We have audited the attached Balance Sheet of M/s. CAPITAL TRADE LINKS
LTD. as at 31st March 2012 and also the annexed Statement of Profit &
Loss for the year 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.
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(s). An audit
includes examining, on a test basis, evidences 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
We report that: -
1. As required by the Companies (Auditors Report) (Amended) Order,
2003, as amended by Companies (Auditor''s Report) Order (Amendment)
2004 issued by the Central Government of India in terms of Section 227
(4A) of the Companies Act, 1956 we enclose in the annexure a statement
on the matter specified in paragraphs 4 & 5 of the said order.
2. Further to our comments in the annexure referred to in paragraph (1)
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 accounts as required by law have
been kept by the company so far as appears from our examination of such
c) The Balance Sheet and Statement of Profit & Loss referred to in this
report are in agreement with the books of account.
d) In our opinion, the Balance Sheet and Statement of Profit & Loss
comply with accounting standard referred to in subsection (3C) of
Section 211 of the Companies Act, 1956.
e) On the basis of the written representations received from the
directors and taken on record by the board of directors, we report that
none of the directors is disqualified at 31st March 2012 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 said Balance Sheet and Statement of
Profit & Loss read together with the significant Accounting Policies
and Schedule the information required by Companies Act, 1956 in the
manner so required and give a true and fair view in conformity with the
accounting principle generally accepted in India:-
i) In the case of the Balance Sheet, of the state of affairs of the
company as at 31 st March 2012
ii) In the case of the Statement of Profit & Loss, of the Profit
for the year ended on that date.
ANNEXURE TO THE AUDITOR''S REPORT
(Referred to Para 1 of our report of even date on the accounts
for the year ended 31st March, 2012 of Capital Trade Links Ltd.)
(i) (a) In our opinion, the company has maintained proper records
showing full particulars including quantitative details and situation
of fixed assets.
(b) As explained to us, all the fixed assets have been physically
verified by the management according to a regular program which in our
opinion is reasonable having regard to the size of the company and the
nature of its assets. No material discrepancies with respect to book
records were noticed on such verification.
(c) In our opinion, the company has not disposed off substantial part
of fixed assets during the year and hence, going concern status of the
company is not affected.
(ii) (a) Inventory has been physically verified by the management to
the extent practicable at reasonable intervals during the year. In our
opinion, the frequency of verification is reasonable.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the company and nature of its business.
(c) On the basis of our examination of the records of inventory, we are
of the opinion that the company is maintaining proper records of
inventory. Discrepancies noticed on verification of inventory as
compared to book records were not material and these have been properly
dealt with in the books of accounts.
(iii) (a) On the basis of the records of the company ,the Company has
given unsecured interest free loans to companies ,firms or other
parties covered in the register maintained under section 301 of the
Companies Act,1956,the number of such parties are two and amount
involve in the transaction is Rs. 95,00,000/-
b) In our opinion and based on the explanation ,the terms and condition
of loan given are prima facie not prejudicial to the interest of the
c) The receipt of principal and interest thereon , if any, are regular.
d) There is no overdue amount of loan granted by the company.
e) The company has taken unsecured interest free loan from companies
firms or other parties covered in the register maintained under section
301 of the Companies Act,1956,the number of such parties is nine and
amount involve in the transaction is Rs/. 7,42,90,000/-
f) In our opinion and based on the explanation ,the terms and condition
of loan taken are prima facie not prejudicial to the interest of the
g) The payment of principal and interest thereon , if any, are regular.
(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 with regard to purchase of inventory and fixed assets and for
the sale of goods. During the course of our audit, we have not observed
any continuing failure to correct major weaknesses in internal
(v) (a) Based on the audit procedure applied by us and in our opinion
and according to the information and explanations given to us, we are
of the opinion that the particulars of the contracts , or arrangements
referred to in section 301 of the Act , entered into the register
maintained under section 301 of the Companies Act, 1956The transactions
made in pursuance of such contracts or arrangements have been made at
prices which are reasonable having regards to prevailing market prices
at the relevant time.
(vi) According to the information and explanations given to us, the
company has not accepted any deposit from public, consequently the
provisions of sections 58A and 58AA of the Companies Act, 1956 and the
rules framed there under are not applicable to the company. As per
information and explanations given to us no order under the aforesaid
sections has been passed by the Company Low Board on the Company.
(vii) The company has no formal internal audit system due to size and
the nature of its business and proper internal control exist in the
(viii) As maintenance of cost records has not been prescribed by the
Central Government under section 209 (1) (d) of the Companies Act,
1956. So clause (viii) of order is not applicable.
(ix) (a) According to information and explanation given to us, the
company is regular in depositing with the appropriate authorities
undisputed statutory dues relating to Provident Fund, Investor
Education and Protection Fund, Employees State Insurance, Income Tax,
Wealth Tax, Sales Tax, Custom Duty, Excise Duty, Cess and other
statutory dues applicable to it. In our opinion, no undisputed amounts
payable were outstanding as at 31st March, 2012 which are outstanding
for a period of more than 6 months from the date they became payable.
(b) According to information and explanation given to us there are no
dues of Sale Tax/Income Tax/Customs Duty/Wealth Tax/Excise Duty/Cess
which have not been deposited on account of any dispute.
(x) The company does not have any accumulated losses exceeding 50% of
its net worth funds as on 31.03.2012. The company has not incurred any
cash losses during the financial year covered by our audit and in the
immediately preceding financial year.
(xi) According to the information and explanations given to us the
company has not defaulted in repayment of dues to any Financial
Institutions/Banks during the year.
(xii) Based on our examination of documents and records maintained by
the company, we are of the opinion that since the company has not
granted any loans and advances on the basis of security by way of
pledge of shares, debenture and other securities.
(xiii) The company is neither a chit fund nor nidhi/mutual benefit
fund/society and hence para (xiii) of the Companies (Auditor''s
Report) order 2003 is not applicable.
(xiv) Based on our examination of the records and evaluation of the
related internal controls, we are of the opinion that proper records
have been maintained for the transaction and contracts and timely
entries have been made in those records in respect of dealing or
trading in shares, securities, debentures and other securities in its
own name except to the extent of the exemption granted under section 49
of the Companies Act, 1956.
(xv) 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 and hence para 4(xv) of Companies
(Auditor''s report) order 2003 is not applicable.
(xvi) According to the information and explanation given to us, no term
loans have been obtained during the year.
(xvii) 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
and vice versa.
(xviii) During the year the company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under section 301 of Companies Act, 1956.
(xix) During the year the company had not issued any debentures.
(xx) During the year under review no money was raised by public issue.
(xxi) Based upon the audit procedure performed and information and
explanation given by the management we report that during the year no
fraud on or by the company has been noticed or reported during the year
by the management.
for P.K. GAUR & ASSOCIATES
Place : New Delhi FRN 005311 N
Dated : 03.09.2012 Sd/-
(P.K. GAUR )