Mar 31, 2014
I have audited the accompanying financial statements of AADI INDUSTRIES
LIMITED, which comprise the Balance Sheet as at March 31, 2014, and the
Statement of Profit and Loss and Cash Flow Statement for the year then
ended, and a summary of significant accounting policies and other
explanatory information.
Management''s Responsibility for the Financial Statements
Management of the company 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") read with
the General Circular No. 15/2013 dated 13th September 2013 of the
Ministry of Corporate Affairs in respect of section 133 of the
Companies Act, 2013 and in accordance with accounting principles
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.
Auditors'' Responsibility
My responsibility is to express an opinion on these financial
statements based on our audit. I have conducted the audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that I 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 Auditors'' 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.
I believe that the audit evidences I have obtained are sufficient and
appropriate to provide a basis for my audit opinion.
Opinion
In my opinion and to the best of my information and according to the
explanations given to me, 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
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(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 for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors'' Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, I 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, I report that:
a. I have obtained all the information and explanations which to the
best of my knowledge and belief were necessary for the purpose of
audit;
b. in my opinion proper books of account as required by law have been
kept by the Company so far as appears from my examination of those
books.
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
account.
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, read
with with the General Circular No. 15/2013 dated 13th September 2013 of
the Ministry of Corporate Affairs in respect of section 133 of the
Companies Act, 2013.
e. on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, 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 AUDITORS REPORT.
Referred to in Paragraph 1 under Report on Other Legal and Regulatory
Requirements of my report of even date to the members of AADI
INDUSTRIES LIMITED on the financial statements the year ended on 31st
March, 2014.
(i) (a) I have been informed that the company has maintained records
showing full particulars, including quantitative details and situation
of Fixed Assets.
(b) All the assets have not been physically verified by the management
during the year but there is a programme of verification at the year
end which, in my opinion, is reasonable having regard to the size of
the company and the nature of its assets and as informed no material
discrepancies were noticed on such physical verification.
(c) In my opinion and according to information and explanations given
to me, there was disposal of fixed assets i.e. factory building during
the year thereby affecting the going concern of the company.
(ii) (a) As informed to me by the management, the inventory has been
lost by theft during the year. Hence, there is no stock for the year
under consideration.
(b) The procedures explained to me, which are followed by the
management for physical verification of inventories, are in my opinion
reasonable and adequate in relation to the size of the company and the
nature of its business.
(c) In my opinion and according to the explanations given to me, the
company is maintaining proper records of its inventory. No material
discrepancies were noticed on such physical verification.
(iii) (a) According to the explanations given to me, the Company has
not granted any secured or unsecured loans to parties listed in the
register maintained under section 301 of the Companies Act, 1956. Hence
provisions of clause 4(iii) (b) to (d) of the Order are not applicable
to the Company.
(b) According to the explanations given to me, the Company has taken
unsecured loans from one party covered in the register maintained under
section 301 of the Companies Act, 1956. The maximum amount involved
during the year was Rs. 6,88,22,126/-. and the year end balance of Loan
taken from such party was Rs. 5,11,19,801/-.
(c) The terms and conditions fixed on loans taken from the parties
listed in the register maintained under section 301 of the Companies
Act 1956, are not prejudicial to the interest of the Company.
(d) In my opinion and according to the information and explanations
given to me, no repayment schedule has been specified and accordingly
the question of regularity in repayment of principal amount, wherever
applicable, does not arise.
(iv) In my opinion and according to the information and explanations
given to me, there exist an adequate internal control systems
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory and fixed assets and
with regard to the sale of goods and as in formed to us, the company is
not engaged in the sale of services. During the course of the audit, I
have not observed any major weakness or continuing failure to correct
any major weakness in internal control system of the company in respect
of these areas.
(v) (a) In my opinion and according to the information and explanations
given to me, the particulars of contracts or arrangements referred to
in Section 301 of the Act have been entered.
(b) In my opinion and according to the information and explanations
given to me, there are no such contracts or arrangements entered in the
register maintained under section 301 of the Companies Act, 1956 and
exceeding the value of rupees five lakhs in respect of any party during
the year.
(vi) In my opinion and according to the information and explanations
given to me, the provisions of sections 58A and 58AA of the Companies
Act, 1956, and the Companies (Acceptance of Deposits) Rules - 1975 are
not applicable to the company in the year under consideration.
(vii) In my opinion and as per the explanations given to me, the
company has an internal audit system commensurate with the size and
nature of its business.
(viii) As explained to me the Central Government has not prescribed any
maintenance of cost record under section 209(1)(d) of the Companies
Act, 1956 to the Company.
(ix) In respect of statutory dues:
(a) According to the information and explanations given to me, the
Company is not 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 material statutory
dues applicable to it at the year end for a period of more than six
months from the date they become payable.
(b) According to the information and explanations given to me and the
records of the company examined by me, there are no disputed dues in
respect of any statutory dues.
(x) The Company has incurred cash loss of Rs. 13,01,05,774/- during the
financial year covered by our audit and Rs. 74,13,198 /- the
immediately preceding financial year.
(xi) In my opinion and according to the information and explanations
given to me, the company has defaulted in repayment of dues to
financial institution or bank.
(xii) According to the information and explanations given to me and
based on the documents and records produced before me, 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 my opinion, the company is not a chit fund or a nidhi mutual
benefit fund / society. Therefore, the provisions of clause 4 (xiii)
of the Companies (Auditor''s Report) Order, 2003 are not applicable to
the company.
(xiv) In my opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order,
2003 are not applicable to the company.
(xv) In my opinion and according to the information and explanations
given to me the Company has not given guarantees for loans taken by
others from bank or financial institutions.
(xvi) In my opinion and according to the information and explanations
given to me, the term loans are being applied for the purpose for which
they were raised.
(xvii) According to the information and explanations given to me and on
an overall examination of the balance sheet and the cash flow of the
company, no short-term funds have been used to finance long-term
assets.
(xviii) According to the information and explanations given to me, the
company has not made preferential allotment of shares to Promoters and
Promoters group covered in the register maintained under section 301 of
the Act.
(xix) The company has not received any money through Public Issue of
Debentures.
(xx) The company has not raised any money by public issues during the
year.
(xxi) During the course of my examination of the books and records of
the company, carried out in accordance with the generally accepted
auditing practices in India and according to the information and
explanations given to me, I have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have I been informed of any such case by the Management.
For K.S. SUBRAHMANYAM
CHARTERED ACCOUNTANT
Sd/-
K.S. SUBRAHMANYAM
PROPRIETOR
M.No. 018630
Place: MUMBAI
Date: 30th May, 2014
Mar 31, 2013
Report on the Financial Statements
I have audited the accompanying financial statements of AADI INDUSTRIES
LIMITED, which comprise the Balance Sheet as at March 31, 2013, and the
Statement of Profit and Loss and Cash Flow Statement for the year then
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 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.
Auditors'' Responsibility
My responsibility is to express an opinion on these financial
statements based on our audit. I have conducted the audit in accordance
with the Standards o,n Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that. 1 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 Auditors'' 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.
I believe that the audit evidences 1 have obtained are sufficient and
appropriate to provide a basis for my audit opinion.
Opinion
In my opinion and to the best of my information and according to the
explanations given to me, 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
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 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 for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors'' Report) Order, 2003
(''the Order") issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Act, I 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, I report that:
a. I have obtained all the information and explanations which to the
best of my knowledge and belief were necessary for the purpose of
audit;
b. in my opinion proper books of account as required by law have been
kept by the Company so far as appears from my examination of those
books.
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
account.
d. in my 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 AUDITORS REPORT,
Referred to in Paragraph 1 under Report on Other Legal and Regulatory
Requirements of my report of even date to the members of AADI
INDUSTRIES LIMITED on the financial statements the year ended on 31st
March, 2013. .
(i) (a) i have been informed that the company has maintained records
showing full particulars, including quantitative details and situation
of Fixed Assets.
(b) All the assets have not been physically verified by the management
during the year but there is a programme of verification at the year
end which, in my opinion, is reasonable having regard to the size of
the company and the nature of its assets and as informed no material
discrepancies were noticed on such physical verification.
(c) In my opinion and according to information aid explanations given
to my, there was no disposal of a substantial part of fixed assets
during the year.
(ii) (a) As informed to me, the inventory has been physically verified
during the year by the management. In my opinion, the frequency of
verification is reasonable.
(b) The procedures explained to me, which are followed by the
management for physical verification of inventories, are in my opinion
reasonable and adequate in relation to the size of the company and the
nature of its business.
(c) In my opinion and according to the explanations given to me, the
company is maintaining proper records of its inventory. No material
discrepancies were noticed on such physical verification.
(iii) (a) According to the explanations given to me, the Company has
not granted any secured or unsecured loans to parties listed in the
register maintained under section 301 of the Companies Act, 1956. Hence
provisions of clause 4(iii) (b) to (d) of the Order are not applicable
to the Company.
(b) According to the, explanations given to me the company has taken
unsecured loans from two party covered in the register maintained under
section 301 of the Companies Act, 1956. The maximum amount involved
during the year was Rs.7,03,67,196/-. and the yearend balance of Loans
taken from such party was Rs.6,88,22,126/-.
(c) The terms and conditions fixed on loans taken from the parties
listed in the register maintained under section 301 of the Companies
Act 1956, are not prejudicial to the interest of the Company.
(d) In my opinion and according to the information and explanations
given to me, no repayment schedule has been specified and accordingly
the question of regularity in repayment of principal amount, wherever
applicable, does not arise.
(iv) In my opinion and according to the information and explanations
given to me, there exist an adequate internal control systems
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory and fixed assets and
with regard to the sale of goods and services. During the course of the
audit, I have not observed any major weakness or continuing failure to
correct any major weakness in internal control system of the company in
respect of these areas.
(v) (a) In my opinion and according to the information and explanations
given to me, the particulars of contracts or arrangements referred to
in Section 301 of the Act have been entered,
(b) in my opinion and according to the information and explanations
given to me, the transactions made in pursuance of such contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year have been made at prices
prevailing market prices at the relevant time.
(vi). In my opinion and according to the information and explanations
given to me, the provisions of sections 58A and 58 A A of the Companies
Act, 1956, and the Companies (Acceptance of Deposits) Rules - 1975 are
not applicable to the company in the year under consideration.
(vii) In my opinion and as per the explanations given to me, the
company has an internal audit system commensurate with the size and
nature of its business.
(viii) As explained to me the Central Government has not prescribed any
maintenance of cost record '' under section 209(1 )(d) of the Companies
Act, 1956 to the Company.
(ix) In respect of statutory dues:
(a) According to the information and explanations given to me, the
Company is not 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 material statutory
dues applicable to it at the yearend for a period of more than six
months from the date they become payable.
(b) According to the information and explanations given to me and the
records of the company examined by me, there are no disputed dues in
respect of any statutory dues.
(x) The Company has incurred cash loss of Rs.74,13,198/- during the
financial year covered by our audit and Rs. 1,59,85,946/- the
immediately preceding financial year.
(xi) In my opinion and according to the information and explanations
given to me, the company has defaulted in repayment of dues to
financial institution or bank.
(xii) According to the information and explanations given to me and
based on the documents and records produced before me, 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 my opinion, the company is not a chit fund or a nidhi mutual
benefit fund / society. Therefore, the provisions of clause 4 (xiii)
of the Companies (Auditor''s Report) Order, 2003 are not applicable to
the company.
(xiv) In my opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor''s Report)
Order, 2003 are not applicable to the company.
(xv) In my opinion and according to the information and explanations
given to me the Company has not given guarantees for loans taken by
others from bank or financial institutions.
(xvi) In my opinion and according to the information and explanations
given to me, the term loans are being applied for the purpose for which
they were raised.
(xvii) According to the information and explanations given, to me and
on an overall examination of the balance sheet and the cash flow of the
company, no short-term funds have been used to finance long-term
assets.
(xviii) According to the information and explanations given to me, the
company has not made preferential allotment of shares to Promoters and
Promoters group covered in the register maintained under section 301 of
the Act.
(xix) The company has not received any money through Public Issue of
Debentures.
(xx) The company has not raised any money by public issues during the
year.
(xxi) During the course of my examination of the books and records of
the company, carried out in accordance with the generally accepted
auditing practices in India and according to the information and
explanations given to me, I have neither come across any instance of
fraud on or by the Company, noticed or reported during the ypar, nor
have I been informed of any such case by the Management.
For K.S. SUBRAHMANYAM
CHARTERED ACCOUNTANT
K.S. SUBRAHMANYAM
PROPRIETOR
M.No. 018630
Place: MUMBAI
Date: 30/05/2013
Mar 31, 2010
We have audited the attached Balance Sheet of M/s. AADI INDUSTRIES
LIMITED, as at 31st March 2010, the Profit and Loss Account and also
the cash flow statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
companys management. Our responsibility is to express an opinion on
this financial statement based on our audit.
1. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards required that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
included 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.
2. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of sub- section (4A) of
section 227 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.
3. Further to our comments in the Annexure referred to above, we
report that:
(i) We have obtained all the information and explanations, which is to
the best of our knowledge and belief, were necessary forthe purpose of
ouraudit.
(ii) 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
these books.
(ii) The balance sheet, profit and loss account and cash flow statement
dealt with by this report are in agreement with the books of account;
(iv) In our opinion, the balance sheet, profit and loss account and
cash flow statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956;
(v) On the basis of written representations received from the
directors, as on 31st March 2010 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March 2010 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 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 accounts give 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;
a) In the case of the balance sheet, of the state of affairs of the
Company as at 31st March, 2010.
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.
ANNEXURE TO THE AUDITORS REPORT Re: Aadi Industries Limited
Referred to in paragraph 3 of our report of even date,
(i) (a) We have been informed that the Fixed Assets Register showing
full particulars, including quantitative details and situation of Fixed
Assets is maintained.
(b) All the assets have not been physically verified by the management
during the year but there is a programme of verification at the year
end which, in our opinion, is reasonable having regard to the size of
the company and the nature of its assets.
(c) During the year, the Company has not disposed off any of the Plant
& Machinery and hence has not affected the going concern status of the
company.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the 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 the nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(iii) (a) The Company has taken loans from two parties covered in the
register maintained under section 301 of the Companies Act, 1956.The
maximum amount involved during the year was 53.73 Lacs & the year end
balance of Loans Taken from such parties was 51.62. The Company has not
granted any loans to parties covered in the Register maintained Under
301 of the Companies Act, 1956, hence this Clause is not applicable.
(b) There are interest free advances in the nature of loans to the
employees which are being recovered / adjusted regularly.
(c) There are no terms and conditions fixed on loans taken from the
parties listed in the register maintained under section 301 of the
Companies Act 1956 to that extent they are prejudicial to the interest
of the Company.
(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 purchases of inventory, fixed assets and with
regard to the sale of goods.
(v) (a) According to the information and explanations 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 entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
(vi) According to the information and explanations given to us, the
Company has not accepted any deposits from the public. Accordingly,
the provisions of Sections 58Aand 58AAof the Companies Act, 1956, and
the Companies (Acceptance of Deposits) Rules, 1975 are not applicable
to the Company.
(vii) The Company does not have any formal internal audit system but we
are convinced that control procedures instituted by the management
ensure reasonable internal checking of its financial and other
transactions.
(viii) As explained to us, the Central Government has not prescribed
any maintenance of cost record under Section 209(1 )(d) of the
Companies Act, 1956 to the Industry Company.
(ix) (a) 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
material statutory dues applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, custom duty, excise duty and cess were in arrears, as at
31-03-2010 for a period of more than six months from the date they
became payable.
(c) According to the information and explanation given to us, there are
no dues of sales tax, income tax, customs duty, wealth tax, excise duty
and cess, which have not been deposited on account of any dispute.
(x) The Company has not incurred cash loss during the financial year
covered by our audit. In the immediately preceding
financial year, the Company had incurred cash loss.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment
of dues to banks orfinancial institutions.
(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. Therefore, the provisions of clause 4 (xii) of the
Companies (Auditors Report) Order, 2003 are not applicable.
(xiii) In our opinion, the Company is not a chit fund or a nidhi-
mutual benefit fund/society. Therefore, the provisions of clause 4 of
the aforesaid order are not applicable to the Company.
(xiv) In our opinion, the Company has not dealt or traded in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4 (xiv) of the aforesaid order are not applicable
to the Company.
(xv) As per the information and explanations given to us, the Company
has not given guarantees for loans taken by others from banks
orfinancial institutions.
(xvi) In our opinion, the term loans are being applied for the purpose
for which they were raised.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, no long
term funds have been used to finance short term assets except permanent
working capital.
(xviii) The Company has made preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Companies Act, 1956. The price at which the shares have been
issued is not prejudicial to the interest of the Company.
(xix) The Company has not issued debentures during the year under
review. Accordingly, the provisions of clause 4 (xix) of the aforesaid
order are not applicable to the Company.
(xx) The Company has not received any money by way of public issue
during the year. The Company is in the process of utilizing the funds
received through preferential allotment of shares to the Promoters.
(xxi) To the best of our knowledge and according to the information and
explanations given to us, no fraud on or by the Company has been
noticed or reported during the course of our audit.
For SUNDERJI GOSAR & CO
Chartered Accountants.
(Firm Reg No 115543W)
ALPESH K. SAVLA
PARTNER
(M. No. 47828.)
Place: Mumbai
Dated: 28,th May 2010