| 1. We have audited the attached Balance Sheet of Vatsa Corporations
Ltd. as at 31st October, 2013 and also the Profit & Loss Account for
the year ended on that date both of which we have signed under
reference to this report. These financial statements are the
responsibility of the management of the Company. 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 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 (Auditor's Report) Order, 2003 as
amended by Companies (Auditor's Report) (Amendment) Order, 2004 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 paragraph 4 and 5 of the said
order to the extent applicable to the Company.
4. Further to our comments in the annexure referred 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 purpose 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 these
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 are in compliance with the
Accounting Standards referred to in Section 211(3C) of the Companies
Act, 1956.
e) We are unable to comment as we have not received any written
representation from the directors of the company as on 31st October
2013 regarding disqualification as directors of the company under
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 Balance Sheet, Profit & Loss Account
and Cash Flow statement read together with the Significant Accounting
Policies and Notes thereon and attached thereto give in the prescribed
manner the information required by the 'Act' and also give
respectively, 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 October 31, 2013 and
(ii) In the case of the Profit and Loss Account, of the loss for the
year ended on that date.
(iii) In case of the Cash Flow statement of the cash flows 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 of fixed assets. As explained to us, the Fixed Asset
Register is under compilation.
(b) All the assets have been physically verified by the management
during the year and there is a regular programme of verification which,
in our opinion, is reasonable having regard to the size of the Company
and the nature of its assets. No material discrepancies were noticed on
such verification.
(c) In our opinion and according to the information and explanations
given to us, no substantial part of fixed assets has been disposed off
by the Company during the year.
2) (a) The inventories have 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, in our
opinion, the Company is maintaining proper records of inventory. No
discrepancies have been noticed on physical verification of stocks as
compared to the books records.
3) (a) The Company has not granted or taken loans from parties covered
in the register maintained under section 301 of the Act. In view of the
above sub clause (b),(c),(d),(e),(1) and (g) of clause iii of pare 4,
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 for the purchase of inventory, fixed assets and for sale of
goods. Further, on the basis of our examination of the books and
records of the Company and according to the information and
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weakness In the
aforesaid internal control procedures.
5) (a) In our opinion and according to the information and explanations
given to us, the transactions that need to be entered into a register
in pursuance of section 301 of the Act, have been so entered.
(b) In our opinion and according to the information and explanations
given to us, there are no transactions made in pursuance of the
contract or arrangements with the parties to be specified in register
maintained Ids 301 exceeding the value of rupees five lacs during the
year or more.
6) In our opinion and according to the information and explanations
given to us, the Company has not accepted deposit within the meaning of
the provisions of Sections 58A and 58AA of the Companies Act, 1956 and
the Rules made there under.
7) In our opinion, the Company has no format internal audit system.
8) As explained to us, maintenance of cost records has not been
prescribed by the Central Government u/s 209 (i)(d) of the Companies
Act, 1956.
9) (a) According to the records of the Company, the Company is regular
in depositing with appropriate authorities undisputed statutory dues
including Provident Fund, income-Tax, Sales-Tax, Value Added Tax,
Custom Duty, Cess and other statutory dues applicable to it with the
appropriate authorities.
(b) According to the information and explanations given to us and on
the basis of records of the Company examined by us, there are some
disputed dues outstanding in respect of Income-Tax, Sales-Tax,
Provident Fund, Custom Duty and Cess as at 31 n OCTOBER, 2013 for a
period of more than six months from the date of becoming payable,
10) The Company has accumulated losses as on 31s' OCTOBER, 2013.
However, the company has incurred cash loss in the financial year
ending OCTOBER, 2013.
11) According to the records of the Company examined by us and the
information and explanations given by the management, the Company has
not defaulted in repayment of dues to a bank, holders as at the Balance
Sheet date and the company has not issued any debentures.
12) The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13) The provisions of any special statute applicable to chit fund /
nidhi 1 mutual benefit fund / societies are not applicable to the
Company.
14) The company has maintained proper records of transactions and
contracts in respect of trading in securities, debentures and other
investments and timely entries have been made therein. All shares,
debentures and other investments have been held by the company in its
own name.
15) 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.
16) The Company has not taken any term loans for the year under
consideration.
17) Based on the information and explanations given to us and on an
overall examination of Balance Sheet of the Company, in our opinion,
funds raised on a long term basis have not been used for short term
investment or vice versa.
18) The Company has not made preferential allotment of shares to
parties and companies covered under Section 301 of the Companies Act,
1956.
19) The Company has not issued any debentures.
20) The Company has not raised any money by public issues during the
year
21) During the course of our 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 us, we have neither come across any instance of
fraud on or by the Company noticed or reported during the year, nor
have we been informed of such case by the management.
For S. M. BHAT & ASSOCIATES
(Chartered Accountants)
(S. M. BHAT)
(PROPRIETOR)
(M. N0. 030696) |