lan eseda industries ltd Auditors report

LAN ESEDA INDUSTRIES LIMITED ANNUAL REPORT 2003-2004 AUDITORS REPORT To The Members, LAN ESEDA INDUSTRIES LIMITED We have audited the attached Balance Sheet of LAN ESEDA INDUSTRIES LIMITED as at 30th June, 2004 and. the related Profit and Loss Account and the Cash Flow statement for the year ended on that date, annexed thereto. 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 2. As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government of India in terms of sub-section 227(4A) of the Companies Act, 1956, we enclose in the Annexure hereto a statement on the matters specified in paragraphs and 5 of the said Order. 3. Further to our comments in the Annexure referred to above, 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 purposes 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) In our Opinion, the Balance Sheet and Profit and Loss Account and Cash Flow statement dealt with by this reported are prepared in compliance with the Accounting Standards referred in sub-section (3C) of Section 211 of the Companies Act, 1956; d) The Balance Sheet, Profit and Lass account and Cash Flow statement dealt with by this report are in agreement with the books of account. e) On the basis of written representations received from the Directors of the company, as on 30th June, 2004 and taken, on record by the Board of Directors we report that none of the Directors are disqualified as on 30th June, 2004 from being appointed as a Director in terms of clause (g) of sub-section (1) Section 274 of the Companies Act, 1956 and f) In our opinion. and to the best of our information and according to the explanations given to us, the said accounts 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: (i) In the case of the Balance Sheet, of the state of affairs of the Company as an June 30, 2004 (ii) In the case of the Profit and Loss Account, of the profit of the Company for the year ended on that date; and (iii) In so far as it relates to the Cash Flow Statement, of the cash flows of the company for the year ended on that date. For Y. K. Tolia & Associates Chartered Accountants Y. K. Tolia Proprietor Place: Mumbai Dated: 16.10.2004 ANNEXURE TO AUDITORS REPORT (Refer paragraph (1) of our report of even date) 1. (a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets on the basis of information available. (b) According to information and explanations given 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 regard the size of the company and nature of the assets. No material discrepancies were notices on such verification. (c) The Company has not disposed off any substantial /major part of Fixed Assets. 2. None of the Fixed Assets have been revalued during the year. 3. The Company has no inventory during the year under audit. 4. The Company has neither granted nor taken any loans, secured or unsecured to/ from Companies, firms or other parties listed in the Register maintained under section 301 of the Companies Act,1956. 5. In our opinion and according to the information & explanations given to us, there are adequate Internal Control procedures commensurate with the size of the Company and nature of its business with regard to purchase of Fixed Assets and for the sale of software. 6. In our opinion and according to the information and explanations given to us there are no transactions during the year exceeding in value Rs.5 lakhs in respect of any party which need to be entered in the Register maintained under section 301 of the Companies Act,1956. 7. In our opinion and according to the information and explanations given to us, the Company has not accepted deposits from the public and therefore, the provisions of Section 58 A and 58AA of the Companies Act,1956 and Rules there under are not applicable to the Company. 8. In our opinion the Company has an internal Audit Systems commensurate with its size and nature of its business. 9. Maintenance of Cost Records under Section 209(1)(d) of the Companies Act,1956 are not applicable to the Company. 10. Provisions relating to Provident Fund & Employees State Insurance are not applicable to the Company. 11. According to the information and explanations given to us, the Company has not granted any loans and advances on the basis of Security by way of pledge of shares, debentures and other securities. 12. The provisions of any Special Statute applicable to a chit fund,nidhi or Mutual fund benefit/societies are rot applicable to the company. 13. The Company is not dealing or trading in shares, securities, debentures and other investments. 14. According to the information and explanation given to us, the Company has not given any guarantee for loans taken by others from banks and financial institutions. 15. To the best of our knowledge and belief and according to the information and explanations given to us no fresh loans has been availed by the Company during the year under audit 16.On the basis of an overall examination of the financial statements of the company there are no funds raised on a short term basis which have been used for long term investments and vice versa. 17.The Company has not made any preferential allotment of shares during the year to any party. 18.The Company has not Issued any debentures during the year. 19. The Company has not raised any money by publicises during the year. 20. To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the year. For Y. K. Tolia & Associates Chartered Accountants Y.K.Tolia Proprietor Place: Mumbai Dated: 16.10.2004