To the Members of BIRDHI CHAND PANNALAL AGENCIES LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of BIRDHI CHAND PANNALAL AGENCIESLIMITED ('the Company') which comprise the Balance Sheet as at 31 March 2014 theStatement of Profit and Loss and the Cash Flow Statement for the year then ended and asummary 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 atrue and fair view of the financial position financial performance of the Company inaccordance with the Accounting Standards referred to in sub-section (3C) of section 211 ofthe Companies Act 1956 ("the Act"). This responsibility includes the designimplementation and maintenance of internal control relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theauditors judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal control relevant to the Companys preparation and fairpresentation of the financial statements in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made bymanagement as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.
in our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:
(i) in the case of the Balance Sheet of the state of affairs of the Company as at 31March 2014;
(ii) in the case of the Statement of Profit and Loss of the Loss of the company forthe year ended on that date; and
(iii) in the case of the Cash Flow Statement of the cash flows of the company for theyear ended on that date.
1. As required by the Companies (Auditor's Report) Order 2003 ("the Order")as amended issued by the Central Government of India in terms of sub-section (4A) ofsection 227 of the Act we give in the Annexure a statement on the matters specified inparagraphs 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 informant ion and explanations which to the best of ourknowledge 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 theCompany so far as appears from our examination of those books;
c. the Balance Sheet and Statement of Profit and Loss dealt with by this Report are inagreement with the books of account;
d. in our opinion the Balance Sheet and Statement of Profit and Loss comply with theAccounting Standards referred to in subsection (3C) of section 211 of the Companies Act1956; and
e. on the basis of written representations received from the directors as on 31 March2014 and taken on record by the Board of Directors none of the directors is disqualifiedas on 31 March 2014 from being appointed as a director in terms of clause (g) ofsub-section (1) of section 274 of the Companies Act 1956.
For Surana Singh Rathi And Co.
Firms Registration Number; 3
Membership No. 067539
Date: 30th May 2014
Annexure referred to in paragraph Report on Other Legal and RegulatoryRequirement' of our report of even date
(i) (a) There are no fixed assets in the company. Hence the clause is not applicable.
(ii) (a) There was no physical inventory maintained by the company during the yeartherefore the provisions of clause (ii) of Paragraph 4 of the order is not applicable.
(iii) (a) Based on the audit procedures applied by us and according to the informationprovided to us by the management there are no loans given to or taken from the partiescovered in the register maintained under section 301 of the Companies Act 1956.
(iv) In our opinion and according to the information and explanations given to usthere are adequate internal control procedures commensurate with the size of the companyand the nature of its business with regard to purchases of inventory and fixed assets andwith regard to the sale of goods and services.
During the course of our audit we have not observed any weaknesses in the internalcontrol system.
(v) (a) Based on the audit procedures applied by us and according to the informationand explanations provided by the management we are of the opinion that the particulars ofcontracts and arrangements referred to in sec 301 of the Act have been entered into theregister required to be maintained under that section.
(b) In our opinion and according to the information and explanations given to us thetransactions made as specified in clause (v)(b) of Para 4 of CARO are at prices which arereasonable having regard to the prevailing market prices at the relevant time.
(vi) In our opinion and according to the information and explanations given to us thecompany has not accepted deposits from the public and therefore the provisions of Sections58A 58AA or any other relevant provisions of the Act and the Rules made there under arenot applicable to the Company.
(vii) The company has no internal audit system commensurate with its size and thenature of its business.
(viii) To the best of our knowledge and explanation maintenance of cost records hasnot been prescribed by the Central Government under clause (d) of sub-section (1) ofsection 209 of the Companies Act 1956 for the company.
(ix) (a) According to the records of the company and information and explanations givento us the company has been generally regular in depositing undisputed statutory dues withthe appropriate authorities during the year and no undisputed amounts payable wereoutstanding as at 31st March 2014 for a period of more than six months fromthe date they became payable.
(b) According to the records of the company and information and explanations given tous there are no dues outstanding of Sales Tax Income Tax Custom Duty Wealth TaxExcise Duty Cess and Service Tax on account of any dispute.
(x) The company has no accumulated losses at the end of the financial year. It has notincurred cash losses during the period covered by the report as well as in the immediatelypreceding financial year.
(xi) The company has not defaulted in repayment of dues to any financial institution orbank. The company has not issued any debentures.
(xii) According to the information and explanations given to us and based on documentsand records produced to us the company has not granted any loans and advances on thebasis of security by way of pledge of shares debentures and other securities.
(xiii) In our opinion and according to the information and explanations given to usthe nature of activities of the company does not attract any special statute applicable tochit fund and nidhi / mutual benefit fund / societies.
(xiv) In our opinion and according to the information and explanation given to us thecompany is dealing or trading in shares debentures and other investments the company hasmade proper records and made timely entries of the investments held by the company and alldie investments are held in the name of the company.
(xv) According to the information and explanations given to us the company has notgiven any guarantee to a bank for any concern.
(xvi) The company has not taken any term loan during the year.
(xvii) As informed and explained to us the company has not raised any funds onshort-term basis therefore the provisions of clause (xvii) of Paragraph 4 of the order isnot applicable.
(xviii) During the year the company has not made any preferential allotment of sharesto parties and companies covered in the Register maintained under section 301 of Act.
(xix) The company has not issued any debentures so it was not required to create anysecurity or charge in this respect.
(xx) The company has not raised any money through public issue during the year.
(xxi) To the best of our knowledge and belief and according to the information andexplanations given to us no fraud on or by the company has been noticed or reportedduring the year.
For Surana Singh Rathi And Co.
Firms Registration Number: 317119E
Membership No. 067539
Date: 30th May 2014