| We have audited the accompanying financial statements of AJEL LIMITED
("the company"), which comprise the Balance Sheet as at March 31,2014,
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.
Management's Responsibility for the Financial Statements
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 ("the Act"). 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.
Auditor's 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 auditor's 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
Company's 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.
The financial statements of branch of the company located in the USA,
is audited by M/s. Sid Kumar & Associates LLC. Hence we have relied on
the financial statements as submitted by them. The total assets of the
branch are Rs. 400.85 lakhs and total revenues are 830.84 lakhs for
the year ended on 31st March 2014.
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 31,2014;
b. in the case of the Statement of
ProfitandProfit,of thelossfortheyearendedonthat date; and
c. in the case of the Cash Flow Statement, of the cash flows for year
ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report} Order, 2003 ("the
Order") 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 the section 227(3) of the Act, 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, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in sub-section (3C) of section 211 of the Companies Act,1956;
e. on the basis of written representations received from the directors
as on March 31,2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31,2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO INDEPENDENT AUDITOR'S REPORT
Referred to in paragraph (1) under heading of report on other legal
and regulatory requirements
1. a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets on the basis of available information.
(b) As explained to us all the assets have been physically verified by
the management during the year on is a regular programme of
verification which, in our opinion, is reasonable having regard to the
size of the company and the nature of its assets. No material
discrepancies were noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, the company has not made any substantial disposal of
fixed assets during the year and the going concern status of the
company is not affected.
2. According to the information and explanation given to us during the
year the company does not carry any inventory and the paragraph
4(iii)(a) and (b) of CARO is not applicable.
3. in respect of the 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.
During the year the Company has neither granted nor taken any loans,
secured or unsecured to companies, firms or other parties covered in
the register maintained under section 301 of the Act consequently
clause(iii)(b) to (iii)(d) of paragraph 4 of CARO are not applicable.
4. In our opinion and according to the information and given to us the
company has an adequate internal control system commensurate with the
size and nature of its business, for sale of goods and services during
the course of our audit, we have not observed any failure to correct
major weakness in internal control system.
5. In respect of the contracts or arrangements referred to in section
301 of the companies act, 1956.
According to information and explanations given to us the company does
not make any transactions in pursuance of contracts / arrangements
that need to be entered in the registrar maintained U/s. 301 of the
Companies Act, 1956.
6. According to the information and explanations given to us the
Company has not accepted any fixed deposits from public during the
year in respect of which section 58A, 58AA or any other relevant
provisions of the Companies Act, 1956 are applicable, therefore
provisions of clause 4(vi) of the CARO not applicable to the company..
7. According to the information and explanations given to us the
company has an in house Internal Audit System commensurate with the
size and nature of its business.
8. According to the information and explanations given to us and in
our opinion Paragraph 4(viii) of CARO is not applicable to the company
for the year.
9. According to the books and records as produced and examined by us
in accordance accepted auditing practices in India and also based on
Management with generally representations, undisputed statutory dues
in respect of Provident Fund, Income Tax, Sales Tax, Wealth Tax,
Service Tax, and any other material statutory dues have generally been
regularly deposited, by the Company during the year with the
appropriate authorities in India except the following.
10. The company does not have accumulated losses. The company has not
incurred cash losses during the financial year covered by our audit
and in 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
bank. Further in our opinion and according to the information and
explanations given to us, the company did not have any amount
outstanding to financial institutions or debenture holders.
12. The Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. In our opinion, considering the nature of activities carried on
the Company during the year, the provisions of any special statute
applicable to chit fund / nidhi / mutual benefit fund /societies are
not applicable to it.
14. The Company has not dealt or traded in shares, securities,
debentures and other investments during the year.
15. The Company has not given any guarantees for loan taken by others
from bank or financial institutions during the year and also there are
no such outstanding guarantees as on 31st March 2014
16. According to the information and explanations given to us, The
company has not raised any term loans.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, in our
opinion funds raised on Short Term based have, prima facie, not been
used for long term based investments.
18. The Company has not made any preferential allotment of shares to
parties and Companies covered in the register maintained under section
301 of the Act during the year.
19. The Company has not issued any debentures and hence creation of
necessary security or charge does not arise.
20. The Company has not raised any money by public issue during the
year.
21. As per the information and explanations given to us and on the
basis of examination of records, no fraud on or by the Company was
noticed or reported during the year.
BOPPUDI & ASSOCIATES
Chartered Accountants
Sd/-
B. APPA RAO
Partner
Place: Hyderabad M.No. 028341
Date: 29.05.2014 Firm Reg. No. 00502S |