| I have audited the attached Balance Sheet of M/s. WELLNESS NONI LIMITED
as on 31st March, 2012 and Profit and loss account for the year ended
as on that date, both signed by me under reference to this report.
These financial statements are the responsibility of the Management of
the Company. My responsibility is to express an opinion on these
financial statements based on my Audit. I have conducted the Audit in
accordance with auditing standards generally accepted in India. Those
standards require that I 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 functional
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. I believe that
my audit provides a reasonable basis for my opinion.
A. As required by the Company (Auditor's Report) Order, 2003 issued by
the Government of India in terms of section 227 (4A) of the Companies
Act, 1956, and on the basis of such checks as I considered appropriate
and according to the information and explanations given to me during
the course of Audit, I enclosed in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said order.
B. Further, to my comments in the annexure referred to in the
paragraph 'A' above, I report that,
1) I have obtained all the information and explanations, which to the
best of my knowledge and belief were necessary for the purpose of my
Audit.
2) In my opinion, the company has kept proper books of account as
required by law so far as appears from my examination of those books.
3) The balance Sheet and Profit And Loss Account dealt by this report
are in agreement with the Books of Account.
4) In my opinion, the Profit and Loss Account and the Balance Sheet of
the company comply with the Mandatory accounting standards referred to
in Sub-Section (3C) of Section 211 of the Companies Act, 1956,
5) Based on the representations made by the Directors of the Company
and taken on record by the Board of Directors I report that, directors
of the company do not prima facie have any disqualification as referred
to in clause (g) of sub-section (1) to Section 274 of the Act,
6) In my opinion and to the best of my information and according to the
explanations given to me, the aforesaid Balance Sheet and Profit and
Loss Account read with the statement on significant Accounting policies
and notes to the Accounts, give the information as 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 the case of Balance sheet, of the state of affairs of the company
as at 31st March, 2012 and
ii) In the case of the profit and loss account, the Profit for the year
ended on that date.
ANNEXURE TO THE AUDITOR'S REPORT
(Referred to the paragraph 1 of the Auditor's report of even date)
1. In respect of Fixed Assets
a) The Company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets.
b) As informed to me, the fixed assets have been physically verified by
the Management at reasonable intervals and no material discrepancies
have been noticed on such verification.
c) No substantial part of the fixed assets has been disposed off during
the year.
2. In respect of the inventories:
a) As explained to me inventories have been physically verified by the
management at regular intervals during the year.
b) In my opinion and according to the information and explanations
given to me procedures of physical verification of inventories followed
by management are reasonable and adequate in relation to the size of
the company and the nature of its business.
c) The Company has maintained proper records of inventories. As
explained to me, there was no material discrepancies noticed on
physical verification of inventory as compared to the book records.
3. In respect of loans, secured or unsecured granted or taken by the
company to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956;The
Company has not availed loans from companies /firms falls u/s 301 of
the Companies Act 1956 and since no report required to be given.
4. In my opinion and to the information and explanations given to me,
there are adequate internal control procedures commensurate with the
nature and size of the company and the nature of its business for the
purchase of inventory, fixed assets and also for the sale of goods.
5. In respect of transaction covered under section 301 of the
Companies Act, 1956;
a) In my opinion and according to the information and explanations
given to me, the transactions made in pursuance of contracts or
arrangements, that needed to be entered in the register maintained
under section 301 of the Companies Act, 1956 have been so entered.
b) In my opinion and according to the information and explanations
given to me the transaction 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 Rs. 5 Lakhs.
Transaction with related party concern M/S NONI BIOTECH PRIVATE LIMITED
sales made Rs. 39,57,322.61/- during the year.
6. The Company has not accepted any deposits from the public.
7. In my opinion, the internal audit system of the Company is
commensurate with its size and nature of its business.
8. According to the information and explanations given to me, the
Central Government has not prescribed the maintenance of cost records
under section 209(1) (d) of the Companies Act, 1956.
9. In respect of statutory dues:
According to the records of the Company, undisputed statutory dues
including provident fund, Employees State Insurance, Income Tax, Sales
Tax, Wealth Tax, Customs Duty. Cess and other statutory dues have been
regularly deposited with the appropriate authorities. According to the
information and explanations given to me, no undisputed amounts payable
in respect of the aforesaid dues were outstanding as at 31st March
2013, for a period of more than six months from the date of becoming
payable.
10. The Company has an early year's loss of Rs.1,27,16,579.71 and the
same is decided by the Board to treat as Intangible assets in the
Balance sheet. More over the losses are not eligible to carry forward
and set off in the future earnings. The Company earned profit during
the year.
11. Based on our audit procedures and according to the information and
explanations given to me, we are of the opinion that the company has
not defaulted in repayment of dues to financial institutions and banks.
12. In my opinion and according to the information and explanation
given to me, no loans and advance have been granted by the company on
the basis of security by way of pledge of shares, debentures and other
securities.
13. The Company has not raised any term loan during the year.
14. According to the information and explanations given to me and on
an overall examination of the balance sheet of the Company, in my
opinion, considering the nature of its business and activity being
carried on short term funds have not been utilized for long term
purposes and vice-versa.
15. During the year, the company has not made any preferential
allotment of shares to parties and companies covered in the Register
maintained under section 301 of the Companies Act, 1956.
16. The Company has not raised any money by way of public issue during
the year.
17. In my opinion and according to the information and explanations
given to me, no fraud on or by the company has been notice or reported
during the year, that causes the financial statements to be materially
misstated.
Sd/-
PLACE: CHENNAI - 34 B. BALASUBRAMANIAN
DATE: 31.05.2014 CHARTERED ACCOUNTANT |