| 1. We have audited the attached Balance Sheet of Ascent Exim (India)
Limited as at October 31, 2012, the Statement of Profit and Loss and
the Cash flow statement 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 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 financial statement
presentation. 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) 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 paragraphs 4
and 5 of the said Order.
4. Further to our comments in the Annexure referred to above, we
report that:
i. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii. In our opinion, proper books of account as required by iaw have
been kept by the Company so far as appears from our examination of
those books;
iii. The balance sheet and statement of profit and loss account dealt
with by this report are in agreement with the books of account;
iv. In our opinion, the balance sheet and profit and loss account
dealt with by this report comply with the accounting standards referred
to in sub-section (3C) of section 211 of the Companies Act, 1956.
v. On the basis of the written representations received from the
directors, as on October 31, 2012 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
October 31, 2012 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956.
vi. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give a true and fair
view in conformity with the accounting principles generally accepted in
India;
a) in the case of the balance sheet, of the state of affairs of the
Company as at October 31, 2012;
b) in the case of the profit and loss account, of the profit for the
year ended on that date.
c) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Annexure to the Auditors' Report of even date to the members of ASCENT
EXIM (INDIA) LIMITED, on the financial statements for the year ended
31st October, 2012
Based on the audit procedures performed for the purpose of reporting a
true and fair view on the financial statements of the Company and
taking into consideration the information and explanations given to us
and the books of account and other records examined by us in the normal
course of audit, we report that:
i. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its Fixed
Assets.
(b) According to the information and explanations given to us, the
Fixed Assets have been physically verified by the management during the
year, and no material discrepancies were noticed on such verification
with book records.
(c) The company has not disposed off any major part of the Fixed
Assets, so as to affect its going concern.
ii. (a) The inventories have been physically verified by the
management at reasonable intervals during the year.
(b) The procedure followed by the management for physical verification
of stock is reasonable and adequate in relation to the size of the
Company and nature of its business. .
(c) The Company is maintaining proper records of inventory and the
discrepancies, not material, between the physical verification as
compared to book stock have been properly dealt with in books of
account.
iii. The Company has not granted/taken any loans, secured or unsecured
to/from companies, firms or-other parties covered in the register
maintained under section 301 of the Companies Act 1956. Therefore the
provisions of clause 4(iii) (b) to (g) of the Companies (Auditor's
Report) Order, 2003(as amended) are not applicable to the Company.
iv. 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. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
procedures.
v. According to the information and explanations given to us, the
Company has not entered into contracts or arrangements referred to in
section 301 of the Act. Accordingly, the provisions of clause 4(v) of
the Companies (Auditors Report) Order, 2003 (as amended) are not
applicable to the Company.
vi. The Company has not accepted any deposits from the public within
the meaning of sections 58A and 58AA of the Act and the Companies
(Acceptance of Deposits) Rules, 1975. Therefore, the provisions of
clause 4 (vi) of the Companies (Auditor's Report) Order, 2003 (as
amended) are not applicable to the Company.
vii. The company does not have internal audit system during the year.
viii. 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. Therefore, the provisions of clause 4
(viii) of the Companies (Auditor's Report) Order, 2003 (as amended) are
not applicable to the Company.
ix. (a) According to the records of the Company, undisputed statutory
dues including, Investor Education and Protection Fund, Income Tax,
Wealth Tax, Customs Duty, cess and other statutory dues have been
regularly deposited with appropriate authorities. According to the
information and explanations given to us, no undisputed amounts payable
in respect of the aforesaid dues were outstanding as at 31st October,
2012.
(b) According to the information and explanations given to us, disputed
dues in respect of provident fund, investor education and protection
fund, employees' state insurance, income-tax, wealth-tax, service tax,
sales-tax, customs duty, excise duty, cess and other statutory dues
amounting to Rs.23,72,016, which were outstanding at the year end for a
period of more than six months from the date they became payable. .
x. The company has accumulated losses of Rs 1,44,46,021 as at 31st
October 2012.The company has also incurred cash losses immediately
preceding financial year.
xi. The Company does not have any dues to financial institutions,
banks or debenture holders. Therefore the provisions of clause 4 (xi)
of the Companies (Auditors' Report) Order, 2003 (as amended) are not
applicable to the company.
xii. According to the information and explanations 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.
xiii. In our opinion, the Company is not Chit Fund or Nidhi Mutual
Benefit Fund/Society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor's Report) Order, 2003 (as amended) are not
applicable to the Company.
xiv. In our opinion, the Company is dealing in or trading in shares,
securities, debentures and other investments. Therefore, the provisions
of clause 4 (xiv) of the Companies (Auditor's Report) Order, 2003 (as
amended) are applicable to the Company.
xv. The company has not given any guarantee for loans taken by others
from financial institutions/banks. Therefore, the provisions of clause
4 (xv) of the Companies (Auditor's Report) Order, 2003 (as amended) are
not applicable to the Company.
xvi. The Company did not have any term loans outstanding during the
year. Therefore, the provisions of clause 4 (xvi) of the Companies
(Auditors' Report) Order, 2003 (as amended) are not applicable to the
company.
xvii. In our opinion, no funds raised on short-term basis have been
used for long-term investment.
xviii. The Company has not made any preferential allotment of shares
to parties covered in the register maintained under Section 301 of the
Companies Act, 1956. Therefore, the provisions of clause 4 (xviii) of
the Companies (Auditors' Report) Order, 2003 (as amended) are not
applicable to the company.
xix. The Company has neither issued nor had any outstanding debentures
during the year. Therefore, the provisions of clause 4 (xix) of the
Companies (Auditors' Report) Order, 2003 (as amended) are not
applicable to the company.
xx. The Company has not raised any money by public issue during the
year. Therefore, the provisions of clause 4 (xx) of the Companies
(Auditors' Report) Order, 2003 (as amended) are not applicable to the
company.
xxi. In our opinion and according to the information and explanations
given to us, no fraud by/against the company has been noticed or
reported during the year.
For NGS & Co. LLP
Chartered Accountants
Sd/-
Ganesh Toshniwal Partner
Membership No. 046669
Place: Mumbai
Date: 31.01.2013
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