1. We have audited the attached Balance Sheet of C & C Constructions
Ltd. as at June 30, 2008 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 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 and assurance
standards generally accepted in India. These 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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. In accordance with the provisions of section 227 of the Companies
Act 1956, we report that:
As required by the Companies (Auditors Report) Order, 2004 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 of the company as we considered appropriate and
according to the information and explanation given to us, we enclose in
the Annexure a statement on the matters specified in paragraphs (4) and
(5) of the said order.
4. Further to our comments in the 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 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 the
c. The balance sheet, profit and loss account and cash flow statement
dealt with by this report are in agreement with the books of accounts;
d. In our opinion, the profit and loss account, balance sheet and cash
flow statement of the company comply with the Accounting Standards
referred to in Sub-section (3C) of Section 211 of the Companies Act,
1956 to the extent applicable.
e. On the basis of written representations received from directors as
on 30th June 2008 and taken on record by the board we report that none
of the directors is disqualified for being appointed as directors in
terms of clause (g) sub-section (1) of section 274 of the Companies
f. In our opinion and to the best of our information and according to
the explanation given to us, the said accounts read with significant
accounting policies and 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 the balance sheet, of the state of affairs of the
company as at 30th June 2008;
ii. in the case of 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 flow for the
year ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE
i. a. In our opinion, the company has maintained proper records,
showing full particulars including quantitative details and situation
of fixed assets.
b. The fixed assets have been physically verified by the management at
reasonable intervals, no material discrepancies with respect to book
records were noticed on such verification.
c. In our opinion and according to explanations given to us, fixed
assets disposed off during the year were not substantial and as such
the disposal has not affected the going concern status of the company.
ii. a. As explained to us, physical verification of inventory has
been conducted by the management at reasonable intervals. In our
opinion, the frequency of such 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 account.
iii. a. In our opinion and according to the explanations given to us,
the Company has granted loans, secured or unsecured to Companies, firm
and other parties covered in the register maintained under section 301
of the Companies Act, 1956. Number of such parties are fine and amount
outstanding as on 30.06.2008 is Rs. 35.35 Lacs (maximum amount
outstanding during the year is Rs. 1022.35 lacs).
b. There is no stipulation with regard to interest.
c. There is no stipulation with regard to repayment of principal
amount. These loans are repayable on demand.
d. In our opinion, the rate of interest and other terms and conditions
on which loans have been granted to companies, firms or other parties
listed in the register maintained under section 301 of the Companies
Act, 1956 are not, prima facie, prejudicial to the interest of the
e. The company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the register maintained
under section 301 of the Act. Hence clauses 4(iii)(e),(f) and (g) of
the order are not applicable. re 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 purchase of inventory and fixed
assets and for the sale of goods and services, during the course of our
audit, no major weakness has been noticed in the internal controls.
v. a. In our opinion the particulars of contracts or arrangement that
need to be entered into the register maintained under section 301 have
been so entered.
b. In our opinion and according to the information and explanations
given to us, the transactions made in the pursuance of such contracts
or arrangement entered in the register maintained under Section 301 of
the Companies Act, 1956, and exceeding the value of Rupees five lacs in
respect of any party during the year, have been made at prices which
are reasonable as compared to the prices of similar items supplied by
other parties or as available with the company.
vi. In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits from public.
vii. In our opinion, the company has an adequate internal audit system
commensurate with its size and the nature of its business.
viii. According to information and explanations given to us, the
Central Government has not prescribed the maintenance of cost records
under section 209(1 )(d) of the Companies Act, 1956 in respect of
services carried out by the company.
ix. In respect of statutory dues :
a. According to the records of the company, undisputed statutory dues
including Provident Fund, employees State Insurance, Income Tax, Sales
Tax, Wealth Tax, Customs Duty, Excise Duty, Education Cess, Secondary
and Higher Education and other statutory dues have been generally
regularly deposited with the appropriate authorities though there has
been a delay in few cases. According to the information and
explanations given to us, no undisputed amounts payable in respect of
the aforesaid dues were outstanding as on 30th June 2008 for a period
of more than six months from the date they became payable.
b. According to information and explanation given to us, the
particulars of dues outstanding of Sales Tax, Works Tax and other
statutory dues as on 30th June 2008, which have not been deposited on
account of disputes pending are as under:
NAME OF THE STATUTE NATURE OF THE DISPUTED DUES AMOUNTS
Works Demand 7.20
Works Demand 6.91
Income Tax Demand 23.95
x. The company has no accumulated losses at the end of the financial
year and it has not incurred any cash losses in the financial year and
in the financial year immediately preceding financial year.
xi. Based on our audit procedures and according to the information and
explanation given to us, we are of the opinion that the company has not
defaulted in repayment of dues to financial institutions, banks or
xii. Based on our audit procedures and on the information and
explanations given by the management, 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, debentures and other securities,
it is not required to maintain records in respect thereof.
xiii. The company is not a chit fund / nidhi/ mutual benefit
fund/society to which the provisions of special statue relating to chit
fund are applicable. Accordingly paragraph (xiii) of the order is not
xiv. According to the information and explanations given by management,
the company is not dealing or trading in shares, securities, debentures
and other investments except for investment in Mutual Funds. All
Investments have been held by the company in its own name.
xv. In our opinion and according to the information and explanations
given to us, the terms and conditions on which the company has given
guarantee for loans taken by others from Banks or financial
institutions are not prima facie prejudicial to the interests of the
xvi. In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which they were obtained.
xvii. Based on our examination of the balance sheet of the company as
at 30th June 2008, and information and explanations given to us, we
report that funds raised on a short-term basis have not been used for
long-term investment and vice versa.
xviii. The company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Companies Act 1956, during the year.
xix. According to the information and explanation given to us, the
Company had issued 500 floating rate secured redeemable Non convertible
debentures of Rs.10,00,000/- each in earlier years, which have since
been redeemed during the year under consideration.
xx. We have verified the end use of public issue as disclosed in the
notes to the financial statements.
xxi. Based on the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the company has been noticed or reported during the year.
For ASG & Associates
Amar Jeet Singh
Place : Gurgaon
Dated : 30.09.2008