We have audited the attached Balance Sheet of EMMSONS INTERNATIONAL
LIMITED, Registered office 2637, 1st Floor, Naya Bazar, Delhi-110006 as
at 31st March, 2008, Profit and Loss Account and also the 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.
We have conducted 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 our opinion.
As required by the 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.
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 purpose of our
(ii) 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
those books ;
(iii) The Balance Sheet, Profit and Loss Account and Cash Flow
Statement, dealt with by this report, are in agreement with the books
of account ;
(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, 2008, and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March 2008 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 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, 2008 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 Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO AUDITORS REPORT Referred to Paragraph 1 of our report of
even date attached
1 (i) a) The company is maintaining proper records showing full
particulars including quantitative details and situation of the assets
on basis of the information available.
b) According to information and explanation given to us, the fixed
assets of the company have been physically verified by the management
at reasonable intervals during the year. No material discrep- ancies
has been noticed on such verification.
c) No fixed assets have been disposed off during the year which may
affect the going concern concept.
(ii) a&b) As explained to us, the inventory has been physically
verified by the management at reasonable intervals during the year. In
our opinion, the frequency of such verification is Reasonable
considering size and nature of the business.
c) In our opinion and according to information and explanation given to
us, the procedure of physical verification of inventory, followed by
the management, are reasonable and adequate. No serious discrepancies
have been noticed in physical verification.
(iii) The company has not taken unsecured loans from the entities,
listed in the register maintained under section 301 of the Companies
(iv) In our opinion and according to information and explanation given
to us, there are adequate internal control procedures commensurate with
the size and nature of the company for purchase of inventory and fixed
assets and sale of goods. There is no continuing failure to correct
major weakness in internal control.
(v) According to the information and explanation given to us, the
company has not entered into transaction pursuance of contract or
arrangement entered in register maintained under section 301 of the
Companies Act, 1956.
(vi) In our opinion and explanation given to us, the company has not
accepted any public deposit and the directives issued by the RBI and
the provisions of 58A and 58AA of the Act and rules framed there under,
wherever applicable, have been complied with.
(vii) In our opinion, the company has an internal audit system
commensurate with it size; and nature of business.
(viii) The maintenance of the cost record have not been prescribed by
the Central Government under section 209(1 )(d) of Companies Act, 1956
to the company.
(ix) a) According to books of accounts examined by us and explanation
given to us there are no undisputed statutory dues payable except given
in point (b) in respect of PF, ESI, Income Tax, Sales Tax, Wealth Tax
Custom Duty, Excise Duty, Cess and other statutory dues which are
outstanding as at 31st March, 2008 for the period of more than 6 months
from the date they became payable except balance demand of Income Tax
of Rs. 24.63 lacs for AY 2003-04, where payment in installment is
acceptable by the department and company is regular in payment by
b) According to information given to us following dues of sales
Tax/income-tax/custom tax/wealth tax/ excise duty/cess have not been
deposited by the company on account of dispute pending before concerned
S. No. Period of demand Amount Involved
1 A.Y. 2006-07 24.04 lacs
2 A.Y.2004-05 2.15 lacs
Particulars of demand Appeal Pending Before
Demand under DVAT Addl. Commissioner of Trade
& Taxes, New Delhi
Demand raised on assesment 2nd appeal before ITAT
u/s 143(3) of Income Tax Act is being filed
(x) There are no accumulated losses of the company. The company has
also not incurred any cash losses during the financial year and not
immediately proceeding the financial year.
(xi) As per explanation and information provided to us company has not
defaulted in repayment of dues to a financial institution or banks.
(xii) The company has not granted loan and advances on basis of
security by way of pledged of shares, debentures, other securities.
(xiii) Provisions of clause (xiii) are not applicable to the company.
(xiv) As per information given to us company is not dealing or trading
in shares, securities, debentures and other investments.
(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 prime-facie prejudicial to the interest of the
(xvi) To the best of our knowledge & belief and according to
information given to us term loan availed by company, were prima facie
applied by company during the year for the purpose for which they were
obtained other than temporary deployment pending application.
(xvii) As per information & explanation given to us and overall
examination of balance sheet of the company we report that funds raised
on short-term basis have prima facie not been used for long-term
investment and vice versa.
(xviii) As per information and explanation given to us the company has
not made any preferential allotment of shares to parties and companies
covered in register maintained under section 301 of the Companies Act.
However company has accepted application money for preferential issue
of equity warrants in accordance with scheme approved in Extra ordinary
General meeting of shareholders.
(xix) As per information & explanation given to us the company has not
issued any debentures and no security has been created against the
(xx) During the year, company has not raised money by way public issue
of equity shares.
(xxi) As per information & explanation given to us no fraud has been
noticed or reported during the year.
For SURESH & ASSOCIATES
(CA Suresh K. Gupta)
Dated : 6th June, 2008 Partner
Place : Delhi M. No. 080050