| Report on the Financial Statements
We have audited the accompanying statements of ELDER PROJECTS LIMITED
("the Company") which comprises the Balance Sheet as at 30th June,
2013, the Statement of Profit and Loss Account and the cash flow
statement of the Company for the period ended on that date and a
summary of the significant accounting policies and other explanatory
information.
Management's Responsibility for the Financial Statements
The company's Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards referred to in Section 211
(3C) of the Companies Act, 1956 ('the Act') and in accordance with the
accounting principles generally accepted in India. This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company's preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the company's
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the said financial statements give the'
information required by the Act, in the manner so required and give a
true and fair view in conformity with accounting principles generally
accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 30th June 2013:
(b) In the case of the Statement of Profit and Loss, of the Profit of
the Company for the period on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows of the
Company for the period ended on that date. Emphasis of Matter
The Company has not made any provision for non moving inventories
having book value of Rs. 33.38 Lacs. Report on Other Legal and
Regulatory Requirements
1. As required by the Companies (Auditors' Report) Order, 2003 ('the
said order') issued by the Central Government in terms of Section
227(4A) of the Act, we give the Annexure, a statement on the matters
specified in Paragraphs of the said order.
2. As required by Section 227(3) of the Act, 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 those
books;
(c) The Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account;
(d) In our opinion, the Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement comply with the Accounting Standards
referred to in sub-section (3C) of Section 211 of the Act; and
(e) On the basis of written representations received from the directors
as on 30th June 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on 30th June 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
Section 274 of the Act.
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in paragraph 2 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) The fixed assets are physically verified by the management in a
phased manner 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) The Company has not disposed of a substantial part of fixed assets
during the period and accordingly going concern is not affected.
However the Company has sold Its restaurant business on slump sale
basis during me period.
2 (a) As explained to us, physical verification of the inventory was
carried out at reasonable intervals by the management.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation the
size of the Company and nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventory, and the discrepancies noticed on physical verification of
inventory as compared to book records were not material and have been
properly dealt with in the books of account.
3 (a) The Company has granted loans and/ or advances to persons covered
in the register maintained under Section 301 of the Companies Act 1956.
The maximum balance during the period and the amount outstanding at the
end of the period was Rs. 466.20 lacs.
(b) In our opinion the rate of interest and other terms and conditions
on which the loan was granted to the Company listed in the register
maintained under section 301 of the Companies Act, 1956 are not, prima
facie, prejudicial to the interest of the Company.
(c) The Company has recovered the principal amount and interest thereon
regularly wherever stipulated.
(d) However the amounts given to the said parties on current account
has not been considered as loans and/ or advances and therefore not
considered by us for the purpose of reporting under this clause.
(e) According to the information and explanations given to us, the
Company has not taken loans from the parties listed in the register
maintained under section 301 of the Companies Act, 1956.
4) In our opinion and according to the information and explanations
given to us, the Company has adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and for sale of
goods. Further, based on our examination and according to the
information and explanations given to us, we have not noted any
continuing failure to correct major weakness in internal controls.
5) a) According to the information and explanations given to us, we are
of the opinion that the transactions that need to be entered into the
register maintained under section 301 of the Companies Act, 1956 have
been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of the contracts or
agreements entered in the register maintained under section 301 of the
Companies Act, 1956 and exceeding the value of Rs. 5 Lakhs in respect of
any party during the period have been made at prices which are
reasonable, having regard to the prevailing market price at the
relevant time.
6) The Company has not accepted any deposits from public to which
directives issued by Reserve Bank of India and the provisions of
sections 58A and 58AA of the Companies Act, 1956 and Rules made there
under are applicable.
7) In our opinion the Company has an internal audit system commensurate
with the size and the nature of its business.
8) We have been informed that the Central Government has not prescribed
maintenance of Cost Records under Section 209(1 )(d) of the Companies
Act, 1956 in respect of Company's activities.
9) According to the information and explanations given to us, the
Company is regular in depositing undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Employees State
Insurance, Income Tax, Sales Tax, Wealth Tax, Customs Duty, Excise
Duty, Cess and other statutory dues with the appropriate authorities
during the period. However there were delays in payment of tax deducted
at source and employees' professional tax.
10) According to information and explanations given to us, the Company
has accumulated losses at the end of the financial period, which does
not exceed fifty percent of its networth. The Company has also incurred
Cash Losses during the period.
11) On the basis of our examination and according to the information
and explanations given to us, the Company has defaulted in repayment of
dues to a financial institution. The Company has not obtained any
borrowings by way of debentures.
12) As the Company has not granted any loans or advances on the basis
of security by way of pledge of shares, debentures and other
securities, clause (xii) of the said order is not applicable.
13) The Company is engaged in manufacturing activity, and therefore,
the provisions of clause (xiii) of the said order relating to chit fund
or nidhi / mutual fund / society are not applicable to the Company.
14) In respect of Company's investment, proper records have been
maintained of transactions and contracts and timely entries have been
made. The 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 loan during the period.
Accordingly, clause (xvi) of the said order is not applicable.
17) According to the Cash Flow Statement and other records examined by
us and according to information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, we report that
the funds raised on short term basis have, prima facie not been used
during the period for long term investments. No long term funds have
been used to finance short term assets except for permanent working
capital and / or temporary deployment pending application.
18) The Company has not made any preferential allotment of shares or
issued debentures or made any public issue during the period, and
accordingly, clauses (xviii), (xix) and (xx) of the said order are not
applicable to the Company.
19) To the best of our knowledge and belief, and according to the
information and explanations given to us, there have been no cases of
fraud on or by the Company noticed or reported during the period.
For Jayesh Sutaria Associates
Chartered Accountants
FirmRegn. No.: 104187W
(Jayesh Sutaria)
Proprietor M.No.39696
Place: Mumbai
Date: 29th August 2013
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