans. Rs 2 Lakh The company has not granted
any loans to any such party.
b. The loans taken are interest free and other terms & conditions on
which loans have been taken are not prima facie, prejudicial to the
interest of the company.
c. In respect of loan taken by the company, the principal is repayable
on demand.
d. There are no overdue amount in respect of loan taken by the
company.
4. In our opinion and according to 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
purchase of Inventory, Fixed Assets and with regard to the sale of
goods. During the course of our audit, no major weakness has been
observed in the internal controls.
5. Based on the Audit procedures applied by us and the information &
explanations provided by the management, we are of the opinion that
there were no transactions during the year that need to be entered in
the register maintained under section 301 of the companies Act, 1956.
6. The company has not accepted any deposits from the Public.
7. In our opinion the company has an adequate Internal Audit System
commensurate with the size and nature of its business.
8. We have been informed by the management, no cost records have been
prescribed under section 209 (1) (d) of the Companies Act, 1956 in
respect of products manufactured by the company.
9. a. According to the records of the company, the company is regular
in depositing with appropriate
authorities undisputed statutory dues including provident fund,
Investor education protection fund, Employees State Insurance, income
tax, sales tax, wealth tax, custom duty, excise duty, cess and other
statutory dues applicable to it.
b. According to the information & explanations given to us, no
un-disputed amount payable in respect of income tax, wealth tax, sales
tax, custom duty and excise duty were outstanding as at 31 st March
2010 for a period of more than six months from the date they became
payable.
c. According to the records of the company there are no dues of sales
tax, income tax, customs tax/ wealth tax, excise duty/cess, which have
not been deposited on account of any dispute.
10. The company does not have accumulated losses and has not incurred
cash loss in the preceding financial year.
11. According to information & explanations given to us and on the
basis of our audit, we are of the opinion that the company has not
defaulted in repayment of dues to a financial institution, bank or
debenture holders.
12. According to the records of the company, the company has not
granted any loans and advances on the basis of security by way of
pledge of shares, debentures or other securities.
13. In our opinion company is neither a chit fund nor a nidhi/ mutual
benefit society. Hence in our opinion Para-4(xiii) of the Companies
(Auditors Report) Order, 2003 is not applicable.
14. As per the records of the company and according to information and
explanations given to us by the management, company is not dealing or
trading in shares, securities, and debentures and other investments.
15. As per the records of the company and according to information and
explanations given to us by the management, the company has not given
any guarantee for loans taken by others from bank or financial
institutions.
16. The company has not obtained any term loan from any institution or
bank during the year.
17. According to information and explanations given to us, and on
overall examination of the Balance Sheet of the Company, we are of the
opinion that no funds raised on short-term basis have been used for
long-term investment by the company.
18. As per the records of the company and according to information and
explanations given to us, the company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under section 301 of the Act.
19. As per the records of the company, the company has not issued any
debentures.
20. The company has not raised any money by public issues during the
period covered by our audit report
21. In our opinion and according to information & explanations given
to us, no fraud on or by the company have been noticed or reported
during the course of our audit.
For O.P. TULSYAN & CO.,
Chartered Accountants,
Sd/-
(PARTNER)
PLACE: VARANASI.
DATED: 13.08.2010
