| Report on the Financial Statements
We have audited the accompanying financial statements of "MADHUR
CAPITAL & FINANCE LTD.", which comprise the Balance Sheet as at March
31, 2013, and the Statement 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 Statement
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. 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:
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 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.
1. 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 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 the available 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, the Profit and Loss Account and cash flow
statement dealt with by this report are in agreement with the books of
account;
d. In our opinion, the Balance Sheet ,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;
Except Accounting Standard -15 on Retirement benefits as no provision
has been made for retirement benefits, The effect of the same can not
be quantified, to that extent Profit for the year and balance of Profit
& Loss account and balance of current liabilities is understated.
e. Accounting Standard -13 on Accounting for investments as no
provision is made for diminution in the value of investment of group
concern amounting to Rs. 24.81 lacs.
f. On the basis of written representations received from the directors
as at 31 March, 2013 and taken on record by the Board of Directors and
in accordance with the information and explanations as made available,
the directors of the company do not have prima - facie have any
disqualification as at 31st March, 2013 from being appointed as a
director in terms of clause (g) of sub-section (1) of section 274 of
the Companies Act, 1956. It has been explained that one of the Company
in which the director of the Company is also director, has issued
Cheques for repayment of the fixed deposits received by it but due to
frizzing of the said bank accounts by CBI BS & FC, Mumbai, the said
amount have not been encashed, therefore it is construed that the said
Company has not defaulted in repayment of interest/principal of fixed
deposits.
g. The Bank accounts of the Company was frizzed by the CBI BS & FC,
Mumbai in the financial year 2001-02, therefore no provision has been
made for bank balance of Rs. 495.53 lacs, cheques on hand of Rs. 132
lacs which are also time barred under time limit prescribed under
Negotiable Instrument Act, 1881 and for no provision is made for
diminution in the value of investment of group concern amounting to Rs.
24.81 lacs.
h. The Company has not carried out any business activity during the
year as non banking financial company & consequently not entitled to
hold certificate of registration in term of assets/income pattern
notified by RBI.
i. Subject to the above ,ln our opinion and to the best of our
information and according to the explanations given to us, the said
accounts give the information required by the Companies Act,1956, in
the manner so required and given 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 31 March, 2013.
ii In the case of the Profit and Loss Account, of the loss of the
Company for the period ended on that date.
iii In the case of Cash Flow Statement, of the Cash Flow of the Company
for the year ended on that date.
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of MADHUR CAPITAL & FINANCE LTD. Limited on tho accounts
of tha company for the year ended 31st March, 2013.
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 not maintained proper records showing 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. However the details regarding the same
are not available for our verification.
(c) In our opinion and according to the information and explanations
given to us, no fixed asset has been disposed during the year and
therefore does not affect the going concern assumption.
2. (a) As per the information and explanations given to us , the
Company does not have and stock of goods or shares
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 granted loans, secured or unsecured, to companies, firms or other
parties listed in the register maintained under Section 301 of the
Companies Act, 1956. The Maximum balance outstanding during the year
was Rs 2206.
(b) In our opinion, the rate of interest and other terms and conditions
of such loan are not, prime facie, prejudicial to the interest of the
Company.
(c) The company is neither regular in making repayment of the principal
amount nor its interest.
(d) There is no overdue amount of loans granted to the Parties covered
in the register maintained under section 301 of the Companies Act,1956.
(e) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
taken Unsecured loans from companies, firms or other parties listed in
the register maintained under Section 301 of the Companies Act, 1956.
The maximum balance outstanding during the year was Rs 1500180
(f) The terms and conditions of the above loans are prima facie not
prejudicial to the interest of the company.
(g) The company is neither regular in making repayment of the principal
amount nor its interest
4. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories & fixed assets and payment
for expenses & for sale of goods. During the course of our audit, no
major instance of continuing failure to correct any weaknesses in the
internal controls has been noticed.
5. a) In our opinion and according to the information and explanations
given to us, there is no transaction during the year as referred to in
Section 301 of the Companies Act, 1956.
6. The Company has not accepted any deposits from the public covered
under section 58A and 58AA of the Companies Act, 1956.
7. The Company does not have formal internal Audit system
8. In our opinion and according to the information and explanations
given to us, the central government has not prescribed maintenance of
cost records under section 209(1) (d) of the Companies Act, 1956.
9. (a) According to the records of the company, undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, cess to the extent applicable and any
other statutory dues have generally been regularly deposited with the
appropriate authorities. According to the information and explanations
given to us there were no outstanding statutory dues as on 31st of
March, 2013 for a period of more than six months from the date they
became payable.
(b) According to the information and explanations given to us, there is
no amounts payable in respect of income tax, wealth tax, service tax,
sales tax, customs duty and excise duty which have not been deposited
on account of any disputes.
10. In our opinion and according to the information and explanations
given to us, the company has been registered for a period more than
five years and its accumulated losses at the end of the financial year
is not exceeding fifty percent of its net worth however the company has
not incurred cash Loss during the 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 a financial
institution, bank or debenture holders.
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 provision of this clause of the Companies
(Auditor's Report) Order, 2003 (as amended) is not applicable to the
Company.
14. According to information and explanations given to us, the Company
is not trading in Shares, Mutual funds & other Investments.
Accordingly, the provision of clause 4(xiv) of the companies (Auditors'
Report) Order, 2003 are not applicable to company.
15. According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from a
bank or financial institution.
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 investment 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 during the year.
19. The Company has no outstanding debentures during the period under
audit.
20. The Company has not raised any money by public issue during the
year.
21. Based on the audit procedures performed and the information and
explanations given to us, we report that 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.
Date:-30/05/2013 For, Purushottam Khandelwal & Co.
Place: - Ahmedabad Chartered Accountants
SD/-
(P.H. Khandelwal)
Proprietor M.No.100601
FRN; 123825W | 