AADI INDUSTRIES LIMITED
ANNUAL REPORT 2010-2011
The Members of
M/s. AADI INDUSTRIES LIMITED, MUMBAI.
We have audited the attached Balance Sheet of M/s. AADI INDUSTRIES LIMITED,
as at 31st March 2011, 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 company's management. Our
responsibility is to express an opinion on this financial statement based
on our audit.
1. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards required that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit included
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.
2. As required by the Companies (Auditor's Report) Order, 2003 issued by
the Central Government of India in terms of subsection (4A) of section 227
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.
3. Further to our comments in the Annexure referred to above, we report
(i) We have obtained all the information and explanations, which is to the
best of our knowledge and belief, were necessary for the purpose
of our audit.
(ii) 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 these 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 account;
(iv) 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
(v) On the basis of written representations received from the directors and
taken on record by the Board of Directors, we report that none of the
directors is disqualified as on 31st March 2011 from being appointed as a
director 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, the 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
a) In the case of the balance sheet, of the state of affairs of the company
as at 31st March, 2011.
b) In the case of the profit and loss account, of the profit for the year
ended on that date; and
c) In the case of the cash flow statement, ofthe cash flows for the year
ended on that date.
For SUNDERJI GOSAR & CO.
(ALPESH K. SAVLA)
Firm Reg No 115543W
Date : 30-05-2011.
ANNEXURE TO THE AUDITORS REPORT.:
Re: M/s.AADI INDUSTRIES LIMITED.
Referred to in paragraph 3 of our report of even date,
(i) (a) We have been informed that the Fixed Assets Register showing full
particulars, including quantitative details and situation of Fixed Assets
is to be maintained.
(b) All the assets have not been physically verified by the management
during the year but there is a programme of verification at the year end
which, in our opinion, is reasonable having regard to the size of the
company and the nature of its assets.
(c) During the year, the Company has not disposed off any of the Plant &
Machinery and hence has not affected the going concern status of the
(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 inventories 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
discrepancies noticed on verification between the physical stocks and the
book records were not material.
(iii) (a) The company has taken loans from two parties covered in the
register maintained under section 301 of the Companies
Act, 1956.The maximum amount involved during the year was 324.92 Lacs. &
the year end balance of Loans Taken from such parties was 113.51. The
Company has not granted any loans to parties covered in the register
maintained Under 301 of the Companies Act, 1956, hence this clause is not
(b) There are no interest free advances in the nature of loans to the
employees which are being recovered / adjusted regularly.
(c) There are no terms and conditions fixed on loans taken from the parties
listed in the register maintained under section 301 of the Companies Act
1956 to that extent they are prejudicial to the interest of the Company.
(iv) 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 regard to the sale of goods.
(v) (a) According to the information and explanations given to us, we are
of the opinion that the transactions that need to be entered into the
register maintained Under Section 301 of the Companies Act, 1956 have been
(b) In our opinion and according to the information and explanations given
to us, the transactions made in pursuance of contracts or arrangements
entered in the register maintained under section 301 of the Companies Act,
1956 and exceeding the value of rupees five lakhs in respect of any party
during the year have been made at prices prevailing market prices at the
relevant time on cash basis.
(vi) According to the information and explanations given to us, the
provisions of sections 58A and 58AA of the Companies Act, 1956, and the
Companies (Acceptance of Deposits) Rules 1975 are not applicable to the
company in the year under consideration.
(vii) In our opinion and as per the explanations given to us, the company
has an internal audit system commensurate with the size and nature of its
(viii) As explained to us the Central Government has not prescribed any
maintenance of cost record under section 209(1)(d) of the Companies Act,
1956 to the Industry Company.
(ix) (a) The Company is regular in depositing with appropriate authorities
undisputed statutory dues (except Income Tax) including provident fund,
investor education protection fund, employees' state insurance, sales tax,
wealth tax, custom duty, excise duty, cess and other material statutory
dues applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts (except income tax) payable in respect of wealth tax,
sales tax, custom duty, excise duty, cess were in arrears, as at 31-03-2011
for a period of more than six months from the date they became payable.
(c) According to the information and explanation given to us, there are no
dues of sales tax, income tax, customs duty, wealth tax, excise duty and
cess, which have not been deposited on account of any dispute.
(x) The Company has not incurred cash loss during the financial year
covered by our audit and the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations given
to us, the company has not defaulted in repayment of dues to financial
(xii) The Company has not granted any loans and 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 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.
(xiv) In our opinion 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 (Auditor's Report) Order, 2003 are not
applicable to the company.
(xv) As per the information and explanations given to us the Company has
not given guarantees for loans taken by others from bank or financial
(xvi) In our opinion, the term loans are being applied for the purpose for
which they were raised.
(xvii) According to the information and explanations given to us and on an
overall examination of the balance sheet of the company, no long-term funds
have been used to finance short-term assets.
(xviii) The company has not made preferential allotment of shares to
Promoters covered in the register maintained under section 301 of the Act.
(xix) The company has not received any money through Public Issue of
(xx) The Company has not received any money through preferential allotment
of equity shares to non Promoters.
(xxi) To the best of our knowledge 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 SUNDERJI GOSAR & CO.
(ALPESH K. SAVLA)
Firm Reg No 115543W
Date : 30-05-2011