We have audited the accompanying financial statements of Rajkot
Investment Trust Limited (the Company) which comprise the Balance
Sheet as at 31st March, 2013, the statement of Profit and Loss and Cash
Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s 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) and in
accordance with the accounting principal generally accepted in India.
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, but not for the
purpose of expressing an opinion on the effectiveness of the Company''s
internal control. 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 statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
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 31st March, 2013;
(b) in the case of the Statement of Profit and Loss, of the loss for
the year ended on that date and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company 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 the written representation received from the
directors as on 31st March, 2013 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2013
from being appointed as a director in term of Section 274(1)(g) of the
Referred to in Paragraph 1 of our report of even date.
Statement referred to in paragraph 1 of the Auditor''s Report of even
date to the Members of Rajkot Investment Trust Limited on the accounts
for the year ended 31st March, 2013.
The comments herein below are based on the data compiled by the Company
in order to comply with the requirements of the new order from the
effective date. On the basis of such checks as considered appropriate
and in terms of the information and explanations given to us, we state
I a. The Company has maintained proper records showing full
particulars, including quantitative details and situations of fixed
assets. The fixed assets of the Company were physically verified by the
b. The fixed assets of the Company were physically verified by the
management during the current year and no serious discrepancies were
noticed between the books and the physical inventory
c. During the year Company has not disposed off any substantial/major
part of fixed assets.
ii a. Physical verification of Inventories has been conducted at
reasonable intervals during the year by the management.
b. In our opinion and according to the information and explanations
given to us , 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. The Company is maintaining proper records of inventory.
iii The Company has not granted/taken any loans, secured or unsecured,
to/from companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956.
iv 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 the nature of its
business with regard to purchase of inventory and fixed assets and for
the sale of goods. We have not observed any continuing failure to
correct major weaknesses in internal control.
v a. According to the information and explanations given to us, the
transactions made in pursuance of contracts or arrangements, that need
to be entered into the register maintained under Section 301 of the
Companies Act, 1956 have been recorded in the register.
b. According to information and explanation given to us, the
transactions referred to under sub clause (a) above, which exceeds
Rs.500000/- in each case have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant date.
vi The Company has not accepted any deposits during the year from the
public within the meaning of the provisions of Section 58A and 58AA of
the Companies Act, 1956 and rules made there under. Hence the Clause
(vi) of the order is not applicable.
vii The Company has an internal audit system, which in our opinion,
commensurate with the size and the nature of its business.
viii 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.
ix a. The Company is regular in depositing undisputed statutory dues
including Income Tax and other applicable dues with appropriate
authorities. There are no arrears of outstanding dues as at the last
day of the financial year for a period of more than six months from the
date those became payable.
x The Company has no accumulated losses at the end of the financial
year, however the Company had incurred cash loss of Rs.521460/- in the
immediate previous year and has incurred cash loss during the year
under audit of Rs.1134486/-.
xi The Company has not defaulted in repayment of dues to any financial
Institution or Bank. The Company has no debenture holders.
xii The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities
and therefore the question of maintenance of documents and records in
respect thereof does not arise.
xiii Clause (xiii) of the Order is not applicable as the Company is not
a chit fund company or nidhi/mutual benefit fund/society.
xiv Subject to Note Nos.6 & 7(Sch.6) proper records have been
maintained of the transactions and contracts or dealings of trading in
shares, debentures and bonds and were held by the company in its own
name except in and subject to the positions as stated in Note Nos. 5 &
xv According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from Bank
or financial institution.
xvi No Term Loans are obtained by the Company during the year under
xvii 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 No long term funds have been used to finance short term
assets except for permanent working capital.
xviii The Company has not made any preferential allotment of shares
during the year to the parties and companies covered in the register
maintained under section 301 of the Companies Act, 1956.
xix The Company has no debentures.
xx The Company has not raised any money by public issues during the
year covered by our report.
xxi According to the information and explanations given to us, no fraud
on or by the Company has been noticed or reported during the year.
For Dholakia & Co.
Place: Rajkot Proprietor
Date:31.08.2013 M. No. 15744