Shakti Met-dor Ltd Auditor Reports

SHAKTI MET-DOR LIMITED ANNUAL REPORT 2011-2012 AUDITORS REPORT To, The Members of SHAKTI MET-DOR LIMITED We have audited the attached Balance Sheet of SHAKTI MET-DOR LIMITED (The Company) as at 31st March, 2012, the Statement of Profit and Loss and Cash Flow Statement for the year ended on that date, annexed thereto. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit. 1. 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 statement presentation. We believe that our audit provides a reasonable basis for our opinion. 2. As required by the Companies (Auditors Report) Order, 2003(the Order), as amended, issued by the Central Government of India in terms of sub-section(4A)of section 227 of the Companies Act, 1956 (the Act), and on the basis of such checks as we considered appropriate, and according to the information and explanations given to us, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order to the extent applicable to the Company. 3. Further to our comments in the Annexure referred to in paragraph (2) 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 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 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 Profit and Loss and the Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in sub-section(3C) of Section 211 of the Act. e) On the basis of written representations received from the directors, as at 31st March 2012, and taken on record by the Board of Directors of the Company, 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 Act. f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts 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 :- i) In the case of the Balance Sheet, of the state of the affairs of the Company as at 31st March, 2012 ii) In the case of the Statement of Profit and Loss, of the profit for the year ended on that date; and iii) In the case of Cash Flow Statement, of the Cash flows of the Company for the year ended on that date. For CHATURVEDI & SHAH Chartered Accountants Firm Registration Number: 101720W C D Lala Partner Membership Number: 35671 Place: Mumbai Date : May 3, 2012. ANNEXURE TO THE AUDITORS REPORT: The Annexure referred in Paragraph 2 of our report to the members of SHAKTI MET-DOR LIMITED (the Company)for the year ended 31st March, 2012. We report that: 1) i) The Company has maintained proper records showing full particulars including quantita-tive details and situation of fixed assets. ii) The fixed assets of the Company have been physically verified by the management during the year. In our opinion, the frequency of such verification is reasonable having regard to the size of the Company and the nature of its assets. As explained to us, no material discrepancies were noticed on such verification. iii) The Company during the year has not disposed substantial portion of fixed assets. 2) i) The inventory(excluding stock with third parties)has been physically verified by the management during the year. In respect of inventory lying with third parties, same have been substantially confirmed by them. In our opinion, the frequency of such verification is reasonable. ii) In our opinion, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business. iii) On the basis of our examination of the inventory records, in our opinion, the Company is maintaining proper records of inventory. The discrepancies noticed on physical verification of inventory as compared with inventory records were not material. 3)i) The Company has not granted any loan, secured or unsecured, to Companies, Firms or other parties listed in the Register maintained under Section 301 of the Act during the year. Accordingly Clauses 4(iii)(a) to 4(iii)(e) of the Order are not applicable to the Company in the current year, ii) The Company has not taken any loan, secured or unsecured, from companies, firms or other parties listed in the register maintained under Section 301 of the Act. Accordingly Clauses 4(iii)(f) and 4(iii)(g) of the Order are not applicable to the Company in the current year. 4) In our opinion and according to the information and explanations given to us, there is adequate internal control system commensurate with the size of the Company and the nature of the business for the purchase of inventory, fixed assets and for the sale of goods and services. During the course of our audit, no major weakness has been noticed in the internal control system. 5) According to information and explanations given to us, there are no contracts or arrangements, the particulars of which need to be entered in the register maintained under section 301 of the Act. Accordingly, provisions of Clause 4(v)(a) and Clause 4(v)(b) of the Order are not applicable to the Company. 6) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from public as per the provisions of section 58A and 58AA or any other relevant provisions of the Act. Accordingly, provisions of Clause 4(vi) of the Order are not applicable to the Company. There are no orders from Company law board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal. 7) In our opinion, the Company has an adequate Internal Audit System which is commensurate with its size and nature of its business. 8) We have broadly reviewed the books of account maintained by the company pursuant to the rules made by the Central Government for the maintenance of cost records under section 209(1)(d) of the Companies Act, 1956, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. 9)i) According to the information and explanations given to us, the Company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employees state insurance, investor education and protection fund, income tax, sales tax, wealth tax, service tax, customs duty, excise duty, cess and other statutory dues applicable to it. ii) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employees state insurance, investor education and protection fund, income tax, sales tax, wealth tax, service tax, customs duty, excise duty, cess and other material statutory dues were in arrears as at 31st March, 2012 for a period of more than six months from the date they became payable. iii) According to the records of the Company, there are no material dues of provident fund, employees state insurance, investor education and protection fund, sales tax, wealth tax, service tax, customs duty, excise duty, cess and other material statutory dues which have not been deposited on account of any dispute except the following: Name of the A B C D Statute & Nature of Dues Income Tax Act, 1961 & Income Tax The Commissioner 2003-04 2,35 Nil of Income Tax (Appeals) Income Tax Act, 1961 & Income Tax The Commissioner 2004-05 2,21 Nil of Income Tax (Appeals) Sales Tax Act & Sales Tax The Appellate Dy. 2008-2011 30,01 30.01 Commissioner (CT) A = Forum under which dispute is pending B = Period to which amount relate (Financial year) C = Amount Disputed (Rs. in thousands) D = Balance Payable (Rs. in thousands) 10) The Company has no accumulated losses as at 31st March, 2012 and has not incurred any cash losses during the financial year ended on that date or in the immediately preceding financial year. 11) According to 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 financial institution or bank or debenture holders as at the balance sheet date. 12) In our opinion and according to the 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 securities. 13) In our opinion, the Company is not a chit fund or a nidhi/mutual benefit fund/society. Therefore, Clause 4(xiii) of the Order is not applicable to the Company. 14) According to the information and explanations provided to us, the Company is not engaged in business of dealing in shares, securities, debentures and other investments and accordingly, the provisions of Clause 4(xiv) of the Order are not applicable to the Company. 15) As per information and explanations given to us, the Company has not given any guarantees to Banks or Financial Institutions for loan taken by others. 16) According to records of the Company examined by us and the information and explanations given to us, the Company has applied the term loans taken from banks for the purposes for which they were raised. 17) According to the information and explanations given to us, and on overall examination of the balance sheet of the Company, we are of the opinion that, no funds raised on a short-term basis have been used for long-term purpose during the year ended 31st March, 2012. 18) The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act and therefore, the provisions of Clause 4(xviii) of the Order are not applicable to the Company. 19) In our opinion and according to the information and explanations given to us, the Company has not issued any secured debentures during the year covered under our report. Accordingly provisions of Clause 4(xix) of the Order are not applicable to the Company. 20) The Company has not raised any money by public issue during the year. 21) According to the information and explanations given to us, no material fraud on or by the Company has been noticed or reported during the course of our audit. For CHATURVEDI & SHAH Chartered Accountants Firm Registration Number: 101720W C D Lala Partner Membership Number: 35671 Place: Mumbai Date : May 3, 2012.