| 1. We have audited the attached Balance Sheet of "M/s Asian Flora
Limited". As at 31st March, 2013 and also the Profit and 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
included examining, on a test basis, evidence supporting the amounts
and disclosures in financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by Management, as well as evaluating the overall financial statements
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 Section 227 (4A) of the
Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the order.
4. Further to our comments in Annexure referred to above, we report
that:
a. We have obtained only the available information and explanations to
the extent furnished and as is made available to us. In view of the
closure of the unit since long and non availability of staff; the
availability of information and explanation have got effected to a
certain extent and subject to these limitations we could elicit the
information to the best of our knowledge and Ss&es&which were
necessary for the purpose of our audit.
b. In our opinion, proper books of accounts as required by Law
"Prima-facie" appear to have been kept; by the company; so far as
appears from our examination of those books. 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.
c. In our opinion proper, books of accounts as required by law have
been kept by the company so far as appears from our examination of the
books.
d. The Balance Sheet and the Profit & Loss account dealt with by the
report are in agreement with the books of account.
e. On the basis of written representation received from the Directors
and taken on record by the Board of Directors, we report that none of
the Director is disqualified as on March 31st, 2012 from being
appointed as a Director under clause (g) of sub-section (1) of section
274 of the companies Act, 1956.
f. The company is not having manufacturing activity since 2001. Hence
this ! matter shows the impact / effect on the "Going Concern
Concept". I
g. In view of examination of books of accounts the company has not
provided the interest on secured loans. And thus not followed the
"accrual concepts".
h. The loan outstanding to KSIIDC, Bangalore, NHB, Bangalore are
secured against the assets of the company and the same are under the
possession of the KSIIDC, Bangalore.
ANNEXURE TO AUDITORS' REPORT
1. According to the information and explanation given to us the assets
of the company are under the possession of the KSIIDC, Bangalore. Since
the assets are secured against the Loans with KSIIDC.
2. As explained to us, there are no stocks of Goods, stores, spare
parts and materials as physically verified and certified by the
management.
3. a. The Company has not taken any loans, secured or unsecured, from
companies, firms, or other parties listed in the register maintained
under Section 301 of the Companies Act, 1956, or from Company under the
same management within the meaning of Section 370 (IB) of the Companies
Act, 1956, where the rate of interest and other terms and conditions
are, in our opinion, prima facie prejudicial to the interests of the
Company except that on amount of Rs. 214.83 lacs has been taken as
unsecured loans from companies in which Directors are interested and
from others.
b. The company has not granted any loans, secured or unsecured, to
companies, firms, or other parties listed in the register maintained
under section 301 of the Companies Act, 1956, or to company under the
same management within the meaning of Section 370 (IB) of the Companies
Act, 1956, where the rate of interest and other terms and conditions
are, in our opinion, prima facie prejudicial to the interests of the
Company.
c. The company has not granted any advances in the nature of loans.
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 regards to purchases of stores, raw materials including
components, plant and machinery, equipment and other assets and with
regard to sale of goods.
5. The Company need not to be entered into a register in pursuance of
Section 301 of the Act. Since no transaction exceeding the value of Rs.
5, 00,000/- (Rupees five only) as such it is not applicable.
6. According to the information and explanations given to us, the
Company has not accepted any deposits as define under Section 58 A of
the Companies Act, 1956 and the rules framed there under during the
period under review.
7. The company is having a paid-up capital exceeding Rs. 50 lacs as at
the commencement of the financial year concerned and has no Internal
Audit System commensurate with its size and nature of business.
8. According to the information explanation given to us maintenance of
cost records has not been prescribed by the Central Government under
section 209 (1) of the Companies Act, 1956, for any of activities of
the Company.
9. a. According to the information and explanations given to us
Provisions of the Provident Fund Act and Employees State Insurance Act
are not applicable to the company.
b. According to the information and explanations given to us, and the
records of the company examined by us there are no undisputed amounts
payable in respect of Wealth-Tax, sales tax, customs duty and excise
duty which have remained outstanding, as at 31st March, 2013, for a
period of more than six months from the date they became payable except
the amounts of TDS of Rs. 25,100/-.
10. The company has been registered for a period of not less than 5
years and its accumulated losses at the end of the financial year is
more than 50% of the net worth.
Thecompany is a Sick Industrial Company within the meaning of clause
(o) of sub- section (1) of section 3 of the Sick Industrial Companies
(Special Provisions) Act, 1985 and the same has not been reported to
the BOARD FOR INDUSTRIAL RECONSTRUCTION by the Directors of the
Company.
11. The company has defaulted in repayment of dues to a financial
institution or bank as such it is not applicable.
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
during the financial year llgnce this point is not applicable.
13. According to the information and explanations given to us, and
records of the company examined by us, the company has not given any
guarantee for loans taken by others from bank and other financial
institutions hence this point is not applicable.
14. According to the information and explanations given to us, and
records of the company examined by us the loans were applied for the
purpose for which the loans were obtained.
15. According to the information and explanations obtained and records
examined by us. The company has not raised any short term fund during
the financial year. Accordingly there is no question of long term
investments it is not applicable.
16. As per the information and explanations obtained and records
examined by us. The company has not made any preferential allotment of
shares to parties and companies covered in the register maintained
under Section 301 of the Act hence this point is not applicable.
17. As per the information and explanations obtained and records
examined by us. The company has not issued any debentures during the
financial year it is not applicable.
18. As per the information and explanations obtained and records
examined by us. Since the company has not offered any public issue.
Accordingly the Management has not provided any disclosure on end use
of money hence this point is not applicable.
19. As per the information and explanations obtained and records
examined by us. No fraud has been committed during the financial year
it is not ap&ijsak&te^
By Order of the Board
For Asian Flora Limited,
Place: Hyderabad M.Sambasiva Rao
Date: 25.06.2013 Director | 