We have audited the attached Balance Sheet of MAYUR UNIQUOTERS LIMITED,
JAIPUR, as at 31st March, 2008, the Profit and Loss Account and also
the Cash Flow Statement 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 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 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 issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
2. Further to our comments in the Annexure referred to above, we
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
(ii) 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
(iii) The Balance Sheet, Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
(iv) In our opinion, the Balance Sheet, Profit and 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,except otherwise stated.
(v) On the basis of written representations received from the
directors, as on 31st 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 clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts 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:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2008;
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 Cash Flow Statement, of the Cash Flows for the year
ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF AUDITORS REPORT OF EVEN DATE TO
THE MEMBERS OF MAYUR UNIQUOTERS LIMITED, ON THE ACCOUNTS FOR THE YEAR
ENDED MARCH 31, 2008.
1 (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
(b) Fixed Assets have been physically verified by the management during
the year at reasonable intervals. No material discrepancies were
noticed on such verification.
(c) Substantial parts of fixed assets have not been disposed off during
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, the procedures of physical verification of
Inventory followed by the Management are reasonable and adequate in
relation to the size of the Company and nature of its business.
(c) The Company has maintained proper records of inventory and the
discrepancies noticed between the physical stocks and the book record
were not material.
3. (a) The Company has not granted any loans unsecured or secured to
companies, firms or other parties covered in the register maintained
under Section 301 of Companies Act, 1956. Hence requirement of clause
3(b), 3(c) and 3(d) is not applicable.
(e) The Company has not taken any loans unsecured or secured from
Companies, Firm or other parties covered in the register maintained
under section 301 of the Act. Hence requirement of clause 3(f) and
3(g) is not applicable.
4. There is adequate internal control procedure commensurate with the
size of the Company and the nature of its business with regard to the
purchases of inventories, fixed asset and for the sale of goods. We
have not observed any continuing failure to correct major weaknesses in
internal control system.
5. (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered into
the register maintained under section 301 of the Companies Act, 1956
have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the 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 lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
6. As informed to us, the Company has not accepted any deposits under
the provisions of Section 58A and 58AA of the Act and the rules framed
7. In our opinion, the companys present internal audit system is
commensurate with its size and nature of its business.
8. As informed to us, maintenance of cost records has not been
prescribed by the Central Government Under Section 209(l)(d) of the
Companies Act, 1956, for the products of the Company.
9. (a) According to the books and records as produced and examined by
us in accordance with generally accepted auditing practices in India
and also based on Management representations, undisputed statutory dues
including Provident Fund, Employees State Insurance dues, Investor
Education and Protection Fund, Income Tax, Sales Tax, Wealth Tax,
Service Tax, Custom duty, Excise duty, Cess and other material
statutory dues have generally been regularly deposited, by the Company
during the year with the appropriate authorities in India.
(b) As at March 31, 2008, there have been no disputed dues which have
not been deposited with the respective authorities in respect of Income
Tax, Wealth Tax, Sales Tax, Service Tax, Custom Tax, Excise Duty and
10. The Company has neither accumulated losses as at March 31, 2008,
nor it has incurred any cash loss either during the financial year
ended on that date or in the immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of its dues to
any financial institution or bank or to debenture holders during the
12. The Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures, and other securities.
13. 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
14. The Company has not dealt or traded in shares, securities,
debentures or other investments during the year.
15. The Company has not given guarantees for loans taken by others
from banks or financial institutions.
16. The Company has not taken any term loan during the year.
17. On the basis of review of utilization of funds, which is based on
overall examination of the balance sheet of the company, related
information as made available to us and as represented to us by the
Management, funds raised on short-term basis have not been used for
18. During the year the Company has allotted 150000 Equity Share to
Mrs. Puja Poddar, a party covered in the Register maintained under
Section 301 of the Companies Act, 1956 on conversion of Equivalent
number of Convertible Warrants issued at a price of Rs. 38/- per
Warrant decided in accordance with the requirements of SEBI (DIP)
Guidelines 2000 relating to the Preferential Issue.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money by public issue during the
21. As per the information and explanations given to us and on the
basis of examination of records, no fraud on or by the Company was
noticed or reported during the year.
For MADHUKARGARG & COMPANY
Place : Jaipur PARTNER
Dated : 17th June, 2008 M. No. 74998