shukun construction ltd Auditors report

SHUKUN CONSTRUCTION LIMITED ANNUAL REPORT 2004-2005 AUDITORS REPORT To The Members of Shukun Construction Ltd. We have audited the attached Balance Sheet of Shukun Construction Limited as at 31-03-2005 and also the Profit & Loss Account of the company 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. 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 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 the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. (1) As required by the Companies Auditors Report Order 2004 issued under Provisions of the Companies Act, 1956. We annex hereto a statement on the matters specified in paragraphs 4 and 5 of the said order. (2) Further to our comments in the Annexure referred to in Paragraph 1 above, we report that: - (a) We have obtained all the information explanation 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 and records as required by law have been kept so far as appears from our examination of such books. (c) The Balance Sheet and Profit & Loss Account referred to in this report are in agreement with the books of account. (d) In our opinion the Balance Sheet and Profit & Loss Account dealt with by this report are in compliance with the Accounting Standards referred to in Section - 211 (3C) of the Companies Act, 1956 (e) On the basis of written representations received from the Directors as on 31st March, 2005 and taken on record by the Board of Directors none of the directors is disqualified as on above date from being appointed as a director of the company under provisions of Sec. 274(1)(g) of the Companies Act, 1956. In our opinion and to the best of our knowledge and according to explanation given to us the accounts read together with the notes, schedules attached thereto and statement on Accounting Policies 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 principle generally accepted in India: (i) In the case of the Balance sheet of the state of affairs of the company as at March 31st, 2005 and (ii) In the case of Profit & Loss account of the profit for the year ended on that date. (iii) In the case Cash Flow Statement, of the Cash Flow for the year ended on that For Khese Associates Chartered Accountants Umesh Khese Proprietor Place : Ahmedabad Date : 25/07/2005 ANNEXURE TO THE AUDITORS REPORT REFERRED TO IN PARAGRAPH (1) OF OUR REPORT OFF EVEN DATE) REF: SHUKUN CONSTRUCTION LIMITED 1. (a) The company is maintaining proper records showing full particulars including quantitative details of fixed assets. (b) All the fixed assets have not been verified by the management during the year but, according to the information and explanations given to us, there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of Company and the nature of assets. No material discrepancies between-the book records and the physical inventory have been noticed in respect of the assets physically verified. (c) During the year, in our opinion, a substantial part of fixed assets has not been disposed off by the Company. 2.(a) The Inventory of the Company has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable. (b) The procedures of physical verification of stocks followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business. (c) The Company has maintained proper records of Inventory. No discrepancies were noticed on verification between the physical stocks and the book records. 3. (a) The Company has neither granted nor taken any loans, secured or unsecured, from Companies, Firms or other Parties covered in the register, maintained under Section 301 of the Companies Act, 1956. as the company has not granted/taken any loans, secured or unsecured, to/from parties listed in the register maintained under section 301 of the companies Act,1956 clauses iii(b), iii(c) & iii(d) of paragraph 4 of the order, are not applicable. 4. According to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business with regard to purchases of inventory, fixed assets and for sale of goods. 5. (a) According to the information and explanations given to us, the transaction made in pursuance of contract or agreements, that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been recorded. (b) There are no transaction of purchase & sale of goods, materials and services made in pursuance of contracts or arrangement entered in register maintained under Section 301 of the Companies Act, 1956 aggregating during the year to Rs. 5,00,000/- or more in respect of each party. 6. The Company has not accepted any deposits from public. 7. In our opinion, the company has an internal audit system commensurate with its size and nature of business. 8. According to the information and explanations given to us, maintenance of cost records has not been prescribed by the Central Government under section 209 (1) (d) of the Companies Act, 1956. 9. As per the information and explanation given to us, the Company is not liable for Provident Fund, Investor Education & Protection Funds or Employees State Insurance, Wealth Tax, Custom Duty, Excise Duty and Cess. The Company is regular in payment of Income Tax, Sales tax and according to the information and explanations given to us, no undisputed amount payable in respect of such statutory dues. (b) According to the information and explanations given to us, there are no cases of non-deposit with the appropriate authorities of disputed dues of sales tax/income tax/custom tax/wealth tax/excise duty/cess. 10. The Company has no accumulated losses and has not incurred cash losses in the current year and in immediately preceding financial year. 11. According to the information and explanations given by the management, we are of the opinion that the Company has not defaulted in repayment of dues to financial institution and bank or debenture holder. There were no debenture holders at any time during the year. 12. The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debenture and other securities. 13. As per the information and explanation given to us, the provisions of any special statute applicable to Chit Fund, Nidhi or Mutual Benefit Fund/Societies are not applicable to the Company. 14. In our opinion and according to the information and explanation given to us the company is not a dealer or trader in securities. 15. The Company has not given any guarantee for loans taken by others from bank or financial institutions, the terms and conditions whereof in our opinion are prima facie, prejudicial to the interest of the Company. 16. The Company has not taken any term loan during the year. 17. Based on the examination of documents and records made available and on the basis of information and explanation given to us, since the company has not raised short-term and long-term fund, Para 4 of the order is not applicable. 18. According to the information and explanations given to us, the Company has not made any preferential allotment of shares to parties & Companies covered in the register maintained under section 301 of the Companies Act, 1956 during the year. 19. No debentures have been issued by the Company and hence question of creating security does not arise. 20. The Company has not raised any money by way of public issue during the year. 21. On the basis of our examination and according to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the year. For Khese Associates Umesh Khese Proprietor Place : Ahmedabad Date : 25/07/2005