| Report on the Financial Statements
We have audited the accompanying financial statements of Kanumanek
Trading Company Limited, 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 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. This responsibility includes the design,
implementation and maintenance of internal control relevant to me
preparation and presentation of me 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 Statement of Profit and Loss, 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.
Report on Other Legal and Regulatory Requirements
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 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 and 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 and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in subsection (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 'Report on Other Legal and
Regulatory Requirements' of our report of even date on the financial
statements of Kanumanek Trading Company Limited on the financial
statements for the year ended on March 31, 2013
1. The Company does not have any fixed assets to which the provisions
of the said clause are applicable.
2. The Company does not have any inventory to which the provisions of
the said clause are applicable.
3. a. According to information and explanations given to us, 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, 1956. Accordingly, the requirements of
sub-clauses (b), (c) and (d) of clause (iii) of paragraph 4 of the said
Order, are not applicable.
b. According to information and explanations given to us, the Company
has not taken, any loans, secured or unsecured, from companies, firms
or other parties listed in the register maintained under Section 301 of
the Companies Act, 1956. Accordingly, the requirements of sub-clauses
(f) and (g) of clause (iii) of paragraph 4 of the said Order, are not
applicable.
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 sale of goods; the company does not have any
fixed assets or inventories. During the course of our audit, we have
not observed any continuing failure to correct major weakness in
internal control systems.
5. To the best of our knowledge, and according to the information and
explanations given to us, we are of the opinion that during the year
under report there were no transactions which need to be entered into
the register maintained under section 301 of the Companies Act, 1956.
6. In our opinion and according to information and explanations given
to us, the Company has not accepted any deposits from the public to
which the directives issued by the Reserve Bank of India and the
provisions of Section 58A, Section 58AA or any other relevant provision
of the Companies Act, 1956 or the rules made there under, apply.
7. According to the information and explanations given to us, the
Company did not have an internal audit system for the year under
report.
8. 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 for any of the activities
of the Company.
9. a. In our opinion, and according to the information and
explanations given to us, the
Company is regular in depositing with the appropriate authorities
undisputed 4aT^%. statutory dues including investor education and
protection fund, income-tax, sales- tax, wealth tax, custom duty,
excise duty, cess and any other statutory dues, where applicable.
According to the information and explanations given to us, the
provisions of the Employees' Provident Funds and Miscellaneous
Provisions Act, 1952 and the Employees' State Insurance Act, 1947 did
not apply to the Company for the year under report. There were no
undisputed statutory dues in arrears as at the Balance Sheet date for a
period of more than six months from the date they become payable.
b. According to the information and explanations given to us, as at the
balance sheet date, there were no dues of sales-tax, income-tax,
customs duty, wealth tax, excise duty, or cess which were not deposited
by the Company on account of pending disputes.
10. The accumulated losses of the Company as at the end of the
financial year are not less than fifty percent of its net worth. The
Company has incurred a cash loss during the year under report and in
the immediately preceding financial year.
11. The Company did not have any borrowings from financial
institutions, banks or debenture holders; accordingly, the provisions
of clause (xi) of paragraph 4 of the said Order, are not applicable.
12. According to the information and explanations given to us and the
records examined by 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. In our opinion and according to the information and explanations
given to us, the nature of the activities of the Company does not
attract any special statute applicable to chit fund and nidhi / mutual
benefit / societies.
14. In our opinion and as per the records examined by us, the Company
has maintained proper records of transactions and contracts of the
investments dealt in by the company and made timely entries therein.
Investments made by the Company are held in its own name except to the
extent of the exemption under section 49 of the Act.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
16. The Company has not obtained any term loans.
17. According to the information and explanations given to us, and on
an overall examination of the balance sheet of the Company, prima
facie, no funds raised on short- term basis have been applied for
long-term purposes.
18. 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 during the year.
19. According to the information and explanations given to us, the
Company has not issued ^Tr^. any debentures.
20. According to the information and explanations given to us, the
Company has not made any public issue during the recent past.
21. To the best of our knowledge and belief, and 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 and on behalf of
KALYANIWALLA & MISTRY
CHARTERED ACCOUNTANTS
Firm Registration No. : 104607W
Viraf gfMehta U MumA
Partner
Membership No: 32083
Place: Mumbai
Date: May 18, 2013
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