We have audited the attached Balance Sheet of JAINCO PROJECTS (INDIA)
LTD. as at 31st March, 2011 and also the Profit and Loss Account and
the Cash Flow Statement 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 conducted our 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 a significant estimate
made by management, as well as evaluating the overall financial
statements presentation. We believe that our audit provides a
reasonable basis for our opinion. We report as follows:
1. As required by the Companies (Auditor''s Report) Order, 2003, issued
by the Central Government of India, in terms of Section 227 (4A) of the
Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in the paragraph 4 and 5 of the said Order.
2. Further to our comments in the annexure referred to in paragraph 1
above:
a.. We have obtained all the information and explanations, which to the
best of our knowledge & belief were necessary for the purpose of our
audit;
b. In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of the
books;
c. The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts;
d. In our opinion, the Balance Sheet, Profit & 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.
e. On the basis of the written representations received from Directors
as on 31st March 2011 and taken on record by the Board of Directors of
the Company, none of the Director is disqualified as on 31st March 2011
from being appointed as Directors none of the appointed as Directors in
terms of clause (g) of sub-section (1) of Sec. 274 of the Companies
Act, 1956;
f. In our opinion and to the best of and to the best of our
information and according to the explanations given to us, the said
accounts, read together with the Company''s Accounting Policies and the
Notes thereto, 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 the Profit & Loss Account, the Profit of the Company
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
(Refer to paragraph 1 of our report of even date)
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
2. As explained to us the fixed assets have been physically verified by
the management during the year in a phased / Periodical manner which in
our opinion is reasonable having regard to the size of the Company and
nature of its assets. No material discrepancies were noticed on such
verification.
3. During the year, Company has not disposed of any substantial/major
part of fixed An asset, so the question of going concern status being
affected does not arise.
4. As explained to us, the inventory has been physically verified
during the year by the management. In our opinion, the frequency of
verification is reasonable.
5. 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.
6. In our opinion and according to the information and explanations
given to us and on the basis of our examination of the records of
inventory, the Company is maintaining proper records of inventory. As
explained to us there were no materials discrepancies noticed on
Physical verification of inventory as compared to the book records.
7. According to the information and explanations given to us, the
Company has not taken any loan from or granted any loan to the parties
listed in the Register maintained under Section 301 of the Companies
Act, 1956.
8. According to the information and explanations given to us, parties
to whom loans and advances in the nature of loans have been given,
where stipulations are made, are repaying the principal amount as
stipulated.
9. According to the information and explanations given to us, there is
no overdue amount of loans granted to the parties listed in the
Register maintained under Section 301 of the Companies Act, 1956.
10. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and nature of its business
with regard to the purchase of inventory and fixed assets, and with
regard to the sale of goods. During the course of our audit, no major
weakness has been noticed in the internal Controls.
11. Based on audit procedures applied by us, to the best of our
knowledge and belief and according to the information and explanations
given to us, we are of the opinion that the transactions that needed to
be entered into the register maintained in pursuance of Section 301
have been so entered.
12. According to the information and explanations given to us, the
transactions made in pursuance of such contracts or arrangements and
exceeding the value of Rupees.
13. Five lakhs in respect of any party during the year have been made
at prices, which are reasonable having a regard to the relevant market
prices at the relevant time.
14. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
within provisions of Section 58A and 58AA of the- Companies Act, 1956
and rules there under. Therefore, the provisions of clause (vi)
paragraph 4 of the Companies (Auditor''s Report) order, 2003 are not
applicable to the company.
15. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
16. We have broadly reviewed the books of account maintained by the
Company .As explained to us the maintenance of cost records under
Section 209(1 )(d) of the Companies Act, 1956, are not prescribed by
the Central government.
17. According to the records of the Company and explanations given to
us, the Company has been regular in depositing undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income-Tax, Sales Tax, Wealth-Tax, Customs
Duty, Excise Duty, Cess and other Statutory dues with the appropriate
authorities during the year.
18. The Company has not incurred cash losses during current and the
immediately preceding financial year.
19. Based on our audit procedures and on the basis of information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in the repayment of dues to banks.
20. According to the information and explanations 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.
21. The provisions of any Special Statute applicable to Chit Fund,
Nidhi or Mutual Benefit Fund/Societies are not applicable to the
Company.
22. Based on our audit procedures and to the best of our knowledge and
according to the information and explanations given to us, we are of
the opinion that the Company is maintaining proper record of the
transactions and contracts of dealing in shares and securities and that
timely entries have been made in these records.
23. Based on our audit procedures and to the best of our knowledge and
belief and according to the information and explanations given to us,
the shares and securities have been held by the Company in its own
name, except to the exemption, if any granted under section 49 of the
Act.
24. According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, we report that
no funds raised on short-term basis have been used for long-term
investment by the Company and vice versa. on short-term basis have been
used for long-term investment by the Company and vice versa.
25. The Company Has not made any preferential allotment to parties and
companies covered under register maintained Under Section 301 of the
Companies, 1956, during the year and question of whether the price at
which the shares have been issued is prejudicial to the interest of the
Company does not arise
26. According to the information and explanations given to us, and the
records examined by us, the Company has not issued any debentures hence
no question of creation of securities.
27. The Company has not raised money by any public issues during the
year and hence the question of disclosure and verification of end use
of such money does not arise.
28. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the year.
For SARKAR GURUMURTHY & ASSOCIATES
CHARTERED ACCOUNTANTS
BASUDEB MONDAL
PARTNER
Place: Kolkata
Dated: 31-05-2011
