|1. We have audited the accompanying financial Statements of AARCON
FACILITIES LIMITED which comprise the Balance Sheet as at 31st March
2014 and the statement of Profit and Loss Account for the year ended,
and a summary of significant accounting policies and other explanatory
Management's Responsibility for The Financial Statements
2. Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance 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.
3. 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.
4. 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.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
6. 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 Profit and Loss Account, of the Loss for the year
ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date
Report on Other Legal and Regulatory Requirements
7. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government of India in terms of subsection (4A) of
section 227 of the Companies Act, 1956, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
8. As required by section 227(3) of The Act, we report that:
a. We have obtained all the information and explanation which to the
best of our knowledge and belief were necessary for the purpose of our
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
c. The Company's Balance Sheet and Profit & Loss Account dealt with by
the report are in agreement with the books of accounts;
d. In our opinion, the Balance Sheet and Statement of Profit & Loss
comply with the Accounting Standards as referred to in the subsection
(3C) of section 211 of the Companies Act, 1956;
e. On the basis of written representations received from the director,
as on 31.03.2014, and taken on record by the Board of Directors, none
of the directors are disqualified as on 31st March 2014 from being
appointed as directors in terms of clause (g) of subsection (1) of
Section 274 of the Companies Act, 1956.
f. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of AARCON FACILITIES LIMITED (Formerly Known as "R.B.
GUPTA FINANCIALS LIMITED") on the accounts of the company for the year
ended 31st March, 2014.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
1. FIXED ASSETS
a) The Company has maintained proper records to show full particulars,
including quantitative details and situation of Fixed Assets on the
basis of available information.
b) All the assets have not been physically verified by the management
during the year but there 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.
c) No material discrepancies were noticed on such verification.
d) In our opinion and according to the information and explanations
given to us, no fixed asset has been disposed during the year and
therefore does not affect the going concern assumption.
a) As explained to us, Inventory have been physically verified during
the year by the management at reasonable intervals.
b) In our opinion & according to the information & explanation given to
us, the procedures of physical verification of inventories followed by
management are reasonable & adequate in relation to the size of the
company & nature of its business.
c) The Company has maintained proper records of Inventory. As explained
to us, there was no material discrepancies noticed on physical
verification of inventories as compared to the book record.
3. In respect of Loans, secured or unsecured, granted or taken by the
company to/from Companies, firms or other parties covered in register
maintained pursuant to Section 301 of the Companies Act, 1956.
a) The company had not taken loan from companies firm or other parties
listed in the register maintained as per section 301 and 370 (IC) of
the Companies Act, 1956.
b] The company has granted loans to parties listed as per section 301
and 370 (IC) of the Companies Act, 1956. There are two parties covered
in the register maintained under section 301 of the Companies Act, 1956
to which the company has granted loans. The maximum amount involved
during the year was Rs. 48 Lakhs and the yearend balance of loans taken
to such parties was Rs. 372.89 Lakhs.
c] The Company does not charge any interest on these advances given nor
does it pay any interest on the advances taken.
d] This amount in the balance sheet are overdue since many years and no
details are available for our verification.
4. In our opinion & according to information & explanation given to
us, there are adequate internal control procedures commensurate with
the size of the company and nature of its business for purchase of
inventory, fixed assets and with regard to sale of goods. During the
course of audit, we have not observed any major weaknesses in internal
5. a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, the
particulars of contracts or arrangements referred to in section 301 of
the Act have been entered in the register required to be maintained
under that section.
b) As per information & explanations given to us and in our opinion,
the transaction entered into by the company with parties covered u/s
301 of the Act does not exceeds five lacs rupees in a financial year
therefore requirement of reasonableness of transactions does not
6. In Our Opinion and according to the information and explanation
given to us, the Company has not accepted deposits from public.
7. In our opinion, the Company has an internal audit system
commensurate with the size of the company and nature of its business.
8. As per information & explanation given by the management,
maintenance of cost records has not been prescribed by the Central
Government under clause (d) of subsection (1) of section 209 of the
9. a) According to the records of the Company, the Company is regular
in depositing with appropriate authorities undisputed statutory dues
including Provident fund, E.S.I., Income tax, Sales tax, Wealth tax,
Custom duty, Excise duty, Cess and other statutory dues applicable to
b) According to the information and explanations given to us, there
were no undisputed amounts payable in respect of Income tax, wealth
tax, customs duty and excise duty outstanding as at the last day of the
financial year concerned for a period of more than six month from the
date they become payable.
10. In our opinion, the accumulated losses of the company are not more
than fifty percent of its net worth. The company has incurred cash
losses during the financial year covered by our audit or in the
immediately preceding financial year.
11. Based on our audit procedures and according to the information and
explanation given to us, we are of the opinion that the company has not
defaulted in repayment of dues to the financial institution, banks or
12. According to the information and explanations given to us, The
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidhi /mutual benefit
fund/society. Therefore, the provision of this clause of the Companies
(Auditor's Report) Order, 2003 (as amended) is not applicable to the
14. According to information and explanations given to us, The Company
is not a dealer or trader in securities.
15. According to information and explanations given to us, The Company
has not given any guarantee for loans taken by others from Bank or
16. The company has not availed any Term Loan during the year.
17. According to the information and explanation given to us and on an
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 by the company.
18. Based on our examination of records and the information provided
to us by management we report that 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
during the year.
19. The Company has not issued any Debentures.
20. The Company has not raised any money by Public Issue during the
21. Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management.
FOR AMIN PARIKH & CO.
CA. SAMIR R. PARIKH
DATED: May 23, 2014