1. We have audited the attached Balance Sheet of MESSRS SAKUMA EXPORTS
LIMITED as at 31st March 2008 and also the annexed Profit and Loss
Account and the Cash Flow Statement of the company 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. These 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 test basis, evidence supporting the amount and
disclosure in financial statements. An audit also include assessing
the accounting principal used and significant estimates made by
management, as well as evaluating the over all financial statements
presentation. We believe mat our audit provides reasonable basis for
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government in terms of sub-section (4 A) Section 227 of
the Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraph 4 and 5 of the Said Order.
4. Further to comments in the Annexure referred to above, we report
i) We have obtained all the information and explanation, which to the
best of our knowledge and belief were necessary tor the purpose of our
ii) In pur opinion, proper books of account as required by law have
been kept by the company, so far as appears from our examinations of
iii) The Balance Sheet, the Profit & Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
iv) The Balance Sheet, the Profit and Loss account and Cash Flow
Statement comply with the accounting standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956.
v) In our opinion and according to the information provided to us, none
of directors of the company is disqualified to appointment as director
of the company as per the provision of Section 274(l)(g) 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 statement of accounts together
with the notes and schedules annexed thereto and forming part thereof,
gives the information required by the Companies Act, 1956, in the
manner so required and give a true and fair view:
(a) In so far as it relates to the Balance Sheet, of the State of
Affairs of the company as at 31st March, 2008.
(b) In so far as it relates to the Profit and Loss Account, of the
PROFIT of the company for the year ended on thai date.
(c) IN so far as it relates to cash flow of the company for the year
ended on that date.
ANNEXURE TO THE AUDITORS REPORT
Referred to in paragraph 3 of our report of even date,
i. In respect of its Fixed Assets:
(a) The Company is maintaining proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) The fixed assets are physically verified by the management, which
in our opinion is reasonable having regard to the size of the company
and the nature of its assets. Pursuant to above verification no
material discrepancies between the book records and the physical
inventory have been noticed.
(c) No substantial part of the fixed assets has been disposed off by
the Company during the year.
ii. In respect of its Inventory:
(a) As explained to us, the inventory has been physically verified by
the management at the end of the year.
(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 were reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, Company has maintained proper records of stock and no
material discrepancies were noticed on physical verification.
iii. According to the information and explanations given to us, the
Company has not granted or taken secured or unsecured loans
to/fromcompanies, 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, for the purchase of inventory and fixed assets and for the
sale of goods. During the course of our audit no major weaknesses has
been noticed in the internal controls.
v. (a) According to the information and explanation 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 company has not made any transactions exceeding the
value of Rs. five lacs with any party listed in the register maintained
under section 301 of the Companies Act, 1956. Accordingly, clause 4 (v)
(b) of the Companies (Auditors Report) Order, 2003 is not applicable.
vi. The company has not accepted any deposits from the public within
the meaning of Section 58A and 58AA of the Act and the rules framed
vii. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
viii. The company is not engaged in manufacturing activities; hence the
maintenance of cost records in accordance with section 209(l)(d) of the
Companies Act, 1956, is not applicable.
ix. (a) According to the information and explanations provided to us,
the company is generally regular in depositing with appropriate
authorities undisputed amount of income-tax, sales-tax, wealth-tax,
customs duty, excise duty, cess and other material statutory dues
applicable to it and no undisputed amounts payable were outstanding as
at 31st March, 2008 for a period of more than six months from the date
they became payable. We have been explained that Employees Provident
Fund & Miscellaneous Provisions Act, 1952 and Employees State
Insurance Act, 1948 are not applicable to the company.
(b) According to the records dues of income-tax has not been deposited
on account of any dispute in as follows:
Statue Names of Dues Amount (Rs.) Forum where
Income Tax Act, 1961 For A. Y 2002-03: 2,45,931 /- Chief
of Income Tax
Interest levied by the department Further, there is no other dues in
respect of sales-tax, customs duty, wealth tax, excise and cess that
have not been deposited on account of any dispute.
x. The company has no accumulated losses as at March 31, 2008 and it
has not incurred any cash losses in the financial year ended on that
date or in the immediately preceding financial year.
xi. According to records of the company examined by us and the
information and explanation given to us, the company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holders as at the balance sheet date.
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.
xiii. The provisions of any special statute applicable to chit fund/
nidhi / mutual benefit fund/ societies are not applicable to the
xiv. The nature of companys business / activities during the year does
not include dealing in shares, securities, debentures or other
investments; hence the requirement of offering comments on this clause
is not applicable.
xv. In our opinion, and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others, from banks or financial institutions during the year.
xvi. According to the information and explanations given to us, the
Company has not availed any term loans during the period under review.
xvii. On the basis of an overall examination of the balance sheet of
the company, in our opinion and according to the information and
explanations given to us, there are no funds raised on a short-term
basis which have been used for long-term investment.
xviii.The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act during the year.
xix. No debentures have been issued by the Company during the year.
xx. The Company has not raised any money by public issues during the
xxi. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
audited practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of such case by the management.
For and on behalf of
MITTAL & ASSOCIATES
M. No. 42990
Place : Mumbai
Dated : 23.06.2008