Finalysis Credit & Guarantee Company Ltd Auditor Reports

FINALYSIS CREDIT AND GUARANTEE COMPANY LIMITED ANNUAL REPORT 2011-2012 AUDITORS REPORT To, The Members of Finalysis Credit and Guarantee Co. Ltd. We have audited the attached Balance Sheet of Finalysis Credit and Guarantee Co. Ltd. as at 31st March, 2012 and also the Profit and Loss Account and Cash Flow Statement of the Company for the year ended on the date annexed hereto. These financial statements are the responsibility of the Companys managements. Our responsibility is to express an opinion on these financial statements based on our audit. We have conducted our audit in accordance with auditing standards generally accepted in India. Those 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 statement. 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 provide a reasonable basis for our opinion. 1. As required by the companies (Auditors Report) Order,2003 issued by the central Government in terms of sub-section(4A) of section 227 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. 2. Further to our comments in the Annexure referred to in paragraph (2) above, we report that: a) We have obtained all the information and explanation which to the best of our knowledge and belief were necessary for the purpose of our audit. b) In our opinion proper books of accounts as required by law have been kept by the company so far as appears from our examination of such books. c) The Balance sheet and Profit and Loss Account dealt with by the report are in agreement with the books of the company. d) In our opinion, the Balance Sheet and Profit and Loss Account dealt with by this report comply with the mandatory Accounting Standards referred to in sub-section (3C) of section 211 of the companies Act, 1956. Except AS- 15, Accounting for retirement benefits in the financial statements of Employers. e) On the basis of written representations received from all the Directors and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March,2012 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 our opinion and to the best of our information and according to the explanations given to us, they said accounts read together with the significant accounting policies and manner so required and give a true and fair view, in conformity with the accounting principles generally accepted in India; g) In the case of the Balance Sheet of the State of affairs of the Company as at 31st March, 2012 and h) In the case of the profit and loss Account, of the profit of the company for the year ended on that date. i) In the case of the cash flow statement, of the cash flows the year ended on that date. For J H Ghumara & Co CHARTERED ACCOUNTANTS (J H Ghumara) PROPRIETOR M.SHIP NO. 14320 Place: Mumbai Date : 4th September, 2012 ANNEXURE TO THE AUDITORS REPORT (Referred to in Paragraph (1) of our Report of even date to the Members of Finalysis Credit & Guarantee Company Limited as on 31st March, 2012) 1. In respect of Fixed Assets: a. The Company has maintained proper records showing full particulars including quantitative details and situation of Fixed Assets b. As Explained to us, the fixed assets have been physically verified by the management during the year in a phased periodical manner, which in our opinion is reasonable, having regards to the size of the Company and nature of its assets. No material discrepancies were noticed on such physical verification c. No substantial part of the fixed assets has been disposed off during the year, which has bearing on the going concern assumption. 2. In respect of inventories: a. The stock in trade of shares and securities held in the physical format has been physically verified and those held in the dematerialized format have been verified from the relevant statements received from the depositories during the year, by the management. b. In our opinion and according to the information and explanations given to us, the procedure of physical verification of stock of shares and securities followed by the management is reasonable and adequate in relation to the size of the Company and the nature of its business c. In our opinion, the company is maintaining proper records of inventories and no material discrepancies were noticed on physical verification of stock of shares and securities as compare to the book records. 3. The Company has not granted any secured or unsecured loans companies, firms or other parties covered in the register maintained under section 301 of the company Act, 1956. 4. In our opinion and according to information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and nature of its business with regards to purchase of inventory (shares and securities) and fixed assets and for the sale of shares and securities. During the curse of audit, we have not observed any major weakness in internal controls. 5. In respect of contracts and or arrangements and transactions covered under section 301 of companies act 1956: a. According to the information and explanations given to us these contracts or arrangements that needed to be entered into the registered have been so entered. b. In our opinion and according to the information and explanations given to us, these contracts or arrangements have been made at prices which are reasonable having regard to the prevailing market prices at relevant time, wherever no similar transactions were taken place during the year with other parties, we are unable to comment whether the same is on prevailing market price or not. 6. In our opinion and according to the information given to us, the company has not accepted any deposit from public with the meaning of section 58A, 58AA or any other relevant provisions of the companies act 1956. 7. The company have internal audit system which commensurate with its nature and size of business. 8. The company has not prescribed to maintain of cost and records under section 209(1) (d) of the companies act 1956. 9. In respect of Statutory dues: a) The company is generally regular in depositing with appropriate authorities undisputed statutory dues including Income tax, Sales Tax, Wealth Tax, Custom Duty, Cess, Service tax, and other material statutory dues applicable to it No undisputed amounts payable were in arrears as on 31st March 2012 for a period of more than six months from the date they became payable. b) According to the information and explanation given to us and records of the company examined by us there are no disputed amount in respect of various statues which have not been deposited 10. The company does not have accumulated losses at the end of Financial year and has not incurred cash losses in current financial year and immediately preceding financial year 11. In our Opinion and according to information and explanation given to us, loans and advances have been granted by company on the basis of security by way of pledge of shares, debentures and other securities. 12. In our opinion company is not a chit fund, nidhi, Mutual fund or a society. 13. The company has maintained proper records of the transactions and contracts of its trading or dealing in shares, Securities, debentures and other investments and timely entries have been made therein. All the shares, Debentures and other investments have been held by company in its own name except to the extent of exemption granted under section 49 of the companies act 1956 and few shares held in brokers account as confirmed by them 14. On the basis of information and explanation given to us the company has not given any guarantees for Loans taken by other from Banks or financial institutions. 15. The company has not obtained any term Loan during the year. Accordingly Clause 16is not applicable to the company. 16. On the Basis of an Overall examination of balance sheet and cash flow statement of the company no undue raised on short term basis have been used for Long term Investment 17. During the Year covered by our audit report, the company has not issued any secured debentures. 18. As Per the information and explanation given to us, no fraud on or by the company have been noticed or reported during the year. For J H Ghumara & Co CHARTERED ACCOUNTANTS (J H Ghumara) PROPRIETOR M.SHIP NO. 14320 Place: Mumbai Date : 4th September, 2012