linkson international ltd share price Auditors report

Auditor

To,

The Members of,

LINKSON INTERNATIONAL LIMITED.

1. We have audited the attached Balance Sheet of LINKSON INTERNATIONAL LIMITED as at 31st March, 2013, and also the Profit and Loss Account 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.

2. 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 from material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosure 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 issued by the Central Government of India 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 & 5 of the said Order.

4. 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 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 it appears from our examination of such books.

c) The Balance Sheet and Profit & Loss Account dealt with by this report are in agreement with the books of account.

d) In our opinion, the Balance Sheet, Profit & Loss Account dealt with by this report comply with the accounting standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956.

e) On the basis of written representation received from the Directors, as on 31st March, 2013 and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31^st March, 2013 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, the said accounts 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:

i) In so far as it relates to the Balance Sheet of the state of affairs of the Company as at 31st March, 2013, and

ii) In so far as it relates to the Profit and Loss Account, of the profit for the year ended on that date.

For V.V. Saranjame & Associates

Chartered Accountants

CA V.V. Saranjame)

Partner

Membership No. 33584

Firm Registration No. 109255W

PLACE: Mumbai

DATE: 30/05/2013.

ANNEXURE REFERRED TO IN PARAGRAPH 3 of AUDITORS REPORT TO THE MEMBERS OF LINKSON INTERNATIONAL LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH, 2013:

(i) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(b) The fixed assets of the Company are physically verified by the management during the year in a phased periodical manner designed to cover all the items over a period of two years, which is in our opinion is reasonable, having regard to the size of the company and nature of the assets. No material discrepancies were noticed during such verification performed during the year.

(c) In our opinion and according to the information and explanations given to us, no substantial parts of the Fixed Assets of the company have been disposed off during the year.

(ii) (a) The inventory has been physically verified by the management during the year at reasonable intervals.

(b) In our opinion, 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 is maintaining proper records of inventory. There were no material discrepancies noted on physical verification of inventories as compared to the book records.

(iii) (a) During the current financial year, the company has taken unsecured loans aggregating to Rs.15.06 Crores from parties (Directors & relatives of directors), which are the parties covered in the register maintained under section 301 of the Companies Act, 1956. Company has repaid the amount Rs.14.65 Crores during the Financial Year.

(b) The rate of interest and other terms and conditions of loans given or taken by the company, secured or unsecured, are prima facie not prejudicial to the interest of the company.

(c) As far as the payment of the principal & interest is concerned, no fixed schedule of the same has been decided and the same is paid as per mutual understanding.

(iv) In our opinion and according to the information and explanation given to us, there are adequate Internal Control Procedures commensurate with the size of the company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods and there is no continuing failure to correct major weakness in the internal control.

(v) (a) In our opinion and according to the information and explanation given to us, we are of the opinion that the transactions that needed to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.

(b) In our opinion and according, to the information and explanation 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 and exceeding the value of rupees five lacs in respect of each party during the year have been made at prices which are reasonable.

(vi) In our opinion and according to the information and explanation given to us, the company has not accepted deposits under the provision of Section 58A and 58AA of the Companies Act, 1956, except for unsecured loans from outsiders, which is repaid on a regular basis.

(vii) In our opinion, the company has an internal audit system commensurate with the size and nature of its business.

(viii) The Central Government of India has not prescribed the maintenance of cost records under Section 209(1)(d) of the Companies Act, 1956.

(ix)(a) The company is regular in depositing with appropriate authorities undisputed statutory dues wherever applicable. There are no dues, in our opinion, in respect of Income tax, Wealth tax, sales tax, vat, custom duty, excise duty and cess that have not been deposited on account of any dispute as per the information and explanation provided to us by the management of the company.

(b) There is no dispute pending on any forum in case of statutory dues like sales tax, VAT, income tax/customs tax etc.

(x) The company does not have accumulated losses at the end of the financial year nor has it incurred any cash losses during the year.

(xi) According to the information and explanations given to us, the Company has not defaulted in repayment of dues to a financial institution or a bank or debenture holders.

(xii) According to 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 and other securities.

(xiii) The company is not a Chit Fund, or a Nidhi/Mutual benefit Fund/society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditors Report) Order 2003 are not applicable to the Company.

(xiv) The company is not dealing in or trading in shares, securities debentures and other investments and accordingly the provisions of clause 4(xiv) of the Companies (Auditors Report) Order 2003 is not applicable to the Company.

(xv) The Company has not given any guarantee for loans taken by others from Bank or financial institutions.

(xvi) As the Company has not raised any fresh term loan during the financial year, the requirement as para 4(xvi) of the said order is not applicable.

(xvii) According to the information and explanations given to us and on an overall examination of the balance sheet of the company, we find that no funds raised on short term basis have been used for the long term investment.

(xviii) The company has not made preferential allotment of shares to parties and companies covered in the Register maintained under section 301 and hence para 4 (xviii) of the order is not applicable.

(xix) As the Company has not issued any debentures during the year, para 4 (xix) of the order is not applicable.

(xx) The company has not raised any money by way of public issues during the year under our audit.

(xxi) On the basis of our examination 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 V.V. Saranjame & Associates

Chartered Accountants

CA V.V. Saranjame)

Partner

Membership No.33584

Firm Registration No.109255W

PLACE: Mumbai

DATE: 30/05/2013.