Report on the Financial Statements
We have audited the accompanying financial statements of Gulshan
Polyols Limited (the Company) which comprise the Balance Sheet as at
March 31, 2013, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
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 principles generally accepted in India including
Accounting Standards referred to in Section 211(3C) 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.
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 misstatements.
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 aforesaid 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 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 profit for
the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2003 (the
Order) issued by the Central government of India in terms of Section
227(4A) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the Order.
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 audit and belief were necessary for the purpose
of our audit ;
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, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d. In our opinion, the Balance Sheet, the Statement of Profit and
Loss, and the Cash Flow Statement comply with the Accounting Standards
referred to in section 211(3C) of the Act;
e. On the basis of the written representations received from the
directors as on March 31, 2013, taken on record by the Board of
Directors, 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
ANNEXURE TO AUDITORS' REPORT
(Referred in Paragraph 3 of our Report of even date)
I. In respect of Fixed Assets :
a) The Company is maintaining proper records showing full particulars,
including quantitative details and situation of Fixed Assets.
b) As explained to us, these Assets have been physically verified by
the Management at reasonable intervals, having regard to the size of
the company and nature of its assets, no material discrepancies were
noticed on such verification.
c) In our opinion, company has not disposed off substantial part of its
fixed assets during the year and the going concern status of the
company is not affected.
II. In respect of Inventories :
a) As explained to us, physical verification of inventory has been
conducted by the Management at reasonable intervals.
b) In our opinion and according to the information and explanations
given to us, 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 is maintaining proper records of inventory and no
material discrepancies were notified on physical verification of
inventories as compared to book records.
III. In respect of Loans, secured or unsecured granted or taken by the
company to/from companies, firms and other parties covered in the
register maintained u/s 301 of Companies Act 1956 :
a) To the records of the Company and information given to us, the
Company has not granted any loan to any party during the year.
b), (c) & (d) Since the Company has not granted any loan to any party,
these points are not applicable to the Company.
e) According to the records of the Company and information given to us,
the Company has not taken loans during the year from companies, firms
or other parties covered in the register maintain u/s-301 of the
Companies Act 1956
IV. In our opinion, and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business for the
Purchase of Inventory and fixed Assets, for the Sale of Goods and
services. During the course of audit, we have not observed any major
weaknesses in the Internal controls system.
V. In respect of Transactions covered under section 301 of the
Companies Act, 1956:
a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements that needed to be entered in the register maintained under
section 301 of the Companies Act, 1956, have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions in pursuance of contracts or arrangements
entered in the register maintained under section 301 of the Companies
Act 1956, in respect of each party have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
VI. The Company has accepted Fixed Deposits from the public within the
meaning of Section 58-A of the Companies Act, 1956 and the rules framed
there under and have complied with all the rules thereof.
VII. In our opinion, the Company has an adequate Internal Audit System
commensurate with its size and nature of its business.
VIII. The Central Government has prescribed the maintenance of Cost
Records under section 209(1)(d) of the Companies Act, 1956 in respect
of certain manufacturing activities of the Company .We have broadly
reviewed the accounts & records of the Company in this connection and
are of the opinion, that prima facie, the prescribed accounts and
records have been made and maintained. We have not, however, carried
out a detailed examination of the same.
IX. (a) According to the records of the company and explanations given
to us, the company is regular in depositing undisputed statutory dues
including Provident Fund, Investor Education & Protection Fund,
Employees State Insurance, Income Tax, Sales Tax, Custom Duty, Excise
Duty, cess, Wealth tax, Service Tax and any other statutory dues with
the appropriate authorities, According to the information and
explanations given to us, no undisputed amount payable in respect of
the aforesaid dues were outstanding as at 31st March, 2013 for a period
of more that 6 months from the date of becoming payable.
X. The Company has no accumulated losses and it has not incurred cash
losses during the financial year covered by our audit and in the
immediately preceding financial year.
XI. According to the records and information given to us, the company
has not defaulted in repayment of dues to a financial Institution or
XII. In our opinion and 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
XIII. In our opinion and According to the information and explanations
given to us, the company is not a chit fund or Nidhi or mutual benefit
fund/society. Therefore, clause 4(xiii) of the Companies Auditors
Report (Amendment),Order 2003 is not applicable to the company.
XIV. In our opinion and According to the information and explanations
given to us, the company is not dealing or trading in shares,
securities, debentures and other investments.
XV. The Company has not given any corporate guarantee for any loans
taken by others from Bank/ Financial institutions.
XVI. According to the records of the company and according to the
information and explanations given to us, term loans taken by the
company were used for the purpose for which the loans were obtained.
XVII. According to the records of the company and according to the
information and explanations given to us and on overall examination of
the balance sheet, we opine that the funds raised on short term basis
have not been used for long term investment during the year covered
XVIII. During the year, the company has not made any preferential
allotment of shares to the parties and the companies covered in the
register maintained under section 301 of the Companies Act 1956.
XIX. No debentures have been issued by the company during the year.
XX. The company has not raised any money by public issue during the
XXI. As explained to us and information given to us, no fraud on or by
the company has been noticed by or reported during the year.
For SHAHID & ASSOCIATES
(Registration No. 002140C)
Date : 25th May, 2013
Place : Delhi (MOHD. SHAHID)
Membership No : 70408