sheetal bio agro tech ltd Auditors report

SHEETAL BIO-AGRO TECH LIMITED ANNUAL REPORT 2010-2011 AUDITORS REPORT 1) We have Audited the attached Balance Sheet of Sheetal Bio-Agro Tech Limited, as at 31st March 2011 and also the annexed Profit & Loss Account of the company for the year ended on that date and 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. 2) We conducted our audit in accordance with generally accepted auditing standards 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 management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3) As required by the Companies (Auditors Report) Order, 2003 (CARO) issued by the Central Government in terms of Section 227 (4A) of the Companies Act, 1956, 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 in paragraph 3 above. 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 Profit & Loss Account and cash flow statement dealt with this report are in agreement with the books of account. d) In our opinion, the Balance Sheet and Profit & Loss Account and cash flow statement dealt with this report comply with the Accounting Standards referred to in Section (3C) of section 211 of The Companies Act, 1956. e) On the basis of written representations from the directors, as on March 31, 2011, and taken on records by the Board of Directors, We report that none of the directors is disqualified as on March 31, 2011 from being appointed as a director in terms of section 274 (1) (g) of The Companies Act, 1956. f) In our opinion and to the best of our information and according to the explanation given to us, the Account subject to and read with the notes thereon give the information required by The Companies Act, 1956 in The manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: 1. In the case of the Balance Sheet of the states of affairs, of the company as at 31st March, 2011. 2. In the case of Profit & Loss Account of the Loss for the year ended on that date; 3. In the case of the cash flow statement, of the cash flows of the company for the year ended on that date. FOR PRAFUL N. SHAH 8. CO., Chartered Accountants (P.N. SHAH) Proprietor Membership No.:- 15591 Place: Ahmedabad Date : April 28, 2011 Annexure referred to in our report of even date (i) Since there are no trading/manufacturing activities during the year, clauses (v9), (x), (xii), (xiii), (xiv), (xv), (xviii), (xix) and (xx) of CARO are not applicable. (ii) The Company has neither granted not taken any loans. Secured or Unsecured, to / from Companies, firms or other parties listed in the Registered maintained Under Section 301 of the Companies Act, 1956. (iii) In our opinion and according to the information and explanations given to us, the matter of adequate internal control procedures commensurate with the size of the company and the nature of its business for the purchase of inventory for the sale of goods etc. is not applicable for the year under audit, as this year, no such purchase have been made. (iv) In our opinion and according to the information and explanations given to us, there are no transaction made in pursuance of contract or arrangements that need to be entered in to the register in pursuance of Section 301 of the Companies Act, 1956. (v) The Company has not accepted any deposits from the public in the current year within the meaning of Section 58AA of the Act, 1956 and the rules framed there under. (vi) The company has no internal audit system. (vii) The central government has not prescribed maintenance of the cost record under section 209(1) of the companies act, 1956 (viii)(a) According to the information and explanation given to us the rules of provident fund, E.S.I.C. etc. are not applicable to the company. (ix) According to the information and explanations given to us in respect of statutory dues: i. The matter of depositing statutory dues, such as Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and any other material statutory dues is not applicable to the company. ii. There were no undisputed amounts payable in respect of Income-tax Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues in arrears as at March 31, 2011 for a period more than six months from the date they became payable, except Income Tax of Rs.6,00000/- for the year ended on 31st Mach 2009 and Rs. 52,000/- for the year ended on 31st Mach 2010. (x)(c) The fees payable to the ROC Office in respect of increase in Authorised Share Capital from Rs. 14,00,00,000/- to Rs. 47,00,00,000/-, in last year is also yet not paid, for which the provision is also not made in the accounts. (xi) The company has incurred cash loss of Rs. 9,69,235/- during year ended on March 31, 2011 (P.Y.Nil ) However, the company do not have any accumulated loss at the end of the financial year ended on 31-3-2011. (xii) According to the records of the company examined by us and the information and explanation given to us, the company has not borrowed any money from financial institution or bank or debenture holders during the year. (xiii) The company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities. Accordingly clause (xii) pf Para 4 of the Companies (Auditor Report) Order 2004 is not applicable to the company for the current year. (xiv) In our opinion, and according to the information and explanation given to us, the provisions of any special statute applicable to chit fund / nidhi / mutual benefit fund / societies are not applicable to the company. Accordingly clause (xiii) of Para 4 of the Companies (Auditors Report) Order. 2004 is not applicable to the company for the current year. (xv) In our opinion, the company is not a dealer or trader in shares, securities, debentures and other investments. Accordingly clause (xiv) of Para 4 of the Companies (Auditors Report) Order. 2004 not applicable to the company for the current year. (xvi) In our opinion, and 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 during the year. Accordingly clause (xv) of Para 4 of the Companies (Auditors Report) Order. 2003 is not applicable to the company for the current year. (xvii) Based on our examinations of the records and information and explanations given to us during the year no term loan with repayment period beyond 36 months has been obtained. (xviii) On the basis of an overall examination of the balance sheet of the company, in our opinion and according to the information and explanation given to us, there are no funds raised on a short-term investment, and vice versa. (xix) The company has not made any preference allotment of equity shares during the year. (xx) The Company has not issued any debentures, the matter as per clause (xix) of Para 4 of the Companies (Auditors Report) Order. 2004 is not applicable to the company for the year. (xxi) The company has not raised any money by public issue during the year. Accordingly clause of Para 4 of the Companies (Auditors Report) Order. 2004 is not applicable to the company for the current year. (xxii) During the course of our examination of the books and records of the Company carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, no fraud (i.e. intentional material misstatements resulting from fraudulent financial reporting and misappropriation of assets) on or by the Company has been noticed or reported during the year by the Company. FOR PRAFUL N. SHAH 8. CO., Chartered Accountants (P.N. SHAH) Proprietor Membership No.:- 15591 Place: Ahmedabad Date : April 28, 2011