1. We have audited the attached Balance Sheet of Surya Funcity Limited
as at 31st March, 2011, the related Profit & Loss Account and Cash Flow
Statement for the year ended on that date annual thereto. These
financial statements are the responsibility of the Company's
management Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with 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 disclosure in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statements presentation. We believe that our audit provides a
reasonable basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003, (as
amended) issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of 'The Companies Act 1956' 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 give in the Annexure a statement on the
matters specified in paragraphs 4 and 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 appears from our examination of those
books.
c) The Balance Sheet Profit & 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 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) On the basis of written representations received from the directors
as on 31st March, 2011 and taken on record by the Board of Directors,
we report that none of the directors is, prima facie, disqualified as
on 31st March, 2011 from being appointed as a director in terms of
clause (g) of sub-section (1) of Section 274 of the Companies Act,
1956.
f) Attention is invited to the following notes of Schedule 'L'
Note no. B.6 regarding non-provision of depreciation on certain assets
(hot put to use).
g) In our opinion and to the best of our information and according to
the explanations given to us the said accounts, read with notes thereon
and schedules annexed thereto and give the information required by the
Companies Act, 19S6 in the manner so required and give a true and fair
view in conformity with die accounting principles generally accepted in
India.
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011.
ii) in the case of the Profit & Loss Account, of the profit for the
year ended on that date.
iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITOR'S REPORT
(Referred to in paragraph 3 of our report of even date on accounts of
Surya Funeity Limited for the year ended 31st March, 2011).
1. In respect of its Fixed Assets :
a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
b) The Company has a phased programme of physical verification of its
fixed assets which, in our opinion, is reasonable having regard to the
size of die Company and the nature of its assets. In accordance with
such programme, the management has physically verified its fixed assets
during die year and no material discrepancies were noticed on such
verification.
c) The Company has not disposed off any of its fixed assets, during the
year, thus there is no effect on the going concern status of the
Compaay.
2. The Company is not engaged in any manufacturing/trading activities;
accordingly clauses (2-a) to (2-c) in respect of inventories are not
applicable and have, therefore, not been commented upon.
3. a) The Company has not granted any loans, secured or unsecured to
firms/other parties covered in the register maintained under Section
301 of the Companies Act, 1956; however, the Company, has given
interest free advance (T8,669,900/-) to a Company, keeping in view the
long term involvement and business interest; the terms & conditions of
the said advance rating opt determined, prima-facie, not prejudicial
to the interest of the Company. a
b) In our opinion and according to the information and explanations
given to us, the Company has not taken any loans, secured or unsecured
from Companies/firms/other parties covered in the register maintained
under Section 301 of die Companies Act, 1956.
4. In our opinion and according to the information and explanations
given to us, there are ' internal control system commensurate with the
size of the Company and the nature of its business with regard to
purchases of fixed assets and with regard to sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in the internal control
system.
5. According to the information and explanations provided by the
management, the particulars 0f contracts or arrangements that need to
be entered in the register maintained under Section 301 of the
Companies Act, 1956 have been so entered and there are no transactions
that need to be entered into the register maintained under Section 301
of the Companies Act, 1956, hence para (5-b) of the Order is not
applicable.
6. According to the information & explanations given to us, the
Company has not accepted deposits from the public within the provisions
of Sections 58A and 58AA of the Companies Act, 1956 and the Companies
(Acceptance of Deposits) Rules, 1975.
7. The Company has an internal audit system, the scope and coverage of
which, in our opinion, is required to be enlarged to be commensurate
with the size and the nature of its business.
8. According to the information & explanations given to us, no cost
records have been prescribed by the Central Government under Section
209(1 )(d) of the Companies Act, 1956 to be maintained by the Company.
9. In respect of its Statutory dues :
a) According to the information & explanations given and records
produced before us, the Company is generally regular in depositing with
appropriate authorities undisputed statutory dues including Employees
State Insurance, Provident Fund, Sales-Tax, Wealth-Tax, Income- Tax and
other material statutory dues, as applicable, with the appropriate
authorities.
The following undisputed amount was outstanding at the year end for a
period of more than six months from the date it became payable.
PARTICULARS AMOUNT
(Rs.in lacs)
Excise & Taxation Department, Punjab
Entertainment Tax /
(for earlier years) 7.41
b) According to the records of the company there are no statutory dues
that remained unpaid as at 31st March,2011 on account of any dispute.
10. The Company does not have any accumulate losses as at 31st March
2011 and has incurred any cash losses during the financial year ended
on that date or the immediately preceding financial year.
11. According to the information & explanations given to us and on the
basis of verification of records, the company has not defaulted of dues
to the banks. The Company during the year has not taken any loan from
financial Institution.
12. According to the information & explanations given to us the
Company has not granted loans and advance on the basis of security by
way of pledge of shares, debentures or other securities.
13. According to the information & explanations given to us the
provisions of any special statute applicable to chit fund/ nidhi/mutual
benefit fund /societies are not applicable to the company.
14. According to the information & explanations given to us, the
Company is not dealing or trading in share, securities, debentures and
other investments; accordingly the provisions of clause 4(xiv) of the
order are not applicable to the Company.
15. According to the information & explanations given to us the company
has not given guarantee for loans taken by others from banks or
financial institutions.
16. According to the information and explanations given to us, term
loans taken during the year, have been allied for the purpose for which
the loans were obtained.
17. According to the information & explanations given to us on an
overall examination of the Balance sheet of the company as at 31st
March 2011, we report that no significant fund raised on short-term
basis have, prima-facie, been used for long-term investment by the
Company.
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the registered maintained under
section 301 of the companies act 1956, during the year.
19. The company has not issued any debentures.
20. The Company has not raised any money by public issue during the
year.
21. Based on the information & explanations furnished by the
management, which have been relied upon by us, we report that no case
of fraud on or by the company has been noticed or reported during the
year under audit.
For VASUDEVA & ASSOCIATES
CHARERED ACCOUNTANTS
12th August,2011 (NITI M. LATAWA)
Place: Chandigarh PARTNER |