Auditors Report
To the Members of
MADHUR CAPITAL & FINANCE LTD.
Report on the Financial Statements
We have audited the accompanying financial statements of "MADHUR CAPITAL &
FINANCE LTD.", which comprise the Balance Sheet as at March 31, 2013, and the
Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a
summary of significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statement
Management is responsible for the preparation of these financial statements that
give a true and fair view of the financial position, financial performance and cash flows
of the Company in accordance with the Accounting Standards referred to in sub-section (3C)
of section 211 of the Companies Act, 1956. This responsibility includes the design,
implementation and maintenance of internal control relevant to the preparation and
presentation of the financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on these financial statements based on our
audit. We conducted our audit in accordance with the Standards on Auditing issued by the
Institute of Chartered Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditors
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Companys preparation and fair presentation of
the financial statements in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the explanations
given to us, the financial statements give the information required by the Act 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 at March
31, 2013;
b) in the case of the Profit and Loss Account, of the loss for the year ended on that
date; and
c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that
date.
1. 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 Act, we give in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that
a. We have obtained the available 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, the Profit and Loss Account and cash flow statement dealt with by
this report are in agreement with the books of account;
d. In our opinion, the Balance Sheet ,Profit & Loss Account and cash flow statement
dealt with by this report comply with the Accounting Standards referred to in sub-section
3C of Section 211 of the Companies Act, 1956;
Except Accounting Standard -15 on Retirement benefits as no provision has been made for
retirement benefits, The effect of the same can not be quantified, to that extent Profit
for the year and balance of Profit & Loss account and balance of current liabilities
is understated.
e. Accounting Standard -13 on Accounting for investments as no provision is made for
diminution in the value of investment of group concern amounting to Rs. 24.81 lacs.
f. On the basis of written representations received from the directors as at 31 March,
2013 and taken on record by the Board of Directors and in accordance with the information
and explanations as made available, the directors of the company do not have prima - facie
have any disqualification as at 31st 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. It has been explained that one of the Company in which the director of the Company
is also director, has issued Cheques for repayment of the fixed deposits received by it
but due to frizzing of the said bank accounts by CBI BS & FC, Mumbai, the said amount
have not been encashed, therefore it is construed that the said Company has not defaulted
in repayment of interest/principal of fixed deposits.
g. The Bank accounts of the Company was frizzed by the CBI BS & FC, Mumbai in the
financial year 2001-02, therefore no provision has been made for bank balance of Rs.
495.53 lacs, cheques on hand of Rs. 132 lacs which are also time barred under time limit
prescribed under Negotiable Instrument Act, 1881 and for no provision is made for
diminution in the value of investment of group concern amounting to Rs. 24.81 lacs.
h. The Company has not carried out any business activity during the year as non banking
financial company & consequently not entitled to hold certificate of registration in
term of assets/income pattern notified by RBI.
i. Subject to the above ,ln 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 given 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 at 31
March, 2013.
ii In the case of the Profit and Loss Account, of the loss of the Company for the
period ended on that date.
iii In the case of Cash Flow Statement, of the Cash Flow of the Company for the year
ended on that date.
| Date:- 30/05/2013 |
For, Purushottam Khandelwal & Co. |
| Place: - Ahmedabad |
Chartered Accountants |
|
SD/- |
|
(P.H. Khandelwal) |
|
Proprietor |
|
M.No.100601 |
|
FRN: 123825W |
The Annexure referred to in paragraph 1 of the Our Report of even date to the members
of MADHUR CAPITAL & FINANCE LTD. Limited on tha accounts of the company for the
year ended 31st March, 2013.
On the basis of such checks as we considered appropriate and according to the
information and explanation given to us during the course of our audit, we report that:
1. (a) The company has not maintained proper records showing full particulars including
quantitative details and situation of its fixed assets.
(b) As explained to us, fixed assets have been physically verified by the management at
reasonable intervals; no material discrepancies were noticed on such verification. However
the details regarding the same are not available for our verification.
(c) In our opinion and according to the information and explanations given to us, no
fixed asset has been disposed during the year and therefore does not affect the going
concern assumption.
2. (a) As per the information and explanations given to us , the Company does not have
and stock of goods or shares
3. (a) According to the information and explanations given to us and on the basis of
our examination of the books of account, the Company has granted loans, secured or
unsecured, to companies, firms or other parties listed in the register maintained under
Section 301 of the Companies Act, 1956. The Maximum balance outstanding during the year
was Rs 2206.
(b) In our opinion, the rate of interest and other terms and conditions of such loan
are not, prime facie, prejudicial to the interest of the Company.
(c) The company is neither regular in making repayment of the principal amount nor its
interest.
(d) There is no overdue amount of loans granted to the Parties covered in the register
maintained under section 301 of the Companies Act,1956.
(e) According to the information and explanations given to us and on the basis of our
examination of the books of account, the Company has taken Unsecured loans from companies,
firms or other parties listed in the register maintained under Section 301 of the
Companies Act, 1956. The maximum balance outstanding during the year was Rs 1500180
(f) The terms and conditions of the above loans are prima facie not prejudicial to the
interest of the company.
(g) The company is neither regular in making repayment of the principal amount nor its
interest
4. In our opinion and according to the information and explanations given to us, there
is generally an adequate internal control procedure commensurate with the size of the
company and the nature of its business, for the purchase of inventories & fixed assets
and payment for expenses & for sale of goods. During the course of our audit, no major
instance of continuing failure to correct any weaknesses in the internal controls has been
noticed.
5. a) In our opinion and according to the information and explanations given to us,
there is no transaction during the year as referred to in Section 301 of the Companies
Act, 1956.
6. The Company has not accepted any deposits from the public covered under section 58A
and 58AA of the Companies Act, 1956.
7. The Company does not have formal internal Audit system
8. In our opinion and according to the information and explanations given to us, the
central government has not prescribed maintenance of cost records under section 209(1) (d)
of the Companies Act, 1956.
9. (a) According to the records of the company, undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Employees State Insurance,
Income-tax, Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, cess to the
extent applicable and any other statutory dues have generally been regularly deposited
with the appropriate authorities. According to the information and explanations given to
us there were no outstanding statutory dues as on 31st of March, 2013 for a
period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there is no amounts
payable in respect of income tax, wealth tax, service tax, sales tax, customs duty and
excise duty which have not been deposited on account of any disputes.
10. In our opinion and according to the information and explanations given to us, the
company has been registered for a period more than five years and its accumulated losses
at the end of the financial year is not exceeding fifty percent of its net worth however
the company has not incurred cash Loss during the year.
11. Based on our audit procedures and on the information and explanations given by the
management, we are of the opinion that, the Company has not defaulted in repayment of dues
to a financial institution, bank or debenture holders.
12. According to the information and explanations given to us, the Company has not
granted loans and advances on the basis of security by way of pledge of shares, debentures
and other securities.
13. The Company is not a chit fund or a nidhi /mutual benefit fund/society. Therefore,
the provision of this clause of the Companies (Auditors Report) Order, 2003 (as amended)
is not applicable to the Company.
14. According to information and explanations given to us, the Company is not trading
in Shares, Mutual funds & other Investments. Accordingly, the provision of clause
4(xiv) of the companies (Auditors Report) Order, 2003 are not applicable to company.
15. According to the information and explanations given to us, the Company has not
given any guarantees for loan taken by others from a bank or financial institution.
16. Based on our audit procedures and on the information given by the management, we
report that the company has not raised any term loans during the year.
17. Based on the information and explanations given to us and on an overall examination
of the Balance Sheet of the Company as at 31st March, 2013, we report that no
funds raised on short-term basis have been used for long-term investment by the Company.
18. Based on the audit procedures performed and the information and explanations given
to us by the management, we report that the Company has not made any preferential
allotment of shares during the year.
19. The Company has no outstanding debentures during the period under audit.
20. The Company has not raised any money by public issue during the year.
21. Based on the audit procedures performed and the information and explanations given
to us, we report that no fraud on or by the Company has been noticed or reported during
the year, nor have we been informed of such case by the management.
| Date:-30/05/2013 |
For, Purushottam Khandelwal & Co. |
| Place: - Ahmedabad |
Chartered Accountants |
|
SD/- |
|
(P.H. Khandelwal) |
|
Proprietor |
|
M.No.100601 |
|
FRN; 123825W |
+91-9892691696
