Report on the Financial Statements
We have audited the accompanying financial statements of Jainco
Projects (India) 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 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.
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.
As required under para 3 of non-banking financial companies auditor
report (Reserve Bank) Directions, 2008 we state as under:
I. The company is engaged in the business of non-banking financial
institution and it has obtained the Certificate of Registration (CoR)
from the Bank.
II. The company is entitled to continue to hold CoR in terms of its
Asset/Income pattern as on 31.03.2013
III. The non-banking financial company is not an Asset Financial
Company as defined in Non-Banking Financial Companies Acceptance of
Public Deposits (Reserve Bank) Directors, 1998 with reference to the
business carried on by it during the applicable financial year.
IV. The Board of Director of the company has passed a resolution for
the Non Acceptance of any public Deposit.
V. The company has not accepted any Public Deposit during the
Financial year ended on 31st March 2013.
VI. The company has complied with the prudent norms relating to income
recognition accounting standards, assets classification and
provisioning for bad and doubtful debts as application to it in terms
of Non-Banking Financial (Non Deposit Accepting or Holding) Companies
Prudential Norms (Reserve Bank) Directors, 2007.
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
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 Profit and Loss Account, 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
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 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 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;
e) on the basis of written representations received from the directors
as on March 31, 2013, and 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 clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITOR''S REPORT
(Referred to in paragraph 1 under Report on Other Legal and
Regulatory Requirements'' section ofour report of even date)
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
(b) 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
(c) During the year. Company has not disposed of any substantial/major
part of fixed asset. so the question of going concern status being
affected does not arise.
2. (a) 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.
(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) 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.
3. (a) According to the information and explanations given to us and
on the basis of our examination of the books of accounts. 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. Consequently the provisions of clauses iii(b). iii(c). iii(d) and
iii(e) of the order are not applicable to the company.
4. 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.
5. (a) Based on audit procedures applied by us and according to the
information and explanations provided by the management. the
particulars of contracts or arrangements referred to in section 301 of
the companies Act. 1956 need not be entered in the register required to
be maintained under that section as the promoter director holds less
than 2% of the paid up share capital of the other company.
(b) According to the information and explanations given to us. there
are no transactions of purchase of goods and material in excess of Rs.
5 Lacs during the year with the parties covered under section 301 of
the Companies Act. 1956.
6. 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.
7. In our opinion. the Company has an internal audit system
commensurate with its size and nature of its business.
8. 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.
9. 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.
10. The Company has not incurred cash losses during current and the
immediately preceding financial year.
11. 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.
12. 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.
13. The provisions of any Special Statute applicable to Chit Fund,
Nidhi or Mutual Benefit Fund/Societies are not applicable to the
14. 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. 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.
15. According to the information and explanations given to us, the
company has not given any guarantees for loan taken by others from a
bank of financial institution.
16. Based on our audit procedures and on the information given by the
management, we report that the company has not raised any term loans
during the year.
17. 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.
18. 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
19. 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.
20. 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.
21. 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
(Firm Registration No. 314062E)
Date: 31st May 2013 PARIMAL SARKAR
M.NO. - 051550