We have audited the accompanying financial statements of Emmsons
International Limited (''the Company'') which comprise the balance sheet
as at 31st March 2013, the statement of profit and loss and the cash
flow statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
1. Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 (the Act). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
2. Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
(i) in the case of the balance sheet, of the state of affairs of the
Company as at 31st March 2013;
(ii) in the case of the statement of profit and loss, of the profit 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.
4. Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 (the
Order), as amended, issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Act, we give in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the
2. As required by section 227(3) of the Act, 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. 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
c. the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
d. in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956; and
e. on the basis of written representations received from the directors
as on 31st March 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO AUDITOR''S REPORT Referred to Paragraph 4 of our report of
even date attached
(i) a) The company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
b) Some of the fixed assets of the company have been physically
verified during the year by the management in accordance with program
of verification, which in our opinion provide for physical verification
of all the fixed assets at reasonable intervals. According to
information and explanation given to us, no material discrepancies have
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) 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.
b) In our opinion and according to information and explanation given to
us, the procedures of physical verification of inventory, followed by
the management, are reasonable and adequate in relation to the size and
nature of its business.
c) In our opinion and according to information and explanation given to
us, the company is maintaining proper records of inventory and no
serious discrepancies have been noticed on physical verification.
(iii) We are informed that the Company has not granted or taken any
secured or unsecured loans from to companies / firms or other parties
covered in the register maintained under section 301 of the Companies
Act, 1956. Therefore, the provisions of paragraph 4(iii)(b)(c)(d)(e)(f)
& (g) of the above said order are not applicable to the company.
(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 and services. There is no continuing failure
to correct major weakness in internal control system.
(v) In our opinion and according to information and explanations given
to us, company has not entered into any transactions particulars of
which are required to be recorded in register maintained u/s 301 of the
Companies Act, 1956. Therefore, the provisions of paragraph 4(v)(b) of
the above said order are not applicable.
(vi) In our opinion and explanation given to us, the company has not
accepted any public deposit and therefore, the directives issued by the
RBI and the provisions of sections 58A and 58AA of the Act and rules
framed there under are not applicable to the company.
(vii) In our opinion, the company has an internal audit system
commensurate with its size and nature of its business.
(viii) To the best of our knowledge and as explained, the maintenance
of the cost records have not been prescribed by the Central Government
under section 209(1)(d) of Companies Act, 1956 for any of the products
of the Company.
(ix) a) According to books of accounts examined by us and explanation
given to us company is generally regular in depositing undisputed
statutory dues and there are no undisputed statutory dues payable in
respect of P F, ESI, Income Tax, Sales Tax, Wealth Tax Custom Duty,
Excise Duty, Cess and other statutory dues which are outstanding as at
31st March, 2013 for the period of more than 6 months from the date
they became payable.
b). There are no disputed liabilities in respect of P F, ESI, Income
Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and other
statutory dues which are outstanding as at 31st March, 2013 except
No. Period of
demand Amount Involved Particulars of
1 AY 2004-05 Rs. 1.67 lacs Demand under
Income Tax Act ITAT Delhi
2 AY 2004-05 Rs. 6.92 lacs Demand under
Income Tax Act ITAT Delhi
3 AY 2008-09 Rs. 10.11 lacs Demand under
Income Tax Act Rectification
(x) There are no accumulated losses of the company as at 31.03.2013.
The company has also not incurred any cash losses during the financial
year and nor in immediately preceding 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) In our opinion and according to the information and explanations
given to us, the company is not a chit fund/nidhi/ mutual benefit fund/
(xiv) According to the information and explanations given to us,
Company is dealing in shares and proper records have been maintained
for all transactions. We report the company is making timely entries of
the transactions and all shares have been held by the company in its
(xv) In our opinion and according to the informations and explanations
given to us, the Company has given guarantee for loans taken by others
from banks or financial institutions and terms and conditions whereof
are not prejudicial to the interest of company.
(xvi) To the best of our knowledge & belief and according to
information given to us term loan availed by company are prima facie
applied by company during the year for the purpose for which they are
(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 preferential allotment of shares to parties and companies
covered in register maintained under section 301 of the Companies Act.
(xix) As per information and 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 and explanation given to us no fraud has been
noticed or reported during the year.
For SURESH & ASSOCIATES
(CA SURESH K. GUPTA)
M. No. 080050
Date : 30.05.2013
Place : New Delhi