BSE LiveFeb 12, 16:00
Bid Price (Qty.)
Offer Price (Qty.)
Bid Price (Qty.)
Offer Price (Qty.)
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 our opinion.
3. As required by the Companies (Auditor's Report) Order 2003 issued by the Central Government of India in terms of Section 227 (4A) of the Companies Act, 1956, we enclose in the Annexure 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 above, we report that :
a. We have obtained all the information and explanation which to the best of our knowledge and belief were necessary for the purpose of our audit;
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 those books;
c. The Company's Balance Sheet and Profit & Loss Account and Cash Flow Statement dealt with by the report are in agreement with the books of accounts;
d. In our opinion, Profit and Loss Account, Cash Flow Statement and Balance Sheet dealt with by the
report comply with mandatory Accounting Standards as referred to in the sub-section (3C) of section 211 of the Companies Act, 1956. To the extent applicable except note relating to the retirement benefits (Accounting Standered-15)
e. In our opinion, and on information and explanations given to us, none of the directors is disqualified as on 31st March'2012 from being appointed as a director in terms of clause (g) of sub- section(l) of section 274 of the Companies Act, 1956.
f. As discussed in Note of Schedule to the financial statements no Provision has been provided in the financial statements which in our opinion, is in accordance with the prudential Accounting norms as per Non-Banking Financial Companies Prudential Norms (Reserve Bank) Directives, 1998. This is the result of a decision taken by management at the start of the preceding Financial year and caused us to qualify our audit opinion on the financial statements relating to the year, with result the profit for the year ended 31st March'2012 should reduced accordingly.
g. Except for Non - Provision of doubtful debt referred to the preceding paragraph in our opinion, the Balance sheet and profit & loss accounts and cash flow statement comply with the accounting standard referred to in sub-section(3c) of section 211 the Companies Act,1956.
h. In our opinion and to the best of our information and according to the explanation given to us, except for the effect on the financial statement of Non-Provision of doubtful debs referred to in paragraph (f) foregoing, the said financial statements read together with the other note thereon given 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.
i. In our opinion and to the best of our information and according to the explanations given to us, the said accounts, read together with the Significant Accounting Policies and other Notes thereon given the information required by the Companies Act, 1956 in the manner so required and present a true and fair view in conformity with the accounting principles generally accepted in India.
1. in so far as related to Balance Sheet, of the state of affairs of the Company as at 31st March,2012
2. in so far as it relates to the Profit and Loss Account, of the Profit of the company for the year ended on that date;
3. in so far as it relates to the Cash Flow Statement of the cash flows of the Company for the year ended on that date. And subject to-
a. Note No. 2 of Schedule 12 relating to relating to retirement a benefit which is accounted for on payment basis. The extent of compliance in value terms is as certain able.
b. Note No. 4 relating to non-provision of declining valuation of quoted/unquoted investments/inventories (traded securities) including following the method of valuation of investment laid down in AS-13 and the RBI Guidelines.
c. The company has complied with the prudential norms on income recognition, Accounting Standards, assets classification, provisioning for bad doubtful debts and concentration of credit / investments as specified in the directions issued by the RBI in terms of the Non Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998.
d. Compliance with Capital adequacy ratio with the minimum Capital to Risk Assets Ratio prescribed by the RBI.
e. The company has complied with the prescribed liquidity requirements and not kept the approved securities with the designated bank.
Referred to in paragraph 3 of our report of even date:
1. (a) The company has maintained proper records to showing full particulars including quantitative details and situation of fixed assets on the basis of available information.
(b) All the assets have been physically verified by the management during the year in phased periodic manner, which in our opinion is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such physical verification.
(c) There is no substantial sale of Fixed Assets of the company during the year.
2. In respect of its inventories:
a. As explained to us, inventories have been physically verified by the management at regular intervals 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 inventories 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 has maintained proper records of inventories. As explained to us, there where no material discrepancies noticed on physical verification of inventory as compared to the book records.
3. In respect of Loans & Advances:
a. The company had not taken loan from companies firm or other parties listed in the register maintained as per section 301 and 370 (IC) of the Companies Act, 1956.
b. The company has granted loans to parties listed as per section 301 and 370 (IC) of the Companies Act. 1956. There are three parties covered in the register maintained under section 301 of the Companies Act, 1956 to which the company has granted loans. The maximum amount involved during the year was Rs. NIL and the year end balance of loans taken to such parties was Rs. 339.88 Lakhs.
c. The Company does not charge any interest on these advances given nor does it pay any interest on the advances taken.
d. The amounts in the balance sheet are overdue since many years and no details are available for our verification.
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 the nature of its business with regard to the purchases of inventory, 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. In respect of transactions covered under Section 301 of the companies Act, 1956.
a. In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements, the needed to be entered in the registers maintained under section 301 of the Companies Act, 1956 have been so entered.
b. In our opinion and according to the information and explanations give to us, each of these transactions aggregating to Rs. 5,00,000/- (Rs. Five Lacs Only) or more in respect of any party during the year have been at prices which are reasonable having regard to the prevailing market prices at the relevant time.
6. The company is a Non-Banking Financial Company which is an investment company, not accepting public deposit and which has invested not less than 90% of its assets in the securities of its group holding / subsidiaries companies as long term investments.
(i) In our opinion and according to the information given to us, Board of Directors has passed a resolution for the non-acceptance of the public deposits.
(ii) In our opinion and according to the information given to us, the company has not accepted any public deposits during the year.
(iii) In our opinion and according to the information given to us, the company has, through a Board resolution, identify the group/holding/subsidiary companies.
(iv) In our opinion and according to the information given to us, the cost of investments made in the group of holding or subsidiary company is less than 90% of the cost of the total assets of the company at any point of time through out the accounting year.
(v) In our opinion and according to the information given to us, the company has continued to hold the securities of group of holding or subsidiary companies as long term investments and has not traded in those investments during the accounting year.
7. In our opinion, the company has an internal audit system commensurate with size and nature of its business.
8. 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.forthe year under review.
9. In respect of statutory dues:
a. According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, Income -tax, sales tax, custom-duty and Excise-duty, Cess etc., were outstanding as on 31st March'2012 for a period of more than six month from the date they become payable and the Company is regular in depositing undisputed statutory dues with the appropriate authorities.
b. According to the information and explanations given to us, there are no dues of Sale tax, Income tax, Customs duty, Excise duty, and Cess, which have not been deposited on account of any dispute.
10. In our opinion, the accumulated losses of the company are not more than fifty percent of its net worth. The company has not incurred cash losses during the financial year covered by our audit 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 dues to any financial institution, bank or debenture holders.
12. In our opinion, and according to the information and explanation given to us, no loans and advances have been granted by the company on the basis of security 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 provisions of clause4 (xiii) of the companies (Auditor's Report) Order, 2003 are not applicable to the company.
14. In our opinion, the Company has not given Guarantees for loans taken by other from banks or financial institutions.
15. No term loans have been raised during the year.
16. 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 and no long-term funds have been used to finance short term assets.
17. During the year, the Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act,1956.
18. The Company has not issued any debentures and hence Company has not created securities.
19. The Company has not raised any money by way of public issue during the year.
20. In our opinion and according to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the year that caused the financial statements to be materially misstated.
For Amin Parikh & Co Chartered Accountants,
CASamirParikh Partner M.No. 41506 F.R.N. 100332W Vadodara:03/09/2012