| We have audited the accompanying financial statements of Delta
Industrial Resources Limited ("the Company"), which comprise the
Balance Sheet as at March 31, 2013, the Statement of Profit and Loss
and the 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
The Company's 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 principles generally accepted in India
including Accounting Standards referred to in Section 211(3C) 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.
Auditors' 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 misstatements.
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, but not for the
purpose of expressing an opinion on the effectiveness of the Company's
internal control. An audit also includes evaluating the appropriateness
of the 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.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid 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 31.2013;
b) In the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows of the
Company for the 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"), as amended, issued by the Central Government in terms of
Section 227(4A) 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 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 it appears from our examination of those
books.
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d) In our opinion, the Balance Sheet, the Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
referred to in Section 211 (3C) of the Act.
e) On the basis of the written representations received from the
directors as on March 31, 2013 and taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2013,
from being appointed as a director in terms of Section 274(1)(g) of the
Act.
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF
DELTA INDUSTRIAL RESOURCES LIMITED
(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory
Requirements' section of our report of even date of Delta Industrial
Resources Limited for the year ended 31st March, 2013)
On the basis of such checks we considered appropriate and in terms of
the information and explains given to us. we state that: -
1 Based on our scrutiny of the company's books of account and other
records and according to the information and explanations received by
us from the management, we are of the opinion that the question of
commenting on maintenance of proper records of fixed assets, physical
verification of fixed assets and any substantial sale thereof does not
arise since the company had no fixed assets as on balance sheet nor at
any time during the financial year ended 31st March 2013.
2 As the company has not purchased/ sold goods during the year nor is
there any opening stocks, requirement of reporting on physical
verification of stocks or maintenance of inventory records, in our
opinion, does not arise.
3 The company has neither taken nor granted any loans or advances in
the nature of loans to parties covered in the register maintained under
section 301 of the Companies Act. 1956. Hence the question of reporting
whether the terms and conditions of such loans are prejudicial to the
interests of the company, whether reasonable steps for recovery /
repayment of over dues of such loans are taken does not arise.
4 Having regard to the nature of the company's business and based on
our scrutiny of the company's records, in our opinion and according to
the information and explanations given to us, there are adequate
internal control systems commensurate with the size of the company and
the nature of its business for the purchase and sale of securities.
5 Based on the audit procedures applied by us and the information and
explanations provided by the management, we are of the opinion that
there were no transactions during the year that need to be entered in
the register maintained under section 301 of the Companies Act, 1956
6 The company has not accepted any deposits from the public, hence no
comment is required on the compliance with the directives issued by
Reserve Bank of India and the provisions of Section 58A, 58AA or any
other relevant provisions of the Act and rules made their under.
7 The company does not have an internal audit system.
8. We have been informed by the management, no cost records have been
prescribed under section 209(1 )(d) of the Companies Act 1956 in respect
of prtxluete- manufactured by the company.
9 (a)According to the records of the company, the company is regular in
depositing with appropriate authorities undisputed statutory dues
including provident fund, investor education protection fund,
employees' state insurance, income tax, sales tax, wealth tax, service
tax, custom duty, excise duty, cess and other statutory dues applicable
to it.
(b) According to the information and explanations given, no undisputed
amounts payable in respect of income tax, sales tax, wealth tax,
service tax, custom duty and excise duty were outstanding as at
31.3.2013 for a period of more than six months from the date they
became payable.
(c) According to the records of the company, there are no dues of sales
tax, income tax, customs duty, wealth tax, service tax, excise duty /
cess which have not been deposited on account of any dispute.
10. The accumulated losses of the company have exceeded fifty percent
of its net worth as at 31st March 2013. The company has incurred cash
losses of Rs. 802399/- during the financial year covered by the audit
and cash losses of Rs. 10681/- in the immediately preceding financial
year.
11 Based on our audit procedure and on the information and explanations
given by the management, we are of the opinion that the company has not
defaulted in repayment of dues to a financial institution, bank or
debenture holders.
12 According to the records of the company, the company has not granted
any loans and advances on the basis of security by way of pledge of
shares, debentures or other securities.
13 In our opinion and to the best of our information and according to
the explanations provided by the management, we are of the opinion that
the company is neither a chit fund nor a nidhi / mutual benefit
society. Hence, in our opinion the requirements of para 4 (xiii) of the
order do not apply to the company.
14. In our opinion and according to the information and explanations
given to us, the company is not a dealer or trader in securities. The
company has invested surplus funds in shares of other companies.
According to the information and explanations given to us, proper
records have been maintained of the transaction and contracts and
timely entries have been made therein. The investments have been held
by the company in its own name except to the extent of exemption
granted under section 49 of the Act.
15. According to the records of the company and the information and
explanations provided by the management, the company has not given any
guarantee for loans taken by others from banks or financial
institutions.
16. According to the records of the company, the company has not
obtained any term loans. Hence the comment under the clause are not
called for,
17. According to the information and explanations 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 According to the records of the company and the information and
explanations provided by the management, 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.
19 According to the records of the company, the company has not issued
any debentures.
20. The company has not raised any money by public issues during the
period covered by our audit report.
21 Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the company has been noticed or reported during the course of our
audit.
For Arora & Choudhary Associates
Chartered Accountants*
Firm Registration No. 03870N
CA Vijay Kumar Choudhary
Partner
M.No. 081843
Place: New Delhi
Date: 13 05.2013
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