| (1) We have audited the attached Balance Sheet of M/S. GANDHINAGAR
LEASING AND FINANCE LIMITED, as 31st March, 2012, the Profit and Loss
Account and the Cash Flow statement for the year ended on that date
annexed thereto. These financial statements are 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 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 statements
presentation. We believe that our audit provides reasonable basis for
our opinion.
(3) As required by the Companies (Auditors Report) Order, 2003 as
amended by the Companies (Auditors Report) Amended Order 2004 issued by
the Central Government of India in terms of section 227(4A) of The
Companies Act, 1956 and on the basis of such checks as we considered
appropriate and according to information and explanation given to us,
we enclose in the annexure a statement on the matters specified in
paragraphs (4) and (5) of the said order to the extent applicable to
the Company, for the year under consideration.
(4) Further to our report as stated above in Para ( 3 ) of this report
and subject to notes on accounts & significant accounting policies, we
further broadly report that :- 4.1 In our opinion and to the best of
our information and according to the explanations given to us Balance
Sheet as at 31st March, 2012 and Profit and Loss Account for the year
ended on 31-3-2012 and Cash Flow statement dealt by this report, read
with the notes to Accounts and Accounting policies, comply with the
applicable Accounting Standards defined in Sub Section (3C) of Section
211 of the Companies Act, 1956. And gives information required by the
Companies Act, 1956 in the manner so required.
4.2 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.
4.3 In our opinion, proper books of accounts as required by law have
been kept by the Company so far as it appears from our examination of
those books.
4.4 The Balance Sheet, Profit and Loss Account & Cash Flow statement
dealt with by this report are in agreement with the books of accounts
of the Company.
4.5 Based on the representations made by all the Directors of the
Company and taken on records by the Board of Directors of the company
and in accordance with the information and explanations as made
available, the Directors of the Company do not, prime facie, have any
disqualification as referred to in clause (q) of subsection 274 of the
Act.
4.6 In our opinion and to the best of our information and according to
the explanation given to us, the said accounts, subject to notes to the
accounts and the accounting policies, give the information required by
the Companies Act, 1956 in the manner so required and give a true and
fair view in conformity with the accounting principles generally
accepted in India:-
1) In the case of Balance sheet, of the state affairs of the Company as
31st March, 2012 ;
2) In the case of Profit and Loss Account of the Company of the Loss
incurred by the Company for the Financial year ended on 31st March,
2012.
3) In the case of Cash Flow statement of the company for the financial
year 2011-2012.
1 (a) The company has maintained proper records showing full
particulars including quantitative details and Situation of Fixed
Assets.
(b) Fixed Assets have been physically verified by the management
according to the regular programmed of periodical verification in
phased manner which in our opinion is reasonable having regard to the
size of the Company and the nature of its fixed assets. There were no
material discrepancies noticed on such physical verification.
(c) There was no disposal of fixed assets during the year.
2 The company does not have Inventories, Stores, Spare Parts and Raw
Materials and hence question of physically verification and frequency
of verification does not arise.
3 According to the information and explanation given to us, the Company
has not taken any loans Secured or unsecured from companies, firms, or
other parties listed in Register maintained under Section 301 of the
Company Act, 1956 or from the Companies under the same management as
defined under sub-section (1B) of section 370 of the Companies Act,
1956.
4. In our opinion and according to the information and explanation
given to us there are adequate internal control procedures commensurate
with the size of the Company and the nature of the business for the
purchase of inventory and fixed assets and for the sale of shares held
for investment or stock in trade. During the course of our audit, no
major week ness has been notice in the internal control system in
respect of these areas.
5 In our opinion and according to the information and explanations
given to us, transactions of Rent Paid to Gandhinagar Hotels Ltd. and
Lease Assets given to Gandhinagar Hotels Ltd. and Lease Rent received
from the Gandhinagar Hotels Ltd. have been made in pursuance of
contracts or arrangements that needed to be entered into the register
maintained under Section 301 of the Companies Act, 1956 are mentioned.
The said transactions are at Market rate and not prejudicial to the
interest of the Company.
6 In our opinion and according to the information and explanation given
to us, the Company has not accepted any deposits from the Public within
the meaning of Section 58A, 58AA or any other relevant provisions of
The companies Act, 1956 and as per applicable Rules under the Companies
(Acceptance of Deposits) Rules 1975 . We are informed that no order has
been passed by the Company Law Board or Reserve Bank of India or any
Court or any other Tribunal against the Company.
7 The Company has an Internal Audit system, the same is commensurate
with size & nature of business of the Company.
8 The Central Government has not prescribed the maintenance of cost
records under Section 209(1)(d) of the Companies Act, 1956 for the
Finance Leasing and Investment Company.
9 (a) The Company is generally regular in depositing Statutory Dues.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, value added tax,
Central Sales Tax, service tax, wealth tax, custom duty, Excise Duty,
cess were in arrears as at 31st March, 2012 for a period of more than
six months from the date they become payable.
(c ) According to the information and explanations given to us, there
is no outstanding dues in respect of income tax, value added tax,,
Central Sales Tax, service tax, wealth tax, custom duty, Excise Duty,
cess, which have not been deposited on account of any dispute.
10 The Company has accumulated losses at the end of the financial year.
11 The Company does not have any borrowings from financial institutions
or banks or issued any debentures and hence question of repayment of
dues and default of repayment does not arise.
12 According to the information and explanation given to us, the
Company has not granted any loans and advance on the basis of security
by way of pledge of shares, debentures and other securities.
13 The Company is not a chit fund or a Nidhi / Mutual fund / Society,
therefore, the clause 4 (xiii) of the order is not applicable to the
Company.
14 In our opinion, the Company is dealing in or trading in share,
securities, debentures and other investment for which specific records
are maintained
15 According to the information and explanation given to us, during the
year the Company has not given any guarantee for loans taken by others,
from banks or financial institutions.
16 According to the information and explanations given to us, the
Company has not taken any term loan during the year.
17 According to the information and explanations given to us, and on
the basis of the Cash Flow Statement and other records examined by us,
as well as on an overall basis, we report that the broadly funds raised
on long term basis have not prima-facie been used for short term
investment and vice versa.
18 According to information and explanation given to us, during the
year the Company has not made preferential allotment of convertible
warrants and / or shares to parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
19 According to information and explanation given to us, the Company
has not issued any debentures during the year and hence the question of
creating any security or charge in respect thereof does not arise and
hence the provisions of clause 4 (xix) of the companies (Auditor's
Report) Order,2003 are not applicable to the Company.
20 During the year, the Company has not raised any money through a
public issue.
21 During the course of our examination of books of accounts 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 instances of fraud on or by the Company,
during the year, nor have we been informed of such case by the
management.
For G J K & Associates For G C Patel & Co.,
Chartered Accountants Chartered Accountants
Place : Gandhinagar
G. J. Raghvani Manoj H Lekinwala
Date : 14.08.2012 Partner Partner
Membership No. 37210 Membership No. 37663
Firm Reg No. 108726W Firm Reg No. 113693W | 