1. We have audited the attached Balance Sheet of DHRUV ESTATES LIMITED
(The Company) as at 31 st March, 2007 and the Profit and Loss Account
for the year ended on that date annexed thereto and Cash Flow statement
for the year ended on that date, which we have signed under reference
to this report. 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 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
3. As required by the Manufacturing and Other Companies (Auditors
Report)0rder, 2003 issued by the Central Government of India in terms
of section 227 (4AJ of the Companies Act, 1956, of India (the Act) and
on the basis of such checks as we considered appropriate and according
to the information and explanation given to us, we setout in the
Annexure a statement on the matters referred to 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
(c) The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the Books of Account;
(d) In our opinion, the Balance Sheet, Profit and Loss Account and the
Cash Flow Statement dealt with by this report have been prepared in
compliance with the applicable accounting standards as referred to in
Section 211 (3c) of the Act;
(e) On the basis of the written representation received from the
Directors as on March 31, 2007, and taken on record by the Board of
Directors of the Company, none of the directors is disqualified as on
March 31, 2007 from being appointed as a director in terms of clause
(g) of sub-section (1) of Section 274 of the Act.
(f) In our opinion and to the best of our information and according to
the explanations given to us, the Balance Sheet, Profit and Loss
Account and the Cash Flow Statement, together with Significant
Accounting Policies and other notes thereon and annexed thereto give in
the prescribed manner the information required by the Act and also 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 31 st March, 2007 and
ii) in the case of the Profit and Loss Account, of the Loss for the
year ended on that date and
iii) 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 the Auditors Report of even date to
the members of Dhruv Estates Limited on the Financial statements for
the year ended March 31, 2007)
1) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. Physical
verification of fixed assets has been carried out by the management at
reasonable intervals during the year and no discrepancy was noticed on
2) None of the fixed assets have been revalued during the year.
3) In our opinion and according to the information and explanation
given to us, a substantial part of the fixed assets has not been
disposed off by the Company during the year except sale of motor car.
4) The property under development of the Company have been physically
verified by the management at the close of the year and in our opinion,
the frequency of such verification is reasonable.
5) The Company has not taken/granted any loans, secured or unsecured,
from/to companies, firms or other parties listed in the Register
maintained under Section 301 of the Act or from/to companies under
the same management as defined under the Section 370 (1B) of the Act.
6) In our opinion and according to information and explanations given
to us the transactions that need to be entered into the Register in
pursuance of Section 301 of the Act, have been so entered.
7) The Company has given Interest free loan or advances in the nature
of loans to employees and they are repaying the principal amount as
8) 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 other assets.
9) As explained to us, the Company has a regular procedure for
determination of unserviceable or damaged goods. We have, however, been
informed that no such items were noticed during the year.
10) The Company has not accepted any deposits from the public during
11) In our opinion, present coverage of Internal Audit together with
the present internal control system is adequate and commensurate with
the size of the Company and the nature of its business.
12) In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
13) In our opinion, and 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.
14) Provident Fund dues have been regularly deposited with the
appropriate authorities during the year. We have been informed that the
provisions of Employees State Insurance Act, 1948, are not applicable
to the Company.
15) 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.
16) There are no undisputed amounts payable in respect of Income Tax,
Wealth Tax and Sales-Tax outstanding as at 31st March, 2007 for more
than six months from the date they became payable. The Company has no
liability with regard to the payment of customs duty and excise duty.
17) The Company has no accumulated losses as at March 31, 2007 and it
has incurred cash losses during the financial year ended on that date.
18) In our opinion and as per the explanations given to us, the Company
has not charged any personal expenses to revenue account other than
those payable under contractual obligations or in accordance with
generally accepted business practice.
19) In our opinion and according to the information and explanations
given to us, no fraud by the Company and no significant fraud on the
Company has been noticed or reported by the Management during the year,
that ultimately causes the financial statements to be materially
20) Other clauses of the said Order are not applicable to the Company.
For PANKAJ B. MEHTA & CO.
Place : Mumbai PANKAJ B. MEHTA
Dated : 29th June, 2007 Proprietor
Membership No. 30048