Rajesh Solvex Ltd.की ऑडीटर रिपोर्ट

Mar 31, 2012

1. We have audited the attached balance sheet of M/s Rajesh Solvex Limited, as at 31st March 2012, and the related Profit and Loss Account and Cash Flow Statement for the year ended on that date annexed thereto, which we have signed under reference to this report. These financial statements are the responsibility of the Company's management. Our responsibility is to express and 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 principals 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 Company (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, 1956 of India (the ACT) and on the basis of such checks of the books and records of the company as we considered appropriate and according to the information and explanation given to us, we further report that:

(i) a. The company was maintaining proper records showing full particulars including quantitative details and situation of fixed assets which could not be produced before us.

b. As explained by management, the fixed assets are physically verified by the management at reasonable intervals, which in our opinion is reasonable having regard to the size of the company and the nature of its assets. The fixed assets were physically verified by the management during the year and no material discrepancies between the book records and the physical inventory were noticed.

c. In our opinion and according to the information and explanation given to us, no substantial part of the fixed assets has been disposed off by the company during the year.

(ii) a. The inventory has been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable. However, there was no inventory as on 31.03.2012 except spare parts and packing materials.

b. In our opinion, 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.

c. On the basis of our examination of the inventory records, in our opinion, the company is maintaining proper records of inventory. No material discrepancies were noticed on physical verification of inventory.

(iii) a. The company has taken unsecured loans from 3 Directors Rs. 70,44,832/- and from 32 of their relative & their concerns Rs. 3,89,02,774/- listed in the register maintained under section 301 of the Companies act 1956,

b. Rate of interest and other terms & conditions of the unsecured loans are not prejudicial to the interest of company.

(iv) There is an adequate internal control procedures commensurate with the size of the company and the nature to its business for the purchase of inventory and fixed assets and for the sale of goods. However, during the year, company had no material purchase or sale. No continuing failure was noticed for correcting major weakness in the aforesaid internal control procedures.

(v) In our opinion and according to the information and explanation given, there was no transaction of purchases of goods and materials and sale of goods made in pursuance of the contracts or arrangements entered in the register maintained u/s 301 of the Companies Act 1956.

(vi) The company has not accepted any deposits from the public within the meaning of Section 58A and 58 AA of the Act and the rules framed thereunder.

(vii) The Company has no internal audit system during the year.

(viii) The Central Government has not prescribed maintenance of cost records

(ix) Generally company is regular in depositing undisputed statutory dues except Provident Fund (Including Employer's Contribution) which was not deducted from the salary of employee & entire amount was borne by employer-company.

PR was not paid on monthly basis but the entire amount of P.F. of Rs. 53570/- was paid on 24.05.2012. Moreover, amount of Provident Fund for the month of March was not debited to P&L as it was neither provided nor paid. Service Tax of Rs. 62508/-was paid on 25/05/2012.

(x) The company has accumulated losses as at the year end, are 122.33% of its net worth.

(xi) The company has now no outstanding secured loans.

(xii) The company has not granted any loan or advances against pledge of shares and other securities.

(xiii) The provisions of any special statute applicable to chit fund/nidhi/mutural benefit fund/societies are not applicable to the company.

(xiv) The company has not entered in to any transaction of shares, debentures and other investments during the year.

(xv) The company has not given any type of guarantee for loan taken by others.

(xvi) In our opinion and according to the information and explanation given to us, on an overall basis, the term loan has been applied for the purposes for which they were obtained. However during the year, not term loan was obtained.

(xvii) On the basis of examination of the balance sheet of the company in our opinion short term raised funds have not been used for long term investment in fixed assets & vice versa.

(xviii) The company has not made any preferential allotment of shares to parties.

(xix) No securities have been created in respect of debentures as no debentures were issued.

(xx) The company has not raised any money by public issues during the year.

(xxi) To the best of our knowledge and belief and according to the information and explanations given to us. no fraud on or by the company was noticed on reported during the year.

4. Further to our comments in paragraph 3 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 purposes of our audit;

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 books;

C. The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by the report are in agreement with the books of account.

D. In our opinion, the Balance Sheet, Profit & 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 Act;

E. On the basis of written representations received from the directors, and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March 2012 from being appointed as director in terms of clause (g) of sub- section (i) of section 274 of the Act;

F. In our opinion and to the best of our information and according to the explanations given to us, the said financial statements together with the notes thereon and attached thereto give in the prescribed manner the information required by the Act and give a true and fair view in conformity with the accounting principles generally accepted in india

i. In the case of the Balance Sheet, of the state of affairs of the Company as at March 31st 2012,

ii. In the case of the Profit and Loss Account, of the loss for the year ended on that date and

iii. In the case of the Cash Flow Statement, of the cash flows for the year ended on that that.

FOR K. C. MOONDRA & CO. CHARTERED ACCOUNTANTS

(CA. K. C. MOONDRA) PARTNER M.No.070789

PLACE : SHEOGANJ DATE : 30.05.2012