AUDITORS
1. We have audited the attached Balance Sheet of ALFRED HERBERT (INDIA) LIMITED
as at 31 March 2009 and the related Profit and Loss Account and Cash Flow Statement 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.
2. 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 the management, as well as evaluating
the overall financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 ('the order') as amended
by the Companies (Auditor's Report) (Amendment) Order, 2004 (the "Order"),
issued by the Central Government of India in terms of section 227 (4A) of the Companies
Act, 1956 of India ('the Act') and on the basis of such checks as we considered
appropriate and according to the information and explanations given to us, we set out in
ANNEXURE, a statement on the matters specified in paragraph 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to in Paragraph 3 above, we report
that:
(i) 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;
(ii) In our opinion, proper books of account asrequired by the law have been kept by
the Company .so far as appears from our examination of those books;
(iii) The financial statements dealt with by this report are in agreement with the
books of accounts;
(iv) in our opinion, the financial statements dealt with by this report comply with the
Accounting Standards referred to in section 211 (3C) of the 'Act';
(v) On the basis of the written representations received from the directors, ason
31March 2009 and taken on record by the Board of Directors, we report that none of the
directors are disqualified as on 31 March, 2009 from being appointed as a director in
terms of clause (g) of sub-section (1) of section 274 of the 'Act';
(vi) In our opinion and to the best of our information and according to the
explanations given to us, the said accounts, read together with the Notes gives the
information asrequired 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
India:
(a) in the case of Balance Sheet, of the state of affairs of the Company as at 31
March, 2009;
(b) in the case of Profit and Loss Account, of the profit for the year ended on that
date ; and
(c) in the case of Cash Flow Statement, of the cash flows for the year ended on that
date.
5. According to the information and explanations given to us and on the basis of the
test checks carried out by us during the course of the audit of the company, our report on
the matters specified under the para 3A and 3C of Non Banking Financial Companies Auditors
Report (Reserve Bank) Directions 1998 is as follows:
i) The Company which was incorporated prior to 9th January 1997 has applied for
registration as provided in section 45-IA of Reserve Bank of India Act, 1934 (2 of 1934)
and has received registration certificate from the Reserve Bank of India vide their
certificate no. N. 05. 04665 dated 29th November 2001.
ii) The Board of Directors of the Company had passed a resolution at its meeting held
on 22nd May 2008 for not to accept any public deposit.
iii) The Company has not accepted any public deposit during the year under reference.
iv) The Company has complied with the prudential norms relating to income recognition,
assets, classification and provisioning forbad and doubtful debts as specified in the
directions issued by the
Reserve Bank of India in terms of the Non-Banking Financial (Non-deposit Accepting 6r
Holding) Companies Prudential Norms (Reserve Bank) Directions,2007.
For RAY & RAY
Chartered Accountants
Abhijit Neogi
Partner
Membership No. 61380
Place: Kolkata
Date : 10th June, 2009
ANNEXURE TO THE AUDITORS' REPORT (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 situations of fixed assets.
(b) According to the information and explanations given to us, most of the fixed assets
have been physically verified by the management during the year in a phased program and no
material discrepancies were noticed on such verification. In our opinion, the frequency of
such verification is reasonable having regard to the size of the company and the nature of
its assets,
(c) The Company has not disposed off a substantial part of its fixed assets during the
year, which affect the going concern status of the Company.
(ii) (a) As explained to us, all the inventory of the company has been physically
verified during the year by the management. In our opinion and according to the
information and explanations given to us, the frequency of the verification is reasonable
having regard to the size of the company and the nature of its business.
(b) In our opinion and according to the information and explanations given to us, the
procedures of physical verification of inventories followed by the management are
reasonable and adequate in relation to the size of the Company and nature of its business.
(c) On the basis of examination of the records of inventory and according to the
information and explanations given to us, we are of the opinion that the Company is
maintaining proper records of inventory. Discrepancies notice d on physical verification
of stocks were not material.
(iii) According to the information and explanation given to us, the company has neither
granted nor taken any loans to and from the companies, firms or other parties as listed in
the register maintained under section 301 of the Companies Act, 1956. Accordingly,
provisions of clause 4(iii)(b) to (g) of the order are not applicable to the Company.
(iv) In our opinion and according to the information and explanations given to us,
there are reasonable internal control procedures commensurate with the size and the nature
of its business with regard to purchase of inventory and fixed assets and for the sale of
goods and services. During the course of our audit, we have not observed any continuing
failure to correct major weaknesses in internal controls.
(v) (a) In our opinion and according to the information and explanations given to us,
the Company has not entered into the contracts or arrangements referred t o in the section
301 of the Act that need to be entered into the register required to be maintained under
that section. Accordingly, clause 4 (v)(b) of the order are not applicable.
(vi) The Company has not accepted any deposits under section 58A, 58AA or any other
relevant provisions of the Act from the public during the year.
(vii) In our opinion, the internal audit system of the Company is commensurate with the
size of the Company and nature of its business.
(viii) The Central Government has not prescribed for the maintenance of any cost
records under section 209(1)(d) of the Companies Act, 1956 in respect of the products of
the Company.
(ix) (a)According to the information and explanations given to us, the Company is
generally regular in depositing with appropriate authorities undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund, Employee's State
Insurance, Income tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess
and other statutory dues applicable to it.
On the basis of the records of the Company and the information and explanations given
to us, no undisputed amounts payable in respect of statutory dues as aforesaid were
outstanding as at 31 March, 2009 for a period of more than six months from the date they
became payable.
(b) According to the records of the Company and according to the information and
explanations given to us by the management, there are no dues of income Tax, Sales Tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty and Cess,which have not been deposited
on account of any dispute.
(x) As per the records of the company, the Company has no accumulated losses at the end
of the financial year and has not incurred any cash losses during the financial year
covered by our audit and in the immediately preceding financial year.
(xi) Based on our examination of documents and records and according to the information
and explanations given to us, the Company has not defaulted in repayment of dues of
financial institutions, banks or debenture holders.
(xii) According to the information and explanations given to usand based on document
and records produced before us, the Company has granted loan on the basis of security by
way of pledge of shares and proper records in respect thereof have been maintained.
(xiii) The Company is not a chit fund or nidhi / mutual benefit fund / society.
Therefore, the provisions of the clause 4 (xiii) of the Order are not applicable to the
Company.
(xiv) Based on our examination of documents and records and evaluation of the related
internal controls, in respect of dealings/trading in securities, in our opinion, proper
records have been maintained of the transactions and contracts and timely entries have
been made in those records. We also report that the Company has held the shares,
securities, debentures and other investments in its own name except to the extent of the
exemption granted under section 49 of the Companies Act,1956.
(xv) According to the information and explanations given to us, the Company has not
given any guarantee for loans taken by others from bank or financial institutions.
(xvi) The Company did not have any term loan outstanding during the year. Accordingly,
Clause 4 (xvi) of the Order is not applicable to the Company.
(xvii) According to the information and explanations given to us and on an overall
examination of the Balance Sheet of the Company, the Company has not raised funds on
short-term basis and therefore provisions of Clause 4(xvii) of the order are not
applicable to the Company.
(xviii) TheCompany has not made any preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the Act during the year.
(xix) According to the information and explanations given to us and the records
examined by us,no debentures have been issued during the year. Accordingly , provisions of
clause 4(xix) of the order are not applicable t o the Company.
(xx) Based on the records examined by us, the Company has not raised monies by public
issue during the year.
(xxi) During the course of our examination of books of accounts carried out in
accordance with generally accepted auditing practices in India, we have neither come
across any incidence of fraud on or by the Company nor have we been informed of any such
cases by the management.
For RAY & RAY
Chartered Accountants
Abhijit Neogi
Partner
Membership Nc.61380
Place : Kolkata
Date : 10th June, 2009