To The Members of PERFECTPAC LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of Perfectpac Limited("the Company"), which comprise the Balance Sheet as at March 31,2013, and theStatement of Profit and Loss and the Cash Flow Statement for the year then ended, and asummary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give atrue and fair view of the financial position, financial performance and cash flows of theCompany in accordance with the Accounting Standards referred to in sub-section (3C) ofsection 211 of the Companies Act, 1956 ("the Act"). This responsibility includesthe design, implementation and maintenance of internal control relevant to the preparationand presentation of the financial statements that give a true and fair view and are freefrom material misstatement, whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditors'judgment, including the assessment of the risks of material misstatement of the financialstatements, whether due to fraud or error. In making those risk assessments, the auditorsconsider internal controls relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management, aswell as evaluating the overall presentation of tlie financial statements.
We believe that audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.
In our opinion and to the best of our information and according to the explanationsgiven to us, the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:
a. In the case of the Balance Sheet, of the state of affairs of the Company as at March31, 2013;
b. In the case of the Statement of Profit and Loss, of the Profit for the year ended onthat date; and
c. In the case of the Cash Flow Statement, of the cash flows for the year ended on thatdate.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditors' Report) Order, 2003 ("the Order")issued by the Central Government of India in terms of sub-section (4A) of Section 227 ofthe Act, we give in the Annexure, a statement on the matters specified in paragraphs 4 and5 of the Order.
2. As required by section 227 (3) of the Act, we report that:
a. We have obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of our audit;
b. In our opinion, proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books;
c. The Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt withby this Report are in agreement with the books of account;
d. In our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash FlowStatement comply with the Accounting Standards referred to in sub-section (3C) of Section211 of the Companies Act, 1956;
e. On the basis of written representations received from the directors, as on March 31,2013 and taken on record by the Board of Directors, none of the directors is disqualifiedas on March 31st, 2013, from being appointed as a director in terms of clause (g) ofsub-section (1) of Section 274 of the Companies Act, 1956
f. Since the Central Government has not issued any notification as to the rate at whichthe cess is to be paid under section 441A of the Companies Act, 1956 nor has it issued anyRules under the said section, prescribing the manner in which such cess is to be paid, nocess is due and payable by the company.
| ||For JAQDISH SAPRA & CO. |
| ||(Firm Registration No. Q01378N) CHARTERED ACCOUNTANTS |
|PLACE: NEW DELHI ||(CA : VIPAL KALRA) |
|DATED : 30.05..2013 ||PARTNER |
| ||Membership No. 084583 |
ANNEXURE TO INDEPENDENT AUDITORS' REPORT (Referred to in our Report of even date)
i. a) The Company has maintained proper records showing full particulars, includingquantitative details and situation of fixed assets.
b) Verification of fixed assets is being conducted in a phased programme by themanagement designed to cover all assets over a period of three years, which in our opinionis reasonable having regard to the size of the Company and the nature of assets. Nomaterial discrepancies were noticed on such verification.
c) The fixed assets disposed off during the year are not significant and therefore donot affect the going concern status of the Company.
ii. a) As explained to us, inventories (except in transit) have been physicallyverified during the year by the management. In our opinion the frequency of verificationis reasonable.
b) In our opinion and according to the information and explanations given to us, theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.
c) In our opinion and according to the information and explanations given to us, theCompany has maintained proper records of inventory and the discrepancies noticed on suchverification between physical stocks and book records were not material.
iii. a) There are no companies, firms or other parties covered in the Registermaintained u/s 301 of the Companies Act, 1956 to which the company has granted any loans,secured or unsecured, as per information & explanations given to us and Register u/s301 produced before us.
b) Since no loans were granted to parties covered in Register u/s 301, Paras 4(iii)(b), (iii) (c) & (iii) (d) of the Order are not applicable to the Company. .
c) The Company has taken unsecured loan from Managing Director and two companiescovered in the Register maintained u/s 301 of the Companies Act, 1956. The maximum amountinvolved in the transaction was Rs 6.14 Crores and balance outstanding at the year end wasRs 2.87 Crores.
d) In our opinion the rate of interest and other terms and conditions of loans taken bythe company are not prima facie prejudicial to the interest of the company.
e) The company is regular in payment of interest on the above loans but as there is nostipulation for repayment of loan we are not in a position to make specific comments forthe same.
iv. In our opinion and according to the information and explanations given to us, thereare adequate internal control procedures commensurate with the size of the Company andnature of its business with regard to purchases of inventory, fixed assets and for thesale of goods & services. During the course of our audit we have not come across anycontinuing failure to correct major weaknesses in internal controls.
v. a) According to the information & explanations given to us, we are of theopinion that particulars of contracts or arrangements referred to in section 301 of theCompanies Act, 1956 have been entered in the Register required to be maintained under thatsection, 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 registermaintained under section 301 of the Companies Act, 1956 and exceeding the value of rupeesfive lakhs in respect of any party during the year have been made at prices which areprima facie reasonable having regard to prevailing market prices at the relevant time.However, for sales made as per customers' specifications comparable prices are notavailable.
vi. As the company has not accepted any deposits from the public, within the meaning ofsection 58A and 58AA of the Act and the Companies (Acceptance of Deposits) Rules, 1975paragraph 4 (vi) of the Order is not applicable.
vii. In our opinion, the internal audit functions carried out during the year by a firmof Chartered Accountants appointed by the management have been commensurate withthe size of the Company arid nature of its business.
viii. We have broadly reviewed the books of account relating to materials, labour andother items of cost maintained by the company pursuant to the Rules made by the CentralGovernment for maintenance of cost records under clause (d) of Sub Section (1) of Section209 of the Companies Act, 1956 and are of the opinion that prima facie the prescribedaccounts and records have been made and maintained. However, we are not required to andhave not carried out any detailed examination of such accounts and records.
ix. a) According to the information and explanations given to us and the records of theCompany examined by us, the Company has been generally regular in depositing undisputedstatutory dues, including Provident Fund, Employees' State Insurance, Income-tax, Salestax, Wealth tax, Custom Duty, Excise Duty, Cess, Service Tax and other material statutorydues with the appropriate authorities during the year.
We are informed that there are no undisputed statutory dues as at the year endoutstanding for a period of more than six months from the date they became payable, b)According to the books of account and records as produced and examined by us in accordancewith the generally accepted auditing practices in India , there are no dues of Income Tax,Wealth tax, Sales tax, Service tax, Customs Duty, Excise Duty & Cess which have notbeen deposited on account of any dispute other than those mentioned below:
|Nature of Dues ||Period to which the amount relates ||Forum where the \ dispute is pending ||Amount (Rs.) |
|ESIC ||1985-86 & 1986-87 ||High Court of Punjab & Haryana ||154,649 |
|Income Tax ||2009-10 ||Deputy ||121,332 |
| ||2011-12 ||Commissioner ||40,270 |
x. The Company has no accumulated losses as at the end of the financial year. TheCompany has not incurred cash losses during the current and the immediately precedingfinancial year.
xi. In our opinion and according to the information and explanations given to us, theCompany has not defaulted in repayment of dues to banks & financial institution. TheCompany has not obtained any borrowings by way of debentures.
xii. Based on our examination of documents and records of the Company and as perinformation & explanations given to us, we are of the opinion that the company has notgranted loans and advances on the basis of security by way of pledge of shares, debenturesand other securities.
xiii. In our opinion the company is not a chit fund or nidhi/mutual benefitfund/society and hence clause (xiii) of the Order is not applicable to the company.
xiv. In our opinion, the company is not dealing in or trading in shares, securities,debentures and other investments and hence clause (xiv) of the Order is not applicable tothe company.
xv. As per information & explanations given to us the company has not givenguarantees for loans taken by others from banks or financial institutions.
xvi. In our opinion and according to information and explanations given to us, the termloans have been applied for the purpose for which they were raised.
xvii. According to the information and explanations given to us and on an overallexamination of the Balance Sheet of the company, we report that no funds raised on shortterm basis have been used for long term investment.
xviii. According to the information & explanations given to us no preferentialallotment of shares has been made by the company to parties and companies covered in theRegister maintained under Section 301. of the Companies Act, 1956.
xix. According to the information & explanations given to us, no debentures havebeen, issued by the company during the year.
xx. Based on our examination of books and records of the company, no public issue wasmade by the company during the year.
xxi. During the course of our examination of the books of account carried out inaccordance with the generally accepted auditing practices in India, we have not comeacross any instance of fraud on,or by the company nor have we been informed by themanagement of any such instance being noticed or reported during the year.
| ||. For JAGDISH SAPRA & CO. |
| ||(Firm Registration No. 001378N) |
| ||CHARTERED ACCOUNTANTS |
|PLACE : NEW DELHI ||(CA : VIPAL KALRA) |
|DATED: 30.05..2013 ||PARTNER |
| ||Membership No. 084583 |