| REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of GUJARAT
ORGANICS LTD ("the Company") which comprise the Balance Sheet as at
March 31, 2013, and the Statements of Profit and 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.
AUDITORS' 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 materials misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures on 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 aforesaid 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: i) In the case of the Balance Sheet, of
the state of affairs of the Company as at March 31, 2013
ii) In the case of the Statement of Profit and Loss, of the Profit of
the Company for the year ended on that date; and
iii) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
REPORT ON OTHER LEGAL AD 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 paragraph 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 & 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 & Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
Sub-section (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 Independent Auditor's Report
Referred to in Paragraph 1 under the heading of "Report on other Legal
ft Regulatory Requirements" of our Report of even date
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
1. (a) The Company has maintained proper records to show full
particulars including quantitative details and situation of its fixed
assets.
(b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such verification.
(c) In our opinion, the Company has not disposed off a substantial part
of its fixed assets during the year and therefore does not affect the
going concern assumption.
2. (a) Inventories have been physically verified during the year by
the Management, tn our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of stocks followed by the
Management are adequate in relation of the size of the Company and the
nature of the business.
(c) The Company is maintaining proper records of Inventory. The
discrepancies noticed on verification between the physical and books
were not material and have been properly dealt with in the books of
accounts.
3. (a) According to the information and explanations given to us, and
on the basis of our examination of the books of account, the Company
has not granted any loans, secured or unsecured, to companies, firms or
other parties listed in the register maintained under section 301 of
the Companies Act. Consequently, the provisions of clauses 111(b),
iii(c) and iii(d) of paragraph 4 of the Order are not applicable to the
Company.
(b) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
not taken any loans from companies, firms or other parties listed in
the register maintained under section 301 of the Companies Act, 1956.
Thus, sub-clauses (f) and (g) are not applicable to the Company. The
Company had accepted interest free loan of Rs 16 lacs from the director
of the Company, in the past.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchases of inventories and fixed assets and payment for expenses and
for sale of goods. During the course of our audit, no major instance
of continuing faiLure to correct any weakness in the internal controls
has been noticed.
5. (a) Based on the audit procedures applied by us and according to
the information and explanations provided by the management, the
particulars of contracts or arrangements referred to in Section 301 of
the Act have been entered in the register required to be maintained
under that Section.
(b) As per information and explanations given to us and in our opinion,
the transaction entered into by the Company with the parties covered
under Section 301 of the Act does not exceeds five lacs rupees in a
financial year therefore requirement of reasonableness of transactions
does not arises.
6. In our opinion and according to the information and explanation
given to us by the management, the Company has complied with the
provisions of Section 58A and 58AA of the Act, and the Companies
(Acceptance of Deposits) Rules, 1975.
7. As per information and explanation given by the management, the
Company has no internal audit system commensurate with its size and the
nature of its business.
8. As per information and explanation given by the management,
maintenance of cost records has been prescribed by the Central
Government under clause (d) of Sub-section (1} of Section 209 of the
Act, and we are of the opinion that prima facie the prescribed accounts
and records have been made and maintained.
9. The Company is regular in depositing undisputed statutory dues
including Provided Fund, Employees' State Insurance, Income-tax, Sales-
tax, Custom Duty, Excise duty, cess and any other statutory dues with
the appropriate authorities.
10. The Company does not have any accumulated loss and has not
incurred cash loss during the financial year covered by our audit and
in the immediately preceding financial year.
11. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to financial
institutions and banks.
12. According to the information and explanations given to us, the
Company has not granted loans and advances 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 benefit
fund/society. Therefore, the provisions of clause 4(xiii) of the Order
are not applicable to the Company.
14. According to information and explanations given to us, the Company
has maintained proper records of the transactions and contracts of the
investments traded in shares, securities, debentures and other
investments and timely entries have been made therein. All shares,
securities, debentures and other 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 guarantees for loans taken by others from
banks and financial Institutions.
16. Based on our audit procedures and on the information given by the
management we report that the Company has not raised any term loans
during the year.
17. Based on the information and explanations given to us, and on an
overall examination of the Balance Sheet of the Company as at 31st
March 2013, we report that no funds raised on short- term basis have
been used for long term investments by the Company.
18. Based on the audit procedures performed and the information and
explanations given to us by the management, we report that the Company
has not made any preferential allotment of shares to parties and
companies covered in the register maintained under Section 301 of the
Act, during the year.
19. According to the records of the Company, and as per the
information and explanations given to us by the management, the Company
has no outstanding debentures as at the year-end. Therefore the
question of creating securities/ charges for the same does not arise.
20. The Company has not raised any money by public issue during the
year covered by our report.
21. According to the records of the Company, and as per the
information and explanations given to us by the management, no fraud on
or by the Company has been noticed or reported during the year, nor
have we been informed of such case by the management.
For Deepak Shah a Co.
Chartered Accountants
(Registration No. 102249W)
D.N.SHAH
Proprietor
Membership No.030566
Mumbai: May 27, 2013
| 