VINAYAK VANIJYA LIMITED
ANNUAL REPORT 2005-2006
The Members of
VINAYAK VANIJYA LIMITED
We have audited the attached Balance Sheet of VINAYAK VANIJYA LIMITED as at
31st March, 2006 and also the annexed Profit & Loss Account and the Cash
Flow Statement for the year ended on that date. 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 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 misstatements. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the
financial statement. An audit also includes assessing 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.
We report that :
1. As required by the Companies (Auditor's Report) Order, 2003 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 and 5 of the said Order.
2. Further to our comments in the Annexure referred to above, we report
1) We have obtained all the information and explanations, which to the best
of my knowledge and belief were necessary for the purpose of our audits.
ii) In our opinion, proper books of account as required by law have been
kept by the company so far as appears from our examination of those books.
iii) The Balance Sheet and Profit & Loss Account dealt with by this report
are in agreement with the books of account.
iv) In our opinion, the Balance Sheet and Profit and 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 to the extent
applicable to the Company.
v) On the basis of written representations received from the directors, as
on 31st March, 2006, and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 31st March, 2006
from being appointed as a director in terms of clause (g) of sub - section
(1) of section 274 of the Companies Act, 1956.
vi) In our opinion and to the best of our information and according to the
explanations given to us, the said accounts give the information required
by the Companies Act, 1956, in the manner so required and give a trice and
fair view in conformity with the accounting principles generally accepted
in India :
a) In the case of the Balance Sheet, of the state of affairs of the Company
as at 31st March, 2006; and
b) In the case of the Profit & Loss Account, profit of the company during
c) In the case of Cash Flow Statement, of the cash flows for the year ended
on that date.
For S.M. Gulati & Co.
Place : New Delhi
Date : 19.7.06
ANNEXURE TO THE AUDITORS' REPORT
[Referred to in paragraph 1 of our report of even date]
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of Fixed Assets. The assets
have been physically verified by the management during the year as per the
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 verification of fixed assets during the year.
2. None of the Fixed Assets have been revalued during the year.
3. The Company does not held any finished goods, stores, spare parts and
raw materials. The stock in hand represents shares. In our opinion the
valuation of the stock is fair and proper in accordance with normally
accepted accounting principles.
4. The Company has not taken any Loans Secured or Unsecured from Companies,
Firms or parties listed in the register maintained under Section 301 of the
Companies Act, 1956 or from companies under the same management as defined
under section 372A of the Companies Act, 1956.
5. The Company has granted loans secured or unsecured, to companies, Firms
or parties listed in the register maintained under section 301 of the
Companies Act, 1956 or to companies under the same management as defined
under section 372A of the Companies Act, 1956. The outstanding loan as on
31-03-2006 is Rs. 8905000.00. The maximum amount of loan during the period
Is Rs 10475000.00
6. The company has not given any loans or advances In nature of loans to
7. In our opinion and according to 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 the
purchase of shares and securities, plants and machinery, equipments and
8. According to the information and explanations given to us, there are no
transactions of purchase of goods and materials and sale of goods,
materials and services made in pursuance of contracts or arrangements
entered In the register maintained under Section 301 of the Companies Act,
1956 and aggregating during the period to Rs. 50000/- or more in respect of
each such party.
9. The Company has not accepted any deposit from the Public to which the
provisions of Section 58-A of the Companies Act, 1956 and the Rules made
there under apply.
10. According to information and explanation given to us, the company has
developed its own Internal audit system managed by professionally qualified
staff. In our opinion, such Internal audit system is adequate commensurate
with the size and nature of its s activities.
11. Maintenance of cost records has not been prescribed by the Central
Government under Section 209 (1) (d) of the Companies Act, 1956.
12. As explained to us, Provident Fund & Miscellaneous Provisions Act and
Employees State Insurance Act are not applicable to the company.
13. According to the information and explanations given to us, there were
no undisputed amount payable In respect of Income-Tax, Wealth Tax, Sales
Tax, Custom Duty and Excise Duty which have remained outstanding as at 31st
March, 2006 for a period exceeding six months from the date they became
14. According to the information and explanation given to us,and the
records of the Company examined by us, no personal expenses have been
charged to Revenue Account other than those payable under contractual
obligation or In accordance with generally accepted business practice.
15. The Company is not a sick industrial Company within the meaning of
Clause(o) of Sub-Section (1) of Section-3 of the sick industrial Companies
(Special Provisions) Act, 1985.
16. According to information and explanations given to us the company has
not granted any loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
17. In our opinion and information and explanation given to us, the company
has maintained proper records in respect of transactions of shares,
securities and other investments held by the company In Its own name except
to the extent exemption granted U/s 49 of the Companies Act, 1956.
18. In respect of Investment in shares, proper records have been maintained
of the transactions and contracts and timely entries have been made therein
and the Investment has been held by the Company In Its own name.
19. Considering the nature of business being carried on at present by the
company and also the nature of matters referred to in other clauses of
companies (Auditors' Report) order, 2003 In our opinion, are not applicable
to the company.
For S.M. GULATI & CO.
Place : New Delhi
Dated : 19.7.06