Independent Report on the Financial Statements
To the members of
MAHESH AGRICULTURAL IMPLEMENTS & STEEL FORGINGS LTD.
Nagpur.
We have audited the accompanying financial statements of Mahesh Agricultural
Implements & Steel Forgings Limited ("the Company"), which comprise the
Balance Sheet as at March 31, 2013, the Statement of Profit and Loss and 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
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 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.
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. 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.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
Opinion
ATTENTION IS INVITED TO THE FOLLOWING:-
• The aggregate of balances in the account of parties to whom loans or advances
(unsecured without bearing interest) in the nature of loan have been made, exceed the
limit prescribed under section 370 of the Companies,Act,1956.
• The representation made to us by the management (which cannot be verified and
hence accepted) relating to: -
1. Various entries of recipts and issues of cheque on behalf of various parties.
2. Various adjustments between the parties account by journal entry.
3. The investment in listed four companies at book value of Rs. 4,02,531/- for which no
quotation available as on 31-0302012. Whereas the management has treated these investment
as "Unquoted Investments" as delisted (Note 18. of Schedule N")
4. The Company has not made provision of Vat Tax of Rs. 61,952/- as such loss has been
reported less to that extent and liability in the Balance Sheet for the same is not
reflected.
• Balances of sundry debtors and debit balances of sundry creditors and loans and
advances are subject to confirmation.
We report that the accounts are made without considering our observation in paragraph
"2" (1) to (4) above, the effect of which is presently not ascertainable.
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 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
1. As required by the Companies (Auditor’s Report) Order, 2003 ("the
Order") issued by the Central Government of India 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 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, 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.
|
For Lalit Jam & Co. |
|
Chartered Accountants |
|
FRN 114158W |
|
SD/- |
| Place: Nagpur |
Lalit Jam |
| Date: 28th June,2013 |
Partner |
ANNEXURE REFERRED TO IN PARAGRAPH 2 OF THE AUDITORS REPORT ON THE ACCOUNTS OF MAHESH
AGRUCULTURAL IMPLEMENTS AND STEEL FORGINGS LIMITED FOR THE YEAR ENDING 31ST
MARCH 2013
As required by the Companies (Auditors report) Order, 2003 issued by the central
Government of India in terms of section 227(4-A) of the Companies Act, 1956, we report
that:
1 In respect of fixed assets:
(A) The company has maintained proper records showing full particulars, including
quantitative details and situation of fixed assets on the basis of available information.
(B) As explained to us, all the fixed assets have been physically verified by the
management during the year at reasonable intervals, which in our opinion, is reasonable
having regard to the size of the company and the nature of assets. No material
discrepancies were noticed on such physical verification.
(C) In our opinion the Company has not disposed off any substantial/major part of fixed
assets during the year and the going concern status of the company is not affected.
2 In respect of its inventories:
(A) As explained to us, the inventory of stocks of raw material, trading goods &
finished goods has been physically verified by the management at regular intervals during
the year.
(B) In our opinion and according to the information and explanations given to us and on
the basis of our examination of the records of inventory, the Company has maintained
proper records of inventory. And there were no material discrepancies noticed on physical
verification of inventory as compared to the book records. The discrepancies, if any, in
respect of other than finished goods, trading goods and raw materials, could not be
ascertained in the absence of records which should have been maintained.
3 The Company has neither granted nor taken any loans secured or unsecured to/from
companies, firms or other parties covered in register maintained under section 301 of The
Companies Act,1956. accordingly, sub clause (iii)(b)(c),(d),(e),(f) & (g) of paragraph
4 of the order are not applicable to the company.
4 In our opinion and according to the information and explanations given to us, there
are no internal control procedures commensurate with the size of the company and nature of
its business with regard to purchase of inventory and fixed assets and with regard for the
sale of goods and services.
5 In respect of contracts or arrangements entered in the register maintained in
pursuance of Section 301 of the Companies Act, 1956, to the best our knowledge and belief
and according to the information and explanation given to us, there are no contracts or
arrangements.
6 In our opinion and according to the information and explanations given to us, the
Company has not accepted deposits from the public and therefore, the provisions of Section
58A and 58AA of the Companies Act, 1956 and Rules made there under are not applicable to
the Company.
7 In our opinion, the company has no internal audit system commensurate with its size
and nature of its business.
8 The maintenance of cost record has not been prescribed by the Central Government
under section 209(1)(d) of the Companies Act,1956.
9 In respect of statutory dues:
(A) According to the information and explanations given to us, the company was
generally regular in depositing dues in respect of Employees Provident Fund, Employees
State Insurance Fund, and other statutory dues except in certain cases of income tax and
sales tax, with the appropriate authority during the year.
(B) According to the records examined by us and the information and explanations given
to us, there are no disputed amounts due in respect of income tax, wealth tax, sales tax,
excise duty, Employees provident fund, Employee state insurance fund and other statutory
dues at the end of the year.
10 The Company has no accumulated losses and the company incurred cash loss of Rs. NIL
during the financial year covered by our audit and Rs. 3,57,768/-in the immediately
preceding financial year.
11 Based on our audit procedures and on the basis of information and explanations given
by the management, the Company has not defaulted in the repayment of dues to banks,
financial institutions and Debentures holders during the year.
12 In our opinion and according to information and explanation given to us, no loans
and advances have been granted by the company on the basis of security by way of pledge of
shares, debentures and other security.
13 In our opinion the company is not a Chit Fund, Nidhi or Mutual Benefit Fund/Society.
Therefore, the provisions of clause 4(XIII) of the CARO,2003 are not applicable to the
company.
14 The company is not dealing in or trading in shares, securities, debentures and other
investments. Accordingly, the provisions of clause 4(xiv) of the order are not applicable.
15 The Company has not given Guarantees for the loan taken by others from banks or
financial institutions.
16 As per record of the company, the company has not received any term loans during the
year.
17 According to the information and explanations given to us and on examination of
balance sheet, funds raised on short term basis have, prima facie, not been used during
the year for long term investment and vice versa.
18 The company has not made any preferential allotment to parties and companies covered
under register maintained under Section 301 of the Companies Act, 1956, during the year.
19 The Clause 13 of the order is not applicable, as the company has not issued any
debentures during the year.
20 The Company has not raised money by any public issues during the year and hence the
question of disclosure and verification of end use of such money does not arise.
|
For Lalit Jam & Co. |
|
Chartered Accountants |
|
FRN 114158W |
|
SD/- |
| Place: Nagpur |
|
| Date: 28th June,2013 |
Lalit Jam |
|
Partner |
+91-9892691696
