The Members of
M/S NARDHANA INFRASTRUCTURE LIMITED
Report on the Financial Statements
1. We have audited the accompanying financial statements of M/s NARDHANAINFRASTRUCTURE LIMITED (the "Company") which comprise the Balance Sheet asat March 31 2013 and the Statement of Profit and Loss and Cash FlowStatement for the year then ended and a summary of significant accounting policies andother explanatory information which we have signed under reference to this report.
Management's Responsibility for the Financial Statements
2. The Company's Management is responsible for the preparation of these financialstatements that give a true and fair view of the financial position financial performanceand cash flows of the Company in accordance with the Accounting Standards referred to insub-section (3C) of section 211 of the Companies Act 1956' of India (the"Act"). This responsibility includes the design implementation and maintenanceof internal control relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
3. Our responsibility is to express an opinion on these financial statements based onour audit. We conducted our audit in accordance with the Standards on Auditing issued bythe Institute of Chartered Accountants of India. Those Standards require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free from material misstatement.
4. An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the financial statements. The procedures selected depend on theauditors' judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditors consider internal control relevant to the Company's 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.
5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.
6. In our opinion and to the best of our information and according to the explanationsgiven to us the accompanying financial statements give the information required by theAct in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India:
(a) in the case of the Balance Sheet of the state of affairs of the Company as atMarch 31 2013;
(b) in the case of the Statement of Profit and Loss of the loss for the year ended onthat date; and
(c) in the case of the Cash Flow Statement of the cash flows for the year ended onthat date.
Report on Other Legal and Regulatory Requirements
7. As required by the Companies (Auditor's Report) Order 2003' as amended bythe Companies (Auditor's Report) (Amendment) Order 2004' issued by the CentralGovernment of India in terms of sub-section (4A) of section 227 of the Act (hereinafterreferred to as the "Order") and on the basis of such checks of the books andrecords of the Company as we considered appropriate and according to the information andexplanations given to us we give in the Annexure a statement on the matters specified inparagraphs 4 and 5 of the Order.
8. As required by section 227(3) of the Act we report that:
(a) We have obtained all the information 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 Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account;
(d) In our opinion the Balance Sheet Statement of Profit and Loss and Cash FlowStatement dealt with by this report comply with the Accounting Standards referred to insub-section (3C) of section 211 of the Act;
(e) On the basis of written representations received from the directors as on March 312013 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2013 from being appointed as a director in terms of clause (g) ofsub-section (1) of section 274 of the Act.
| ||For Ashish Vyas & Company |
| ||Firm Registration Number: 09032 C |
| ||Chartered Accountants |
| ||Sd/- |
| ||Ashish Vyas |
| ||Proprietor |
|Place: Mumbai ||M. No - 078527 |
|Date: 28th May 2013. || |
NOTE U ANNEXURE REFERRED TO IN PARAGRAPH 3 OF AUDITORS' REPORT OF EVEN DATE ON THEFINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31. 2013 OF NARDHANA INFRASTRUCTURE LIMITED.
(i) In respect of fixed assets
a. The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b. According to the information and explanations given to us the fixed assets havebeen physically verified by the management during the year. No material discrepancies werenoticed on such physical verification. In our opinion the frequency of physicalverification of fixed assets is reasonable having regard to the size of the company andnature of its business.
c. According to information and explanations given to us the company has not disposedoff substantial part of its fixed assets during the year and the going concern status ofthe company is not affected.
(ii) In respect of inventory
a. According to the information and explanations given to us the inventory and capitalwork in progress has been physically verified by the management during and at the close ofthe year.
b. In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventory and followed by the management asevidenced by the written procedures and instructions are reasonable and adequate inrelation to the size of the company and nature of its business.
c. The company is maintaining proper records of inventory. As explained to us nodiscrepancies were noticed on physical verification between physical stocks and bookrecords.
(iii) In respect of the loans secured or unsecured granted or taken by the Companyto/from companies firms or other parties covered in the Register maintained under Section301 of the Companies Act 1956:
a. According to the information and explanations given to us the company has notgranted any new unsecured loans during the current financial year ending March 31 2013.
b. According to the information and explanations given to us the company has not takenunsecured loans during the current year ending March 31 2013.
c. The company is not paying/receiving any interest from these unsecured loans parties.
(iv) In our opinion and according to the information and explanations given to us thecompany further needs to strengthen its internal control system for the purchase ofinventory and fixed assets and for the sale of goods and services commensurate with thesize of the company and the nature of its business. During the course of our audit wehave not observed any continuing failure to correct major weaknesses in internal control.
(v) According to the information and explanations given to us we are of the opinionthat all contracts or arrangements which need to be entered into the register maintainedunder section 301 of the Companies Act 1956 has been entered. None of the transactionsmade in pursuance of such contracts or arrangements have been made at prices which arereasonable having regard to the prevailing market prices at the relevant time
(vi) According to the information and explanations given to us the company has notaccepted deposits from public during the year covered under the provision of section 58Aor 58AA or any other relevant provisions of the Companies Act 1956 and the Companies(Acceptance of Deposits) Rules 1975.
(vii) The company does not have an internal audit system commensurate with its size andnature of its business.
(viii) The Central Government has not prescribed maintenance of cost records for theproducts of the company under section 209(1) (d) of the Companies Act 1956.
(ix) In respect of statutory dues relating to Provident Fund Investor Education andProtection Fund Employees' State Insurance Income-tax Sales-tax Wealth Tax ServiceTax Custom Duty Excise Duty Cess and any other statutory dues:-
a. Due to Non-Availability of Required information we are unable to commenton this point.
b. According to the information and explanation given to us there are no statutory dueswhich have not been deposited on account of any disputes.
c. In our opinion there are instances where the company has not deducted/paidstatutory dues in respect of expenses incurred/payment made.
(x) The company has accumulated losses of Rs. 6245550 and Capital Reserve of Rs.3729000 as at March 31 2013 and it has incurred cash loss of Rs.43598 ended on that dateor in immediately preceding financial year.
(xi) According to the records of the company examined by us and the information andexplanations given to us the company has not defaulted in repayment of dues to any bankor financial institution as at the balance sheet date. However we would to draw attentionto Point No. I to the Notes to Accounts (NOTE E).
(xii) According to the information and explanations given to us the company has notgranted any loans and advances on the basis of security by way of pledge of sharesdebentures and other securities.
(xiii) The provisions of clause 4(xiii) of the above said order are not applicable tothe company.
(xiv) According to the information and explanations given to us the company has notdealt or traded in shares securities debentures and other investments. Therefore theprovisions of clause 4(xiv) of the above said order are not applicable to the company.
(xv) According to the information and explanations given to us the company has notgiven any guarantees for loans taken by others from banks. Therefore the provisions ofclause 4(xv) of the above said order are not applicable to the company.
(xvi) In our opinion and according to the information and explanations given to us thecompany has not taken term loans during the year the provisions of clause 4(xvi) of theabove said order are not applicable to the company.
(xvii) According to information and explanations given to us and on an overallexamination of the balance sheet the company has not raised short-term funds during theyear; therefore the provisions of clause 4(xvii) of the above said order are notapplicable to the company.
(xviii) According to information and explanations given to us during the currentfinancial year the company has not made any preferential allotment section 301 parties.
(xix) According to the information and explanations given to us the company has notissued debentures during the year. Accordingly the provisions of clause 4(xix) of theorder are not applicable to the company.
(xx) According to the information and explanations given to us the company has notraised any money by way of public issue during the year. Accordingly the provisions ofclause 4 (xx) of the above said order are not applicable to the company.
(xxi) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practice in India andaccording to the information and explanations given to us we have neither come across anyinstance of fraud on or by the Company noticed or reported during the year nor have webeen informed of such case by the management.
For Ashish Vyas & Co
M. No - 078527