1. We have audited the attached Balance Sheet of DSJ Communications
Limited as at March 31, 2013, and also the Statement of Profit and Loss
and Cash Flow Statement of the Company for the year ended on that date
annexed thereto. 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.
2. We conducted our audit in accordance with auditing 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 misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in 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 Companies (Audit Report) Order 2003 as amended
issued by the Central Government of India in terms of Section 227 (4A)
of the Companies Act, 1956, and on the basis such checks as considered
appropriate and according to the information and explanations given to
us during the course of the audit, we enclose in the Annexure hereto a
statement on the matters specified in Paragraphs 4 and 5 of the said
4. Further our comments in the Annexure referred to in above
paragraphs, 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 purpose of our
b) The Company has not carried out any business operation during year.
c) 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 the
books of the Company;
d) The Balance Sheet, the Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
e) In our opinion, the Balance Sheet, the Statement of Profit and Loss
and Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of the Section 211
of the Companies Act, 1956.
f) On the basis of written representations received from the directors
of the Company as on March 31, 2013, and taken on record by the Board
of Directors, we report that none of the directors is disqualified as
on March 31, 2013, from being appointed as a director in terms of
Section 274(1) (g) of the Companies Act, 1956.
g) In our opinion and to the best of our information and according to
the explanations given to us, the said 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 March 31, 2013;
b. in the case of the Statement of Profit and Loss , of the loss for
the year ended on that date and
c. in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO THE AUDITORS'' REPORT
Referred to in paragraphs 3 of the Report of even date:
On the basis of such checks as we considered appropriate and in terms
of information and explanations given to us, we state that:
1. (a) There are no Fixed Assets in the Company, hence this clause
does not apply to the Company.
(b) As there are no Fixed Assets there is no question of physical
verification of fixed assets.
(c) As there are no Fixed Assets there is no question of disposal of
Fixed Assets during the period.
2. (a) There are no Inventories during the year, hence reporting under
this clause does not apply. (b) As there are no stocks reporting under
this clause does not apply.
3. (a) As informed to us, the Company has accepted loans during the
period from the parties covered in the register maintained under
section 301 of the Companies Act, 1956. According to the information
and explanation provided by the management, we are of the opinion that,
the transactions that need to be entered into the register maintained
under section 301 of the act have been so entered. The Company has not
granted any loans during the period to the parties covered in the
register maintained under section 301 of the Companies Act, 1956.
(b) Based on the information received and the explanations given, as
there are no loans granted, this Clause does not apply.
(c) In view of closure of operations of the Company, Interest and
principal amount are not repaid regularly in respect of such loans.
(d) All loans are overdue as on the March 31, 2013.
4. In our opinion and according to the information and explanations
given to us, as there is no business operation reporting on internal
control procedure does not apply.
5. The Company has not accepted any deposits falling under the
provisions of Section 58A and 58AA of the Companies Act, 1956 and the
rules made there under, during the period under review.
6. We are informed that the Company has no internal audit system
commensurate with the size and nature of its business.
7. We are informed that the maintenance of cost records has not been
prescribed by the Central Government under Section 209 (1) (d) of the
Companies Act, 1956, in respect of the Company''s products.
8. (a) The Company is generally regular in depositing undisputed
statutory dues with the appropriate authorities. We are informed that
at the year end there were no Overdue outstanding. Income Tax
authorities have raised a demand of Rs. 39.27 lacs in respect of the
Assessment year 1995-1996, the same has been disputed by the Company
and an appeal has been filed against the same.
(b) The Directorate General of Foreign Trade (DGFT), Division has
raised a claim on the Company for the imports made by them in the year
1994-1995 for an amount of Rs. 28,956,965/- (Principal- Rs. 13386476/-,
Interest- Rs. 8,877,251/- and Penalty- Rs. 66,93,238/-). The writ petition
is pending with Delhi High Court.
(c) We are informed that there are no disputed dues to be deposited at
9. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
10. As the Company is not a chit fund, nidhi, mutual benefit fund or
society the provisions of clause 4(xiii) ''the of Companies (Auditor''s
Report) Order, 2003 are not applicable to the Company.
11. As the Company is not dealing or trading in shares, securities,
debentures and other investments, the provision of clause (xiv) of the
Companies (Auditor''s Report) Order, 2003 is not applicable to the
12. The Company has not given any guarantees during the period.
13. No term loan was obtained during the period.
14. According to the information and explanations received, the
Company has not applied short terms borrowings for long term use and
15. The Company has not made any preferential allotment of shares
during the period.
16. The Company has not issued any debentures during the period.
17. The Company has not raised any money by way of public issue during
18. Based upon the audit procedures performed and on the basis of
information and explanations provided by the management, we report that
no fraud on or by the Company has been noticed or reported during the
course of our audit.
For M/s. S. V. Navalkar &
S. V. Navalkar
Membership No. 40433
Date: May 29, 2013