1. We have audited the attached Balance Sheet of KOSHA CUBIDOR
CONTAINERS LIMITED as at 31st March, 2006 and the Profit and Loss
account and cash flow statement for the year ended on that date annexed
thereto. These financial statements are responsibility of the companys
management. Our responsibility is to express our 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 misstatements 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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies [Auditors Report] Order, 2003, issued
by the Central Govt. of India in terms of Section 227 (4A) of the
Companies Act 1956. We give in the annexure hereto statement on the
matters specified in paragraphs 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to in paragraph 1
above, we state 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 the law
have been kept by the company so far as appears from our examination of
the such books.
c) The Balance sheet, profit and loss account dealt with by this report
are in agreement with the books of account
d) In our opinion, the Balance Sheet and profit and loss account dealt
with by this report comply with Accounting Standards referred to in
sub-section (3c) of the section 211 of the Companies Act 1956.
e) On the basis of written representation received from the Directors,
as on 31st March, 2006 and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March,
2006 from being appointed as a director in terms of clause (g) of sub
section  of section 274 of Companies Act 1956.
f) In our opinion and best of our information and according to
explanation given to us, the said accounts give the information
required by the companies Act, 1956, in the manner so required and give
true and fair view in conformity with the accounting principles
generally accepted in India :-
i) In the case of the Balance Sheet, of the state of affairs of the
company as at 31st March, 2006.
ii) In the case of the Profit and Loss account, of the Loss for the
year ended on that date.
iii) In the case of the cash flow statement of the cash flows for the
year ended on that date.
Place ; Mumbai For Mahesh P. & Company
Date : 24-8 2006 Chartered Accountants
M. P. Ladwa
M No. 100-32698.
ANNEXURE TO THE AUDIT REPORT ON THE MATTERS SPECIFIED IN PARAGRAPH 4
AND 5 OF THE COMPANIES (AUDITORS REPORT) ORDER, 2003,
1) a) The Company has maintained proper records showing full
particulars, including quantitative details and situations of fixed
b) All the fixed assets have been physically verified by the management
at regular interval which in our opinion is reasonable having regard to
the size of the company and the nature of the fixed assets. We are
informed that there is no discrepancy noticed on such physical
c) No substantial part of fixed assets have been disposed off during
the year by the Company
2) a) Physical verification of Inventory has been conducted at
reasonable intervals by the management.
b) The procedure of physical verification of such stocks followed by
the management are reasonable and adequate in relation to the size of
the company and nature of its Business
c) The Company is maintaining proper records of inventory and the
discrepancies on physical verification of such inventory were not
material and have been properly dealt with in the books of account;
3) a) The Company has granted and taken unsecured loans to/from
companies, firms or other parties covered in the register maintained
under section 301 of the Act The no of such parties are two, the year
end balance of loans taken from such parties was Rs 9,02 652/-
b) In our opinion, the rate of interest and other terms and conditions
of loans given or taken by the company, are not prima facie prejudicial
to the interest of the company.
c) The company is regular in payment of the principal amount and
interest. The parties have repaid the principal amounts as stipulated
and have been regular in the payment of interest.
d) There is no overdue amount of loans taken from or granted to
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 is an adequate internal control procedure
commensurate with size of the company and the nature of its business
for the purchase of inventory, fixed assets and with regards to the
sale of the goods. During the course of our audit, we have not observed
any continuing failure to correct major waknesses in internal controls.
5) a) According to the information and explanation given to us, we are
of the opinion that the transactions that need to be entered in to a
register pursuance to section 301 of the Act have been entered by the
b) In our opinion and according to the information and explanations
given to us, there are no transactions made in pursuance of contracts
or arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of rupees Five lacs.
6) In our opinion and according to the explanation and information
given to us the company has complied with the provision of the section
58 A of the Companies Act, 1956 and the rules there under with the
regard to the deposits accepted from the Public. No order has been
pased by the Company Law Board.
7) In our opinion the company has an internal audit system commensurate
with its size and nature of its business.
8) We are informed that the Central Government has not prescribed
maintenance of cost records under clause (d) of sub section (1) of
section 209 (1) of the Act.
9) a) As per the explanation and information given to us and as per our
verification, the company is regular in depositing undisputed statutory
dues including provident fund, employees state insurance, income tax,
sales tax, custom duty, excise duty, cess and any other statutory dues
with the appropriate authorities and there were no undisputed amount
outstanding of statutory dues as at the last day of the financial year
concerned for a period of more than six months from the date they
b) We are informed that there is no dispute pending before any
authorities for payment of any statutory dues as mentioned above.
10) In our opinion, the accumulated losses of the company are more than
fifty percent of its net worth at the end of the financial year. The
company has incurred cash losses in the financial year and in the year
immediately preceding financial year.
11) In our opinion and according to the information and explanation
given to us, the company has not defaulted in repayment of dues to a
financial institution or bank.
12) The company has not granted any loans and advances on the basis of
securities by way of pledge of shares, debentures and other securities.
13) In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provision of clause 4 (xiii) of
the Companies (Auditors Report) Order, 2003 are not applicable to the
14) In our opinion, the company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4 (xiv) of the Companies (Auditors Report) Order,
2003 are not applicable to the Company.
15) The Company has not given any guarantee for loans taken by others
from banks or financial institutions.
16) In our opinion, the term loans were applied for the purpose for
which the loans were obtained.
17) According to the information and explanation given to us and on an
overall examination of the balance sheet of the company, we report that
the no funds raised on short-term basis have been used for long-term
investment. No long term funds have been used to finance short-term
assets except permanent working capital.
18) During the year the company has not made any allotment of any
19) During the year the company has neither issued any debentures nor
created any security in that respect.
20) During the year the company has neither raised any money by public
issue nor utilised any such money.
21) No fraud on or by the company has been noticed or reported during
Place : Mumbai For Mahesh P. & Company
Date : 24th August 2006 Chartered Accountants
M. P. Ladwa
M. No. 100-32698.