suryoday allo metal powders ltd Auditors report

AUDITORS REPORT

TO,

THE MEMBERS OF SURYODAY ALLO- METAL POWDERS LIMITED.

1. I have audited the attached Balance Sheet of M/s Suryoday Allo - Metal Powders Limited as at 31^st March, 2011 and the relative Profit & Loss Account for the year ended on that date both of which I have signed under reference to this report. These financial statements are the responsibility of the management of the Company. My responsibility is to express an opinion on these financial statements based on my audit.

2. I have conducted my audit in accordance with auditing standards generally accepted in India. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes, examining on 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 presentation of the financial statements. I believe that my audit provides a reasonable basis for my opinion.

3. As required by the (Auditors report) Order, 2003, issued by the Central Government of India in terms of Section 227 (4A) of the Companies Act,1956, of India ( the Act) and on the basis of such checks as I considered appropriate and according to the information and explanations given to me, I set out in the annexure a statement on the matters specified in paragraphs 4 and 5 of the said order.

4. Further to my comments in the annexure referred to in paragraph 3 above, I report that :

(a) I have obtained all the information and explanations which, to the best of my knowledge and belief, were necessary for the purpose of audit;

(b) In my opinion, proper books of accounts as required by law, have been kept by the Company, so far as appears from our examination of such books, subject to our remarks in No. f given below

(c) We could not verify Balance Sheet and Profit and Loss Accountants are in agreement with the Books of Account, as per our remark No. f below.

(d) In my opinion, these financial statements have been prepared in compliance with the applicable accounting standards referred to in Section 211(3C) of the Act;

(e) Based on the representations made by all the Directors of the Company as

on 31^st March 2011 and taken on records by the Board of Directors of the Company and in accordance with the information and explanations as made available, the Directors of the Company do not, prima facie, have any disqualification as referred to in clause (g) of subsection (1) to Section 274 of the Act;

(f) it is reported by the Directors that under the Excise Act the books of the Company for the prior years are impounded, by the Excise Authorities, which requires us to qualify our report.

(i) In case of Balance Sheet, of the state of affairs of the Company, as at

31^st March 2011.

(ii) In so far as it relates to the Profit & Loss of the Company, the Loss for the year ended on 31^st March 2011

ANNEXURE TO THE AUDITORS REPORT

(Annexure referred to in paragraph 1 of the Auditors Report to the shareholders of M/s Suryoday Allo - Metal Powders Limited, on the accounts for the period commencing from 1^st April 2010 to 31^st March 2011)

1. The Company has maintained records showing quantitative details and situation of fixed assets. I am informed that the management has physically verified these assets and no serious discrepancies were noticed.

2. During the year under audit none of the fixed assets of the Company have been revalued.

3. As informed to us, management no stock and products held by the Company & hence reporting on it is not applicable.

4. The procedure of physical verification of stocks followed by the management is reasonable and adequate in relation to the size of the company and the nature of the business.

5. The discrepancies noticed on verification between physical stock and book records were not material.

6. On the basis of our examination of stock register, I am of the opinion that the valuation of the stock is fair and proper and in accordance with the normally accepted accounting principles.

7. The Company has taken loan secured or unsecured from companies, firms or other parties, listed in the Register maintained U/S 301 of the Companies Act, 1956 and the rate of interest and other terms and conditions of such loan are not prejudicial to the interest of the Company.

8. The Company has not granted any loans secured or unsecured to Companies, firms or other parties listed in the Register maintained U/S 301 of the Companies Act, 1956 or to companies under same management.

9. In respect of loans and advances in the nature of loans given by the Company, parties have repaid the principal amounts as stipulated.

10. In my opinion and according to the information and explanations given to me, there are adequate internal control procedures commensurate with the size of the Company and its business with regard to purchase of stores, raw material, including components, plant & machinery, equipment and other assets with regard to the sale of goods.

11. In my opinion and according to the information and explanations given to me, the transactions of purchase of goods and materials and sale of goods, materials and services, made in pursuance of contracts or arrangements entered in the register maintained U/S 301 and aggregating during the year to Rs.50,000 /- or more in respect of each party have been made at prices which are reasonable, having regard to prevailing market prices for such goods, materials or services or the prices at which transactions for similar goods, materials or services have been made with other parties.

12. As explained to me, the Company has a regular procedure for determination of unserviceable or damaged stores, raw ,materials and finished goods. Adequate provision has been made in the accounts for the loss arising on items so determined.

13. The Company informs me that it has not accepted any deposits from public, hence reporting a requirement under clause (xiii) is not applicable.

14. In my opinion, the Company for the sale and disposal of realizable by-products and scrap has maintained reasonable records.

15. I am informed by the Company that the Central Government has not prescribed the maintenance of cost records U/S 209(1)(d) of the Companies Act, 1956.

16. I am informed by the Company that the provisions of Provident Fund, Employees State Insurance Act, do not apply and hence reporting requirement under this Act is not applicable.

17. According to the information and explanations given to us, there are no disputed amounts payable in respect of Income Tax, Wealth Tax, Customs Duty, as at the become Payable. Excise Duty authorities may raise dues as the assessment is going on.

18. According to the information and explanation given to me, no personal expenses of employees or directors have been charged to the revenue account, other that those payable under contractual obligations or in accordance with generally accepted business practices.

19. The Company is not a sick industrial company within the meaning of clause (O) of sub-section (1) of Section 3 of the Sick Industrial Companies (Special provisions) Act,1985.

20. The Company informs me that there have been no damaged goods and hence a provision of paragraph 4(c)(ii) is not applicable.

For K. Sampath & Co,

Chartered Accountants

Sd/-

(K. Sampath)

Proprietor

Membership No.:- 14457

Place:- Pune

Date:- 25.08.2011