We have Audited the attached Balance Sheet of JAGAN LAMPS LTD., as at
31st March 2010 and also the Profit & Loss Account of the Company 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
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 misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosure 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 (Auditors Report) Order, 2003, as
amended by the Companies (Auditors Report (ammendment) Order, 2004 (
herein after refer to as the order) issued by the Central Government of
India in terms of sub-section (4A) of Section 227 of the Companies Act,
1956 and on the basis of such checks as we considered appropriate and
according to the information and explanation given to us, we set out in
the annexure a statement on the matters specified in paragraphs 4 & 5
of the said order.
(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 the
c) The Balance Sheet and Profit & Loss Account dealt with by this
report are in agreement with the books of account;
d) On the basis of written representations received from the Directors
and taken on record by Board of Directors we report that none of the
Directors is disqualified as on 31st March 2010 from being appointed as
a director in terms of clause (g) of Sub-Section (1) of section 274 of
the Companies Act, 1956.
e) In our opinion, the Balance Sheet and Profit & Loss Account referred
to in our report comply with the Accounting Standards referred to in
Sub-section (3C) of the Section 211, of the Companies Act, 1956 except
(i) Accounting Policy No. 6, Schedule VI, non accountal of gains /
losses due to exchange fluctuations, amount unascertained, not in
conformity with Accounting Standard 11 (AS-11) issued by the Institute
of Chartered Accountants of India.
(ii) Accounting Policy No. 7, Schedule VI, regarding accountal of bonus
& gratuity and leave encashment on cash basis, amount of liability not
ascertained, not in conformity with Accounting Standard 15 (AS-15)
issued by the Institute of Chartered Accountants of India.
(iii) Accounting Policy No. 3, Schedule VI, regarding accounting of
sales (net) is not in conformity with accepted Accounting Principles.
(iv) Non-determination of Deferred Tax Asset / Liability, amount not
ascertained as required as per Accounting Standard -22 (AS-22) issued
by the Institute of Chartered Accountants of India.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said Balance Sheet and Profit & Loss
Account read with the Notes and Schedules annexed thereto give subject
to para (e) above, the information as 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 :
* In the case of the Balance Sheet of the state of affairs of the
company as at 31st March 2010 and
* In the case of Profit & Loss Account of the Profit of the Company for
the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
(Referred to in Paragraph-1 of our Report of even date on the accounts
of JAGAN LAMPS LTD. for the year ended 31st March 2010)
1. (a) The Company is maintaining proper records to show full
particulars including quantitative details and situation of fixed
(b) The fixed assets of the company are physically verified by the
management, according to a phased programme designed to cover all the
items over a period of three years, which in our opinion, is reasonable
having regard to the size of the company and the nature of its assets.
Pursuant to such programme, a physical verification was carried out
during the year and this revealed no material discrepancies.
(c) The company has not disposed of substantial part of its fixed
assets during the year and the going concern status of the company is
2. (a) The Inventory of the company has been physically verified by
the management during the year. In our opinion the frequency of
verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are 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 records of inventory, in our
opinion, the Company has maintained proper records of inventory. The
discrepancies noticed on physical verification between the physical
stocks and the book records were not material.
3. The Company has neither granted nor taken any loans, secured or
unsecured, to / from companies, firms, or other parties listed in the
Register maintained under section 301 of the Companies Act, 1956.
4. 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 stores, raw materials, including
components, plant and machinery, equipments and other assets, and for
the sale of goods. Further, on the basis of our examination and
information and according to the explainations given to us, we have
neither come across nor we have been informed of any instance of major
weaknesses in the aforesaid internal control procedures.
5. (a) In our opinion and according to the information and explanation
given to us, the transactions that need to be entered into the Register
maintained under section 301 of companies Act, have been so entered.
(b) In our opinion, and according to the information and explanations
given to us, no transactions have been made in pursuance of contracts
or arrangements entered in the Register maintained under section 301 of
the Companies Act, 1956 exceeding the value of Rs. 5 Lakh in respect of
any party during the Year.
6. The Company has not accepted any deposits from the Public.
7. In our opinion, the company has an Internal audit system
commensurate with its size and nature of its business.
8. As informed, the Central Government has not prescribed maintenance
of cost records under section 209 (1)(d) of the Companies Act, 1956 for
any of the products of the company.
9. (a) According to our information and explanation given to us, and
according to the books and records as produced and examined by us, in
our opinion, the undisputed statutory dues in respect of provident
fund, employees state insurance, income tax, sales tax, customs duty,
excise duty, cess and other material statutory dues as applicable, have
been regularly deposited by the company during the year with the
(b) As on 31st March 2010, according to the records of the company and
the information, and explanations given to us, disputed dues of the
income tax has since paid in full.
10. The Company has neither accumulated losses as at March 31, 2010
nor has it incurred any cash losses during the financial year ended on
that date or in the immediately preceding financial year.
11. The Company has no dues towards any Financial Institution or Bank
or to Debenture Holders as at the balance sheet date.
12. The Company has not granted any loans and advance on the basis of
security byway of pledge of shares, debentures and other securities.
13. In our opinion, considering the nature of activities carried on by
the Company during the year, the provisions of any special statute
applicable to Chit Fund, Nidhi, Mutual Benefit Fund, Societies are not
applicable to the Company.
14. In our opinion the Company has no dealing or trading in shares,
securities, debentures and other investments during the year.,
15. The Company has not given any guarantees for loans taken by others
from Banks or Financial Institutions.
16. The Company has not taken any Term Loan during the Year.
17. Based on the information and explanations given to us and on an
overall examination of the balance sheet of the company in our opinion,
there are no funds raised on short term basis, which have been used for
long term investment and vice versa.
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under section
301 of the Companies Act, 1956 during the year.
19. The Company has not issued any debentures.
20. The Company has not raised any money by public Issue during the
21. During the course of our examination of the books of account
carried out in accordance with the generally accepted auditing
practices in India, and according to the information and explainations
given to us we have neither come across any instance of fraud on or by
the company noticed or reported during the year, not have we been
informed of such case by the management.
Bhasin Raghavan & Co.
Place : New Delhi (H. Kapoor)
Dated : 29-05-2010 Partner
Membership No. 82533