THE MEMBERS OF TULIP FINANCE LIMITED
1. We have audited the attached Balance sheet of TULIP FINANCE LIMITED as on 31stMarch, 2009 and also the profit and loss account and Cash flow Statement for the yearended on that date annexed thereto. These financial statements are the responsibilities ofthe company's management. Our responsibility is to express an opinion on these financialstatements based on our audit.
2. We conducted our audit in accordance with auditing standards generally accepted inIndia. Those Standards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of material misstatement. Anaudit includes examining, on a test basis, evidence supporting, the amounts anddisclosures in the financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well as evaluating theoverall financial statement presentation. We believe that our audit provides a reasonablebasis for our opinion.
3. As required by the Companies (Auditor's Report), 2003 issued by the centralgovernment 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 and5 of the said order.
4. Further to our comments in the Annexure referred to above , we report that:
(i) We have obtained all the information and explanations , which to the best of ourknowledge and belief were necessary for the purposes of our audit;
(ii) In our opinion, proper books of account as required by law have been kept by thecompany so far as appears from our examination of the books
(iii) The balance sheet and profit and loss Account dealt with by this report are inagreement with the books of account
(iv) In our opinion , the balance sheet and profit and loss account dealt with by thisreport comply with the accounting standards referred to in sub - section (3C) of section211 of the Companies Act, 1956;
(v) On the basis of written representations received from the directors, as on 31stMarch, 2009, and taken on record by the Board of Directors, we report that none of thedirectors is disqualified as on 3 1st March , 2009 from being appointed as adirector in terms of clause (g) Sub-Section 274 of the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to theexplanations given to us, the accounts read together with Accounting Policies and notesattached thereto or appearing there on,, subject to our comments on notes no. A(3)regarding classification of assets, no. A (4) regarding depreciation on leased assets andno. B(6) regarding secured loans gives the information required by the Companies Act, 1956in 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 31stMarch ,2009:
(b) In the case of the Profit and Loss Account, of the loss for the year ended on thatdate; and
(c) In case of cash flow statement, of the cash flows for the year ended on that date.
| ||For S.D.V.S & CO. |
| ||Chartered Accountants |
| ||(VIPULSAREEN) |
|Place : New Delhi ||Partner |
|Date : 30/07/2009 ||Membership No. 099560 |
ANNEXURE REFERRED IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE
(i) (a) The company has maintained proper-record showing full particulars includingquantitative details and situation of its Fixed Assets.
(b) The company has not conducted any physical verification on fixed assets under leasefinance; hence we are unable to comment regarding any discrepancy in the book records ascompared to physical verification. Fixed Assets other than the assets on lease have beenphysically verified by the management. In our opinion, the frequency of verification isreasonable.
(c) During the year, the company has not disposed of any of its fixed assets.
(ii) (a) The stock of shares, debentures and government securities other than stock onhire have been Physically verified by the management . In our opinion, the frequency ofverification is reasonable.
(b) The procedures of physical verification of inventories followed by the managementare reasonable and adequate in relation to the size of the company and the nature of itsbusiness.
(c) The company is maintaining proper records of inventory. No discrepancies have beennoticed on verification between the physical stocks and the book records.
(iii) (a) The company had taken loan from the party covered in the register maintainedunder section 301 of The Companies Act ,1956 . Their maximum amount involved during theyear was Rs. 8769407/- and the year-end balance of loans taken from such party was Rs.8769407/-.
(b) In our opinion , the rate of interest and other terms and conditions on which loanhave been taken from other party listed in the register maintained under section 301 ofthe companies act, 1956 are not, prima facie, prejudicial to the interest of the company.As such company has not paid any interest.
(c ) The company is regular in repaying the principal amounts as stipulated have beenregular in the Payment of interest.
(d) There is no overdue amount of loan taken from the party listed in the registermaintained under Section 301 of the companies act, 1956.
(iv) 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 companyand nature of its Business with regard to purchase of inventory, fixed assets and withregard to the sale of goods. During the course of our audit, we have not observed anycontinuing failure to correct major weaknesses in internals controls.
(v) According to the information and explanations given to us, we are of the opinionthat there was no transaction that need to be entered in to the register maintained undersection 301 of the Companies act, 1956.
(vi) The company has not accepted any debtors from public during the year in terms ofprovision of Section 58 A of the companies act, 1956 and rules framed there under.
(vii) In our opinion, the company has an internal audit system commensurate with thesize and Nature of its business.
(viii) We are informed that the central government has not prescribed the maintenanceof cost Records for any of the company's products under section 209( I) (d) of thecompanies act 1956.
(ix) (a) The company is regular in depositing with appropriate authorities undisputedstatutory dues including income tax and other material statutory dues applicable to it.
(b) According to the information and explanations given to us, no undisputed amountpayable in respect to income tax and other statutory dues were in arrears, as at 31stMarch, 2009 for period of more than six months from the date they become payable.
(c) According to the information and explanations given to us , an amount of Rs1680491/-of Income tax including interest have not been deposited on account of disputepending with Income tax authorities.
(x) In our opinion, the accumulated losses of the company are substantial and are morethan 100% of its net worth.
(xi) In our opinion and according to the information and explanations given to us, thecompany has not defaulted in repayment of dues to a financial institution, bank ordebenture holders.
(xii) The company has not granted any loans and advances on the basis of security byway of pledge of shares , debentures and other securities
(xiii) In our opinion, the company is not a chit fund or 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) According to information and explanations given to us and on the basis ofexamination of the Books of accounts , proper records have been maintained of thetransactions and timely entries have been made therein respect of the shares, securities.debentures and other securities dealt with or traded by the company . All shares,debentures and securities are held by the company in its own name.
(xv) The company has not given guarantees for loans taken by others banks or financialinstitutions.
(xvi) The company has not taken any term loans during the year.
(xvii) The company has not raised any long terms or short term fund during the year.Therefore, the Provisions of clause 4 (xvii) of the companies (Auditor's Report) order,2003 are not applicable to the company.
(xviii) According to the information and explanations given to us, the company has notmade any Preferential allotment of shares of parties and companies covered in the registermaintained Under section 301 of the act during the year.
(xix) According to information and explanations given to us, during the period coveredby our audit report, the company has not issued any debentures.
(xx) The company has not raised any money by way of public issue during the year.
(xxi) According to information and explanations given to us. no fraud on or by thecompany has been noticed or reported during the course of our audit.
| ||For S.D.V.S&CO. |
| ||Chartered Accountants |
| ||(VIPUL SAREEN) |
| ||Partner |
| ||Membership No. 099560 |
|213, Kadambari, Sector - 9, Rohini, Delhi - 110 085. || |
|Dated : 30/07/2009 || |