BAFFIN ENGINEERING PROJECTS LIMITED
ANNUAL REPORT 2007-2008
THE MEMBERS OF
BAFFIN ENGINEERING PROJECTS LIMITED
1. We have audited the attached Balance Sheet of BAFFIN ENGINEERING
PROJECTS LIMITED, as at 30th April 2008 and the Profit & Loss account and
Cash Flow Statement of the Company 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 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 presentations. We believe that our audit
provides a reasonable basis for our opinion.
3. As required by the Companies (Auditors Report) order, 2003 issued by the
Central Government of India in terms of Section 227 (4a) of the Companies
Act, 1956, we annex hereto 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
we report that:
a. We have obtained all the information and explanation 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 it appears from our examination of such
c. The Balance Sheet, Profit & Loss Account and the cash flow statement
dealt with by this report are in agreement with the books of accounts.
d. In our opinion, the Profit & Loss Account and Balance Sheet referred to
in this report complies with the accounting standards referred to in Sub-
Section (3C) of section 211 of Companies Act, 1956.
e. According to information & explanations given to us and on the basis of
the written representations from the directors, taken on record by the
Board of Directors none of the Directors is disqualified as on April
30, 2007 from being appointed as a director Under Section 274(1)(g) of the
Companies Act, 1956;
f. In our opinion and to the best of our information and according to
the explanation 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 in India:
1) In the case of Balance Sheet of the State of affairs of the company as
at 30th April 2008.
2) In the case of Profit & Loss Account of the Loss for the year ended on
3) In the case Cash Flow Statement, of the Cash Flow for the year ended on
For DHAMIJA SUKHIJA & CO.
Place: New Delhi
Date : 29.09.2008
ANNEXURE TO THE AUDITORS REPORT
(REFERRED TO IN PARAGRAPH (3) OF OUR REPORT OF EVEN DATE).
1. (a) The company is maintaining proper records showing full particulars
including quantitative details of fixed Assets.
(b) All the fixed assets have not been verified by the management during the year material discrepancies noticed on such verification dealt with
the books of Accounts.
(c) As explained in the Note No. 3 of the Notes on Accounts substainal part
of the fixed assets has been written off. However the management is of the
opinion that such writing off will not affect the going concern assumption
of the company.
2. (a) The Inventory of the Company has been physically verified during the
year by the management. In our opinion, the frequency of verification is
(b) The procedures of physical verification of stocks 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 has maintained proper records of Inventory. No
discrepancies were noticed on verification between the physical stocks and
the book records.
3. (a) The Company has neither granted nor taken any loans , secured or
unsecured, from Companies, Firms or other Parties covered in the register,
maintained under Section 301 of the Companies Act, 1956. as the company has
not granted/taken any loans, secured or unsecured, to/from parties listed
in the register maintained under section 301 of the companies Act,1956
clauses iii(b), iii(c) & iii(d) of paragraph 4 of the order, are not
4. 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 for sale of goods and services.
5. (a) According to the information and explanations given to us, no
transaction was made in pursuance of contract or agreements, that need to
be entered into the register maintained under section 301 of the Companies
(b) There are no transaction of purchase & sale of goods, materials and
services made in pursuance of contracts or arrangement entered in register
maintained under Section 301 of the Companies Act, 1956 aggregating during
the year to Rs. 5,00,000/- or more in respect of each party.
6. The Company has not accepted any deposits from public.
7. In our opinion, the company has an internal audit system commensurate
with its size and nature of business.
8. According to the information and explanations given to us, maintenance
of cost records has not been prescribed by the Central Government under
section 209(1) (d) of the Companies Act, 1956.
9. (a) As per the information and explanation given to us, the Company is
not liable for Provident Fund, Investor Education & Protection Funds or
Employees State Insurance, Wealth Tax, Custom Duty, Excise Duty and Cess.
The Company is regular in payment of Income Tax, Sales tax and according to
the information and explanations given to us, no undisputed amount payable
in respect of such statutory dues.
(b) According to the information and explanations given to us, there are no
cases of non-deposit with the appropriate authorities of disputed dues of
sales tax/income tax/custom tax/wealth tax/excise duty/cess.
10. The Company has accumulated losses and has incurred cash losses in the
current year and in immediately preceding financial year.
11. According to the information and explanations given by the management,
we are of the opinion that the Company has not defaulted in repayment of
dues to financial institution and bank or debenture holder. There were no
debenture holders at any time during the year.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debenture and other securities.
13. As per the information and explanation given to us, the provisions of
any special statute applicable to Chit Fund, Nidhi or Mutual Benefit
Fund/Societies are not applicable to the Company.
14. In our opinion and according to the information and explanation given
to us the company is not a dealer or trader in securities.
15. The Company has not given any guarantee for loans taken by others from
bank or financial institutions, the terms and conditions whereof in our
opinion are prima facie, prejudicial to the interest of the Company.
16. The Company has not taken any term loan during the year.
17. Based on the examination of documents and records made available and on
the basis of information and explanation given to us, since the company has
not raised short-term and long-term fund, Para 4 of the order is not
18. According to the information and explanations given to us, the Company
has not made any preferential allotment of shares to parties & Companies
covered in the register maintained under section 301 of the Companies Act,
1956 during the year.
19. No debentures have been issued by the Company and hence question of
Creating security does not arise.
20. The Company has not raised any money by way of public issue during the
21. On the basis of our examination and according to the information and
explanations given to us, no fraud on or by the Company has been noticed or
reported during the year.
For DHAMIJA SUKHIJA & CO.
Place: New Delhi (A.K. DHAMIJA)
Date : 20.09.2008 Partner