Independent Auditors Report
To the Members of Elder Projects Limited
Report on the Financial Statements
We have audited the accompanying statements of ELDER PROJECTS LIMITED ("the
Company") which comprises the Balance Sheet as at 30th June, 2013, the
Statement of Profit and Loss Account and the cash flow statement of the Company for the
period ended on that date and a summary of the significant explanatory information.
Management’s Responsibility for the Financial Statements
The company’s Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position, financial performance
and cash flows of the Company in accordance with the Accounting Standards referred to in
Section 211(3C) of the Companies Act, 1956 (‘the Act’) 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.
Auditor’s 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
auditor’s 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 Company’s 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 company’s 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.
Opinion
In our opinion and to the best of our information and according to the explanations
given to us, the said financial statements give the information required by the Act, in
the manner so required and give a true and fair view in conformity with accounting
principles generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the Company as at 30th
June 2013:
(b) In the case of the Statement of Profit and Loss, of the Profit of the Company for
the period on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows of the Company for the
period ended on that date.
Emphasis of Matter
The Company has not made any provision for non moving inventories having book value of
Rs. 33.38 Lacs. Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors’ Report) Order, 2003 (‘the said
order’) issued by the Central\ Government in terms of Section 227(4A) of the Act, we
give the Annexure, a statement on the matters specified in Paragraphs 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 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, the Statement of Profit and Loss and the Cash Flow Statement
dealt with by this Report are in agreement with the books of account;
(d) In our opinion, the Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement comply with the Accounting Standards referred to in sub-section (3C) of
Section 211 of the Act; and
(e) On the basis of written representations received from the directors as on 30th June
2013, and taken on record by the Board of Directors, none of the directors is disqualified
as on 30th June 2013, from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Act.
For Jayesh Sutaria Associates
Chartered Accountants
Firm Regn. No.: 104187W
(Jayesh Sutaria)
Proprietor
M.No. 39696
Place : Mumbai
Date : 29th August 2013
ANNEXURE TO THE AUDITORS’ REPORT
(Referred to in paragraph 2 of our report of even date)
1. (a) The Company has maintained proper records showing full particulars including
quantitative details and situation of fixed assets.
(b) The fixed assets are physically verified by the management in a phased manner which
in our opinion is reasonable having regard to the size of the Company and the nature of
its assets. No material discrepancies were noticed on such verification.
(c) The Company has not disposed of a substantial part of fixed assets during the
period and accordingly going concern is not affected. However the Company has sold its
restaurant business on slump sale basis during the period.
2 (a) As explained to us, physical verification of the inventory was carried out at
reasonable intervals by the management.
(b) In our opinion and according to the information and explanations given to us, the
procedures of physical verification of inventory followed by the management are reasonable
and adequate in relation the size of the Company and nature of its business.
(c) In our opinion and according to the information and explanations given to us, the
Company has maintained proper records of its inventory, and the discrepancies noticed on
physical verification of inventory as compared to book records were not material and have
been properly dealt with in the books of account.
3 (a) The Company has granted loans and/ or advances to persons covered in the register
maintained under Section 301 of the Companies Act 1956. The maximum balance during the
period and the amount outstanding at the end of the period was Rs. 466.20 lacs.
(b) In our opinion the rate of interest and other terms and conditions on which the
loan was granted to the Company listed in the register maintained under section 301 of the
Companies Act, 1956 are not, prima facie, prejudicial to the interest of the Company.
(c) The Company has recovered the principal amount and interest thereon regularly
wherever stipulated.
(d) However the amounts given to the said parties on current account has not been
considered as loans and/ or advances and therefore not considered by us for the purpose of
reporting under this clause.
(e) According to the information and explanations given to us, the Company has not
taken loans from the parties listed in the register maintained under section 301 of the
Companies Act, 1956.
4) In our opinion and according to the information and explanations given to us, the
Company has adequate internal control procedures commensurate with the size of the Company
and the nature of its business for the purchase of inventory and fixed assets and for sale
of goods. Further, based on our examination and according to the information and
explanations given to us, we have not noted any continuing failure to correct major
weakness in internal controls.
5) a) According to the information and explanations given to us, we are of the opinion
that the transactions that need to be entered into the register maintained under section
301 of the Companies Act, 1956 have been so entered.
b) In our opinion and according to the information and explanations given to us, the
transactions made in pursuance of the contracts or agreements entered in the register
maintained under section 301 of the Companies Act, 1956 and exceeding the value of Rs. 5
Lakhs in respect of any party during the period have been made at prices which are
reasonable, having regard to the prevailing market price at the relevant time.
6) The Company has not accepted any deposits from public to which directives issued by
Reserve Bank of India and the provisions of sections 58A and 58AA of the Companies Act,
1956 and Rules made there under are applicable.
7) In our opinion the Company has an internal audit system commensurate with the size
and the nature of its business.
8) We have been informed that the Central Government has not prescribed maintenance of
Cost Records under Section 209(1)(d) of the Companies Act, 1956 in respect of
Company’s activities.
9) a) According to the information and explanations given to us, the Company is regular
in depositing undisputed statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Customs
Duty, Excise Duty, Cess and other statutory dues with the appropriate authorities during
the period. However there were delays in payment of tax deducted at source and
employees’ professional tax.
b) According to the information and explanations given to us, no undisputed amounts
payable in respect of Income Tax, Sales Tax, Customs Duty, Excise Duty were outstanding as
at 30th June, 2013 for a period of more than 6 months from the date they became
payable except the following.
| Name of the Statute |
Forum where dispute is pending |
Amount (Lacs) |
| 1 Central Excise |
Appellate Authorities |
10.34 |
10) According to information and explanations given to us, the Company has accumulated
losses at the end of the financial period, which does not exceed fifty percent of its
networth. The Company has also incurred Cash Losses during the period.
11) On the basis of our examination and according to the information and explanations
given to us, the Company has defaulted in repayment of dues to a financial institution.
The Company has not obtained any borrowings by way of debentures.
| Name of the Institution |
Amount (Rs.) |
Remarks |
| SICOM LTD |
Rs. 9,86,95,880/- |
Principle amount Remaining unpaid |
| SICOM LTD |
Rs. 41,20,817/- |
Interest on Loan remaining unpaid |
12) As the Company has not granted any loans or advances on the basis of security by
way of pledge of shares, debentures and other securities, clause (xii) of the said order
is not applicable.
13) The Company is engaged in manufacturing activity, and therefore, the provisions of
clause (xiii) of the said order relating to chit fund or nidhi / mutual fund / society are
not applicable to the Company.
14) In respect of Company’s investment, proper records have been maintained of
transactions and contracts and timely entries have been made. The investments have been
held by the Company in its own name.
15) 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.
16) The Company has not taken any term loan during the period. Accordingly, clause
(xvi) of the said order is not applicable.
17) According to the Cash Flow Statement and other records examined by us and according
to information and explanations given to us and on an overall examination of the Balance
Sheet of the Company, we report that the funds raised on short term basis have, prima
facie not been used during the period for long term investments.
No long term funds have been used to finance short term assets except for permanent
working capital and / or temporary deployment pending application.
18) The Company has not made any preferential allotment of shares or issued debentures
or made any public issue during the period, and accordingly, clauses (xviii), (xix) and
(xx) of the said order are not applicable to the Company.
19) To the best of our knowledge and belief, and according to the information and
explanations given to us, there have been no cases of fraud on or by the Company noticed
or reported during the period.
For Jayesh Sutaria Associates
Chartered Accountants
Firm Regn. No.: 104187W
(Jayesh Sutaria)
Proprietor
M.No. 39696
Place : Mumbai
Date : 29th August 2013
+91-9892691696
