S S Forgings & Engineering Ltd Auditor Reports

TO THE MEMBERS

M/S. S.S.FORGINGS & ENGINEERING LTD.

1 We have audited the attached Balance Sheet of S.S.FORGINGS & ENGINEERING LIMITED as at 31st March , 2012 and the annexed Profit & Loss Accounts of the Company for the year ended on that date . These financial statements are the responsibility of the Companys management . Our resposibility is to express an opinion on these financial statements based on our audit.

2 We have conducted our audit in accordance with auditing standards generally accepted in India . On the basis of of those standards require , we have planed and performed the audit to obtain reasonable assurance about whether the financial statements are free from 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 and significant estimates made by management , as well as evaluating the overall financial statement presentation . We believe that our audit provides a reasonable basis for our opinion .

3 As required by the Companies (Auditor s report) order, 2003 issued by the Central Government in terms of section 227 (4A) of the Companies Act ,1956, we enclosed in the attached annexure a statement on the matters specified in paragraphs 4 of the said order.

4 Furthur to our comments in the annexure referred to in paraghraph 3 above 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 the law have been kept by th company , so far as appears from our examination of the books.

(c) The Balance Sheet and Profit & Loss Account dealt with by this report are in agreement with the books of account of the company .

(d) On the basis of written representations received from the Directors as on 31st March,2012 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March,2012 from being appointed as a director in terms of clause (g) of sub section (1) of section 274 of the Companies Act , 1956.

(e) In our opinion and best of our information and according to the explanations given to us , the said accounts read together with the note thereon give the information required by the companies Act , 1956 in the manner so required and give true and fair view :

(i) in so far it relates to the Balance Sheet , of the state of affairs of the Company as at 31st March, 2012 and

(ii) in so far it relates to the Profit & Loss Account , of the Loss of the Company for the year ended on that date .

(iii) in case of cash flow statement, of the cash flows for the year ended on that date.

	For Ashish Vyas & Co.
Place: Dewas	Chartered Accounants
Date: 01/09/2012.	Sd/-
	Ashish Vyas
	M.No.078527

NOTES ANNEXURE REFERRED TO IN PARAGRAPH 3 OF AUDITORS’ REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2012 OF S.S. FORGINGS AND ENGINEERING’S LIMITED .

(i) In respect of fixed assets

a. The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

b. According to the information and explanations given to us, the fixed assets have been physically verified by the management during the year. No material discrepancies were noticed on such physical verification. In our opinion the frequency of physical verification of fixed assets is reasonable having regard to the size of the company and nature of its business.

c. According to information and explanations given to us, the company has not disposed off substantial part of its fixed assets during the year and the going concern status of the company is not affected.

(ii) In respect of inventory

a. According to the information and explanations given to us, the inventory and capital work in progress has been physically verified by the management during and at the close of the year.

b. In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventory and followed by the management as evidenced by the written procedures and instructions are reasonable and adequate in relation to the size of the company and nature of its business.

c. The company is maintaining proper records of inventory. As explained to us, no discrepancies were noticed on physical verification between physical stocks and book records.

(iii) In respect of the loans, secured or unsecured, granted or taken by the Company to/from companies, firms or other parties covered in the Register maintained under Section 301 of the Companies Act, 1956:

a. According to the information and explanations given to us, the company has not granted any new unsecured loans during the current financial year ending March 31, 2012.

b. According to the information and explanations given to us, the company has not taken unsecured loans during the current year ending March 31, 2012.

c. The company is not paying/receiving any interest from these unsecured loans 301 parties.

(iv) In our opinion and according to the information and explanations given to us, the company further needs to strengthen its internal control system for the purchase of inventory and fixed assets and for the sale of goods and services commensurate with the size of the company and the nature of its business. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control.

(v) According to the information and explanations given to us, we are of the opinion that all contracts or arrangements which need to be entered into the register maintained under section 301 of the Companies Act, 1956 has been entered. None of the transactions made in pursuance of such contracts or arrangements have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time

(vi) According to the information and explanations given to us, the company has not accepted deposits from public during the year covered under the provision of section 58A or 58AA or any other relevant provisions of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975.

(vii) The company des not have an internal audit system commensurate with its size and nature of its business.

(viii) The Central Government has not prescribed maintenance of cost records for the products of the company under section 209(1) (d) of the Companies Act, 1956.

(ix) In respect of statutory dues relating to Provident Fund, Investor Education and Protection Fund, Employees’ State Insurance, Income-tax, Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and any other statutory dues:-

a. Due to Non-Availability of Required information, we are unable to comment on this point.

b. According to the information and explanation given to us there are no statutory dues which have not been deposited on account of any disputes.

c. In our opinion there are instances where the company has not deducted/paid statutory dues in respect of expenses incurred/payment made.

(x) The Company does not have accumulated losses more than fifty percent of its net worth at the end of the financial year. The Company has incurred cash losses of Rs. 613588/- during the financial year covered by the audit and no cash loss in the immediately preceding financial year.

(xi) According to the records of the company examined by us and the information and explanations given to us, the company has not defaulted in repayment of dues to any bank or financial institution as at the balance sheet date.

(xii) According to the information and explanations given to us, the company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

(xiii) The provisions of clause 4(xiii) of the above said order are not applicable to the company.

(xiv) According to the information and explanations given to us, the company has not dealt or traded in shares, securities, debentures and other investments. Therefore, the provisions of clause 4(xiv) of the above said order are not applicable to the company.

(xv) According to the information and explanations given to us, the company has not given any guarantees for loans taken by others from banks. Therefore, the provisions of clause 4(xv) of the above said order are not applicable to the company.

(xvi) In our opinion and according to the information and explanations given to us, the company has not taken term loans during the year, the provisions of clause 4(xvi) of the above said order are not applicable to the company.

(xvii) According to information and explanations given to us and on an overall examination of the balance sheet, the company has not raised short-term funds during the year; therefore the provisions of clause 4(xvii) of the above said order are not applicable to the company.

(xviii) According to information and explanations given to us during the current financial year the company has not made any preferential allotment section 301 parties.

(xix) According to the information and explanations given to us, the company has not issued debentures during the year. Accordingly, the provisions of clause 4(xix) of the order are not applicable to the company.

(xx) According to the information and explanations given to us, the company has not raised any money by way of public issue during the year. Accordingly the provisions of clause 4 (xx) of the above said order are not applicable to the company.

(xxi) During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practice in India and according to the information and explanations given to us, we have neither come across any instance of fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the management..

For Ashish Vyas &Co

Chartered Accountants

Sd/-

Ashish Vyas

Proprietor

M. No – 078527

Place: Dewas

Date: 01/09/2012