We have audited the attached balance sheet of commitment capital
services ltd, as at 31st march 2004, and also the profit & loss Account
of the said company for the period ended on that date together with
annexures thereto.
These financial statements are the responsibility of the companys
managament, 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 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 nor audit provides a reasonable basis for
our opinion.
1) As required by the companys (auditors report) order 2003,issued by
the Central Government of India in terms of section 227(4a) of the
companys act, 1956,we enclose in the annexure a statement on the
matters specified in paragraphs 47 and 5 of the said order.
2) Further to our comments in the annexure referred to in paragraph 1
above ,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
audit;
b) In our opinion proper books of accounts as required by law have
been kept by the company so far as it appears from our examination of
the books ;
c) The balance sheet and the profit and loss account dealt with by this
report are in agreement with the books of accounts ;
d) In our opinion the balance sheet and the profit and loss account
comply with the accounting standard referred it in sub section (3c) of
section 211 of the companys act 1956;
e) On the basis of the written representation received from the
directors as on 31st March 2004 and taken on record by the Board of
directors we report that none of the director is disqualified from
being appointed as director under clause (g) of sub-section (1) if
section 274 of the Companys Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the accounts read with the significant
accounting policies and notes thereon, give the information required by
the Companys Act, 1956.in the manner so required and also give a true
and fair view ;
i) In the case of Balance Sheet, of state of affairs of the company as
at 31st March 2004, and
ii) In the case of Profit & loss Account, of the period ended on that
date
iii) In the case of cash flow statement of the cash flow for the year
ended on that date.
FOR GUPTA GARG & ASSOCIATES
CHARTERED ACCOUNTANTS
(Mukesh Goyal)
PLACE: New Delhi
DATED: 22nd May 2004 M.N0.501555
ANNEXURE TO THE AUDITORS REPORT
(Referred to in paragraph 1 of our report of even date) l(a) The
company has maintained proper records showing full particulars
including quantittive details and situation of fixed assets.
(b) All the assets have been physically verified by the management. No
material discrepencies were noticed during the year on such
verification.
(c) During the year company has not disposed off any asset.
2(a) the inventories have been physically verified during the year by
the management. In our opinion frequency of verification is reasonable.
(b) the procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and nature of its business.
(c) On the basis of our examination of the records of inventory ,we are
of the opinion that the company is maintaining proper records of
inventory. The discrepencies noticed on verification between the
physical stocks and the book records were not material. 3(a) The
company has taken given/loans to the parties which are not covered
under section 301 of the Companys Act, 1956.
(b) In our opinion the rate of interest and other terms and conditions
on which loans have been taken from/granted to comapnies,firms or
other parties listed in the registers maintained under section 301 are
not,prime facie, prejudicial to the interest of the company.
(c) The parties are regular in repaying the interest and principal
amount as stipulated.
(d) There is no overdue amount of loans taken from or granted to
companies, firms or other parties listed in the registers maintained
under section 301 of the companies Act, 1956.
4. In our opinion and according to explanation given to us ,there are
adequate internal control procedures commensurate with the size of the
company and nature of its business with regard to purchases
ofinventory,fixed assets and with regard to 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. Based on the audit procedures applied by us and according to
information and explanations given to us .the transactions that need to
be entered into the register maintained under section 301 have been so
entered.
6. In our opinion and according to information and explanations given
to us the company has complied with the provisions of sections 58A and
58AA of the Companies Act,1956.
7. In our opinion the company has an internal audit system commensurate
with the size and nature of its business.
8. According to the records of the company .the company is regular in
depositing with appropriate authorities undisputed statutory dues
including provident fund,investor education protection fund employees
state insurance.income tax.sales tax, wealth tax,custom duty,excise
duty,cess and other statutory dues aplicable to it.
9. According to the information and explanations given to us no
undisputed amount is payable.
10. The accumulated losses of the company are not more than fifty
percent of its net worth.The company has not incurred any cash losses
during the financial year covered by our audit and the immediately
proceeding financial year.
11. Based on our examination of documents and records,we are of the
opinion that the company has maintained adequate records where the
company has granted any loans and advances on the basis of our security
by way of our security by way of pledge of shares, debentures and
other securities.
12.The company has not given any guarantee for loans taken by others
from banks or financial institutions.
13.The term loans have been applied for the purpose for which they were
raised.
14. 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 core working capital.
15. Based on our examination of records and the information provided to
us by the management we report that the company has not made
preferential allotment of shares to parties and companies covered in
the register maintained under section 301 of the Act.
16. Based upon the audit procedures performed and information and
explanations given to us by the management, we report that no fraud on
or by the company has been noticed or reported to us by management.
For Gupta Garg & Associates
Chartered Accountants
Place: New Delhi
Dated: 22nd May, 2004 Partner
M.No.501555
