We have audited the attached Balance Sheet of CHARTERED CARRIERS
LIMITED, as at 31st March 2007 and also the Profit and Loss Account 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
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
As required by the Companies (Auditors Report) Order, 2003 as amended
by Companies (Auditors Report) (Amendment) order 2004, (together the
order) issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Companies Act, 1956, we Annexure
hereto a statement on the matters specified in paragraphs 4 and 5 of
the said Order.
Further to our comments in the Annexure referred to above, we report
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
(ii) In our opinion, proper books of accounts required by law have been
kept by the company so far as appears from our examination of those
(iii) The Balance Sheet, Profit and Loss Accounts and Cash Flow
statement dealt with by this report are in agreement with the books of
(iv) In our opinion, the Balance Sheet, Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956:
(v) On the basis of written representations received from the
directors, as on 31st March, 2007, and taken on record by the Board Of
Directors, we report that none of the directors is disqualified as on
31st March 2007 from being appointed as a director in terms of clause
(g) of sub- section (1) of section 274 of the Companies Act, 1956:
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read in along with
schedule- 1 to 18 forming part of 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;
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2007; and
(b) In the case of the Profit and Loss Account, of the PROFIT for the
year ended on that date.
(c) In the case of the Cash Flow Statement, of the Cash Flows for the
year Ended on that date.
ANNEXURE TO THE AUDITORS REPORT
(Referred to in paragraph 3 of our report of even date on the accounts
of the Chartered Carriers Limited as at 31st March, 2007 .)
(1) (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
(b) The Company has a program of physical verification of its fixed
assets, which in our opinion, is Reasonable having regard to the size
of the Company and the nature of its assets. In accordance with this
program, fixed assets have been physically verified by the management
during the year an according to the information and explanations given
to us no material discrepancies have been noticed on such verification.
(c) The Company has not disposed of a substantial part of fixed assets
during the year.
(2) (a) Physical verification of inventory has been conducted during
the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
(3) According to the information and explanation given to us, the
Company has given interest free Advances of to/from Companies, firms or
other parties covered in the register maintained under section 301 of
the Companies Act, 1956. The maximum amount involved during the year is
Rs.71.22 Lacs for the short time and the year end balance of such
Advances is Rs. NIL.
(4) 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 for the purchase of inventory and fixed assets and for the
sale of goods.
(5) In our opinion and according to the information and explanations
given to us, the transactions exceeding rupees five lakhs in respect of
each party, that need to be entered into the register maintained under
section 301 of the Companies Act, 1956 have been so entered. During the
year have been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
(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 its size and nature of its business.
(8) The maintenance of cost records has been prescribed by the Central
Government under clause (d) of sub - section (1) of section 209 of the
Act, is not required.
(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. According to
the information and explanations given to us, no undisputed amounts
payable in respect of income tax, wealth tax, sales tax, customs duty
and excise duty were outstanding, as at 31st March 2007 for a period of
more than six months from the date they became payable.
(b) According to the information and explanations given to us, there
are no dues of income - tax, wealth - tax, excise duty, and cess which
have not been deposited on account of any dispute.
(10) 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
under report and the immediately preceding financial year.
(11) The Company has not defaulted in repayment of dues to financial
institutions or banks.
(12) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(13) The Company is not a chit fund, nidhi or mutual benefit
(14) The Company is not dealing or trading in shares, securities,
debentures and other investments.
(15) Based on the information and explanations given to us, The Company
has not given a guarantee to a financial institution or banks.
(16) The term loans were applied for the purpose for which the loans
(17) According to the cash flow statement and other records examined by
us and the information and explanation given to us, on an overall
basis, funds raised on short-term basis have, prima facie, not been
used during the year for long term investment and vice versa. Though
the surplus funds which were not required for immediate utilization
have been invested in liquid investments payable on demand.
(18) The Company has not made preferential allotment of shares to
parties and companies covered in the Register maintained under section
301 of the Companies Act, 1956.
(19) No debentures have been issued by the Company and hence the
question of creating securities in respect thereof does not arise.
(20) During the year, the Company has not raised money by public issue
and hence question of disclosure and verification of end use of such
monies does not arise.
(21) According to the information and explanations given to us and on
the basis of examination of records, no material fraud on or by the
Company was noticed or reported during the year.
For RAMAN M. JAIN & CO.
Place : Ahmedabad Raman M. Jain
Dated : 01/09/2007 Partner