Mar 31, 2012
We have audited the attached Balance Sheet of Aankit Granites Limited
as at 31st March 2012, and the Profit and Loss Account and the 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.
1. We conducted our audit in accordance with 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 principle 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.
2. As required by the Companies (Auditor's Report) Order, 2003 ('the
Order'), as amended by the Companies (Auditors' Report)(Amendment)
order, 2004 (together with "order"), issued by the Central Government
of India in terms of sub-section (4A) of section 227 of the Companies
Act, 1956 ('the Act'), and on the basis of such checks of the books and
records of the company as we considered appropriate and according to
the information and explanations given to us, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
3. Further to our comments in the Annexure referred to paragraph 2
above, 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 purposes 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 books of
account of the Company.
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account of
the Company.
d) In our opinion, the Balance Sheet, Profit and Loss Account and the
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. to the extent applicable.
e) On the basis of written representations received from the directors
as on 31st March, 2012, and taken on record by the Board of Directors,
we report that none of the directors are disqualified as on 31st March,
2012 from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
4. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, read with the Note
No.II (18) relating to Company not having a Company Secretary as
required under Section 383(A) of Companies Act. 1956 and read together
with other notes thereon, give the information required by the
Companies Act, 1956, in the manner so required and present a true and
fair view in conformity with the accounting principles generally
accepted in India:
i. In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012.
ii. In the case of the Profit and Loss Account, of the Profit for the
year ended on that date.
iii. In so far it relates to Cash Flow Statement, of the cash flows of
the company for the year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
Statement referred to in Paragraph 2 of the Auditor's Report of even
date to the Members of AANKIT GRANITES LIMITED on the financial
statements for the year ended 31st March 2012.
On the basis of the records produced to us for our
verification/perusal, such checks as we considered appropriate, and in
terms of information and explanations given to us on our enquiries, we
state that:
1. In respect of Fixed Assets: a) The company has maintained proper
records showing full particulars including quantitative details and
situation of fixed assets.
b) As explained to us, the fixed assets have been physically verified
by the Management during the year in a phased manner, which in our
opinion is reasonable, having regard to the size of the company and
nature of its assets. No material discrepancies were noticed on such
physical verification.
c) The company has not disposed any substantial part of fixed assets
during the year. Hence going concern status of company is unaffected.
2. In respect of its inventories:
a) As explained to us, inventories have been physically verified by
the. management at regular intervals during the year.
b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
c) According to the records produced to us for our verification, the
discrepancies noticed on physical verification of inventories referred
to above, as compared to book records, though not material, have been
properly dealt with in the books of accounts.
3(a). In respect of Loans granted:
a) In our opinion the Company has not granted any Loan, secured or
unsecured to companies, firms or other parties as disclosed in the
Register maintained under Section 301 of the Companies Act, 1956.
b) hence sub clause (b), (c). (d) of clause 3 are not applicable.
3(b). In respect of Loans taken:
a) There is one party in the register maintained under section 301 of
the Companies Act, 1956 from which the Company has taken loan. The
maximum amount involved during the year was Rs 1,20,83,718/- and the
year end balance of loans taken from such parties was Rs. 1,12,57,863/-
b) In our opinion, the rate of Interest and other terms and conditions
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.
c) The company is regular in repaying the Principal amounts and
interest.
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 Inventory and Fixed Assets and also
for the sale of goods. As per the information given to us no major
weaknesses in the internal control have been identified by the
management of the Company during the year. During the course of our
audit nothing had come to our notice that may suggest a major weakness
in the Internal control system of the Company.
5. In respect of transactions covered under Section 301 of the
Companies Act, 1956:
a) In our opinion and according to the information and explanations
given to us, there are transactions in pursuance of contracts or
arrangements, which needed to be entered, have been entered in the
register maintained under Section 301 of the companies Act, 1956.
b) In our opinion and according to the information and explanations
given to us, there are transactions in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 aggregating during the year to Rs.5,00,000/-
(Rupees Five lakhs Only) or more in respect of any party have been made
at prices which are reasonable having regard to the prevailing market
prices for such goods, materials or services as available with the
Company, or the prices at which transactions for similar goods or
services as available with the Company, or the prices at which
transactions for similar goods or services have been made with other
parties.
6. In our Opinion the company has not accepted any deposits from the
public as defined under Section 58 & 58A of the Companies Act, 1956 and
the rules framed there under.
7. The company does not have internal audit system. However the
company has got a system of reviewing the transactions periodically.
8. In our opinion and as per explanation given to us the Central
Government has not prescribed maintenance of cost records under Section
209(1) (d) of the Companies Act, 1956 in respect of the manufacturing
activities of the company.
9. In respect of statutory dues:
a) According to the records of the company, undisputed statutory dues
have not been regularly deposited with the appropriate authorities in
case of Provident Fund, Employees State Insurance and Consent Fee to
Pollution Control Board, Income Tax, Fringe Benefit Tax, Central Sales
Tax, Tax Deducted at Source, and State Industrial Promotion Corporation
Tamil nadu. According to the information and explanation given to us,
undisputed amount payable in respect of the aforesaid dues that were
outstanding as at 31st March 2012 for a period more than six months
from the date they became payable.
Sl. No. Name of the Statue Nature of Dues Amount (Rs.)
1. Employees State Employers Employee 108436
Insurance Contribution
2. Fringe Benefit Tax Tax & Interest 704384
3. Employees State Contractor's & 93707
Insurance Company's Contribution
4. Tax Deducted at 2170797
source
b) According to the information and explanation given to us. there are
No disputed statutory dues of Sales Tax, Income Tax, Customs Duty,
Wealth Tax, Excise Duty, Cess as on 31st March 2012 other than the dues
stated below.
Period to
Sl. Name of the Statue Nature of Amount which the
No. Dues (in Rs.) amount relates
1. Customs Act, 1962 Penalty 1000000 Financial Year
2007-08
Sl. Forum where the
No. dispute is pending
1. Central Excise and Service
Tax Appellate Tribunal
10. In our opinion the company does not have accumulated losses of
fifty percent or more of its net worth at the end of the financial year
and has not incurred cash losses during the financial period covered by
our audit and there is no cash loss in the immediate preceding
financial year.
11. According to the records of the Company examined by us and the
information and explanation give to us; the Company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holders.
12. According to the information and explanation given to us and the
representation made by the management the company, the company had not
granted any loans and advances on the basis of the security by way of
pledge of shares, debentures and other securities. Hence the question
of maintenance of records reporting on deficiencies does not arise.
13. In our opinion, the company is not a chit fund or a nidhi/mutual
benefit/society. Therefore, clause 4(xiii) of the companies (Auditor's
Report) order 2003 is not applicable to the company.
14. In our opinion during the period under audit, the company did not
engage in trading on shares/securities, debentures and other
Investments.
15. According to the information and explanation given to us, and the
representation made by the management, the Company has not given any
guarantees for loans taken by others from banks or financial
institutions
16. As per explanation & information given to us the Company has not
obtained any term loan during the year.
17. According to the information and explanation given to us and on an
overall examination of the Balance Sheet of the Company, we report that
no funds raised on short-term basis have been used for long term
investments or vice versa.
18. According to the information and explanation given to us, during
the period under audit, 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.
19. The Company has not issued any debentures.
20. The company has not raised any money by way of public issue during
the year.
21. Based on the audit procedure performed and information and
explanation given to us, no fraud on or by the company has been noticed
or reported during the year.
For R. SINGHVI & ASSOCIATES
Chartered Accountants
ICAIFRN-03870S
Subash Chand Singhvi
PARTNER
Membership No. 024534
Place : Bangalore
Date : 30-05-2012