1. We have audited the attached Balance Sheet of J. KUMAR
INFRAPROJECTS LIMITED as at 31st March 2008 and also Profit and Loss
Account for the year ended on that date. These financial statements are
the responsibility of the Companys management. Our responsibility is
to express an opinion on these financial statements based on our audit.
2. 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 significant estimates made
by management as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government in terms of Section 227 (4A) of the Companies
Act, 1956, we annex a statement on the matters specified in paragraphs
4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to Paragraph 3
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 accounts as required by law have
been kept by the Company so far as appears from our examination of
c) The Balance Sheet dealt with by this report are in agreement with
the books of account and Profit and Loss Account.
d) In our opinion, the Balance Sheet and Profit and Loss Account dealt
with by this report comply with the accounting standards referred to in
sub-section 3(C) of Sec. 211 of the Companies Act, 1956.
e) On the Basis of written representations received from the directors,
as on 3 lst March 2008, and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March
2008 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 accounts read together with other
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:
1. In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2008.
2. In the case of Profit and Loss Account, of the Profit for the
Company for the year ended on that date.
3. In the case of Cash Flow Statement, of the Cash Flows for the
Company for the year ended 31st March 2008.
Annexure referred to in paragraph 3 of the Auditors report to the
members of J. KUMAR INFRAPROJECTS LIMITED on the accounts for the year
ended 31st March, 2008.
1. FIXED ASSETS:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and the situation of its fixed assets;
(b) The fixed assets have been physically verified by the management
during the year. In our opinion, the frequency of verification of the
fixed assets by the management is reasonable having regard to the size
of the company and the nature of its assets. No discrepancies were
noticed on such verification;
(c) No substantial part of fixed assets has been disposed off during
(a) The inventory have been physically verified by the management at
(b) In our opinion and according to the information and explanations
given to us, the procedures for physical verification of inventory
followed by the management were reasonable and adequate in relation to
the size of the Company and the nature of its business
(c) In our opinion the Company has maintained proper records of
inventory. No material discrepancies between the physical stocks and
the book records were found.
3. LOANS AND ADVANCES:
(a) The company has granted unsecured loans to firm and other parties
covered in the register maintained under section 301 of the companies
Act, 1956 amounted to Rs.40,91,806 as on 31st March 2008.
(b) The company has not taken unsecured loan from parties as listed in
register maintained under section 301 of the interest of the company.
(c) In our opinion, the terms on which the said loan has been taken are
not prima fascia prejudicial to the interest of the company.
(d) The company has not repaid any amount during the year.
(e) As per the information and explanations give to us, the amount is
4. TRANSACTIONS WITH PARTIES UNDER SECTION 301 OF THE COMPANIES ACT
Based on the audit procedure applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the transactions that need to be entered into the register
maintained under Section 301 have been properly entered in the said
5. FIXED DEPOSITS:
The Company has not accepted any deposits within purview of sec.58Aof
the Companies Act, 1956.
6. INTERNAL AUDIT
The Company has a system of internal audit which, in our opinion is
commensurate with its size and nature of its business.
7. COST RECORDS:
Maintenance of cost records has not been prescribed by the Central
Government under clause (d) of sub-section (1) of section 209 of the
Companies Act 1956.
8. STATUTORY DUES:
According to the records, information and explanation provided to us,
the Company Generally regular in depositing with appropriate
authorities undisputed amount of Income tax, sales-tax, excise duty and
other statutory dues applicable to it and no undisputed amounts payable
were outstanding as 31st March 2008 for a period of more than six
months from the date they became payable.
9. NET WORTH/CASH LOSSES:
The Company does not have accumulated losses as at the end of the
financial year and has not incurred cash losses in the current
financial year and in the immediately preceding financial year.
10. REPAYMENT OF DUES:
The Company has not defaulted in repayment of any dues to financial
institutions or banks or debenture holders.
11. ADVANCES AGAINST SHARES:
In our opinion , the Company has not granted any loans and advances on
the basis of security by way of pledge of shares, debentures and other
12. CHIT FUND/ NIDHI FUND
The Company is not chit/nidhi/ mutul benefit fund/society and hence
clause 4(xiii) of the order is not applicable.
13. TRADING IN SHARES, SECURITIES, DEBENTURES & OTHER INVESTMENTS The
Company is not dealing or trading in shares, securities, debentures and
On the basis of the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
15. TERM LOANS:
On the basis of the information and explanations given to us the
Company has applied the term loans for the purpose for which the same
16. SOURCE AND APPLICATION OF FUNDS:
On the basis of our examination of the books of accounts and the
information and explanation given to us, in our opinion, the funds
raised on short-term basis have not been used for long-term investment,
and vice versa.
17. PREFERENTAL ALLOTMENT OF SHARES TO PARTIES COVERED IN THE REGISTER
MAINTAINED UNDER SECTON 301 OF THE COMPANIES ACT 1950
During the year, the Company has made preferential allotment of equity
shares to parties and companies covered in the Register maintained
under Section 301 of the Act and the price at which shares have been
issued are not prejudicial to the interest of the Company
i. The Company does not have any outstanding debenture during the
ii. In our opinion, in respect of monies raised by the Company by way
of Public Issue during the year, the management has disclosed the end
use of money raised by Public Issue as a part of Notes to Accounts and
the same has been verified.
iii. Based on the audit procedure performed and information and
explanations given to us by the management, we report that fraud on or
by the Company has not been noticed or reported during the course of
For Gupta Saharia & Co.
Place: Mumbai (Partner)
Date : July 23,2008 Membership No: 71471