INDEPENDENT AUDITORS REPORT
The Members
GUJARAT ORGANICS LIMITED
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of GUJARAT ORGANICS LTD
("the Company") which comprise the Balance Sheet as at March 31, 2013, and the
Statements of Profit and Loss and Cash Flow Statement for the year then ended, and a
summary of significant accounting policies and other explanatory Information.
MANAGEMENTS RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
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 sub-section (3C) of
Section 211 of the Companies Act, 1956 ("the Act"). 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.
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 materials misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures on 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. 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 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:
i) In the case of the Balance Sheet, of the state of affairs of the Company as at March
31, 2013
ii) In the case of the Statement of Profit and Loss, of the Profit of the Company for
the year ended on that date; and
iii) In the case of the Cash Flow Statement, of the cash flows for the year ended on
that date.
REPORT ON OTHER LEGAL AD REGULATORY REQUIREMENTS
1. As required by the Companies (Auditors Report) Order, 2003 ("the Order")
issued by the Central Government of India in terms of Sub-section (4A) of Section 227 of
the Act, we give in the Annexure a statement on the matters specified in paragraph 4 and 5
of the 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, Statement of Profit 6 Loss, and Cash Flow Statement dealt with by
this Report are in agreement with the books of account.
d. In our opinion, the Balance Sheet, Statement of Profit & Loss, and Cash Flow
Statement comply with the Accounting Standards referred to in Sub-section (3C) of Section
211 of the Companies Act, 1956;
e. On the basis of written representations received from the directors as on March 31,
2013, and taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2013, from being appointed as a director in terms of clause (g) of
Sub-section (1) of Section 274 of the Companies Act, 1956.
For Deepak Shah ft Co.
Chartered Accountants
(Registration No. 102249W)
D.N.SHAH
Proprietor
Membership No.030566
Mumbai: May 27, 2013
Annexure to Independent Auditors Report
Referred to in Paragraph 1 under the heading of "Report on other Legal ft
Regulatory Requirements" of our Report of even date
On the basis of such checks as we considered appropriate and according to the
information and explanation given to us during the course of our audit, we report that:
1. (a) The Company has maintained proper records to show full particulars including
quantitative details and situation of its fixed assets.
(b) As explained to us, fixed assets have been physically verified by the management at
reasonable intervals; no material discrepancies were noticed on such verification.
(c) In our opinion, the Company has not disposed off a substantial part of its fixed
assets during the year and therefore does not affect the going concern assumption.
2. (a) Inventories have been physically verified during the year by the Management, In
our opinion, the frequency of verification is reasonable.
(b) The procedures of physical verification of stocks followed by the Management are
adequate in relation of the size of the Company and the nature of the business.
(c) The Company is maintaining proper records of Inventory. The discrepancies noticed
on verification between the physical and books were not material and have been properly
dealt with in the books of accounts.
3. (a) According to the information and explanations given to us, and on the basis of
our examination of the books of account, the Company has not granted any loans, secured or
unsecured, to companies, firms or other parties listed in the register maintained under
section 301 of the Companies Act. Consequently, the provisions of clauses iii(b), iii(c)
and iii(d) of paragraph 4 of the Order are not applicable to the Company.
(b) According to the information and explanations given to us and on the basis of our
examination of the books of account, the Company has not taken any loans from companies,
firms or other parties listed in the register maintained under section 301 of the
Companies Act, 1956. Thus, sub-clauses (f) and (g) are not applicable to the Company. The
Company had accepted interest free loan of Rs 16 lacs from the director of the Company, in
the past.
4. In our opinion and according to the information and explanations given to us, there
is an adequate internal control system commensurate with the size of the Company and the
nature of its business, for the purchases of inventories and fixed assets and payment for
expenses and for sale of goods. During the course of our audit, no major instance of
continuing failure to correct any weakness in the internal controls has been noticed.
5. (a) Based on the audit procedures applied by us and according to the information and
explanations provided by the management, the particulars of contracts or arrangements
referred to in Section 301 of the Act have been entered in the register required to be
maintained under that Section.
(b) As per information and explanations given to us and in our opinion, the transaction
entered into by the Company with the parties covered under Section 301 of the Act does not
exceeds five lacs rupees in a financial year therefore requirement of reasonableness of
transactions does not arises.
6. In our opinion and according to the information and explanation given to us by the
management, the Company has complied with the provisions of Section 58A and 58AA of the
Act, and the Companies (Acceptance of Deposits) Rules, 1975.
7. As per information and explanation given by the management, the Company has no
internal audit system commensurate with its size and the nature of its business.
8. As per information and explanation given by the management, maintenance of cost
records has been prescribed by the Central Government under clause (d) of Sub-section (1)
of Section 209 of the Act, and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained.
9. The Company is regular in depositing undisputed statutory dues including Provided
Fund, Employees State Insurance, Income-tax, Sales- tax, Custom Duty, Excise duty, cess
and any other statutory dues with the appropriate authorities.
10. The Company does not have any accumulated loss and has not incurred cash loss
during the financial year covered by our audit and in the immediately preceding financial
year.
11. Based on our audit procedures and on the information and explanations given by the
management, we are of the opinion that, the Company has not defaulted in repayment of dues
to financial institutions and banks.
12. According to the information and explanations given to us, the Company has not
granted loans and advances on the basis of security by way of pledge of shares, debentures
and other securities.
13. The Company is not a chit fund or a nidhi/mutual benefit fund/society. Therefore,
the provisions of clause 4(xiii) of the Order are not applicable to the Company.
14. According to information and explanations given to us, the Company has maintained
proper records of the transactions and contracts of the investments traded in shares,
securities, debentures and other investments and timely entries have been made therein.
All shares, securities, debentures and other 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 guarantees for loans taken by others from banks and financial Institutions.
16. Based on our audit procedures and on the information given by the management we
report that the Company has not raised any term loans during the year.
17. Based on the information and explanations given to us, and on an overall
examination of the Balance Sheet of the Company as at 31st March 2013, we
report that no funds raised on short-term basis have been used for long term investments
by the Company.
18. Based on the audit procedures performed and the information and explanations given
to us by the management, we report that the Company has not made any preferential
allotment of shares to parties and companies covered in the register maintained under
Section 301 of the Act, during the year.
19. According to the records of the Company, and as per the information and
explanations given to us by the management, the Company has no outstanding debentures as
at the year-end. Therefore the question of creating securities/ charges for the same does
not arise.
20. The Company has not raised any money by public issue during the year covered by our
report.
21. According to the records of the Company, and as per the information and
explanations given to us by the management, no fraud on or by the Company has been noticed
or reported during the year, nor have we been informed of such case by the management.
For Deepak Shah & Co.
Chartered Accountants
(Registration No. 102249W)
D.N.SHAH
Proprietor
Membership No.030566
Mumbai: May 27, 2013
+91-9892691696
