| 1 We have audited the attached Balance Sheet of Abee Info-Consumables
Ltd., situated at "Akshay", 156-1/B, Mangalwar Peth, Barne Road,
NearSinchan Bhavan, Pune as at 31st March, 2012, the Profit and Loss
account and also the Cash Flow statement for the year ended on that
date annexed thereto. These financial statements are the responsibility
of the 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 misstatements. 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 in terms of section 227 (4A) of the Companies
Act, 1956, we enclose in the Annexure a statement on the matters
specified in paragraph 4 and 5 of the said order.
4 Further to our comments in the Annexure and Notes forming part of
accounts referred to, 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 accounts as required by the law
have been kept by the company so far as it appears from our examination
of those books;
iii. The Balance Sheet, Profit and Loss account and cash flow statement
dealt with by this report are in agreement with the books of accounts
and returns;
iv. In our opinion, subject to the accounting policies and notes to
and forming part of the Final Accounts, the Balance Sheet and Profit
and Loss Account comply with the Accounting Standards referred to in
sub section (3C) of section 211 of the Companies Act, 1956, except
AS-15 "Employee Benefits"andAS-26 "Intangible Assets";
v. On the basis of records verified and explanations received by us,
we report that none of the directors are disqualified as on 31st March,
2012 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, they said accounts 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 as at
31st March, 2012;
b. In the case of 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.
Financial statements for the year ended March 31, 2012.]
i. a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) The fixed assets have been physically verified by the management at
reasonable intervals. No material discrepancies were noticed on such
verification.
c) During the year, the Company has not disposed off any part of the
Fixed Assets.
ii. a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
b) The procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of its business.
c) The company is maintaining proper records of inventory. The
discrepancy noticed on verification between the physical stocks and the
book records were not material. However, no revision of overhead
standard rates for valuation of inventory is carried out for the
production at Paratoo factory.
iii. a) The Company has not granted any fresh loan during the year to
the Directors covered in the register maintained under section 301 of
the Companies Act, 1956. The year-end balance of loans granted to such
parties was Rs. 39,446,891.00.
Such loan were given in previous years without obtaining previous
approval of Central Government u/s 295.
Sr.
No. Name of Director Current Year -
Amount (Rs.) Previous Year -
Amount (Rs.)
1 Mr. Badrinarayan
Somani 36,477,394.00 36,477,394.00
2 Mrs. Priya Somani 2,657,637.00 2,657,637.00
3 Mrs. Radhika
Joglekar 311,860.00 311,860.00
Total 39,446,891.00 39,446,891.00
b) Company has not recovered or charged any interest on loans granted
and taken from such parties listed in the register maintained
under section 301 of the Companies Act.
c) /4s the agreement for repayment of principal amounts and interest
for the loans taken for granted had not been executed, we are unable to
make any specific comment on whether payment of principal amount and
interest are regular.
d) /4s the terms and conditions are not specified, we are unable to
make any specific comment on whether the overdue amount is more than
one lakh or not.
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, for the
purchase of inventory and fixed assets and for the sale of goods as
there is a greater degree of personal supervision. We have not observed
any major weakness in internal control system during the course of
audit.
v. a) In our opinion and according to the information and explanation
given to us, the particulars of contracts or arrangements referred to
in section 301 of the Act have been entered in the register required to
be maintained under that section, b) In our opinion and according to
the information and explanations given to us, the transactions made in
pursuance of such contracts or arrangements entered in the register
maintained under section 301 of the Companies Act, 1956 are exceeding
the value of rupees five thousand in respect of Abbee Consumables and
Peripherals Sshoppe Ltd. during the year have been made at prices which
are reasonable having regard to prevailing market prices at the
relevant time.
vi. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
where the provisions of Section 58Aand Section 58AA of the Companies
Act, 1956 and the Companies (Acceptance of Deposit) Rules, 1975 are
applicable.
vii. In our opinion, the company has no an internal audit system
commensurate with the size and nature of its business.
viii. The maintenance of cost records has been prescribed by the
Central Government under clause (d) of sub-section (1) of section 209
of the Act, however the same is subject to confirmation from the
management of the company.
ix. a) The Company is not regular in depositing with appropriate
authorities undisputed statutory dues including provident fund, Income
Tax, TDS, Investor Protection Fund, and other material statutory dues
applicable to it.
b) According to information and explanations given to us, there are
disputed amounts payables in respect of Income Tax, TDS & Excise duty,
which are reported under Contingent Liabilities.
x. In our opinion, the accumulated losses of the Company are more than
50 percent of its net worth. There are no cash losses during the
current financial year.
xi. According to the information and explanations given to us, the
company has defaulted in repayment of dues to a financial institution
and bank. Interest provision on the loan taken from Rupee Co-operative
Bank (C. C. and T. L.) and Mahesh Sahakari Bank not charged as the
accounts statement of the same was not available. Both the loans are
Non Performing Assets in the record of Banks. Charge on the fixed
assets of the Company i.e. Factory and Office building, Stock in Trade
and Book debts still exists. Court cases filed by both these banks for
recovery are pending as on date of Balance Sheet.
xii. The Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii. In our opinion, the company is not a Chit fund / Nidhi / mutual
benefit fund/Society. Therefore the provisions of clause 4(xiii) of the
Companies (Auditors Report) order, 2003 are not applicable to the
company.
xiv. According to the information and explanations given to us, the
company is not dealing in or trading in shares securities, debentures
and other investments. Accordingly the provisions of clause 4 (xiv) of
the Companies (Auditors Report) Order, 2003 are not applicable to the
Company.
xv. According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from
bank sor financial institutions.
xvi. In our opinion, the company has not obtained any fresh term loans
during the year.
xvii. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the company, we are of
the opinion that no funds were raised during the year on short-term
basis, which have been used for long-term investment. No long-term funds
have been raised during the year, which are used to finance short term
assets.
xviii. According to the information and explanations given to us, the
company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under section 301 of
the Act during the year.
xix. According to the information and explanations given to us during
the period covered by our audit report, the company had not issued any
debentures. Hence there is no question of creating security in respect
of debentures issued.
xx. During the year company has not raised any money by public issues.
xxi. According to the information and explanations given to us, no
fraud on or by the company had been noticed or reported during the
year.
For Pawa r & Associates
Chartered Accountants SD/-
CA ParitoshJ. Pawar
(Proprietor)
Membership No. 132557
F.R.N.130148W
Place: Pune
Date:16/07/2012
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