gazi financial services investments ltd Auditors report

GAZI FINANCIAL SERVICES AND INVESTMENTS LIMITED ANNUAL REPORT 2009-2010 AUDITORS REPORT To, The Members, Gazi Financial Services & Investments Limited, Mumbai. 1. We have audited the attached Balance Sheet of Gazi Financial Services & Investments Limited as at 31st March 2010, and also the Profit and Loss Account and the 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. 2. We conducted our audit in accordance with the auditing standards generally acceptable in India. These 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 the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides reasonable basis for our opinion. 3. As required by the Companies (Auditors Report) Order, 2003 (as amended) issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act 1956 (The Act), we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 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 our knowledge and belief were necessary for the purpose of our audit; (ii) 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;, (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 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 Act; (v) On the basis of the written representations received from the directors as on 31st December 2007 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March 2010, from being appointed as a director in terms of the clause (g) of sub- section (1) of section 274 of the Act; (vi) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read with significant accounting policies and other notes thereon, give the information required by the Act, in the manner so required and give 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 2010; (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 Flow for the year ended on that date. For M.K. Gohel & Associates. Chartered Accountants (FRN 103256W) Mukesh K. Gohel Proprietor M. No. 038823 Place: Mumbai, Date : 29th August, 2010. ANNEXURE TO THE AUDITORS REPORT (Re: Gazi Financial Services & Investments Limited) (REFERRED TO IN PARAGRAPH (3) OF OUR REPORT OF EVEN DATE) In terms of the information given to us and the books of and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state as under: I. (a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. (b) The Fixed Assets have been physically verified by the Management during the year. We have been informed that no material discrepancies were noticed on such physical verification. None of the fixed assets are revalued during the year. (c) No substantial part of fixed assets has been disposed off during the year, which will affect its status as going concern. II. The company does not have any inventories, hence sub clause (a), (b) & (c) are not applicable to the company for the year. III. The company has not granted any loans, whether secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Act, hence sub clause (a),(b), (c) & (d) are not applicable to the company for the year Further the company has not taken any loans, whether secured or unsecured from companies, firms or other parties covered in the register maintained under section 301 of the Act, hence sub clause (e), (I) & (g) are also not applicable to the company for the year. IV. In our opinion and according to the information and explanations given to us, there is adequate internal control system commensurate with the size of the company and the nature of its business with regard to the services rendered by the company. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal controls. V. The company has not entered into any contracts or arrangements, referred to in section 301 of the Act, which needs to be recorded, and hence clause (a) & (b) are not applicable to the company for the year. VI. It has been observed that the company has not accepted any deposits from the public under the provisions of sections 58A and 58AA or any relevant provisions of the Companies Act, 1956 and the Companies (Acceptance and Deposits) Rules, 1975. Since, the company has not accepted any deposits, therefore there are no litigations pending or any order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal against the company. VII. The company does not have an internal audit system commensurate with the nature of business. VIII. In our opinion and according to the information and explanations given to us, Central Government has not prescribed the maintenance of cost records under section 209 (1)(d) of the Act, in case of the Company. IX (a) According the information and explanation 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, Service tax, Custom Duty, Excise Duty, cess and any other material statutory dues with the appropriate authorities, applicable to the company have generally been regularly deposited with the appropriate authorities. There were no arrears, as at 31st March, 2010 for a period of more than six months from the date they became payable. (b) According the information and explanation given to us, there are no dues of, Income-tax/Sales tax/Wealth-tax/Service tax/Custom duty/Excise duty/cess which have not been deposited on account of any dispute. X. The company has accumulated losses at the end of the financial year, which are more than fifty per cent of its net worth, but during the current financial year the company has not incurred cash loss. XI. The company has not borrowed any funds from financial institution or bank or debenture holders. XII. The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities. XIII. In our opinion, the company is not a Chit fund or a Nidhi, Mutual benefit fund/Society. XIV In our opinion, the company is not dealing in or trading in Shares, Securities, Debentures and other investments. XV. The company has not given any guarantee for loans taken by others from bank or financial institutions. XVI. The company has not taken any term loans during the year. XVII. No funds have been raised on short-term basis during the year. XVIII. The company has not made any preferential allotment of shares during the year. XIX The Company has not issued any debentures during the year. XV. The Company has not made any public issue during the year. XVI. Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the information and explanations given to us by the management, we report that no fraud on or by the company was noticed or reported during the year. For M.K. Gohel & Associates Chartered Accountants (FRN 103256W) Mukesh K. Gohel Proprietor M.No. 038823 Place: Mumbai, Date : 29th August, 2010.