| We have audited the accompanying financial statements of LINEAR
INDUSTRIES LIMITED, which comprise the Balance Sheet as at March 31,
2014, 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 STATEMENTS
The Company's 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 notified under the Companies
Act, 1956 (the Act) read with the General Circular 15/2013 dated 13th
September, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013 and in accordance with the
accounting principles generally accepted in India. 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 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, but not for the
purpose of expressing an opinion on the effectiveness of the Company's
internal control. 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:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(b) In the case of the Statement of Profit and Loss, of the Profit of
the Company for the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
REPORT ON OTHER LEGAL AND 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 Section
227(4A) 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 all the information and explanations which to the
best of our knowledgeand 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 the
books.
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d) In our opinion, the Balance Sheet, the Statement of Profit and Loss,
and the Cash FlowStatement comply with Accounting Standards notified
under the Act read with the GeneralCircular 15/2013 dated 13th
September, 2013 of the Ministry of Corporate Affairs inrespect of
Section 133 of the Companies Act, 2013.
e) On the basis of the written representations received from the
directors as on March 31, 2014, taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2014,
from being appointed as a director in terms of Section 274(1)(g) of the
Act.
The Annexure referred to in our report to the members of LINEAR
INDUSTRIES LIMITED for the year ended 31 March 2014. We report that:
1. The Company has no fixed assets, hence provisions of Clause No. (i)
of Para 4 of the order do not apply.
2. During the year the Company neither purchases, sold, manufactured
any article or goods nor there were any inventoires. Therefore,
provisions of Clause No. (ii) of Para 4 of the order do-not apply.
3. During the year, the Company has not accepted/granted any loans
secured or unsecured from/to parties metioned under section 301 of
Companies Act, 1956, therefore provisions of clause (iii) of Para 4 of
the order do-not apply to that extent.
4. 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 with regard to purchase of investments and for the sales of
it.
5. In our opinion, there were no transaction exceeding Rs. five lakh
with parties entered in the register maintained under section 301 of
the Companies Act, 1956 , therefore, provisions of Clause No. (v) of
Para 4 of the orderdo-not apply.
6. The Company has not accepted any deposits from public.
7. In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of its business.
8. The Cental Government has not prescribed for maintaining any
cost-records, therefore, provisions of Clause (viii) of Para 4 of the
order do-not apply.
9. (a) In our opinion and according to the information and
explanations given to us, undisputed statutory dues including
Income-tax, Custom Duty, Excise Duty, Cess and any other statutory dues
have been regularly deposited in time during the year with the
appropriate authorities and there are no undisputed statutory dues
payable for a period of more than six months from the date they become
payable as at 31st March, 2014.
(b) In our opinion and according to the information and explanations
given to us, the statutory dues which have not been deposited with the
appropriate authorities on account of dispute and the forum where the
dispute is pending are NIL.
10. The Company does not have accumulated losses at the end of the
financial year, and has not incurred cash losses in the current
financial year and in the immediately preceding financial year there
were no cash losses also.
11. In absence of any loans from bank, financial instituation or by
way of debenture issue, provisionsof clause (xi) of para 4 of the order
do-not apply.
12. According to the information and explanations given 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.
13. The Company is not a chit fund or a Nidhi/Mutual Benefits
Fund/Society, therefore the clause (xiii) of para 4 of the Order is not
applicable to the Company.
14. In absence of any debentures issue, public issue, dealing in
shares & securities, taking any term loan and giving any guarantee for
loans taken by other by the Company during the year under audit, we are
of the opinion that clauses (xiv) to (xvi) and (xix) and (xx) of the
Para 4 of the orderdo not apply.
15. During the year the company has not made any preferential
allottment of shares to a party mentioned in the register maintained
u/s 301 of the companies Act .
16. During the year the Company has not raised any short term funds
and used for long term Investment and vice versa.
17. Based upon the audit procedures performed and on the basis of
information and explanations provided by the Management, we report that
no fraud on or by the Company has been noticed or reported during the
course of our audit.
For and on behalf of
M/S. JAIN BAFNA AND CO.
Chartered Accountants
(Reg. No.127905W)
(P.K. BAFNA)
M.NO.070039
PARTNER.
MUMBAI
DATED : 31-5-2014
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