parekh distributors ltd Auditors report

PAREKH DISTRIBUTORS LIMITED ANNUAL REPORT 2010-2011 AUDITORS REPORT TO THE MEMBERS We have audited the attached Balance Sheet of PAREKH DISTRIBUTORS LIMITED as at 31st March, 2011, the annexed Profit and Loss Account and also the Cash Flow Statement for the year ended on that date. 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. 1. We conducted our audit in accordance with the Auditing Standards generally accepted in India. These Standards require that we plan and perform the audit to obtain reasonable assurance whether the financial statements are free from any 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 presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. 2. As required by the Companies (Auditors Report) Order, 2003 and the Companies (Auditors Report) (Amendment) Order, 2004 issued by the Central Government in terms of Section 227(4A) of the Companies Act, 1956, we annex hereto a statement on the matters specified in paragraphs 4 and 5 of the said Order. 3. 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 purposes 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 the books of the Company; (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 of the Company; (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 subsection (3C) of Section 211 of the Companies Act, 1956; (v) Based on the representations made by the Directors and taken on record by the Board of Directors of the Company and the information and explanations given to us, none of the Directors is, as at 31st March, 2011, prima-facie disqualified from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956; (vi) Attention is invited to disclosures made under Note no.7 in Schedule 9 to the Accounts, relating to the accumulated losses of the Company exceeding the net worth of the Company;* (vii) In our opinion and to the best of our information and according to the explanations given to us, the said financial statements and the notes thereon, along with our comments in clause vi above, give the information required by the Companies Act, 1956, in the manner so required and present 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, 2011; (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. For and on behalf of DOSHI DOSHI AND ASSOCIATES FIRM REGISTRATION NO. 121773W CHARTERED ACCOUNTANTS HARSHAD DOSHI PARTNER MEMBERSHIP NO.: F-8099 Mumbai, 30th May, 2011 ANNEXURE REFERRED TO IN PARAGRAPH 2 OF OUR AUDITORS REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011 OF PAREKH DISTRIBUTERS LIMITED As required by the Companies (Auditors Report) Order, 2003 On the basis of such checks as we considered appropriate and in terms of the information and explanations given to us, we state that:- (i) The Company does not have any Fixed Assets. Accordingly the provisions of clause 4(i) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company; (ii) As explained to us, the Company did not have any inventory during the year. Accordingly the provisions of clause 4(ii) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company; (iii) According to the information and explanations given to us, the Company has not given / received any secured or unsecured loans to Companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956; (iv) In our opinion and according to the information and explanations given to us, there are generally adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchase of inventory and fixed assets arid sale of properties and services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control; (v) (a) On the basis of the audit procedures performed by us, and according to the information, explanations and representations made to us, we are of the opinion that, the transactions, if any, in which directors were interested as contemplated under Section 297 and Section 299 of the Companies Act, 1956 and which were required to be entered in the register maintained under Section 301 of the said Act, have been so entered; (b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under Section 301 of the Companies Act, 1956 exceeding the value of Rupees five lac in respect of any party during the year, have been made at prices which are reasonable having regard to market prices prevailing at that time; (vi) The Company has not accepted any deposits from the public during the year; (vii) The Company has no formal internal audit department as such. However, its control procedures ensure reasonable internal checking of its financial and other records; (viii) We are informed that the Central Government has not prescribed the maintenance of cost records u/s 209(l)(d) of the Act; (ix)(a) According to the records of the Company, it has been generally regular in depositing, wherever applicable, undisputed statutory dues including Investor Education and Protection Fund, Income Tax, Value Added Tax, Wealth Tax, Service Tax,, Custom Duty, Cess and other statutory dues with the appropriate authorities. However, there were no amounts outstanding at the last day of the financial year for a period exceeding six months from the date they became payable. There were no dues during the year towards Employees State Insurance and Excise Duty; (b) On the basis of our examination .of documents and records of the Company, there were no disputed dues in respect of Income Tax, Value Added Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty or Cess; (x) The accumulated losses of the Company, at the end of the year, exceed its total net worth. The Company has incurred cash loss during the year and also in the immediately preceding financial year; (xi) On the basis of records examined by us and the information and explanations given to us, the Company has not accepted any dues or loans from any financial institution or banks or issued debentures; (xii) On the basis of the records examined by us and 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 or any other securities; (xiii) The Company is not a chit fund or a nidhi / mutual benefit fund / society. Therefor the provisions of clause 4(xiii) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company; (xiv) According to the information and explanations given to us, the Company is not dealing in or trading in shares, securities, debentures and other investments. Therefore, the provisions of clause 4(xiv) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company; (xv) According to the information and explanations given to us, and the representations made by the management, the Company has not given any guarantee for loans taken by others from banks or financial institutions; (xvi) On the basis of the records examined by us, we have to state that, the Company has not taken any term loans; (xvii) According to the information and explanations given to us and on an overall examination of the financial statements of the Company, and after placing reliance on the reasonable assumptions made by the Company for classification of usage of funds we are of the opinion that, prima facie, short term funds have not been used for long term purposes; (xviii) The Company has not made any preferential allotment of shares to parties or Companies covered in the register maintained under section 301 of the Companies Act, 1956; (xix) On the basis of the records examined by us, we have to state that, the Company has not issued any debentures; (xx) The Company has not raised any monies through a public issue during the year; (xxi) According to the information and explanations given to us, and to the best of our knowledge and belief, no fraud on or by the Company, has been noticed or reported by the Company during the year. The other clauses, (iii) (b), (iii) (c), (iii) (d), (iii) (e), (iii) (f), and (iii) (g) of paragraph 4 of the Order, are not applicable in the case of the Company for the year, since in our opinion there is no matter which arises to be reported in the aforesaid Order. For and on behalf of DOSHI DOSHI AND ASSOCIATES FIRM REGISTRATION NO. 121773W CHARTERED ACCOUNTANTS HARSHAD DOSHI PARTNER MEMBERSHIP NO.: F-8099 Mumbai, 30th May, 2011