| We have audited the accompanying financial statements of Gazi Financial
Services & Investments Limited ("the Company"), which comprise the
Balance Sheet as at March 31, 2013, and the Statement of Profit & Loss
and Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
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 sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). 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.
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 financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India subject to Note no 17B(4):
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2013;
b) in the case of the Profit and Loss Account, of the profit/ loss for
the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on other Legal Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the 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, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in Paragraph (3) of our report,of even date)
1. a. The Company has maintained proper records of Fixed Assets.
b. As per information and explanation given to us, the Fixed Assets of
the Company have been physically verified by the Management.
c. During the year, Company has not disposed off substantial / major
part of fixed assets which affects the going concern status of the
Company.
2. According to information and explanation given to us, the company
does not have any trade inventory.
3. a. According to the information and explanation given to us, the
company has not
granted any loan to any company, firm or other parties covered in the
Register maintained u/s 301 of the Companies Act, 1956.
b. According to the information and explanation given to us, the
company has taken loan from one person as mentioned in the register
maintained under section 301 of the Companies Act, 1956. Further, the
amount involved in the transaction isRs.2,38,881 (Previous YearRs.
1,89,881/-).
c As per information and explanation given to us, the above loans are
interest free and the other terms and conditions of such loans, in our
opinion, are prime-facie, not prejudicial to the interest of the
company.
d. The above are payable on demand
4. In our opinion and according to information and explanation given to
us, internal control procedures are commensurate with the size of the
company and the nature of its business with regard to fixed assets and
sale of services. During the course of our audit, we have not observed
any continuing failure to correct major weaknesses in such internal
control systems.
5. On the basis of examination of books of accounts and according to
information and explanation given to us, we are of the opinion that the
company has not entered into any contract that is required to be
entered into the register in pursuance of section 301 of the Companies
Act, 1956. Hence, the provisions of clause 4(v) of the aforesaid Order
are not applicable to the company.
6. In our opinion and according to information and explanation given to
us, the company has not accepted any deposit from public within the
meaning of the provisions of Section 58A and 58AA of the Companies Act,
1956 and rules made there under, hence the provisions of clause (vi) of
the order is not applicable.
7. In our opinion, the company has an internal audit system
commensurate with the size of the Company and nature of its business.
8. The Central Government has not prescribed maintenance of cost
records under Section 209(1 )(d) of for the Companies Act, 1956, hence
the provisions of clause (viii) of the aforesaid order is not
applicable.
9. According to information and explanations given to us and the
records examined by us, the Company has been generally regular in
depositing with appropriate authorities undisputed statutory dues.
However, provisions of investor education and protection fund,
employees' state insurance, custom duty, excise duty, cess are not
applicable.
10. The accumulated losses at the end of the financial year are more
than fifty percent of company's net worth. Further, the company has
incurred cash losses during the financial year. However, it has not
incurred any cash losses in the immediately preceding financial year.
11. According to information and explanations given to us and the
records examined by us, the company does not have any dues to financial
institutions or bank, hence the provisions of clause(xi) of the
aforesaid Order is not applicable.
12. According to information and explanation given to us, 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. In our opinion the Company is not a Chit fund or a nidhi / mutual
benefit fund /society.
14. In our opinion, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Hence, the provisions of
clause 4(xiv) of the aforesaid Order are not applicable to the company.
15. According to information and explanation given to us, the company
has not given any guarantee for any loans taken by others from any
financial institutions or bank.
16. In our opinion and according to information and explanation given
to us, the company has not obtained any loans. Hence, the provisions of
clause 4(xvi) of the aforesaid Order are not applicable to the company.
17. According to information and explanations given to us, and on an
overall examination of the balance sheet of the company, we are of the
opinion that the company has not raised any funds on short term basis.
Hence, the provisions of clause 4(xvii) of the aforesaid Order are not
applicable to the company.
18. According to information and explanations given to us, the company
has not made any preferential allotment of shares during the year.
Therefore, the provisions of clause 4(xviii) of the aforesaid Order are
not applicable to the Company.
19. As the company has not issued any debentures, provisions of clause
4(xix) of the aforesaid Order are not applicable.
20. As the company has not raised any money by way of public issue,
provisions of clause (xx) of the aforesaid Order are not applicable.
21. As per the information and explanation given by the management and
the audit procedures performed for expressing opinion on financial
statements, we report that no fraud on or by the company has been
noticed or reported during the course of audit.
For D.N. KANABAR & CO
Chartered Accountants
FRN: 104698W .
Deepak Kanabar
(Proprietor)
Membership No 041157
Date: 29th May, 2013
Place: Mumbai
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