SURAJ HOLDINGS LIMITED
ANNUAL REPORT 2006-2007
To The Shareholders,
Suraj Holdings Limited
We have audited the attached Balance Sheet of SURAJ HOLDINGS LIMITED, New
Delhi as at 31st March, 2007 and the Profit and Loss Account of the company
for the year ended as on that date annexed hereto. 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 principles used
and significant estimates 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 Govt. of India in terms of section 227 (4A) of the Companies
Act, 1956, we enclosed in the annexure a statement on the matters specified
in paragraph 4 of the said Order.
3) Further to our comments in the annexure referred to in paragraph 2
above, we state that:
a) We have obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purpose of our audit.
b) In our opinion, the Company has kept proper books of account as required
by law so far as appears from our examination of the books.
c) The Balance Sheet and Profit &Loss Account dealt with by this report are
in agreement with the books of account.
d) In our opinion, the .Balance Sheet, Profit and Loss Account and Cash
Flow comply with the Accounting Standards referred to in Sub-section (3C)
of section 211 of the Companies Act, 1956
e) On the basis of written representation received from the directors as on
31-3-2007 and taken on record by the board of directors, we report that
none of the directors of the company is disqualified as on 31-3-2007 from
being appointed as director in terms of clause (g) of sub-section 1 of
section 274 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 read with the significant
Accounting Policies and notes thereon give the information required by the
Companies Act, 1956, in the manner so required and give a true and fair
In so far as it the case of the Balance Sheet, of the state of affairs of
the company as at 31st March, 2007; and
In the case of Profit and Loss Account, of the Profit of the company for
the year ended on 31st March, 2007.
For KANSAL & ASSOCIATES
PLACE: New Delhi
DATE : 28.06.2007
Annexure referred to in paragraph (2) of Auditors Report of Suraj Holdings
Limited on the Accounts for the year ended 31st March 2007
1) The Management conducted the physical verification of the stock at
reasonable intervals and in our opinion the procedure of physical
verification of stock followed by the management are reasonable and
adequate in relation to the size of the Company and the nature of its
2) No discrepancies have been noticed on physical verification of stocks as
compared to book records.
3) In our opinion the valuation of stock is fair and proper and is in
accordance with the normally accepted accounting principles and the basis
of valuation of stock is same as in the preceding year.
4) The Company has not taken/granted any loans, secured or unsecured, from
companies, firms, or other parties listed in the Register maintained under
Section 301 of the Companies Act, 1956 and / or the companies under the
same management as defined under sub-section (1B) of Section 370 of the
Companies Act 1956.
5) There is adequate Internal Audit System commensurate with the size of
the company and nature of its business.
6) In our opinion and according to the information and explanation given to
us , there are no transaction of purchase and sale of shares and securities
made in pursuance of contracts or arrangements to be entered in the
register maintained under section 301 of the Companies Act, 1956, and
aggregating during the year to Rs.5,00,000/- or more.
7) In our opinion and according to the information & explanation given to
us, the Company has not accepted any deposits form the public.
8) No maintenance of cost records has been prescribed by the Central
Government under Section 209 (1)(d) of the Companies Act, 1956.
9) The provisions of Provident Fund, investor education and protection
fund, employee state insurance, sales tax, wealth tax, excise duty and cess
are not applicable to the company.
10) The company has no accumulated losses at the end of the year and also
did not incur any losses during the current financial year.
11) The shares/ debentures/bonds in hand have been physically verified
during the year by the management and no discrepancies have been noticed on
such verification. The valuation of shares is fair and proper and in
accordance with normally accepted accounting principles.
12) The Company is dealing in shares and proper records have been
maintained of the transactions and entries have been made therein
13) All the shares have been held by the Company in its own name.
14) Since the Company has been granted a certificate of registration by RBI
as NBFC, the provisions of RBI Act relating to Non Banking Finance
Companies are applicable. A per Non-Banking Finance Companies Auditor's
Report (Reserve Bank) Directions 1998,following further comments are given
i) The Company has received Certificate of Registration as NBFC bearing
number 14.00102 dated 27-02-1998.
ii) The Board of Directors of the Company has passed the Resolution for
non-acceptance of any public deposits.
iii) The Company had not accepted any public deposits during the year under
iv) The Company has complied with the prudential norms relating to income
recognition accounting standards, assets classification and provision of
bad and doubtful debts to the extent applicable to it.
15) According to the cash flow statement and other records examined by us
and the information and explanations given to us, on an overall basis,
funds raised on short term basis have, prima facie, not been used during
the year for long term investment (fixed assets etc.) and vice versa.
17) The Company has not made any preferential allotment during the year.
18) The Company has not raised any money by public issue during the year.
19) To the best of our knowledge and belief and according to the
information and explanations given to us no fraud on or by the Company was
noticed or reported during the year.
20) In our opinion remaining clauses of the aforesaid Order are not
applicable to the Company for the year under report.
For KANSAL & ASSOCIATES.
Place: New Delhi
Dated: 28.06.2007 Sd/-