| 1. We have audited the attached balance sheet of M/S PACHELI
ENTERPRISES LIMITED, as at March 31, 2013, and also the profit and loss
account 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 the 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 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 law have
been kept by the Company so far as appears from our examination of
those books;
iii. The balance sheet and 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 written representations received from the
directors, as on March 31, 2013 and taken on record by the Board of
Directors, we report that 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;
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
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 the case of the balance sheet, of the state of affairs of the
Company as at March 31,2013; and
b. In the case of the profit and loss account, of the profit for the
year ended on that date.
Referred to in paragraph 3 of our report of even date
(i) The Company has no fixed asset, hence the said clause is not
applicable.
(ii) The Company has no inventory, hence the said clause is not
applicable.
(iii) (a) The Company during the period has granted Interest loans to
parties listed in the register maintained under section 301 of the
Companies Act, 1956.
The year end balance of loans granted to such parties was Rs.224 lakhs
(b) In the Opinion of the Management, the interest rate fit other terms
and conditions of such loan are not, is prima facie, prejudicial to the
interest of the Company.
(c) There is no Stipulation as to the Period of repayment.
(d) Thus, We are unable to Comment on regularity of repayment & overdue
amount as there is no stipulation for the same.
(e) The Company has not taken loans from parties listed in the register
maintained under section 301 of the Companies Act, 1956.
(f) In the opinion of management, interest rate and the other terms fit
Condition on which loans have been taken from parties listed in the
register maintained under section 301 of the Companies Act, 1956 are
not, prima facie, prejudicial to the interest of the company.
(g) As there is no stipulation for repayment of loan, we are unable to
comment on regularity on repayment.
(iv) 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. During
the course of our audit, we have not observed any continuing failure to
correct major weakness in internal control system of the company.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered into
the register maintained under section 301 of the Companies Act, 1956
have been so entered.
(b) In our opinion and according to the information and explanations
given to us, there are no transactions made in pursuance of contracts
or arrangements entered in the register maintained under Section 301 of
the Act.
(vi) In our opinion and according to information and explanations given
to us, the Company has not accepted deposits from the Director and
public within the meaning of section 58A of the Companies Act, 1956 and
the rules framed there under are not applicable.
(vii) In our opinion, the company has an internal audit system
according to its size and nature of its business.
(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 activities of the Company.
(ix) (a) According to information and explanation given to us, the
Company is regular in depositing with appropriate authorities
undisputed statutory dues including income-tax, service tax and other
material statutory dues applicable to it which are outstanding for more
than Six months from the date they become payable as of 31st March
2013.
(b) According to the records of the Company, there was no disputed
statutory dues that have not been deposited on account of the matters
pending before appropriates authorities.
(x) (a) The company has accumulated losses as at March 31, 2013
amounting to Rs.37,85,491/-. The Company has not incurred cash losses
during the financial year & immediately preceding financial year.
(xi) According to the information and explanations given to us, the
Company has not defaulted in any repayment of dues to any financial
Institution or bank, as applicable, as at the Balance Sheet date.
(xii) As explained 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 and therefore Paragraph (xii) of the
said Order relating to maintenance of documents and records is not
applicable.
(xiii) The Company is not a Chit Fund / Nidhi / Mutual Benefit
Fund/Societies. Therefore, the provisions of clause 4(xiii) are not
applicable to the company.
(xiv) In our opinion and according to the information and explanations
given to us, the Company is not dealing in or trading in securities.
(xv) According to the information and explanations given to us, the
Company has not given guarantees Loan taken by others from bank or
financial institutions and thus clause 4(xv) is not applicable.
(xvi) According to the information and explanations given to us, the
term loans were applied for the purpose for which they were obtained by
the company.
(xvii) According to the information and explanations given to us, the
Company has not raised any funds, short- term or long-term, during the
period and therefore Clause 4(xvii) of the said Order relating to usage
of such funds is not applicable.
(xviii) According to the information and explanations given to us,
during the year the Company has not made any preferential allotment of
shares to parties and companies covered in the register maintained
under section 301 of the Companies Act, 1956.
(xix) According to the information and explanations given to us, during
the year covered by our audit report, the Company has not issued any
debentures.
(xx) According to the information and explanations given to us, the
Company has not made any public issue during the period and accordingly
Paragraph 4(xx) of the said Order relating to end use of money raised
is not applicable.
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For Gowadia & Co.
(Chartered Accountant)
sd/-
Place : Mumbai Vinodkumar Gowadia
Date : 30th May, 2013 Proprietor | 