TRANS FINANCIAL RESOURCES LIMITED
ANNUAL REPORT 2004-2005
Trans Financial Resources Ltd.
We have audited the attached Balance Sheet of Trans Financial Resources
Ltd. as at 31st March 2005 and Profit & Loss Account 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.
We have 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 presentation. We believe that our audit
provides a reasonable basis for our opinion.
As required by Companies (Auditor's Report) Order, 1988 issued by the
Central Government of India in terms of sub-section (4A) of section 227 of
the companies Act, 1956. We enclose in the Annexure a statement on the
matters specified in paragraphs 4 & 5 of the said order.
Further to our comments in the Annexure referred to above, we report that:
1) 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.
2) In our opinion, proper books of Accounts as required by law have been
kept by the company so far as appears from our examination of those books.
3) The Balance Sheet and Profit & Loss Account dealt with by this Report
are in agreed with the Books of Accounts.
4) In our opinion, the Balance Sheet and Profit & Loss Account dealt with
by this report comply with the accounting standards referred to in sub-
section (3C) of section 211 of the Companies Act, 1956.
5) On the basis of written representation received from the directors, as
on 31st March, 2005 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 31st March 2005
from being appointed as a director in terms of clause (g) of sub-section
(1) of section 274 of the Companies Act, 1956.
6) 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
a) In the case of Balance Sheet, of the state of affairs of the Company, as
at 31st March 2005 and
b) In the case of Profit & Loss Account of the profit for the period ended
on than date.
Place : Ahmedabad For, Dharmendra & Khajanchi
Date : 1 SEP 2005 Chartered Accountants
Annexure to the Auditor Report
Re: Trans Financial Resources Ltd.
Referred to in paragraph 3 of our report of even date.
(i) (a) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) All the assets have not been physically verified by the management
during the year but there is a regular programme of verification which, in
our opinion, is reasonable having regard to the size of the company and the
nature of its assets. No material discrepancies were noticed on such
(c) During the year, the company has disposed off a major part of the plant
and machinery. According to the information and explanations given to us,
we are of the opinion that the sale of the said part of plant and machinery
has not affected the going concern status of the company.
(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 had taken loan from companies, firm and others
covered in the register maintained under section 301 of the Companies Act,
1956. The maximum amount involved during the year was Rs. 350.49 lacs and
the year-end balance of loans taken from such parties was Rs. 350.49. There
are firms covered in the register maintained under section 301 of the
Companies Act, 1956 to which the company has granted loans. The maximum
amount involved during the year was Rs.74.11 and the year end balance of
loan, granted to such parties was Rs.74.11 lacs.
(b) In our opinion, the rate of interest and other terms and conditions on
which loans have been taken from / granted to companies, firms or other
parties listed in the register maintained under section 301 of the
Companies Act, 1956 are not, prima facie, prejudicial to the interest of
(c) According to information and explanations made available to us, no
terms and conditions for repayment of loan taken by the company is
stipulated and hence no comment is made regarding repayment of principal.
Also, since the loans are interest free the provision regarding regularity
in repayment of interest is not applicable.
(d) According to information and explanations made available to us, no
terns and conditions for repayment of loan taken by the company is
stipulated and hence no comment is made regarding overdue in repayment of
(iv) In our opinion and according to the information and explanation 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 purchase
of inventory, fixed assets and with regard to the sale of goods. During the
course of our audit, we have not observed any continuing failure to correct
major weakness in internal controls.
(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 Rs.5.00 lacs in respect of any party during
the year have been made at prices, which are reasonable having regard to
prevailing market prices at the relevant time.
(vi) In our opinion and according to the information and explanations given
to us, the company has complied with the provisions of section 58A and 58AA
of the Companies Act, 1956 and the Companies (Acceptance of Deposits)
Rules, 1975 with regard to the deposits accepted from the public. The
Company Law Board has passed no order.
(vii) In our opinion, the company has an internal audit system commensurate
with the size and nature of its business.
(viii) We are informed that the Central Government has not prescribed the
maintenance of cost record under Section 209 (1) (d) of the Companies Act,
(ix) (a) The company is regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, investor education
protection fund, employee' state insurance, income tax, 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 payable in respect of income tax, wealth tax, sales tax,
customs duty, excise duty and cess were in arrears, as at 31.03.2005. For a
period of more than six months from the date they became payable.
(x) In our opinion, the accumulated losses of the company are more than
fifty percent of its net worth. The company has incurred cash losses Rs.
650795 during the financial year covered by our audit and Rs. 1155554 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
institution, bank or debenture holders.
(xii) Use are of the opinion that the company has maintained adequate
records where the company has Granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii) In our opinion that 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) The company is dealing in or trading in shares, securities,
debentures and other investments. The company has maintained proper records
of all the transaction and contracts. The company has made timely entries
therein. In our opinion and explanation given to us stock held by the
company in its own name except to the extent of the exemption, if any
granted under section 49 of the act.
(xv) In our opinion, the terms and conditions on which the company has
given guarantees for loans taken by others from-banks or financial
institutions are not prejudicial to the interest of the company.
(xvi) This clause is not applicable as no term loans are raised by the
(xvii) According to the information and explanations given to us and on an
overall examination of the balance sheet of the company, we report that the
funds raised on long term basis Rs. 359772 has been used for short-term
investment. No short-term funds have been used to finance long-term assets.
(xviii) According to the information and explanations given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the Act.
(xix) According to the information and explanations given to us, the
Company has not issued any debentures during the period covered by our
(xx) The Company has not raised any money by public issue during the year.
(xxi) 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
Place : Ahmedabad For, Dharmendra & Khajanchi
Date : 1 SEP 2005 Chartered Accountants
Membership No. 42412