Report on the Financial Statements
We have audited the accompanying financial statements of Sangam
Advisors Limited, (The Company) which comprise the Balance Sheet as at
March 31, 2013, and the Statement of Profit and Loss and Cash Flow
Statement for the year ended, and a summary of significant accounting
policies and other explanatory information.
Management''s Responsibility for the Financial Statements
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 generally accepted in India including
Accounting Standards referred to in sub- section (3C) of section 211 of
the Companies Act, 1956 (the Act). 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. 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 aforesaid 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 India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
(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 the Cash Flow Statement, of the cash flows 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 written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956
ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT
(Referred to in paragraph 3 of our report of even date)
(i) In Respect of Fixed Assets:
1. The company has maintained proper records showing full particulars,
including quantitative details and Situation of the fixed assets.
2. As explained to us, the fixed assets have been physically verified
by the management at reasonable intervals and no material discrepancies
were noticed on such verification.
3. In our opinion company has not disposed off substantial parts of
fixed assets during the year and the going concern status of the
company has not affected.
(ii) In Respect of Stock:
1. The Company is dealing in stock & securities. The company has
maintained proper record of its shares, stock and investment.
2. The Company has carried out physical verification at reasonable
intervals commensurate to its size and nature of business and no
discrepancy has been found.
(iii) In Respect of loans secured or unsecured, granted or taken by the
company to or from companies, firms or other parties covered in the
register maintained u/s 301 of the Companies Act 1956, According to the
information and explanation given to us, the company has not granted or
taken any secured or unsecured loans from or to companies, Firms, and
other parties listed in the register. Consequently the requirement of
clauses (iii) (a) to (iii) (f) of the paragraph 4 of the order not
(iv) In our opinion and explanation given to us, there is generally
adequate internal control procedure commensurate with the size of the
company and the nature of its business, and for the purchase of stock,
securities and assets and for the sale of goods/services.
(v) In our opinion and explanation given to us, company has not done
any transaction that needs to be entered into a register in pursuance
of section 301 of the Act.
(vi) In our opinion and according to the information and explanation
given to us, the company has not accepted deposits from the public
within the meaning of section 58A and 58AA of the Companies Act, 1956.
(vii) In our opinion, the company has an internal audit system
commensurate with its size and nature of its business.
(viii) Since the company is in service sector therefore the provision
of clause (viii) of maintenance of cost record paragraph 4 of the order
are not applicable to the company.
(ix) The company is regular in depositing of undisputed statutory dues.
As informed to us there is no arrears of outstanding statutory dues as
at the last day of the financial year concerned for the period of more
than six months from the date they become payable. Further it is
explained to us Provident Fund, Investor Education and Protection Fund,
Employee''s State Insurance, Sales tax, Wealth tax, Custom Duty, Excise
Duty, cess are not applicable to the company during the year.
(x) The company does not have accumulated losses of more than 50% of
its Net Worth at the end of the financial year; The Company has not
incurred cash losses in the current as well as in the previous
(xi) Based on our audit and according to the information and
explanations given to us, we are of the opinion that the company has
not defaulted in repayment of dues to financial institution, Banks.
(xii) According to the information and explanation given to us 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) In our opinion the company is not a chit fund/nidhi /mutual
benefit fund /society therefore the provision of clause (xiii) of
paragraph 4 of the order are not applicable to the company.
(xiv) The company has maintained proper records of the transactions and
contracts in respect of dealing or trading in shares, securities,
debentures and other investments and timely entries have been made
therein. All shares, securities, debentures and other investments have
been held by the company in its own name.
(xv) According to information and explanations given to us, the company
has not given guarantee for loans taken by others from banks or
(xvi) The Company did not have any term loans outstanding during the
(xvii) According to the information and explanation 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 by the company.
(xviii) The company has not made any preferential allotment of shares
to parties and company covered in the register maintained under section
301 of the company Act 1956 .
(xix) The company has not issued any debentures during the year.
(xx) The Company has raised Rs. 5,09,52,000/-by way of public issue
during the year, & money raised was used for the same purpose which it
(xxi) During the course of our examination of the books of account and
records of the company, carried out in accordance with the generally
accepted auditing practices in India, and according to the information
and explanation 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 Mahesh Bairat & Associates
Firm Reg No.: 112722W
Place : Mumbai Proprietor
Date : 20/05/2013 M.No. 045810