unique estates development co ltd Auditors report

UNIQUE ESTATES DEVELOPMENT COMPANY LIMITED ANNUAL REPORT 2003-2004 AUDITORS REPORT To, The members of Unique Estates Development Co. Ltd. I have audited the attached Balance Sheet of Unique Estates Development Co. Ltd. for the year ended 31st March, 2004, and the Profit & Loss Account for the year ended on that date annexed thereto, both of which I have signed under reference to this report. These financial statements are the responsibility of the companys management. My responsibility is to express an opinion on these financial statements based on my audit! 2. I have conducted audit in accordance with auditing standards generally accepted in India. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of any material misstatement. An audit includes examining, on 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. I believe that my audit provides a reasonable basis for my opinion. 3. As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companys Act, 1956, I enclose in the Annexure, a statement on the matters specified in paragraphs 4 & 5 of the order. 4. Further to my comments in the Annexure referred to in paragraph 3 above, I state that :- (a) I have obtained all the information and explanations which, to the best of my knowledge and belief were necessary for the purpose of my audit. (b) In my opinion, the Company has kept proper books of Accounts as required by law, so far, as appears from my examination of these books. (c) The Balance sheet and the Profit & Loss Account & cash flow statement dealt with by this report are in agreement with the Books of Accounts. (d) In my opinion, the Balance Sheet and the Profit & Loss Account & cash flow statement dealt with by this report, have been prepare in compliance with the Accounting Standards referred to in sub-section (3C) of section 211 the Companies Act 1956. (e) On the opinion of written representations received fro the directors, as on 31st March 2004 and taken on record by the Board of Directors, I report that none of the directors is disqualified as on 31st March 2004 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956. (f) In my opinion and to the best of my information and according to the explanations given to me, the said Balance Sheet and the Profit & Loss Account read together 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: a) in the case of the Balance Sheet, of the state of affairs of the Company as on 31st March, 2004 and b) in the case of the Profit & Loss Account, of the profit of the company for the year ended on that date. c) in the case of the cash flow statement, of the cash flows for the ended on that date. For K. N. Gandhi & Co. (Chartered Accountants) (K.N. Gandhi) Proprietor Membership No. F-8261 Place: Mumbai Date : 3 SEP 2004 Annexure to Auditors Report Re: Unique Instates Development Co. Ltd. Referred to in paragraph 3 of my report of even date As required by the Companies (Auditors Report) Order, 2003 and according to the information and explanations given to me during the course of the audit and on the basis of such checks as I considered appropriate, I report that: (i) (a) The Company has maintained proper records showing full particulars including quantitative and situation of fixed assets. (b) The fixed assets have been physically verified by the management & no material discrepancies was noticed by the management. (c) The company has not disposed off substantial part of its assets during the year. (ii) (a) The inventory has been physically verified during the year by the management. (b) In my opinion & according to the information & explanations given to me, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business. (c) The Company has maintained proper records of inventories. As explained to me, there were no material discrepancies noticed. on physical verification of inventory as compared to the book records. (iii) (a,b,c) The Company has not taken or granted any loan from or to any company, firm or other party covered in the register maintained under section 301 of the companies Act, 1956. (iv) The company has adequate internal control procedure commensurate with the size of the company & nature of its business for purchase of inventory, fixed assets and sale of goods. During the course of the audit, I have not observed any major weaknesses in internal controls. (v) (a) In my opinion and according to the information and explanations given to me, transaction that need to be entered in the Register in pursuance of section 301 of the Companies Act, 1956 have been so entered. (b) In my opinion and according to the information and explanations given to me, the transactions in pursuance of contracts or arrangements entered in the register maintained under Section 301 of the Companies Act, 1956 aggregating during the year to Rs. 5,00,000/- (Rupees Five Lacs only) or more in respect of each of the parties have been made at prices which are reasonable having regard to the prevailing market prices at relevant time. (vi) The Company has accepted deposits from the public. In my opinion and according to the information and explanations given to me, the directives issued by the Reserve Bank of India & the provisions of Section 58A & 58AA of the Act and the rules framed there under have been compiled with by the company. (vii) In my opinion & according to the information & explanation given to me, the company has an internal audit system commensurate with its size and nature of its business. (viii) According to the information & explanation given to me, the Central Government has not prescribed maintenance of cost records under Sec. 209 (i) (d) of the Companies Act, 1956. (ix) (a) Since the company has no Employees the statutory dues regarding Provident Fund and Employees State Insurance Scheme do not apply. The company is regular in depositing with appropriate authorities undisputed statutory dues including income tax, sales tax, wealth tax custom duty, excise duty, cess and, other material statutory dues applicable to it. (b) According to the information and explanation given to me, the company has no disputed dues of sales tax, income tax custom duty , wealth tax , excise duty, cess tax etc. (x) The company does not have accumulated losses. Also the company has not incurred any cash losses during the financial year as well as in the immediately preceding the financial year. (xi) Based on the examination of the records & information & explanations given to me, the company has not defaulted in repayment of dues to financial Institutions or Banks. (xii) Based on the examination of the records & information & explanations given to me, the company has not granted any loans or advances on the basis of security by way of pledge of shares, debentures & other securities. (xiii) Clause 4 (xiii) of the Order is not applicable to the company, as the company is not a Chit Fund company or Nidhi, Mutual benefit funds/society. (xiv) The Company is not dealing or trading in shares, debentures & other securities. In respect of investment in shares, the shares are ,held by the company in the own name. (xv) According to the information and explanation given to me, the company has not given guarantee for loans taken by others from banks and financial Institutions. (xvi) According to the information & explanations given to me, the term loans have been used for the purpose for which they were raised. (xvii) According to the information and explanations given to me and on an overall examination of the balance sheet of the company, report that the no finds raised on short-term basis have been used for long-term investment. No long term funds have been used to finance short-term assets except permanent working capital. (xviii) The company has not made any preferential allotment of shares. (xix) The company has not issued debentures during the year. (xx) The company has not raised any money by way of Public issues during the year. (xxi) On the basis of my examinations and according to the information and explanations given to me, no fraud on or by the company has been noticed or reported during the year. For K. N. Gandhi & Co. (Chartered Accountants) (K.N.Gandhi) Proprietor Membership No. F-8261 Place : Mumbai Date : 3 SEP 2004