Zuari Forex Ltd Merged Auditor Reports

ZUARI FOREX LIMITEDT (FORMERLY ZUARI FINANCE LIMITED) ANNUAL REPORT 2009-2010 AUDITORS REPORT To, THE MEMBERS OF ZUARI FOREX LIMITED [Formerly ZUARI FINANCE LIMITED] We have audited the attached Balance Sheet of Zuari Forex Limited as at 30th June 2010 and also the annexed Profit and Loss Account of the Company for the year ended on that date. 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 have conducted our audit in accordance with the auditing standards generally accepted in India. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from any material mis-statement. 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 presentation of the financial statements. 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 Section 227(4A) of the Companies Act, 1956, we enclose in the annexure, a statement on the matters specified in Para 4 and 5 of the said Order to the extent applicable. 3. Further to our comments in the Annexure referred to in above paragraph, 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 accounts as required by law have been kept by the Company, so far as appears from our examination of such books and proper returns adequate for the purpose of our audit. c. The Balance Sheet, Profit and Loss Account and the Cash Flow Statement dealt with by this report are in agreement with the books of account of the Company. d. In our opinion, Balance Sheet, Profit and Loss Account and the 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 to the extent applicable. e. In our opinion and based on the representations made by the Directors of the Company, none of the Director is prima facie disqualified as on 30th June, 2010 from being appointed as 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 a true and fair view in conformity with the accounting principles generally accepted in India: i) In the case of Balance Sheet, of the State of Affairs of the Company as 30th June, 2010,and; ii) In the case of Profit and Loss Account, of the Profit of the Company for the year ended on that date and; iii) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date. For SHATTER & CO. Chartered Accountants Daulal H. Bhatter Proprietor M.No.16937 FRN : 131092W Place: Mumbai Date : 29th August, 2010 ANNEXURE TO THE AUDITORS REPORT (Referred to in paragraph 1 of our report of even date attached) 1. (a) The Company has maintained proper records to show full particulars including quantitative details and situation of fixed assets. (b) As per the information and explanations given to us, physical verification of the fixed assets has been carried out in terms of a phased programme of verification of its fixed assets adopted by the Company. In our opinion, the frequency of verification is reasonable having regard to the size of the Company and the nature of its assets. To the best of our knowledge, no material discrepancies have been noticed on such verification. (c) During the year the Company has not disposed off any substantial/major part of fixed assets. 2. (a) As per the information furnished, the inventories have been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable. (b) In our opinion and according to the information and explanations given to us, 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. In our opinion no material discrepancies have been noticed on physical verification of stocks as compared to book records. 3. (a) As per the information furnished, the Company has not granted or taken any loans, secured or unsecured to or from companies, firms or other parties covered in the register maintained under section 301 of the Act. (b) As the Company has not granted or taken any loans, secured or unsecured to/from companies, firms or other parties covered in the register maintained under section 301 of the companies Act, 1956, the clauses (iii)(b), (c), (d),(e), (f) and (g) of the order are not applicable. 4. 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 with regard to purchases of inventories, fixed assets and with regard to sale of goods and services. During the course of our audit, no major weakness has been noticed in the internal control systems. 5. (a) Based on the audit procedures applied by us and according to the information and explanations given to us, we are of the opinion that the particulars of the contracts or arrangements referred to and in pursuance of section 301. of the Companies Act, 1956 have been so entered. (b) In our opinion and according to the information and explanations given to us, the transactions entered in the register maintained in pursuance of section 301 of the Companies Act, 1956, have been made at prices which are reasonable having regard to prevailing market prices at the relevant time. 6. The Company has not accepted any deposits from the public within the meaning of the provisions of section 58A and section 58AA or any other relevant provisions of the Companies Act, 1956 and rules framed there under. Hence the clause 6 of the Order is not applicable. 7. The Company did not have an internal audit during the year. 8. As per our information, the Company is not required to maintain cost records prescribed by the Central Government under Section 209(1 )(d) of the Companies Act, 1956. 9. (a) In our opinion and according to the information and explanations given to us, the statutory dues payable by the Company comprise of Provident Fund, Investor Education Protection Fund, Employees State Insurance, Income Tax, Wealth Tax. The Company is regular in depositing the aforesaid undisputed statutory dues with the appropriate authorities. There are no undisputed statutory dues as referred to above as at June 30, 2010, outstanding for a period of more than six months from the date they become payable. (b) According to the records of the Company and information and explanations given to us, there are no dues in respect of income-tax, wealth tax, customs duty and cess which have not been deposited on account of any dispute. 10. The Company does not have any accumulated losses. The Company has not incurred cash losses during the financial year covered by our audit and the immediately preceding financial year. 11. In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to financial institutions and banks. 12. According to the information and explanation 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. Therefore, the provisions of clause 4(xii) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company. 13. In our opinion, 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 is not applicable to the Company. 14. In our opinion, the Company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Companies (Auditors Report) Order, 2003 is not applicable to the Company. 15. According to the information and explanation given to us, in our opinion, the terms and conditions on which the Company has given guarantees for loans taken by others from banks or financial institutions are not prima facie prejudicial to the interest of the Company. 16. According to the information and explanations given to us, the term loans raised during the year have been applied for the purpose for which they were raised. 17. According to the information and explanations given to us and on overall examination of the balance sheet of the company, we report that no funds raised on short term basis have been used for long term investment and vice versa. 18. According to the information and explanations given to us , the Company has not made preferential allotment of shares to Parties and Companies covered in the register maintained under section 301 of the Companies Act, 1956. 19. According to the information and explanation given to us, no debentures have been issued during the year. 20. During the period covered by our audit report, the Company has not raised any money by public issues. 21. 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 course of our audit. For SHATTER & CO. Chartered Accountants Daulal H. Shatter Proprietor M.No.16937 FRN : 131092W Place: Mumbai Date : 29th August, 2010