Shri Matre Power & Infrastructure Limited
Report on Financial Statements
We have audited the accompanying financial statements of Shri Matre Power &Infrastructure Limited ("the Company"), which comprise the Balance Sheet asat March 31, 2014, the Statement of Profit and Loss and Cash Flow Statement for the yearthen ended and a summary of significant accounting policies and other explanatoryinformation.
Managements Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give atrue and fair view of the financial position, financial performance and cash flows of theCompany in accordance with the Accounting Standards referred to in sub section (3C) ofsection 211 of Companies Act, 1956. This responsibility includes the design,implementation and maintenance of internal control relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement, whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theauditors judgement, including the assessment of the risks of material misstatementof the financial statements, whether due to fraud or error. In making those riskassessments, the auditor considers internal control relevant to the Companyspreparation and fair presentation of the financial statements in order to design auditprocedures that are appropriate in the circumstances. An audit also includes evaluatingthe appropriateness of accounting policies used and the reasonableness of the accountingestimates made by management, as well as evaluating the overall presentation of thefinancial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.
In our opinion and to the best of our information and according to the explanationsgiven to us, the financial statements, together with the Accounting Policies and
Notes to Accounts(Schedule 2.20), give the information required by the Act inthe manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the Company as atMarch 31, 2014; (b) in the case of the Statement of Profit and Loss, of the Loss for theyear ended on that date; and (c) in the case of the Cash Flow Statement, of the cash flowsfor the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2003 ("theOrder") issued by the Central Government of India in terms of sub-section (4A) ofsection 227 of the Act, we give in the Annexure a statement on the matters specified inparagraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that: a. we have obtained allthe information and explanations which to the best of our knowledge and belief werenecessary for the purpose of our audit;
b. in our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books;
c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt withby this Report are in agreement with the books of account;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash FlowStatement comply with the Accounting Standards referred to in subsection (3C) of section211 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 disqualifiedas on March 31, 2014, from being appointed as a director in terms of clause (g) ofsub-section (1) of section 274 of the Companies Act, 1956.
f. Since the Central Government has not issued any notification as to the rate at whichthe cess is to be paid under section 441A of the Companies Act, 1956 nor has it issued anyRules under the said section, prescribing the manner in which such cess is to be paid, nocess is due and payable by the Company.
|For VENUGOPAL & CHENOY,|
|( P.V.SRI HARI )|
ANNEXURE TO INDEPENDENT AUDITORS REPORT
Referred to in Paragraph 2 of our report of even date
1. In respect of its fixed assets:
a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets, which require to be updated.
b. As explained to us, the fixed assets have been physically verified by the managementat reasonable intervals and no material discrepancies between the books / record and thephysical inventory were noticed on such verification.
c. In our opinion, the Company has not disposed off substantial part of fixed assetsduring the year and the going concern status of the Company is not affected.
2. In respect of its inventories:
a. As explained to us, inventories have been physically verified by the management atreasonable intervals during the year
b. In our opinion and according to the information and explanations given to us, theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.
c. The Company has maintained proper records of inventories. As explained to us, therewas no material discrepancies noticed on physical verification of inventory as compared tothe book records.
3. The Company did not take nor grant any loans, secured or unsecured, from or tocompanies, firms or other parties listed in the Register maintained under Section 301 ofthe Companies Act, 1956.
4. In our opinion and according to the information and explanations given to us, thereare adequate internal control procedures commensurate with the size of the Company and thenature of its business for the purchase of inventory, fixed assets and also for the saleof goods.
5. In our opinion and according to the information and explanations given to us, thereare no transactions in pursuance of contracts or arrangements entered in the registermaintained under Section 301 of the Companies Act, 1956, aggregating during the year toRs.5,00,000/-- (Rupees Five lakhs only) or more in respect of any party.
6. The Company has not accepted any deposits from the public.
7. The company has an in-house Internal Audit Department. In our opinion, the scope andcoverage of internal audit system of the Company is commensurate with its size and natureof its business.
8. We have been informed that, though maintenance of Cost Records has been prescribedby the Central Government for the companys product, the maintenance of such recordsare not applicable to the Company as the aggregate value of the turnover does not exceedRs.10 Crores.
9. a) The Company is fairly regular in depositing amounts of Provident Fund andEmployees State Insurance dues. In respect of Income tax, Sales Tax , Wealth Tax, CustomDuty and Excise duty there no undisputed amounts outstanding as at March 31,2014, for aperiod of more than six months from the date they became due.
b) The disputed statutory dues aggregating to Rs.352.77 Lakhs that have not beendeposited on account of matters pending before appropriate authorities are as under:
|Name of the Statute||Nature of the Dues||Forum where Dispute is pending||Amount (Rs.)in Lakhs|
|Customs Duty Act||Customs Duty||CEGAT||352.77|
10. The accumulated losses as at the end `of the Financial Year are less than 50% ofthe net worth of the Company. The Company has incurred cash losses during the FinancialYear covered by the Audit and but has not incurred cash losses in the immediatelypreceding Financial Year.
11. In our opinion and according to the information and explanations given to us, noloans and advances have been granted by the Company on the basis of security by way ofpledge of shares, debentures and other securities.
12. In our opinion, the Company is not a chit fund or a nidhi / mutual benefitfund/society. Therefore, Clause 4 (xiii) of the Companies (Auditors Report)Order, 2003, is not applicable to the Company.
13. The Company has not dealt in or traded in shares, securities, debentures and otherinvestments.
14. The Company has given a corporate guarantees for a loan taken by Shri ShaktiResorts Ltd from a commercial bank and, in our opinion, the terms and conditions whereofare not prejudicial to the interests of the company.
15. The Company has not raised any new term loans during the year from banks nor thereare any term loans outstanding as at 31.03.2013.
16. The company during the year did not raise any short-term loans and hence thequestion of their usage does not arise.
17. During the year, the Company has not made any preferential allotment of shares toparties and companies covered in the Register maintained under Section 301 of theCompanies Act, 1956.
18. The Company has not issued any debentures during the year.
19. The Company has not raised any money by way of public issue during the year. 20. Inour opinion and according to the information and explanations given to us, no fraud on orby the Company has been noticed or reported during the year, that causes the financialstatements to be materially misstated.
|For VENUGOPAL & CHENOY|
|Place : Hyderabad||Sd/-|
|Date : 20.05.2014||(P. V. SRI HARI)|
D V Manohar , Chairman & Managing Director
B K Sinha , Director
R Prabhakar Rao , Director
A Balasetti , NRI Director
Company Head Office / Quarters:
Adjacent to Airport Begumpet,
Phone : Andhra Pradesh-91-040-27902929 / Andhra Pradesh-
Fax : Andhra Pradesh-91-040-27908989 / Andhra Pradesh-
E-mail : email@example.com
Web : http://www.shrishakti.com
XL Softech Systems Ltd
Plot No 3 Sagar Soci,Road No 2,Banjara Hills,Hyderabad - 500034