| 1. We have audited the attached Balance Sheet of FACT ENTERPRISE
LIMITED as on 31st March 2012 and also the Profit & Loss Account for
the year ended on that date annexed thereto. 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 have 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 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 the management, as well as evaluating the overall presentation of
the financial statements. We believe that our audit provides a
reasonable basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003, as
amended by the Companies (Auditors Report) (Amendment) Order, 2004
issued by the Central Government in terms of sub section (4A) of
section 227 of the Companies Act, 1956, we enclose as Annexure, a
statement on the matters specified in paragraphs 4 & 5 of the said
Order.
4. Further to our comments in the Annexure referred to 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
those books.
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this 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 and comply with the Accounting
Standards referred to in Section 211 (3C) of The Companies Act, 1956.
e) On the basis of written representations received from the Directors,
as on 31st March, 2012 and taken on record by the Board of Directors,
we report that none of the Directors is disqualified as on 31stMarch,
2011 from being appointed as a Director in terms of Section 274 (1) (g)
of The Companies Act, 1956.
f) 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
other notes in Schedule ' 1T give the information required by The
Companies Act, 1956 in the manner so required and give a true and fair
view:
I. In the case of the Balance Sheet, of the state of affairs of the
Company as on 31st March 2012;
II. In the case of the Profit & Loss Account, of the Profit of the
Company for the period ended on that date; and
III. In the case of the Cash Flow Statement, of the Cash Flow for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
(Referred to in paragraph 3 of our Report of even date)
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) All the Fixed Assets have been physically verified by the
management during the year. No material discrepancies were noticed on
such verification.
(c) During the year, the Company has not disposed off any Fixed Assets.
2. (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) 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 discrepancies noticed on verification between the
physical stocks and the book records were not material.
3. (a) The Company has not granted loans secured or unsecured to
companies, firms or other parties covered in the register maintained
U/s 301 of the Companies Act, 1956. However.. interest free advance
has been given to one Company, the maximum balance outstanding at any
given time during the year and closing balance of such advance as on
31.03.2012 were Rs.NIL and NIL Lacs respectively. However, the advance
will be realized / adjusted on implementation of project. Accordingly
clauses (b) and (c) of the order are not applicable. (please refer
notes to accounts).
(d) There was no overdue amount of more than Rs. 1 Lac in respect of
the above advance granted by the Company.
(e) The Company has not taken any unsecured loan from a Company covered
in the Register maintained under section 301 of the Companies Act,
1956. Accordingly clauses (f) and (g) of the Order are not applicable.
4. 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 the purchase 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. (a) In our opinion, and according to the information and
explanations given to us, there are no such particulars of contracts or
arrangements referred to in section 301 of the Act that need be entered
in the register required to be maintained in pursuance of Section 301
of the Companies Act, 1956. Accordingly clause (b) of the order is not
applicable.
6. (a) In our opinion and according to the information and
explanations given to us, the company has not accepted deposits under
the provisions of Sections 58 A and 58 AA of the Companies Act, 1956.
(b) There have been no proceedings before the Company Law Board,
National Company Law Tribunal, Reserve Bank of India, any Court and any
other Tribunal in this matter.
7. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. We are informed that the Central Government has not prescribed
maintenance of cost records under section 209 (1) (d) of The Companies
Act, 1956 for any of the products of the company.
9. According to the records of the company, it has been regular in
depositing with appropriate authorities undisputed statutory dues
including provident fund, profession tax, tax deducted at source and
other statutory dues applicable to it except the following dues that
have not been paid till date:
a) Income tax relating to AY 2006 07 of Rs. 5570771/ , Rs. 4750053/ of
AY 2007 08 and Rs. 13,76,50,612/ of AY 2008 09.
b) Dividend Distribution Tax relating to the year 2008 09 amounting to
Rs. 4,28,937/ (Rupees Four Lacs Twenty Eight Thousand Nine Hundred
Thirty Seven Only/ ) and Rs. 160,990/ of FY 2009 10.
c) TDS related to Assessment Year 2012 13 amounting to Rs. 194327/ (One
Lac Ninety Four Thousand Three Hundred Twenty Seven Only/ ).
10. The company neither has accumulated losses nor has incurred any
cash losses during the financial year covered by our audit and the
immediately preceding financial year.
11. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
company has no outstanding dues payable to any financial institution,
bank or debenture holders except an amount of Rs. 6,37,326/ (Rupees Six
Lacs Thirty Seven Thousand Three Hundred Twenty Six Only/ ) payable to
IDBI Bank Ltd.
12. Based on our examination of documents and records, we are of the
opinion that the company has not granted loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
13. We are informed that the provisions of any special statute
applicable to Chit Fund, Nidhi or Mutual Benefit Fund / Society do not
apply to the Company.
14. Based on our examination of records in relation of transactions of
shares and securities, we are of the opinion that proper records have
been maintained of the transaction and contracts and timely entries
have been made in those records. We also report that the company has
held the shares, securities, debentures, and other securities in its
own name except otherwise pending for transfer.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
16. The company has not availed any term loans during the year.
17. On the basis of our review of statements of accounts and as
confirmed by the management, funds raised on short term basis have not
been used for long term purpose and vice versa.
18. The company has not made any preferential allotment of shares
during the year to parties and companies covered in the Register
maintained under Section 301 of the Companies Act, 1956.
19. The company has not issued any debentures during the year and
accordingly this clause is not applicable.
20. The Company has not raised any money by way of public issue during
the year.
21. 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
has been noticed or reported during the year.
For M.V.DAVE & CO.
Chartered Accountants
FRNNo. 102183W
Mahesh V Dave
Proprietor
M.No. 17637
MUMBAI: 6th August 2012
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