The Members of,
Walchand Peoplefirst Limited.
Report on the Financial Statements
We have audited the accompanying financial statements of WALCHAND PEOPLEFIRST LIMITED('the Company'), which comprise the Balance Sheet as at March 31, 2013, the statement ofProfit and Loss and the Cash Flow Statement for the year then ended, and a summary ofsignificant 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 includes thedesign, implementation and maintenance of internal control relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial 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 auditor'sjudgment, including the assessment of the risks of material misstatement of the financialstatements, whether due to fraud or error. In making those risk assessments, the auditorconsiders internal control 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 the financial statements.
We believe that the 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:
(i) in the case of the Balance Sheet, of the state of affairs of the Company as atMarch 31, 2013;
(ii) in the case of the Statement of Profit and Loss, of the profit for the year endedon that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows for the year ended onthat date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2003 (as amended) ('theOrder') issued by the Central Government of India in terms of sub-section (4A) of Section227 of the Act, we enclose in the annexure a statement on the matters specified inparagraphs 4 & 5 of the said 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 subsection (3C) of section211 of the Companies Act, 1956.
e) on the basis of the written representations received from the directors, as on March31, 2013, and taken on record by the Board of Directors, none of the directors of theCompany is disqualified as on March 31, 2013 from being appointed as a director, in termsof clause (g) of sub-section (1) of Section 274 of the Companies
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 K. S. Aiyar & Co. |
| ||Chartered Accountants |
| ||Registration No. 100186W |
| ||Satish K. Kelkar |
|Place: Mumbai ||Partner |
|Date: 13th May, 2013 ||Membership No. 38934 |
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in paragraph 1 under the heading 'Report on Other Legal and RegulatoryRequirements' of our Report of even date on the financial statements for the year ended onMarch 31, 2013 of Walchand Peoplefirst Limited.)
(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) A substantial portion of the fixed assets have been physically verified by themanagement during the year. In our opinion the frequency of verification is reasonablehaving regard to the size of the Company and the nature of its assets. No materialdiscrepancies were noticed on such verification.
(c) As per the information and explanation given to us on our enquiries the disposalsof assets during the year were not substantial so as to have an impact on the operationsof the company, or affect its going concern.
(ii) The Company does not have any inventory. Accordingly, clause 4 (ii)(a), (b) &(c) of the Companies (Auditor's Report) (Amendment) Order, 2004 are not applicable.
(iii) (a)The Company has not granted any loan secured or unsecured from parties coveredin the Register maintained under Section 301 of the Companies Act, 1956. Accordingly, subclauses (a),(b),(c) and (d) of clause 4(iii) of the Companies (Auditor's Report)(Amendment) Order, 2004 are not applicable.
(b) The Company has not taken /repaid additional unsecured loan during the year from aparty covered in the register maintained under Section 301 of the Companies Act, 1956.Maximum amount outstanding during the year was Rs. 60,00,000/-.and year end outstandingbalance is Rs. 60,00,000/-.
(c) The rate of interest and other terms and conditions of loan taken by the Companyare not prima facie prejudicial to the interest of the Company.
(d) According to the information and explanations given to us, there is no stipulationwith regard for the repayment of loans.
(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 the nature of its business with regard to purchase of fixed assets. During the courseof our audit, no major weakness has been noticed in the internal controls.
(v) Based upon the audit procedures performed and according to the information andexplanations given to us, there are no contracts or arrangements during the year that needto be entered into the register maintained in pursuance of section 301 of the CompaniesAct, 1956. Accordingly, sub-clause (b) of Companies Audit Report (Order) 2003 as amendedby (Amendment) Order 2004 is not applicable to the Company.
(vi) In our opinion and according to the information and explanations given to us, theCompany has not accepted any deposits from the public to which the provisions of section58A and 58AA of the Companies Act, 1956 and the rules made thereunder is applicable. Noorder has been passed by the Company Law Board, National Law Tribunal or Reserve Bank ofIndia or any other court or any other tribunal.
(vii) The Company has an internal audit system commensurate with the nature and size ofthe business.
(viii) The Central Government has not prescribed the maintenance of cost records underSection 209(1)(d) of the Companies Act,1956.
(ix) (a) According to the records of the Company, the Company is generally regular indepositing with appropriate authorities undisputed statutory dues including providentfund, sales tax, wealth tax, income-tax and service tax and other statutory dues. Based onour audit procedures and according to the information and explanations given to us, thereare no arrears of undisputed statutory dues which remained outstanding as at 31st March2013, for a period of more than six months from the date they became payable.
(b)According to the information and explanations given to us and records of theCompany, the dues outstanding of income-tax, customs duty, wealth-tax, service Tax, andcess which have not been deposited on account of any dispute, are as follows:
|Name of the statute ||Nature of the dues ||Amount (Rs.In Lacs) ||Period to which the amount relates ||Forum where disputes pending |
|Income Tax Act, || ||16.24 ||2008-09 ||ITAT |
|1961 ||Income Tax ||60.65 ||2009-10 ||CIT (A) |
|Municipal || || || || |
|Corporationof Great Mumbai (BMC) ||Property Tax ||145.66 ||2000-01 to 2012-13 ||Bombay High Court |
|Mumbai Port || || ||1st Jan.'99 to || |
|Trust ||Municipal Due ||s 103.23 ||31st March' 13 ||City Civil Court |
(x) The Company does not have any accumulated losses at the end of the financial yearand has not incurred any cash losses during the financial year covered by our audit.
(xi) In our opinion and according to the information and explanations given to us, weare of the opinion that the Company has not defaulted in repayment of dues to anyfinancial institution, banks. The Company does not have any outstanding debentures.
(xii) Based on our examination of documents and records and according to theinformation and explanations given to us, the Company has not granted any loans andadvances on the basis of the security by way of pledge of shares, debentures and othersecurities.
(xiii)In our opinion, the Company is not a chit fund or a nidhi/ mutual benefitfund/society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditor'sReport) (Amendment) Order, 2004 are not applicable to the Company.
(xiv)In our opinion and according to the information and explanations given to us, theCompany is not dealing in or trading in shares, securities, debentures and otherinvestments. Accordingly the provisions of clause 4(xiv) of the Companies (Auditor'sReport) (Amendment) Order, 2004 are not applicable to the Company.
(xv) According to the information and explanations given to us, the Company has notgiven any guarantee for loans taken by others from bank or financial institutions.
(xvi) The term loan raised has 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 onshort-term basis have been used for long-term investment.
(xviii)Company has not made any allotment during the year. Hence, clause (xviii) of theCompanies (Auditor's Report) (Amendment) Order, 2004 relating to preferential allotment ofshares to parties under section 301 is not applicable.
(xix) The Company has not issued any debentures during the financial year and thereforethe question of creating security in respect thereof does not arise.
(xx) The Company has not raised money by public issues during the year.
Therefore the provisions of clause 4(xx) of the Companies (Auditor's Report)(Amendment) Order, 2004 are not applicable.
(xxi) Based upon the audit procedures performed and according to the information andexplanations given to us, we report that no fraud on or by the Company has been noticed orreported during the course of our audit.
| ||For K. S. Aiyar & Co. |
| ||Chartered Accountants |
| ||Registration No. 100186W |
| ||Satish K. Kelkar |
|Place : Mumbai ||Partner |
|Date : 13th May,2013 ||Membership No. 38934 |