| 1. We have audited the attached Balance Sheet of ANAND CREDIT LIMITED,
Ahmedabad as at 31st March, 2012 and the Profit & Loss Account 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
issued by the Central Government of India in terms of sub-section ( 4A
) of section 227 of the Companies Act, 1956. We enclosed in the
Annexure a statement on the matters specified in paragraph 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 accounts as required by law, have
been kept by the Company so far as appears from our examination of
those books;
(iii) The Balance Sheet and Profit & Loss Account and cash flow
Statement dealt with by this report are in agreement with books of
account;
(iv) In our opinion, the Balance Sheet and the Profit & Loss Account
and Cash flow Statement 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 written representations received from the
Directors, as on 31st March, 2012 and taken on record by the Board of
Directors, we report that none of directors is disqualified as on 31st
March, 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 read together with the
Significant Accounting Policies and other notes thereon 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:
a. in so far as it relates to Balance Sheet, of the state of affairs
of the company as at 31st March, 2012; and
b. in so far as it relates to the Profit and Loss Account, of the Loss
of the Company for the year ended on that date.
c. In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO AUDITORS' REPORT [Referred to paragraph 3 of our report
of even date]
1. In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
(b) As explained to us, the fixed assets have not been physically
verified by the management during the year, but there is a regular
programme of verification, which in our opinion is reasonable, having
regard to the size of the Company and nature of its assets. No material
discrepancies were noticed on such physical verification.
(c) In Our Opinion the company has not disposed off substantial part of
fixed assets during the year and the going concern status of the
company is not affected.
2. In respect of its inventories:
(a) As explained to us, inventories have been physically verified by
the management at regular intervals during the year.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) The company has maintained proper records of inventories. As
explained to us, there was no material discrepancies noticed on
physical verification of inventories as compared to the book records,
if any noticed on physical verification of inventory as compared to the
book records were properly adjusted.
3. i) In respect of loans, secured or unsecured, granted or taken by
the company to/from companies. Firms or other parties covered in the
register maintained under section 301 of the companies Act, 1956.
(a) The Company has not granted any loans or advances in the nature of
loans to parties covered in the register maintained under section 301
of the Companies Act, 1956. Hence, the question of reporting whether
the terms and conditions of such loan are prejudicial to the interest
of the company, whether reasonable steps for recovery/repayment of
overdue of such loans are taken does not arise.
(b) The Company has taken loan from one parties covered in the register
maintained under section 301 of the Companies Act, 1956. The maximum
amount involved during the year was Rs. 35.00 lacs and the year end
balance of loans taken from such parties was Rs. 35.00 lacs.
(c) In our opinion and according to the information and explanations
given to us, the rate of interest, wherever applicable and other terms
and conditions of loan taken are not prima facie prejudicial to the
interest of the company.
(d) The company is regular in repaying the principal amount as
stipulated and has been regular in the payment of interest.
4. In respect of internal control
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 for purchase of
inventory, fixed assets and also with to the sale of goods & services.
During the course of our audit, we have not observed any continuing
failure to correct major weaknesses in internal control system.
5. In respect of transactions covered under section 301 of the
Companies Act, 1956.
(a) In our opinion, and according to the information and explanations
given to us, the particulars of contracts or arrangements referred to
in section 301 of the Companies Act, 1956, have been entered in the
Register required to be maintained under that section;
(b) In our opinion and according to the information and explanations
given to us, transactions made in pursuance of such contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lacs in
respect of a party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
6. In respect of deposits from public
The Company has not accepted deposits from the public within the
meaning of section 58A and 58AA of the Companies Act, 1956 and the
Rules framed there under. We are informed that no Order has been passed
by the Company Law Board or National Company Law Tribunal or Reserve
Bank of India or any Court or any other Tribunal.
7. In respect of internal audit system
In our opinion, the company has an internal audit system commensurate
with the size of the company and the nature of its business.
8. In respect of maintenance of cost records
According to information and explanation given to us, neither order has
been passed by Central Government nor have cost records been prescribed
under section 209 (1) (d) of the Companies Act, 1956 in respect of
products manufactured by the Company.
9. In respect of statutory dues:
(a) According to the records of the Company, the company is regular in
depositing with appropriate authorities undisputed statutory dues
including Provident Fund, Income Tax, Investor Education and Protection
Fund, Employees' State Insurance dues, Sales Tax, Service Tax, Custom
duty, Excise duty, Professional tax, Cess and other statutory dues as
may be applicable to the Company have generally been regularly
deposited with the appropriate authorities.
(b) According to the information and explanations given to us,
undisputed Income tax liabilities of Rs. 1,53,190 was outstanding as at
31st March, 2012 for a period of more than Six months from the date
they become payable.
The disputed statutory dues aggregating to Rs. 35.34 lacs., that have
not been deposited on account of matters pending before appropriate
authorities are as under.
Name of statue Nature of the
dues From where dispute
is pending? Amount
Income Tax Act Income Tax I.T.A.T. 29,68,762
Income Tax Act Income Tax C.I.T. (A) 5,65,215
(c) According to the information and explanations given to us, there
are no dues of Income Tax, Sales Tax, Wealth tax, Service tax, Excise
duty, Customs duty and Cess which have not been deposited on account of
any dispute.
10. In respect of accumulated losses and cash losses
The accumulated losses of the company have exceeded fifty percent of
its net worth as at 31st March, 2012.
11. In respect of dues to financial institution / banks / debentures
In our opinion and according to the information and explanations given
to us, the Company has defaulted in repayment of no dues to banks /
financial institutions, or debenture holders.
12. In respect of loans and advances granted on the basis of security.
In our opinion and according to the information and explanation given
to us, no loans and advances have been granted by the Company on the
basis of security by way of pledge of shares, debentures and other
securities.
13. In respect of provisions applicable to Chit fund
In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore, the provisions of clause 4 (xiii)
of the Order are not applicable to the Company.
14. In respect of dealing or trading in shares, securities, debentures
and other investment According to the information and explanations
given to us, the company is not dealing in or trading in shares,
securities, debentures and other investments. Hence clause 4(xiv) of
the companies (Auditor's Report) Order 2003 is not applicable to the
company.
15. In respect of guarantee given for loans taken by others
According to the information and explanations given to us, the company
is not given any guarantee for loans taken by others from bank or
financial institutions.
16. In respect of application of term loans
The company has not raised any new term loan during the year. The term
loans outstanding at the beginning of the year were applied for the
purpose for which they were raised.
17. In respect of fund used
According to the information and explanations given to us and on an
overall examination of the balance sheet of the company, we are of the
opinion that no funds raised on short term basis have been used for
long term investment.
18. In respect of preferential allotment of shares
According to the information and explanations given to us, the company
has not made preferential allotment of shares, during the year, to
parties and companies covered in the register maintained under section
301 of the Companies Act, 1956.
19. In respect of securities created for debentures
The Company has not issued any debentures during the year. Therefore,
the provision of clause 4 (xix) of the Order is not applicable to the
Company.
20. In respect of end use of money raised by public issues
The Company has not raised any money by way of public issue during the
year.
21. In respect of fraud
According to the information and explanations given to us, no fraud on
or by the Company has been noticed or reported during the year.
FOR, A.L. THAKKAR & CO.
Chartered Accountants
Date : August 13, 2012 (SANJIV V. SHAH)
Partner
Place : Ahmedabad Membership No.: 42264
Firm No. 120116W | 