Vishal Malleables Ltd Auditor Reports

TO THE MEMBERS OF VISHAL MALLEABLES LTD

Report on the Financial Statements

We have audited the accompanying financial statements of Vishal Malleables Ltd ("the Company") which comprises the Balance Sheet as at 31 March 2014, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory informations.

Managements 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 Principles generally accepted in India including Accountings Standards referred to in section 211(3C) 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 misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors 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 Companys 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

In our opinion and to the best of our information and according to the explanations given to us, the 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 31 March 2014;

b) in the case of the Statement of Profit and Loss, of the loss of the Company for the year ended on that date; and

c) in the case of the Cash Flow Statement, of the Cash Flows of the Company for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors Report) Order, 2003 ("the Order"), issued by the Central Government of India in terms of sub-section (4A) of section 227 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 it appears from our examination of such books.

c) The Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this Report are in agreement with the books of accounts.

d) In our opinion, the Balance Sheet, Statement of Profit and Loss and the Cash Flow Statement comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956; and

e) On the basis of written representations received from the Directors as on 31st March 2014, and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31st March 2014, from being appointed as a Director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956.

	For B.A.Pavagadhi & Co.
	Chartered Accountants
	(ICAIFRN-107862W)
Place: Ahmedabad	(Kamal Jain)
Date: 30th June 2014	Partner
	[M.No.35172]

: ANNEXURE TO THE INDEPENDENT AUDITORS REPORT :

Referred to in Paragraph 1 of our report of even date

1. In respect of its 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 .how ever the company has not produced fixed assets register for our verification.

b) As explained to us, all the fixed assets have been physically verified by the management during the year in a phased periodical manner, which in our opinion is reasonable, having regard to the size of the Company and nature of its assets. No material discrepancies were noticed on such physical verification.

c) In our opinion, the Company has not disposed off substantial 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 inventories of finished goods, stock-in-process, spares, stores and raw materials have 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, the procedures of physical verification of the above referred inventories 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 inventories. According to the records produced to us for our verification, discrepancies which are noticed on physical verification of inventories referred to in 2(a) above, as compared to the book records have been adjusted in the book records on the basis of a year end scrutiny carried out by the Company.

3. In respect of 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) The Company had taken loans from seven parties, including one company. The maximum amount involved during the year was Rs.177.35 lakhs and the year end balance of loan taken from such parties was Rs.257.62 lakhs. The Company had given loans to six parties including two Company. The maximum amount involved during the year was Rs.63.50 Lakhs and the year end balance of loan granted to such parties was Rs.225.94 lakhs.

b) In our opinion and according to the information and explanations given to us, the rate of interest, wherever applicable and other terms and conditions are not prima facie prejudicial to the interest of the Company.

c) In respect of interest free loans granted by the Company to the parties are repayable on demand. In respect of loans taken by the Company the interest payments are regular and the principal amount as stipulated.

d) In respect of loans taken by the Company and loans given by the Company are repayable as stipulated and therefore, the question of overdue amounts does not arise.

4. In our opinion and according to 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 for the purchase of inventory, fixed assets and also for the sale of goods. During the course of our audit, we have not observed any major weaknesses in internal controls.

5. In respect of transactions covered under section 301 of the Companies Act, 1956:

a) In our opinion and according to information and explanations given to us, the transactions made in pursuance of contracts or arrangements, that needed to be entered into in the register maintained under section 301 of the Companies Act, 1956 have been so entered.

b) The Company has purchased goods and materials and has sold goods and services in pursuant of contract or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 aggregating during the year to Rs. 5,00,000/- (Rupees five lakhs only) or more in respect of one party.

6. The Company has not accepted any deposits from the public. Therefore the provision of section 58A and section 58AA of the Companies Act alongwith Companies (Acceptance of Deposits) Rules, 1975 are not applicable to the Company.

7. On the basis of the Internal Audit Report, we are of the opinion that the internal audit functions carried out by a Firm of Chartered Accountants appointed by the management is commensurate with the size of the Company and the nature of its business.

8. We have broadly reviewed the books of accounts maintained by the company in respect of Product where pursuant to the rules Made by Central Government the maintenance of cost record has been Prescribes under section 209 (1) (D) of the companies act-1956 and are of the opinion that priimafacie, the prescribed accounts and record have been made and maintained. We have not how ever made a detailed examination of the records with a view to determining whether they are accurate or complete.

9. In respect of statutory dues:

According to the records of the Company, undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees state Insurance, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and other statutory dues have not been regularly deposited with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31st March 2014 for a period of more than six months from the date of becoming payable.

10. Accumulated losses of the Company exceeds net worth, excluding revaluation reserve as at 31st March 2014. The Company has made cash losses during the financial year covered by our audit.

11. Based on our audit procedures and according to the information and explanations given to us, we are of the opinion that the Company has defaulted in repayments of dues to banks. Amounts to Rs. 3129.29/- Lacs.

12. In our opinion and according to information and explanations 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 Companies (Auditors Report) Order 2003 is not applicable to the Company.

14. The Company has maintained proper records of transactions and contracts in respect of trading in securities, debentures and other investments and timely entries have been made therein. All shares, debentures and other investments have been held by the Company in its own name.

15. The Company has given guarantees for loans taken by others from banks or financial institutions. According to the information and explanations given to us, we are of the opinion that the terms and conditions thereof are not prima facie prejudicial to the interest of the Company.

16. The term loans outstanding at the beginning of the year and raised during the year were applied for the purposes for which they were raised.

17. According to the information and explanations given to us and on the overall examination of the Financial Statements, no funds raised on short term basis have been used for long term investment and vice-a-versa.

18. The company has not made any preferential allotment of shares to parties and companies covered in the register maintained U/s.301 of the Companies Act, 1956 during the year under review.

19. The Company has not issued any debentures during the year.

20. The Company has not raised any money by way of public issue during the year.

21. Based upon the audit procedures performed and as per the information and explanations given to us by the management no fraud on or by the Company has been noticed or reported during the course of our audit.

	For B.A.Pavagadhi & Co.
	Chartered Accountants
	(ICAI FRN-107862W)
Place: Ahmedabad	(Kamal Jain)
Date: 30th June 2014	Partner
	[M.No.35172]