brindaban holdings and trading ltd Auditors report

BRINDABAN HOLDINGS AND TRADING LIMITED ANNUAL REPORT 2007-2008 AUDITORS REPORT TO THE SHAREHOLDERS OF BRINDABAN HOLDINGS & TRADING LIMITED. A. We have audited the attached Balance Sheet of BRINDABAN HOLDINGS & TRADING LIMITED, as at 31st March 2008 and also the Profit & Loss Account and Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Companys Management. Our responsibility is to express an opinion on these financial statements based on our audit. B. 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 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 management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. C. Further to our comments in the report referred below, we report that: i) We have obtained all the information rind explanations, which to the best of our knowledge and belief were necessary for the purposes in our audit; ii) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of these books; iii) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account; iv) In our opinion, the said Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with, the accounting standards referred to in sub-section (3C) of Section 211 of the. Companies Act, 1956; v) On the basis of the written representations received from the Directors, as on 31st MARCH, 2008 and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31st MARCH, 2008 from being appointed as a Director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956 ; 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 significant accounting policies and notes forming part thereof thereon, give the information required 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 the Balance Sheet, of the state of affairs of the Company as at 31st March, 2008; b) in the case of the Profit and Loss Account, of the PROFIT for the year ended on that date and c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date. As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government of India in terms of Section 227 (4A) of the Companies Act, 1956, we enclose in the statement herein under on the matters specified in paragraphs 4 and 5 of the said order, we further report on even date that: (a) The Company has maintained proper records to show full particulars including the quantitative details and situation of its fixed assets. (b) According to the information and explanations given to us, the fixed assets of the Company have been physically verified during the year by the management and no material discrepancies between the book records and the physical inventory have been noticed. (c) In our opinion and according to the information and explanations given to us, during the year, the Company has not disposed off substantial part of fixed assets. 2. (a) The inventories of the Company have been physically verified during the year by the management. (b) In our opinion and according to the information and explanations given to us, the procedure of physical verification of inventories followed by the management is reasonable and adequate in relation to the size of the Company and the nature of its business. (c) The Company has maintained proper records of inventories and the, discrepancies between the physical inventories and the book records, which have been properly dealt with in the books of accounts, were not material. 3. (a) The Company has granted/taken loans, secured or unsecured to/ from Companies, firms or other parties covered in the register maintained under Section 301 of the Act except for shareholders and their associates, as per details given here in under: LOANS TAKEN FROM DESIGNATION AMOUNT (RS.) MR. RAJ BAHRI DIRECTOR 50,000/- MR. SAGAR RAJ BAHRI SHAREHOLDER 10,000/- MRS. GEETA N. BAHRI SHAREHOLDER 50,000/- MRS. NEENA BAHRI SHAREHOLDER 50,000/- LOANS GRANTED AMOUNT (RS.) GETNER HOTELS PVT. LTD. 5,97,230/- NEW WELCOME HOTELS PVT. LTD. 11,432/- YOGI RESTAURANT 1,47,711/- SHALIBHADRA TRADERS 3,05,000/- T.R. BAHRI H.U.F. 83,000/- (b) In our opinion, the rate of interest and other terms and conditions of such loans are not prima facie prejudicial to the interest of the Company. (c) In respect of the aforesaid loans, the Company is regular in repaying the principal amounts as stipulated and is also regular in payment of interest, where applicable. The parties are repaying the principal amounts as stipulated and are also regular in payment of interest, where applicable. (d) In respect of the aforesaid loans, there is no overdue amount more than Rupees One Lakh. 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 for purchase of inventories and fixed assets and for the sale of goods. 5. (a) In our opinion the transactions that need to be entered in the register maintained under Section 301 of the Act have been so entered. (b) In our opinion and according to the information and explanations given to us, the aforesaid transactions 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 deposits from the public. 7. In our opinion and according to the information and explanations given to us, the companies present internal audit system is commensurate with its size and nature of its business. 8. The Central Government of India has not prescribed the maintenance of cost records under Section 209(1)(d) of the Companies Act, 1956 for any of the products of the Company 9. (a) According to the books and records as produced and examined by us in accordance with generally accepted auditing practices in India and also based on Management representations, the Company has been generally regular in depositing undisputed statutory dues including Income Tax, Sales Tax, Cess and other material statutory dues with the appropriate authorities in India. (b) At the end or the financial year there were no dues of Income Tax, Sales Tax, Wealth Tax, Customs Duty, Excise Duty, and Cess which have not been deposited on account of any dispute. 10. The Company does not have any accumulated losses at the end of the financial year, nor had it incurred any cash loss during the financial year or in the immediately preceding financial year. 11. According to the records produced and according to the information and explanations given to us, the Company has not defaulted in repayment of its dues to any Financial Institutions or Banks during the year. 12. According to the records produced and according; to the information and explanations given to us, the Company has not granted any loans or advances on the basis of security by way of pledge of shares, debentures and other securities. 13. In our opinion, considering the nature: of activities, carried on by the Company during the year, the provisions of any special statute applicable to chit fund/nidhi/mutual benefit fund/ societies are not applicable to the Company. 14. In our opinion, the Company has not dealt or traded in shares, securities, debentures and other investments during the year. According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from Banks or Financial Institutions during the year. 16. To the best of our knowledge and belief and according to the information and explanations given to us, on the basis of review of utilisation of funds on an overall basis, in our opinion, the term loans taken by the Company were, prima facie, applied by the Company for the purposes for which the loans were obtained. 17. According to the information and explanations given to us and on the basis of review of utilisation of funds on an overall basis, in our opinion, the funds raised on short term basis have not been used for long term investment or vice versa during the year. 18. The Company has not matte 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. During the course of our examination of the books and records of the Company, carried out In accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have not come across any instance of fraud on or by the Company nor have we been informed by the management of any such instance being noticed or reported during the year. PLACE: MUMBAI For DHIRAJLAL DESAI & CO. CHARTERED ACCOUNTANTS. DATED: 01-09-2008. (RAJESH DHIRAJLAL DESAI) PROPRIETOR.