| 1. We have audited the attached standalone Balance Sheet of M/S JMDE
PACKAGING & REALTIES LIMITED, as at 31st March 2014, the Profit and
Loss Account and also 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 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 Company Law Board in terms of section 227(4A) 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 in paragraph 3
above:
a) 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;
b) In our opinion, proper books of account as required by the law have
been kept by the company so far as appears from our examination of such
books;
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
referred to in this report are in agreement with the books of account;
d) In our opinion the Balance Sheet, Profit and 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;
e) Based on the representations made by all the directors of the
Company on Board and the information and explanation made available to
us by the Company, none of the directors of the company prima facie
have any disqualification as referred to in the section 274 sub section
(1) clause (g) of the Companies Act 1956.
f) In our opinion and to the best of the information and according to
the explanation given to us the said accounts read with Notes thereon
give the information required by the Companies Act, 1956, in the manner
so required and give the true and fair view
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2014;
(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 Cash Flow Statement, of the cash flow of the company
for the year ended on that date.
M/S JMDE PACKAGING & REALTIES LIMITED Annexure Referred to in
paragraph 3 of our report of even date
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) All the assets have been physically verified by the management
during the year and no material discrepancies were noticed on such
verification.
(c) During the year, the company has not disposed off a substantial
part of the Fixed Assets affecting the going concern of the Company.
2. (a) The inventory has been physically verified by the management of
the Company during the year. In our opinion, the frequency of such
verification is reasonable.
(b) The procedure of physical verification of Inventories followed by
the management are reasonable and adequate in relation to size of the
Company and nature of its business.
(c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
3. (a) We have been informed that the Company has taken unsecured loan
from One party listed in the register to be maintained under section
301 of the Companies Act, 1956. The Company has given loan to two
Companies and one other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
(b) The rate of Interest and terms of conditions are not prima facie
prejudicial to the interest of the Company.
(c) The Principal amount and interest thereon are paid regularly on due
date or immediately thereafter.
(d) There is no overdue amount of loan taken from or granted to
companies, firm or other parties listed in the register maintained
under section 301 of the Companies Act, 1956.
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 purchases of inventory, Fixed Assets and with
regards to sale of goods. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
controls.
5. (a) According to the information and explanations given to us, we
are of the opinion that the transaction that needs 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, the transaction made in pursuance of contract or
arrangement entered in the register maintained under section 301 of the
Companies Act, 1956 and exceeding the value of Rs 5,00,000/- in respect
of any party during the year have been made at price which are
reasonable having regards to prevailing market price at the relevant
time.
6. As informed, the Company has not taken any deposits in accordance
with section 58A, 58AA of the Companies Act, 1956 during the year.
7. In our opinion, the company has an in-house internal audit system
commensurate with the size and nature of its business.
8. As informed, the maintenance of cost record under section 209 (1)
(d) is not applicable to the Company.
9. (a) According to the information and explanations given to us, the
company is generally regular in depositing with appropriate authorities
undisputed
statutory dues including provident fund, investor education protection
fund, employees' state insurance, income tax, sales tax, wealth tax,
service tax, custom duty, excise duty, cess and other material
statutory dues applicable to it.
(b) According to the information and explanations given to us, there
are no disputed amounts payable in respect of wealth tax, sales tax,
customs duty, excise duty and cess, except a demand notice of Rs.
32,86,212/- with respect to income tax pertaining to assessment year
2009 - 2010 that have not been deposited as on 31st March 2014.
10. The Company has accumulated losses, as at 31st March 2014, and it
has brought forward losses amounting to Rs. 3,98,98,085/-.
11. Based on our Audit Procedures and on the information and
explanations given by management, we are of the opinion that the
company has not defaulted in repayment of its dues to a financial
institutions and banks during the year.
12. As informed, the company has not granted loans and advances on the
basis of securities by way of pledge of shares, debentures and other
securities.
13. 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 Companies (Auditor's Report) Order, 2003 are not applicable to the
company.
14. The company is dealing in or trading in shares, securities,
debentures and other investments and in our opinion and according to
the information and explanations given to us, the company has
maintained proper records of all transaction and contracts and has made
timely entries therein. The stock and investment of shares held by the
company are in its own name or are in the process of transfer in its
own name.
15. In our opinion and as per the information given to us, Company has
not given any guarantees for loans taken by others from banks or
financial institutions.
16. The Company has not obtained any term loans that were not applied
for the purpose for which these were raised.
17. According to the information and explanations given to us and on an
overall examination of the balance sheet of the company, we report that
the no funds raised on the short-term basis have been used for
long-term investment and vice versa.
18. The company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Companies Act 1956 during the year.
19. No Debenture is issued during the year; hence the clause is not
applicable.
20. The Company has not raised any capital by way of public issue
21. We have been informed that there is no fraud on or by the company
has been noticed/ reported during the year under review.
For PSV Jain & Associates
Chartered Accountants
Sd/-
CA Pramod Jain
Partner
Membership No. 137264
Place: Mumbai
Dated: 30th August 2014
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