Himatsingka Motor Works Ltd.की ऑडीटर रिपोर्ट

Mar 31, 2011

1. We have audited the attached Balance Sheet of Himatsingka Motor Works Ltd., as at 31sl March 2011 and , also the Profit & Loss Account of the Company for the year ended on that date annexed thereto and the cash flow statement for the year ended on that date. These financial statements are the responsibility of the company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with the 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 sub-section (4A) of section 227 of the Companies Act, f956 and as amended vide GSR766(E) dated 25.11.2004, we enclose in 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, & subject to the effects of disclosures in notes on accounts in'item no. 7(c) in respect of Provision of Gratuity in schedule 16 forming part of the financial statements, we report that:

1. 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.

2. 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 such books.

3. The Balance Sheet and Profit & Loss Account dealt with by this report are in agreement with the Books of Account.

4. In our opinion, the Balance Sheet and Profit & Loss Account dealt with by this report comply with the Accounting Standards referred to in Sub-Section (3C) of Section 211 of the Company' Act 1956, save and except non-provision of gratuity (Accounting Standard - 15) refer to note no. 7(c) of schedule - 16 forming part of statement of accounts.

a. On the basis of written representations received from the Directors as on March 31, 2011, and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on March 31, 2011, from being appointed as a Director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

b. 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 Notes thereon, give the information required by Companies Act, 1956, in the manner so required and give a true and a fair view in conformity with the accounting principles generally accepted in India.

i) In the case of the Balance Sheet the state of affairs of the Company as at March 31,2011, and

ii) In the case of the Profit & Loss Account, the Profit of the Company for the year ended on that date.

iii) In the case of Cash Flow Statement of the Cash Flow for the year ended on that date:

1. The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

2. All the assets have been physically verified by the management during the yeah There is a regular programme of verification which in our opinion is reasonable having regard to size of the company and the nature of its assets. No material discrepancies were noticed on such verification.

3. During the year, the Company has not disposed off a substantial part of its fixed assets.

4. The Inventory has been physically verified by the management at reasonable intervals.

5. The procedure of physical verification of Inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

6. 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. No discrepancy is noticed on verification between the physical stocks and book records.

7. a) The Company has not taken any loan secured or unsecured from companies, firms and other parties covered in the register maintained u/s.301 of the Companies Act, 1956.

b) No loans secured or unsecured have been granted by the Company, to companies, firms and other parties covered in the register maintained u/s.301 of the Companies Act, 1956.

c) As the Company has neither taken any loan secured or unsecured from any company, firm or other party covered in the register maintained u/s.301 of the Companies Act, 1956 nor granted any loan secured or unsecured to any company, firm or other party covered in the register maintained u/s.301 of the aforesaid Act, paragraphs 4(iii)(b),(c),(d),(e),(f) & (g) of the Companies (Auditor's Report) Order,2003 are not applicable this year.

8. 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 equipments, fixed assets and with regard to the sale of fixed assets. During the course of our audit, no major weakness has been noticed in the internal control.

9. Based on the audit procedures applied by us and according to the information and explanations provided by the management, we are of the opinion that the transactions that need to be entered into the register maintained Under section 301 have been so entered.

10. According to the information and explanations given to us and as shown by the books of account of the Company, there were no purchases of goods and materials and sales of goods, materials and services made in pursuance of contracts entered in the registers maintained under Sec.301 of the Companies Act, 1956 exceeding Rs.500000/- in respect of each party during the period.

11. During the year, the company has not accepted deposits from public and as such compliance of provisions of section 58A and 58AA of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules 1975 does not arise.

12. In our opinion, the company has an internal audit system with the size and nature of its business.

13. Government has not prescribed maintenance cost records under section 209(1) (d) of Companies Act, 1956 for the year under review. ,

14. According to the records of the company, the company is generally regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Sales Tax, Service tax, Income Tax, and other statutory dues applicable to it. There is no amount outstanding as at 31.03.2011 for rpore than six months from the date they become payable.

15. As explain to us there is no disputed demand of statutory dues against the company.

16. The company has no accumulated losses and has not incurred any cash losses during the financial year covered 1 by our audit and the immediately preceding financial year.

17. As per the information & explanations given by the management as is verified by us, we state that the Company has not defaulted repayment of dues to financial institution, Bank.

18. According to the information and explanations given to us, the company has not granted loans or advances on the basis of security by way of pledge of shares, debentures, and other securities.

19. The nature of the Company's business / activities during the year have been such that clause No. (xiii) of the said order is not applicable to the company.

20. The Company is not dealing or trading in shares securities or debentures thus there is no need for maintaining any records for the same.

21. 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.

22. In our opinion and according to the information and explanation given to us the company has not taken any term loan.

23. According to the records examined by us and the information and explanations given to us, funds raised on m short-term basis has not used for Long Term investment.

24. The company has not made any preferential allotment of shares to parties or companies covered in the register maintained under Section 301 of the Companies Act, 1956.

25. There were no debentures issued by the Company and hence question of creating security does not arise.

26. The company has not raised any money by public issue during the year and hence the question of disclosure and verification of end use of such money does not arise.

27. Based on information and explanations furnished by the management, which have been relied upon-by us, there were no fraud on or by the company has been noticed or reported during the course of our Audit.

For N. R. & ASSOCIATES

Chartered Accountants

Firm Registration No: 302101E

Place: Guwahati M.No. 050602

Date : 30th June 2011 N.R.Chakrabarty

Partner