We have audited the attached Balance Sheet of ELEGANT FLORICULTURE &
LIMITED MUMBAI, as at 31 March, 2007, and the Profit and Loss Account
of the Company for the year ended on that date, both 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.
1. 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 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
2. As required by Companies (Auditors Report) Order 2003, issued by
the Central Government of India in terms of sub section (4A) of section
227 of the Companies Act, 1956, we enclose in the Annexure a statement
on the matters specified in paragraphs 4 and 5 of the said order to
3. Further to our comments in the Annexure referred to in paragraph 2
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 accounts as required by law have
been kept by the / Company so far as it appears from our examination of
(c) The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the above books of accounts;
(d) In our opinion, the Profit and Loss Account and Balance Sheet dealt
with by this report comply with the Accounting Standards referred to in
sub-section (3c) of Section 211 of the Companies Act, 1956.
(e) On the basis of written presentations received from directors as on
31 st March, 2007 and taken on records by the Boards of Directors, we
report that none of the Directors are disqualified as on 31 st March,
2007 from being appointed as a director in terms of clause (g) of
sub-section (i) of section 274 of the Companies Act, 1956 on the
accounts for the year ended on 31st March, 2007.
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said Balance Sheet and the Profit and
Loss account read together with the 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) insofar as it relates to the Balance Sheet, of the state of affairs
of the company as at 31st March, 2007, and
ii) insofar as it relates to the Profit & Loss account, of the Profit
of the company for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT OF EVEN DATE
(Referred to in paragraph 3 thereof)
i) In respect of fixed assets
a) 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
during the year. We are informed that no material discrepancies were
noticed by the management on such verification.
c) A substantial part of fixed assets have not been disposed of during
the year into consideration.
ii) In respect of Inventories:
a) The physical verification of inventory has been conducted at regular
intervals by the management.
b) The procedure of physical verification of inventory followed by the
management is reasonable and adequate in relation to the size of the
company and the nature of its business.
c) The company has been maintaining proper records of the inventory and
no material discrepancies were noticed.
iii) In respect of loans secured or unsecured, granted or taken by the
company, to or from companies, firms or other parties covered in the
register maintained under section 301 of the Act according to the
information and explanation given to us.
a) The company has granted loans to companies, firms or other parties
covered in the register mentioned in Section 301 of the Act.
b) The terms and conditions of the loans granted and the rate of
interest are not prima tecie prejudicial \o \he interest of the
c) According to the information provided to us, the payment schedule
for the loans appears to be reasonably regular.
d) The Company has not taken any Loans from any party.
e) According to the information provided to us, in cases where the
amounts involved are more than Rs. 1 lac, reasonable steps are being
taken for the recovery of the principal and interest.
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 for the purchase of inventory and fixed assets and for the
sale of goods.
v) In respect of transactions that need to be entered in the register
maintained in pursuance of Section 301 of the Act in our opinion and
according to the explanations given to us:
a) The company has entered in to transactions with parties mentioned in
the register maintained in pursuance of Section 301. The company has
maintained the necessary records for the same.
b) According to the information provided to us, the company has entered
in the transaction which are reasonable and at prevailing market
vi) In our opinion and according to the information and explanation
given to us, the Company has not accepted any deposits covered under
section 58A of the Act during the year. Hence, the question of
compliance with the provisions of Section 58A of the Act does not
vii) The Company has an internal audit system commensurate with its
size and nature of the business.
viii) The Central Government has not prescribed maintenance of cost
records for the Company under section 209(1) (d) of the Act.
ix) According to the information and explanation given to us in respect
of statutory and other dues:
a) The Company is generally regular in depositing undisputed statutory
dues including, Income-tax, Sales-tax, Customs Duty and other statutory
dues with appropriate/ authorities when applicable. According to
information and explanations given to us, provision of the statutes
relating to ESIS and Provident Fund are not applicable to the company.
b) There are no disputed statutory dues,
x) The Company has no accumulated losses at the end of the financial
xi) The Company has not defaulted on repayment of dues to any bank or
financial institution. The company has not issued any debentures.
xii) According to the information and explanations given to us, the
Company has not granted loans and advances on basis of security by way
of pledge of shares, debenture and other securities
xiii) As per information and explanations given to us, the nature of
the Companys activities during the year under review is such that the
provisions of any special statute applicable to chit fund are not
applicable to the Company.
xiv) As per information and explanations given to us, the Company has
not dealt in shares, debentures and other securities.
xv) As per information and explanations given to us, the company has
not given any guarantee for loans taken by others from bank or
xvi) As per information and explanations given to us, the company has
not obtained any term loans during the year.
xvii) According to the information and explanations given to us, no
funds has been raised on short-term basis.
xviii) The Company has not made any preferential allotment of shares
during the year.
xix) No debentures have been issued by the Company during the year.
xx) During the year, the Company has not raised any money by way of
xxi) According to the information and explanations given to us, no
fraud on or by the Company have been noticed or reported during the
financial year under review.
For SHIV PAWAN & COMPANY
Place : Navi Mumbai (S.H.GARG)
Dated : 25th August, 2007 Partner