C. G. IMPEX LIMITED, AHMEDABAD.
We have audited the attached Balance Sheet of C. G. IMPEX LIMITED., AHMEDABAD as
at 31st March, 2007 and also the Profit and Loss Account for the year ended on that date
annexed thereto and the cash flow statement for the period 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 meterial 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 pinciples
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. We have obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purposes 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 the books.
3. The Balance Sheet and the Profit and Loss account dealt with by this report is in
agreement with the books of account.
4. In our opinion, the Balance Sheet and the 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.
5. On the basis of written representations received from the directors, as on 31st
March, 2007, and taken on record by the Board of Directors, we report that none of the
directors is disqualified as on 31st March. 2007 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 explanations
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:
a) in the case of the balance sheet, of the state of affairs of the company as at 31st
March, 2007 and
b) in the case of profit and loss account, of the Profit for the year ended on that
c) in the case of cash flow statement, of the cash flows for the year ended on that
As required by the Companies (Auditor's Report) Order, 2003 issued by the Central
Government of India in terms of section 227(4A) of the Companies Act, 1956, we further
(1) (a) The company has maintained proper records showing full particulars including
quantitative details and situation of fixed assets.
(b) All the assets have 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 verification.
(c) Substantial part of fixed assets have not been disposed off during the year, which
will affect its status as going concern.
(2) (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
(c) The company is maintaining proper records of inventory. The discrepancies noticed
on verification between the physical stocks and book records were not material.
(3) (a) The Company has not granted any loan, secured or unsecured, to companies, firms
or other parties covered in the register maintained under Section 301 of the Companies
(b) The Company has not taken any loans, secured or unsecured, from companies, firms or
other parties covered in the register maintained under Section 301 of the Companies Act.
(4) In our opinion and according to the 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 purchases 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 weaknesses in internal controls.
(5) (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 so entered,
(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 rupees
five lakhs 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.
(6) The Company has not accepted any deposit from public within the meaning of Section
58A and 58AA of the Companies Act, 1956 and rules framed there under.
(7) In our opinion, the company has an internal audit system commensurate with the size
and nature of its business.
(8) The maintenance of cost records have not been prescribed by the Central Government
u/s 209(1 )(d) of the Companies Act, 1956 for any of its products.
(9) (a) The company is regular in depositing with appropriate authorities undisputed
statutory dues including provident fund, investor education protection fund, employees'
state insurance, income tax, sales tax, wealth tax, service 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, service tax, sales tax. customs duty, excise
duty and cess were in arrears, as at 31.03.07 for a period of more than six months from
the date they become payable.
(c) According to the information and explanation given to us, there are no dues of sale
tax, income tax, customs duty, wealth tax, excise duty and cess which have not been
deposited on account of any dispute.
(10) The company has no accumulated losses. The company has not incurred cash losses in
the financial year under report and in the immediately preceding such financial year.
(11) In our opinion and according to the information and explanations given to us, the
company has not defaulted in repayment of dues to a financial institution, bank or
(12) On the basis of information and explanations given to us, the Company has not
granted loans or advances on the basis of security by way of pledge of shares, debentures
and other securities.
(13) In our opinion, 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.
(14) In our opinion, the company is not dealing in or trading in shares, securities,
debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the
Companies (Auditor's Report) Order, 2003 are not applicable to the company.
(15) According to information and explanation given to us, the Company has not given
any guarantee for loans taken by others from banks or financial institutions pa
(16) On the basis of information and explanations given to us, the Company has not
obtained and / or applied any term loan during the year.
(17) 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 no funds raised on
short-term basis have been used for long-term investment.
(18) The company has not made any preferential allotment of shares during the year.
(19) The Company has not issued any debentures during the year.
(20) The Company has not raised any money by public issue during the year.
(21) 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 audit.
||For, R. R. TIBREWALA & CO.
|PLACE : AHMEDABAD
||(R. R. TIBREWALA)
|Date : 18.06.2007