carina finvest ltd Auditors report

INDEPENDENT AUDITORS REPORT

TO THE MEMBERS OF THE PIONEER MAGNESIA WORKS LIMITED

1. Report on Financial Statements

We have audited the accompanying financial statements of The Pioneer Magnesia Works Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2014, and the Statement of Profit and Loss for the year then ended, and a summary of significant accounting policies and other explanatory information.

2. Managements Responsibility for the Financial Statements

The Companys Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position and financial performance of the Company in accordance with the Accounting Standards notified under the Companies Act, 1956 ("the Act") read with General Circular 15/2013 dated 13^th September 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013 and in accordance with the accounting principles generally accepted in India. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

3. Auditors Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Companys preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entitys internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

4. Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act 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 March 31, 2014;

b) In the case of the Statement of Profit and Loss, of the profit for the year ended on that date.

5. Report on Other Legal and Regulatory Requirements

Further to our comments above, we report as follows:

1. As required by the Companies (Auditors Report) Order, 2003 ("the Order"), issued by the Central Government of India in terms of subsection (4A) of Section 227 of the Act, we give in the Annexure, a statement on the matters specified in paragraphs 4 and 5 of the said order, to the extent applicable.

2. As required by the section 227(3) of the Act, we report that:

a) We have obtained all the information and explanations which to the best of our knowledge 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 the Company so far as appears from our examination of those books;

c) The Balance Sheet and the Statement of Profit and Loss dealt with by this Report are in agreement with the books of account;

d) In our opinion, the Balance Sheet and the Statement of Profit and Loss dealt with by this Report comply with the Accounting Standards notified under the Companies Act, 1956 ("the Act") read with General Circular 15/2013 dated 13^th September 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013;

e) On the basis of written representations received from the directors as on March 31, 2014, taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2014 from being appointed as a director in terms of Section 274 (1) (g) of the Companies Act, 1956.

	For Patel & Deodhar
	Chartered Accountants
	Firm Registration No.: 107644W
	V M Deodhar
	Partner
	Membership No.: 011559
Place : Mumbai
Date : 20th June, 2014

Annexure to the Independent Auditors Report to The Members of The Pioneer Magnesia Works Limited

(Referred to in paragraph 5(1) of our report of even date)

1. in our opinion and according to the information and explanations given to us, the nature of the Companys business/activities during the year are such that clauses 4 (viii), 4 (xii), 4 (xiii), 4 (xiv), 4 (xv), 4 (xvi), 4 (xviii), 4 (xix), 4 (xx) of the said order are not applicable to the Company.

2. (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(b) Fixed assets have been physically verified by the management according to the regular programme of periodical verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of the assets. According to the information and explanation given to us, no material discrepancies were noticed ,on such verification.

(c) The fixed assets disposed off during the year, in our opinion, do not constitute a substantial part of the fixed assets of the Company and such disposal has, in our opinion, not affected the going concern status of the Company.

3. (a) Physical verification of stocks of finished goods, stores, spares and raw materials was conducted by the management during the period and in our opinion the frequency of verification was reasonable.

(b) The procedures of physical verification of stocks followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) In our opinion and according to the information and explanations given to us, Company has maintained proper records of its inventory and no material discrepancies have been noticed on physical verification of stocks as compared to book records.

4. The Company has neither granted nor taken any loans, secured or unsecured to/from companies, firms or other parties covered under section 301 of the Companies Act, 1956. Accordingly clauses 4 (iii) (a) to (g) of the order are not applicable.

5. 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 the purchase of stores, raw materials including components, plant and machinery, equipment and other assets and for the sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in interna! control.

6. According to the information and explanations given to us, we are of the opinion that there are no transactions that need to be entered into a register in pursuance of section 301 of the Companies Act,. Accordingly part V(b) is not applicable.

7. The Company has not accepted Fixed Deposit during the financial year. Therefore, the provisions of clause 4(vi) of the Order are not applicable to the Company.

8. The Company is in the process of setting up internal audit system.

9. According to the information and explanations given to us in respect of statutory dues, the Company is generally regular in depositing undisputed statutory dues, including provident fund, income tax, sales tax, excise duty and any other statutory dues with the appropriate authorities during the year. No comment on disputed liabilities if any as required.

10. The Company does not have any accumulated losses at the end of the financial year. The company has not incurred cash loss during the current financial year and in the immediately preceding 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 or a bank during the year under audit.

12. According to the information and explanations given to us and on an overall examination of the balance sheet of the company, we report that prima facie no funds raised on short term basis have been used for long term investments.

13. To the best of our knowledge and belief, and according to the information and explanation given to us, no fraud on or by the company was noticed or reported during the year.

	For Patel & Deodhar
	Chartered Accountants
	Firm Registration No.: 107644W
	V M Deodhar
	Partner
	Membership No.: 011559
Place : Mumbai
Date : 20th June, 2014