Shriniwas Power & Infrastructure Ltd Auditor Reports

SHRINIWAS POWER AND INFRASTRUCTURE LIMITED (FORMERLY KNOWN AS CONCURRENT (INDIA) INFRASTRUCTURE LIMITED) ANNUAL REPORT 2011-2012 AUDITORS REPORT To The Members of Shriniwas Power & Infrastructure Limited 1. We have audited the attached Balance Sheet of Shriniwas Power & Infrastructure Limited (the Company) as at 31st March, 2012 and the Profit & Loss Account and also Cash flow statement for the year ended on the date annexed thereto (collectively referred as the financial statements). 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. 2. 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 statement. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall statement presentation. We believe that our audit provides a reasonable basis of our opinion. 3. As required by the Companies (Auditors Report) order 2003 and as amended by the Companies (Auditors Report)(Amendment) order 2004, issued by the Central Government of India in terms of the sub-section(4A) of section 227 of the Companies Act, 1956, we enclose in the annexure a statement on the matters specified in paragraphs 4 and 5 of the said order. 4. Further to our comments in the Annexure referred to above, we report that:- (i) 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; (ii) 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; (iii) The financial statements dealt with by this report are subject to few confirmations with the books of account; (iv) In our opinion, the financial statements dealt with by this report comply with the Accounting standards referred to in sub-section (3C) of Section 211 of Companies Act, 1956 ; (v) On the basis of the written representations received from the directors, as on March 31, 2012, and taken on record by the Board of Directors, we report that none of the directors (except one) is disqualified as on March 31, 2012 from being appointed as director in terms of clause (g) of sub-section (1) of section 274 of the Act. (vi) 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 Companies Act, 1956, 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 31st March, 2012; (b) In the case of the Profit & Loss Account, of the Profit for the period 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; For B R R & Associates CHARTERED ACCOUNTANTS FRN: 013012S PLACE: Hyderabad B. Ravinder Rao DATE : 14th August, 2012 Proprietor 221298 Annexure to the Auditors Report of even date to the members of Shriniwas Power & Infrastructure Limited, on the financial statements for the year ended March 31, 2012. Based on the audit procedures performed for the purpose of reporting a true and fair view on the financial statements of the Company and taking into consideration the information and explanations given to us and the books of account and other records examined by us in the normal course of audit, we report that: I. (a) The Company has maintained proper records showing full particulars including quantitative details and situation of Fixed Assets. (b) As explained to us, the fixed assets have been physically verified by the management at reasonable intervals and no material discrepancies between the book records and the physical inventory have been noticed on such verification. (c) The Company has not disposed off substantial part of the Fixed Assets. II. (a) The Inventory has been physically verified during the year and in our opinion, the frequency of verifications is reasonable. (b) In our opinion, the procedures of the physical verification of inventory followed by the Management are reasonable an adequate in relation of the size of the Company and the nature of its business. (c) The Company is maintaining proper records of inventory and as explained to us, there was no material discrepancies noticed on such verification of stocks as compared to book records. III. (a) The Company has granted unsecured loans to its 100% subsidiary- Vakratund Ispat Private Limited to the tune of Rs. 121.93 Lakhs during the year. (b) As the Company has granted unsecured loans to its 100% subsidiary- Vakratund Ispat Private Limited, at NIL rate of interest, the rate of interest & other terms and conditions on which loans have been granted to that company are not prejudicial to the interest of company. (c) The loans are granted by company to 100% subsidiary - Vakratund Ispat Private Limited, at NIL rate of interest and the principal is being received from that company as per the Loan Agreement. (d) The company has granted loans to its 100% subsidiary-Vakratund Ispat Private Limited, loans and the overdue amount is more than Rs. One Lakh. Reasonable steps are taken by the Company to recover the principal amount. (e)The Company has taken unsecured loans from its director to the tune of Rs. 67.63 Lakhs during the year. (f) The Company has taken unsecured loans from its director at NIL rate of interest and the terms and conditions are not prejudicial to the interest of the Company. (g) The Company has taken unsecured loans from its director at NIL rate of interest and the repayment of principal amount is being paid by the Company to the party as per Loan Agreement. IV. In our opinion and according to the information and explanations given to us, there are sufficient adequate internal control systems commensurate with the size of the company and the nature of its business with regard to purchase of inventory and fixed assets and for sale of goods and services. There is no continuing failure by the company to correct any major weaknesses in internal control. V. (a) In our opinion and according to the information and explanation given to us, the particulars of contracts or arrangements referred to in section 301 of the Companies Act, 1956 made by the company in respect of the financial year, are entered in register U/s 301 of the Companies Act, 1956. (b) According to the information and explanations given to us, transactions made in pursuance of such contracts o r arrangements have been made by the company at reasonable prices having regards to the prevailing market prices at the relevant time. VI. The Company has not accepted any deposits from the public and hence the applicability of the clause of directives issued by the Reserve Bank of India and provisions of section 58A, 58AA or any other relevant provisions of the Act and the rules framed there under does not arise. As per information and explanations given to us the order from the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal has not been received by the Company. VII. The Company has a formal system of Internal Audit which is commensurate with the scale of business of the Company. VIII. In respect of the Company, the Central Government has not prescribed maintenance of cost records under clause (d) of sub-section (1) of section 209 of the Companies Act, 1956. IX. According to the information and explanations given to us and as per the management letter provided by the company, the company is generally regular except few instances of delay in depositing undisputed statutory dues including Service Tax, Investor Education & Protection Fund, Provident Fund, Income Tax and other material statutory dues as applicable with the appropriate authorities and there are disputed income tax dues under appeal before Commissioner of Income Tax (Appeals), Mumbai. X. The Company has been registered for a period of not less than 5 years, and the Company has no accumulated losses at the end of the financial year and the company has not incurred cash losses in this financial year and the immediately preceding financial year. XI. On the basis of the written representation received from Management, the Company has defaulted in repayment of interest dues for one month and in repayment of installments for 2 months to the banks during the financial year. XII. According to the information and explanations given to us, the Company has not granted any loans or advances on the basis of security by way of pledge of shares, debentures and other securities and hence the applicability of the clause regarding maintenance of adequate documents in respect of loans does not arise. XIII. This clause is not applicable to this Company as the Company is not covered by the provisions of special statute applicable to Chit Fund in respect of Nidhi/Mutual Benefit Fund/Societies. XIV. According to the information and explanations given to us, the company is not dealing or trading in shares, securities, Debentures and other investments and hence the provisions of clause 4(xiv) of the Companies (Auditors Report) Order 2003, are not applicable to the Company. XV. According to the information and explanations and management letter given to us, the Company has not given any guarantee for loans taken by others from Banks or Financial Institutions, and hence the applicability of this clause regarding terms and conditions which are prejudicial to the interest of the company does not arise. XVI. As per the management representation received by us, the term loans obtained by the Company were applied for purpose for which such loans were obtained by the Company. XVII. As per the management representation received by us, no funds are raised by the Company on short-term basis. Hence the clause of short term funds being used for long-term investment does not arise. XVIII. According to the information and explanations given to us, the Company has not made any preferential allotment of Shares to parties during the year and Companies covered in the Register maintained under section 301 of the Companies Act, 1956 and hence the applicability of the clause regarding the price at which shares have been issued and whether the same is prejudicial to the interest of the Company does not arise. XIX. According to the information and explanations given to us, during the year the company does not have any debentures and hence the applicability of the clause regarding the creation of security or charge in respect of debentures issued does not arise. XX. According to information and explanations given to us, the company has not raised money by way of public issues during the year; hence the clause regarding the disclosure by the management on the end use of money raised by Public Issue is not applicable. XXI. According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the year under audit. For B R R & Associates CHARTERED ACCOUNTANTS FRN: 013012S PLACE: Hyderabad B. Ravinder Rao DATE : 14th August, 2012 Proprietor Membership No. 221298