AUDITORS
To,
The Member of SHARP INDUSTRIES LIMITED
We have audited the attached Balance Sheet of SHARP INDUSTRIES LIMITED as on 30th
June, 2013, the Statement of Profit and Loss Account and the Cash Flow Statement for the 9
months period ended on that date, both annexed 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.
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 disclosures
in the financial statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the overall
financial statements presentation. We believe that our audit provides a reasonable basis
for our opinion.
1. As required by the Companies (Auditor’s Report) Order, 2003 issued by the
Central Government of India in terms of the Section 227(4A) of the Companies Act, 1956, on
the basis of books and records examined by us in the normal course of Audit and on the
basis of such test checks as we considered appropriate and according to the information
and explanations given to us, we enclose in the Annexure a statement on the matters
specified in paragraphs 4 & 5 of the said order.
2. Further to our comments in the Annexure referred to in paragraph 1 above, 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 purposes 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, the Profit & Loss Account and the Cash Flow Statement dealt
with this report are in agreement with the books of accounts.
(d) In our opinion, the Balance Sheet, the Profit & Loss Account and the Cash Flow
Statement, read with significant accounting policy and notes on accounts, comply with the
Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956, to the
extent applicable.
(e) On the basis of written representations received from the Directors as on 30th
June, 2013 and taken on record by the Board of Directors, we report that none of the
Directors is, prima facie, disqualified under section 274(1) (g) of the Companies Act,
1956 as on 30th June, 2013 from being appointed as director of the Company.
i) In our opinion and to the best of our information and according to the explanations
given to us, the said accounts, read with other notes and accounting policies thereon,
give the information required by the Companies Act, 1956 in the manner so required and
present a true and fair view:
(i) in the case of Balance Sheet, of the state of affairs of the Company as at 30th
June, 2013;
(ii) in the case of Profit & Loss Account of the profit of the Company for the 9
months period on that date; and
(iii) in case of Cash Flow Statement, of the cash flows for the 9 months period ended
on that date.
|
For R.R. MANDALI & CO. |
|
Chartered Accountants |
|
(Firm Regn. No. 114223W) |
|
R. R. MANDALI |
| Place : Mumbai |
(Proprietor) |
| Date : 22.11.2013 |
M. NO. 033118 |
ANNEXURE TO THE AUDITORS’ REPORT
Annexure referred to in paragraph ‘1’ of the Auditor’s Report to the
Members of SHARP INDUSTRIES LIMITED on the accounts for the 9 months period ended
30th June, 2013.
(i) (a) As per the information and explanations given to us, the Company has maintained
proper records showing full particulars, including quantitative details and situation of
fixed assets.
(b) As explained to us, these fixed assets have been physically verified by the
management at reasonable intervals.
We have been informed that no material discrepancies were noticed on such verification.
(ii) (a) As explained to us, during the year the inventories have been physically
verified by the management. In our opinion, the frequency of such verification is
reasonable.
(b) In our opinion, the procedure of physical verification of inventories followed by
the management is reasonable and adequate in relation to the size of the Company and
nature of its business.
(c) On the basis of our examination of the record of inventories, we are of the opinion
that, the Company is maintaining proper records of inventories. The discrepancies noticed
on physical verification of inventories as compared to book records were not material and
have been properly dealt with in the books of account.
(iii) (a) As informed to us, the Company has not taken unsecured loans from any party
covered in the register maintained under section 301 of the Companies Act, 1956.
(b) As informed to us, the Company has not granted unsecured loans to parties covered
in the register maintained under section 301 of the Companies Act, 1956.
(iv) In our opinion, there are generally adequate internal control procedures
commensurate with the size of the Company and the nature of its business with regard to
purchase of inventories, fixed assets, sale of goods and services. During the course of
our audit, we have not observed any continuing failure to correct major weakness in
internal controls.
(v) (a) As informed to us, the particulars of contracts or arrangements referred to in
Section 301 of the Companies Act, 1956 have been entered in the register required to be
maintained under that section.
(b) In our opinion and according to the information and explanations given to us, the
transactions made in pursuance of such contracts or arrangements have been made at prices
which appear reasonable having regard to the prevailing market prices at the relevant time
aggregating during the financial year exceeding the value of Rs.5Lac in respect of each
party except where comparable quotations are not available having regard to the
specialized nature of the materials purchased by the Company.
(vi) As informed to us, during the year, the Company has not accepted deposits from the
public to which the directives issued by the Reserve Bank and the provisions of Section
58-A and 58AA of the Companies Act, 1956 or any other provisions of the Act and the rules
framed there under apply.
(vii) Company has internal audit system to commensurate with the size and nature of its
business.
(viii) As informed to us, the Central Government has not prescribed maintenance of cost
records under section 209 (1) (d) of the Companies Act, 1956 for any of the products of
the Company.
(ix) (a) The Company is generally regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, Employees State Insurance, Income-tax,
Professional Tax and Income-tax deducted at source, though there is a slight delay in
payment.
(b) As per information and explanations given to us, there is no any undisputed amount
payable in respect of Provident Fund, Income-tax, Professional Tax and Income-tax deducted
at source for the 9 months period which was in arrears as at 30th June, 2013 of
more than six moths from the date they become payable.
(x) The Company has not incurred cash losses in the immediately preceding financial
year as well as in this financial year.
(xi) Based on our audit procedures and on the information and explanations given by the
management, we are of the opinion that the long term dues to financial institutions and
banks have been repaid.
(xii) As the Company has not granted any loans and advances on the basis of security by
way of pledge of shares, debentures and other securities, the provisions of paragraph 4
Clause (xii) of the Order are not applicable.
(xiii) The Company is not a chit fund/nidhi/mutual benefit funds/society to which the
provisions of special statute relating to chit fund are applicable and therefore the
provisions of paragraph 4 Clause (xiii) of the Order are not applicable.
(xiv) As the Company is not dealing or trading in shares, securities, debentures and
other investments, provisions of paragraph 4 clauses (xiv) of the Order are not
applicable.
(xv) As informed to us, during the year under review, the Company has not given any
guarantee for loans taken by others from banks; provisions of paragraph 4 clause (xv) of
the Order are not applicable.
(xvi) According to the information and explanations given to us, the Company has
utilized the term loans for the purpose for which they were obtained.
(xvii) 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.
(xviii) As the Company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the Act, provisions of
paragraph 4 clauses (xviii) of the Order are not applicable.
(xix) As the Company has not issued any debentures, provisions of paragraph 4 clause
(xix) of the Order are not applicable.
(xx) Since the Company has not raised money during the year by way of public issue,
provisions of paragraph 4 clause (xx) of the Order are not applicable.
(xxi) To the best of our knowledge and belief and according to the information and
explanations given to us, no fraud on or by the Company has been noticed or reported
during the course of the 9 months period under audit.
|
For R.R. MANDALI & CO. |
|
Chartered Accountants |
|
(Firm Regn. No. 114223W) |
|
R. R. MANDALI |
| Place : Mumbai |
(Proprietor) |
| Date : 22.11.2013 |
M. NO. 033118 |
+91-9892691696
