proto developers technologies ltd Auditors report

Auditor

To,

The Shareholders,

PROTO DEVELOPERS & TECHNOLOGIES LIMITED.

KANPUR.

1. We have audited the attached Balance Sheet of M/s PROTO DEVELOPERS & TECHNOLOGIES LIMITED (The Company), as at 31st March, 2013, and also the Statement of Profit and Loss and the Cash Flow Account for the year ended on that date, annexed thereto (collectively referred as the financial statements). 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 of material misstatement. An audit includes examining, on a 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. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors Report) Order, 2003 (the order) (as amended) issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956 of India (the Act), and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we enclose in the Annexure a statement on the matters specified in paragraphs 4 & 5 of the said order to the extent applicable to the company.

4. Further to our comments in the Annexure referred to in paragraph 3 above, we report that:

i) We have obtained all the information & explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit;

ii) 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 those books;

iii) The financial statements dealt with by this report are in agreement with the books of accounts;

iv) On the basis of written representations received from the directors and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2013 from being appointed as director in terms of clause (g) of sub-section (1) of section 274 of the Act;

v) In our opinion and to the best of our information and according to the explanations given to us, the financial statements dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Act and give the information required by the Act, in the manner so required and give a true and fair view in the conformity with the accounting principles generally accepted in India, in the case of;

a) The Balance Sheet, of the state of affairs of the company as at 31st March, 2013

b) The statement of Profit & Loss, of the profit for the year ended on that date; and

c) The cash flow statement of the cash flows for the year ended on that date.

For M.K. SACHDEVA & ASSOCIATES

Chartered Accountants

(MANOJ SACHDEVA)

Proprietor

Firm Registration No: 023644N

Membership No.: 085586

Place : NEW DELHI

Date: 10.05.2013.

ANNEXURE TO AUDITORS REPORT OF EVEN DATE TO THE MEMBERS OF PROTO DEVELOPERS AND TECHNOLOGIES LIMITED ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2013:

Based on the audit procedures performed for the purpose of reporting a true and fair view on the financial statements of the Company and taking into consideration the information and explanations given to us and the books of account and other records examined by us in the normal course of audit, we report that:

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

(b) All the assets have been physically verified by the management during the year. No material discrepancies were noticed on such verification as compared to the book records. In our opinion frequency of verification is reasonable.

(c) In our opinion, a substantial part of fixed assets has not been disposed of during the year.

(ii) (a) The inventory has been physically verified by the management during the year. In our opinion, the frequency of physical verification is reasonable.

(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 and no material discrepancies were noticed on physical verification.

(iii) (a) The company has not taken any loan from companies, firm or other parties covered in the register maintained under section 301 of the Companies Act, 1956. There are no parties covered in the register maintained under section 301 of the Companies Act, 1956 to which the company has granted loans.

(b) In our opinion, the rate of interest and other terms and conditions on which loans have been given to parties listed in the register maintained under section 301 of the Companies Act, 1956 are not, prima facie, prejudicial to the interest of the company.

(iv) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business for the purchases of inventory, fixed assets and with regard to the sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal controls.

(v) (a) In our opinion, the particulars of all contracts or arrangements that need to be entered into the register maintained under section 301 of the Act have been so entered.

(b) Owing to the unique and specialized nature of the items involved and in the absence of any comparable prices, we are unable to comment as to whether the transactions made in pursuance of such contracts or arrangements have been made at prevailing market prices at the relevant time.

(vi). The company has not accepted any deposit from the public within the meaning of sections 58A and 58AA of the Act and the Companies (Acceptance of Deposits) Rules, 1975. Accordingly, the provisions of clause 4 (vi) of the order are not applicable.

(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 clause (d) of sub section (1) of section 209 of the Act of any product of the company.

(ix) (a) In our opinion the company is generally regular in depositing with appropriate authorities undisputed statutory dues applicable to it.

(b) As per information and explanations given to us there is no undisputed amounts payable in respect thereof were outstanding at the year end for a period of more than six months from date they became payable.

(x) In our opinion, the company has no accumulated losses at the end of the financial year and it has not incurred cash losses in the current and the immediately preceding financial year.

(xi) The company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. Accordingly, the provision of clause 4(xii) of the order are not applicable.

(xii) The company is not a chit fund or a Nidhi/Mutual Benefit Fund/Society. Accordingly the provisions of clause 4 (xiii) of the Order are not applicable.

(xiii) The company is not dealing or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Order are not applicable.

(xiv) As per information and explanation given to us in our opinion, the company has not given guarantees for loans taken by others from banks or financial institutions. Accordingly, the provision of clause 4 (xv) of the Order are not applicable.

(xv) The company has not applied for any term loans for any purpose during the year.

(xvi) In our opinion, no funds raised on short-term basis have been used for long-term investment.

(xvii) During the year, the company has not made any preferential allotment of shares to parties or companies covered in the register maintained under section 301 of the Act. Accordingly, the provision of clause 4 (xviii) of the order are not applicable.

(xviii) During the year covered by our audit report, the company has not issued any debentures.

(xix). The company has not raised any money by public issues during the year. Accordingly, the provision of clause 4 (xx) of the Order are not applicable.

(xix) According to the information and explanation given to us, no fraud on or by the company has been noticed or reported during the period covered by our audit.

For M.K. SACHDEVA & ASSOCIATES

Chartered Accountants

(MANOJ SACHDEVA)

Proprietor

Firm Registration No: 023644N

Membership No.: 085586

Place : NEW DELHI

Date : 10.05.2013.