We have audited the attached Balance Sheet of Firstwinner Industries
Ltd. as at 31st March 2011, the Profit & Loss Account 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.
We have conducted our audit in accordance with the 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 from 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
1. As required by the Companies (Auditor''s Report) Order, 2003 as
amended by Companies (Auditor''s Report)(Amendment) Order 2004 issued by
Central Government of India, in terms of section 227(4A) of the
Companies Act,1956, we enclose in the Annexure hereto a statement on
the matters specified in the paragraphs 4 and 5 of the said order, to
the extent applicable to the Company.
2. Further to our comments in the Annexure referred to in paragraph
(1) 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 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
c. The Balance Sheet and Profit & Loss Account dealt with by this
report are in agreement with the books of account;
d. In our opinion the Balance Sheet and the Profit and Loss Account
dealt with by this report comply with the mandatory Accounting
Standards referred to in sub-section (3C) of section 211 of the
e. On the basis of written representation received from the Directors,
as on 31st March 2011 and taken on record by the Board of Directors, we
report that none of the directors of the Company is disqualified as on
31st March 2010 from being appointed as a Director in terms of section
274(1)(g) of the companies Act, 1956.
f. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts 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) In the case of Balance Sheet, of the state of affairs of the Company
as at 31st March 2011;
ii) In the case of Profit & Loss Account, of the profit for the year
ended on that date and
iii) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO THE AUDITORS REPORT FOR YEAR END 31.03.2011
(Referred to in paragraph 1 of our report of even date)
1 a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) As explained to us the management has physically verified the fixed
assets during the year and no material discrepancies were noticed on
c) In our opinion and as per the information and explanations given to
us, the Company has not disposed off any substantial part of fixed
assets during the year and the going concern status of the Company is
2 a) As explained to us, inventories have been physically verified by
the management at reasonable intervals.
b) In our opinion and according to the information and explanation
given to us, the procedure of physical verification of inventories
followed by the management is reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) On the basis of our examination of inventory records, we are of the
opinion that the company is maintaining proper records of inventory. As
explained to us, no material discrepancies have been noticed on
physical verification of inventories as compared to book records.
3 a) The Company has not taken any loans, secured or unsecured from
companies, firms or parties covered in the register maintained under
section 301 of the Companies Act,1956.
b) The Company has not given any loans, secured or unsecured from
companies, firms or parties covered in the register maintained under
section 301 of the Companies Act, 1956.
4. In our opinion and according to the information and explanations
given to us during the course of audit,, there are adequate internal
control system commensurate with the size of the Company and nature of
its business for the purchase of inventory & fixed assets and for the
sale of Goods. Further on basis of our examination of the books and
records of the Company, carried out in accordance with the generally
accepted auditing practice in India, we neither come across nor have we
have been informed of any instance of major weakness in the aforesaid
internal control systems.
5. a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contract or
arrangements, that needed to be entered into the register maintained
under section 301 of the Companies Act,1956 have been so entered in the
register required to be maintained under that saction.
b) In our opinion and according to the information and explanations
given to us, the transactions of purchase of goods and material and
sale of goods, material and services made in pursuance of contract or
arrangement entered in the register maintained under section 301 and
aggregating during the year to Rs. 5,00,000 (Rs. Five Lacs Only) or
more in respect of each party have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time for such goods, material and services have been made with
6. The Company has not accepted any deposits from the public, with in
meaning of section 58A and 58AA or any other relevant provisions of the
Companies Act,1956 including the Companies (Acceptance of Deposit)
7. In our opinion the company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the Cost Accounting records, maintained by
the Company pursuant to the Rules prescribed by the Central Government
for the maintenance of the cost records under the clause (d) of the
sub-section (1) of section 209 of the Act, and are of the opinion that,
prima facie, the prescribed records have been maintained. We are,
however, not required to make a detained examination of such books and
9. a) According to the records of the company, undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income Tax, Sales Tax, Service Tax, Custom
Duty, Excise Duty, Cess and other statutory dues have been generally
regularly deposited with the appropriate authorities during the year.
According to the information and explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at 31st March 2011 for a period of more than six months
from the date of becoming payable.
b) According to the information and explanations given to us and as per
books and record examined by us, there are no such statutory dues,
which have not been deposited on account of any dispute.
10. The company has positive net worth at the end of the financial
year. The company has no accumulated losses and has not incurred any
cash losses during the current financial year and immediately preceding
11. According to the information and explanation given to us and as
per the books and records examined by us, the Company has not defaulted
in repayment of dues to any financial institutions or banks. The
company has not issued any debentures.
12. According to the information and explanation given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. The Company does not fall within the category of Chit Fund / Nidhi
/ Mutual Benefit Fund/ Society and hence the related reporting
requirements of the Orders are not applicable.
14. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments and hence the related reporting requirements of the
Order are not applicable.
15. The Company has given a guarantee jointly with other company to
financial institution and bank for loan taken by others from the
financial institution and bank, the terms and conditions of which are
not prima facie, prejudicial to the interest of the Company.
16. In our opinion and according to the information and explanations
given to us, the term raised from during the year by the Company have
been applied for the purpose for which the said loans were obtained,
where such end use has been stipulated by the lender. .
17. According to the information and explanations given to us and as
per the books and records examined by us, as on the date of the Balance
Sheet, the funds raised by the Company on short term basis not been
applied for long term investment.
18. The Company has made preferential allotment of shares during the
year, to companies and other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
19. The company did not have any outstanding debentures during the
20. During the course of our examination of the books and records of
the Company carried out in accordance with the generally accepted
auditing practice in India, we have neither come across any instance of
fraud on or by the Company, noticed and reported during the year, nor
have we been informed of such case by the management.
For Deshmukh & Associates For Praful M. Joshi
Chartered Accountants Chartered Accountants
[Deepen Kapadia - Partner] [Praful M. Joshi- Proprietor]
Membership No. 112565 Membership No. 30276
Place : Mumbai
Dated : 30.08.2011