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Auditor Report of Sacheta Metals Ltd.

Mar 31, 2015

We have audited the accompanying financial statements Sacheta Metals Limited which comprise the Balance Sheet as at 31 March 2015, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements :

The Company's Board of Directors is responsible for the matters in section 134(5) of the Companies Act, 2013 ("the Act") with respect to 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 the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of internal financial control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, 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.

Auditor's Responsibility :

Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under. We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. 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 auditor's 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 financial control relevant to the Company's preparation of the financial statements that give true and fair view 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 Company's Directors, 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 on the financial statements.

Opinion :

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid 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 March 31, 2015;

b) in the case of the Statement of Profit and Loss, of the profit for the year 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.

Report on other Legal and Regulatory Requirements :

(1) As required by the Companies (Auditor's Report) Order, 2015, issued by the Central Government of India in terms of section 143 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order.

(2) As required by section 143(3) of the Act, we report that:

a) We have sought and 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 Cash Flow Statement dealt with by this Report are in agreement with the books of account.

d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

e) The going concern matter described in sub-paragraph (a) under the Emphasis of Matters paragraph above, in our opinion, may have an adverse effect on the functioning of the Company.

f) On the basis of written representations received from the directors as on 31 March, 2015, taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 2015, from being appointed as a director in terms of Section 164(2) of the Act.

g) With respect to the other matters included in the Auditor's Report and to our best of our information and according to the explanations given to us :

i. The Company has preferred an appeal against order of VAT Department for Financial Year 2008-09 for demand of Rs. 43,55,009. Against this demand the company has deposited VAT /CST of Rs. 690124 and submitted bank guarantee of Rs. 1025000. However no provision for said liability is made in books of account. Except this there has not been any pending litigation.

ii. The Company did not have any long-term contracts including derivatives contracts for which there were any material foreseeable losses

iii. There were no amounts which required to be transferred. to the Investor Education and Protection Fund by the Company.

THE ANNEXURE REFERRED TO IN PARAGRAPH 1 OF THE OUR REPORT OF EVEN DATE TO THE MEMBERS OF SACHETA METALS LIMITED, ON THE ACCOUNTS OF THE COMPANY FOR THE YEAR ENDED 31ST MARCH, 2015.

On the basis of such checks as we considered appropriate and in terms of information and explanations given to us, we state that:

(i) a. The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.

b. We have been informed that, the fixed assets have been physically verified by the Management at reasonable intervals. In our opinion, the frequency of verification is reasonable with regard to the size of the company and nature of assets. According to information and explanations given to us by the management, no material discrepancy was noticed on such verification.

c. During the period the company has not disposed off a substantial part of its fixed assets and accordingly it has no effect on the going concern of the company.

(ii) (a) The inventory has been physically verified during the year by the management. Inour opinion, the frequency of verification is reasonable.

(b) The procedure of physical verification of inventories followed by the management is reasonable and adequate in relation to the size of the company and the nature of its business.

(c) The company is maintaining proper records of inventory. The discrepancies noticed on verification between physical stocks and book records were not material.

(iii) The company has not granted any loans unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act.

(iv) According to the information and explanation given to us, in our opinion there is an adequate internal control procedure commensurate with the size of the company and the nature of its business.

(v) According to the information and explanation given to us, the company has not accepted the any deposits from the public hence clause 3(v) of companies (auditor's Report) order 2015 is not applicable.

(vi) According to the information and explanation given to us the central government has not prescribed maintenance of cost records under sub-section (1) of section 148 of the Companies Act, 2013 in respect of the product dealt with by the company.

(vii) (a) According to the information and explanation given to us and record examined by us, the undisputed statutory dues such as income tax and other dues have been regularly deposited with the appropriate authorities. There are no arrears of statutory dues for a period of more than six months.

(b) According to the information and explanation given to us there are no disputed dues pending before the authorities in respect of income tax and other statutory dues except against Gujarat VAT Department - The Company has preferred an appeal against order of VAT Department for Financial Year 2008-09 for demand of Rs. 43,55,009. Against this demand the company has deposited VAT /CST of Rs. 690124 and submitted bank guarantee of Rs. 1025000.

(c) According to the information and explanation given to us there are no any amount required to be transferred to investor education and protection fund in accordance with the relevant provisions of the Companies Act, 1956

(viii) The company neither has accumulated losses as at the financial year nor has incurred cash losses during the financial year and in the immediately preceding financial year.

(ix) According to the records made available to us and information and explanation given to us by the management, in our opinion the company has not defaulted in repayment of dues to a bank or financial institution.

(x) As per information and explanation provided to us, the company has not given any guarantee for loans taken by other from bank or financial institution hence clause 3(x) of companies (auditor's Report) order 2015 is not applicable.

(xi) As per information and records provided before us, the company has not accepted any term loan hence clause 3(xi) of companies (auditor's Report) order 2015 is not applicable.

(xii) During the course of our examination of the books and records of the company, carried out in accordance with generally accepted auditing practices in india, and accordingly to the information and explanation provided to us, we have never come across any instance of fraud on or by the company noticed or reported during the period nor we have been informed of such instances by the management.

For R.R.Mandali & Co.

Chartered Accountants

(FRN 114223W)



Place : Ahmedabad (R. R. Mandali)

Date : May 29, 2015 Proprietor

M.No. 033118


Mar 31, 2014

We have audited the accompanying financial statements of Sacheta Metals Limited (''the Company'') which comprise the balance sheet as at 31st 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 information.

Management''s 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 Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act") read with General Circular 15/2013 dated 13th September 2013 of Ministry Corporate Affairs in respect of Section 133 of Companies Act 2013 and in accordance with the accounting principles generally accepted in India. 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.

Auditor''s 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 auditor''s 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 Company''s 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:

(i) in the case of the balance sheet, of the state of affairs of the Company as at 31st March 2014;

(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 the cash flow statement, of the cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements :

1. As required by the Companies (Auditor''s 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 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 appears from our examination of those 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 account;

d. in our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956 read with

General Circular 15/2013 dated 13th September 2013 of Ministry Corporate Affairs in respect of Section 133 of Companies Act 2013 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, 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.

ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR AUDITOR''S REPORT OF EVEN DATE ON THE ACCOUNTS FOR YEAR ENDED 31st MARCH, 2014 OF SACHETA METALS LIMITED

I. (a) The Company has maintained proper records showing full particulars Including quantitative details and situation of fixed assets.

(b) All the Assets have not been physically verified by the management during the year but there is a regular programme of verification at reasonable intervals , which , in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verifications.

(c) The Company has not disposed off any part of its fixed assets during the year under review, which will affect the going concern status of the Company.

II. (a) The inventory has been physically verified during the year by the management .In our opinion , the frequency of verification is reasonable .

(b) The procedure of physical verification of inventories followed by the management is reasonable and adequate in relation to the size of the company and the nature of its business

(c) The company is maintaining proper records of inventory. The discrepancies noticed on verification between physical stocks and book records were not material.

III. (a) The Company has taken loan from directors covered in the register maintained under section 301 of the Companies Act , 1956. The maximum amount involved during the year was Rs 47,77,000 and the year end balance of loan taken from such party was Rs NIL . The company has granted loan to the parties covered in the register maintained under section 301 of the Companies Act,1956. . The maximum amount involved during the year was Rs 20,04,120 and the year end balance of loan given to such party was Rs NIL .

(b) In our opinion , the rate of interest and other terms and conditions on which loans have been taken from Companies , firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956 are not, prima facie, prejudicial to the interest of the Company.

(c) There is no fixed stipulation for repayment of loan taken. However the same is repayable on demand. No interest has been charged on such loans.

(d) Loans taken from Companies , firms or other parties listed in the register maintained under section 301 the Companies Act, 1956 were on demand basis. So the question of overdue amount does not arise.

IV. In our opinion and 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 with regard to the sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal controls.

V. (a) According to the information and explanations given to us, we are of the opinion that the transactions that need to be entered in to register maintained u/s 301 of the Act have been so entered.

(b) In our opinion and according to the information and explanation given to us, the transaction made in pursuance of contracts or arrangements entered in the register maintained u/s. 301 of the Companies Act 1956 and exceeding the value of Rupees five lakhs in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

VI. The Company has not accepted deposits from the public. So provisions of sections 58A and 58AA or any other provisions of the Companies Act, 1956 and the Companies (acceptance of deposits) Rules 1975 need not to be complied with.

VII. In our opinion, the company has an Internal Audit system commensurate with the size and nature of its business.

VIII. We have reviewed the cost records maintained by the Company pursuant to the companies (Cost Accounting Records) Rules, 2011 prescribed by the central government under section 209 (1) (d) of the Companies Act,1956 and are of the opinion that prima facie , the prescribed cost records have been maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

IX. (a) The company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education protection fund , employee''s state insurance, income tax, sales tax, wealth tax, custom duty, excise duty , cess and other material statutory dues applicable to it.

(b) According to the information and explanations given to us, there are no undisputed amount payable in respect of Income Tax, Sales Tax , Wealth Tax , Custom Duty , Excise Duty and Cess were in arrears, as at 31.03.14 for a period of more than six months from the date they became payable.

X. The company neither has accumulated losses as at the financial year nor has incurred cash losses during the financial year and in the immediately preceding financial year.

XI. In our opinion, and according to the information and explanations given to us, the company has not defaulted in repayment of dues to a financial institutions or bank as at balance sheet date.

XII. Based on our examination and 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 company is not a chit fund/nidhi/mutual benefit fund/society and clause (xiii) of the Order is not applicable.

XIV. The company is not dealing or trading in shares, securities, debentures and other investments.

XV. The company has not given guarantees for loans taken by others from banks or financial institutions.

XVI. In our opinion, the term loans have been applied for the purpose for which they were raised.

XVII. On the basis of our examination of the Balance Sheet of the Company and according to the explanation given to us, in our opinion, funds raised on short term basis have not been used for long term investment.

XVIII. The Company has not allotted equity shares on preferential basis to the parties Listed in the in the register maintained u/s 301 of the Act.

XIX. The Company has not issued any secured debentures.

XX. The Company has not raised money by public issue of shares.

XXI. According to the information and explanation given to us, we have neither come across any instance of fraud on or by the company, noticed nor reported during the year nor have we been informed of such case by the management.

For, R.R. Mandali & Co. CHARTERED ACCOUNTANTS (FRN 114223W)

(R. R. Mandali) Date : May 30, 2014 Proprietor Place : Ahmedabad M.NO.: 33118


Mar 31, 2010

We have audited the attached Balance Sheet of SACHETA METALS LIMITED as at 31st March 2010 Profit & Loss account for the year ended on that date. These financial statements are the responsibility of the Management. Our responsibility is to express an opinion on these financial statements based on our audit.

We have 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 from material misstatements. An audit also 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.

As required by the companies (Auditors Report) Order, 2003 issued by the Central Government of India in terms of sub section (4A) of section 227 of the Companies Act, 1956,we enclose in the Annexure a statement on the matters specified in Para 4 and 5 of the said Order.

Further to our comments in the annexure referred to above, we report that:

(a) In our opinion , the Balance Sheet and Profit & Loss A/c and dealt with by this report comply with the accounting standards referred to in sub section (3C) of section 211 of the Companies Act 1956.

(b) We have obtained all the information and explanation which to the best of our knowledge and belief were necessary for the purpose of our audit.

(c) 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 the books.

(d) In our opinion the Balance Sheet and Profit & Loss Account dealt with this report are in agreement with the books of accounts.

(e) On the basis of wfitten representations received from the directors as on 31st March 2010 and taken on record by the Board of Directors of the Company , none of the Directors is disqualified as on March 31, 2010 from being appointed as aDirector 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 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 gives a true and fair view in conformity with the accounting principles generally accepted in India.

(i) In the case of Balance Sheet of the state of affairs of company as at 31stMarch, 2010 and

(ii) In the case of Profit & Loss Account of the Profit of the company for the year ended on that date and (iii) In the case of cash flow statement of the cash flow for the year ended on that date.

ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR AUDITORS REPORT OF EVEN DATE ON THE ACCOUNTS FOR YEAR ENDED 31st MARCH, 2009 OF SACHETA METALS LIMITED

I. (a) The Company has maintained proper records showing full particulars Including quantitative details and situation of fixed assets.

(b) All the Assets have not been physically verified by the management during the year but there is a regular programme of verification at reasonable intervals , which , in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verifications.

(c) The Company has not disposed off any part of its fixed assets during the year under review, which will affect the going concern status of the Company.

II. (a) The inventory has been physically verified during the year by the management .In our opinion , the frequency of verification is reasonable .

(b) The procedure of physical verification of inventories followed by the management is reasonable and adequate in relation to the size of the company and the nature of its business

(c) The company is maintaining proper records of inventory. The discrepancies noticed on verification between physical stocks and book records were not material.

III. (a) The Company had taken loan from two directors covered in the register maintained under section 301 of the

Companies Act, 1956. The amount involved during the year was Rs 875000 and the said loan was squared up during the year.There is one company and one firms covered in the register maintained under section 301 of the Companies Act, 1956 from which the company has taken loans. The amount involved during the year was Rs 2444000 and the said loan was also squared up during the year.

(b) In our opinion , the rate of interest and other terms and conditions on which loans have been taken from/ granted to companies , firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956 are not, prima facie, prejudicial to the interest of the Company.

(c) The Company is regular in repaying principal amounts as stipulated. The parties have repaid the principal amount as stipulated. However no interest has been charged on such loans.

(d) Loans taken or granted to companies , firms or other parties listed in the register maintained under section 301 the Companies Act, 1956 were on demand basis. So the question of overdue amount does not arise.

IV. In our opinion and 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 with regard to the sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal controls.

V (a) According to the information and explanations given to us, we are of the opinion that the transactions that need to be entered in to register maintained u/s 301 of the Act have been so entered.

(b) In our opinion and according to the information and explanation given to us, the transaction made in pursuance of contracts or arrangements entered in the register maintained u/s. 301 of the Companies Act 1956 and exceeding the value of Rupees five lakhs in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

VI. The Company has not accepted deposits from the public. So provisions of sections 58A and 58AA or any other provisions ofjhe Companies Act, 1956 and the Companies (acceptance of deposits) Rules 1975 need not to be complied with.

VII. In our opinion, the company has an Internal Audit system commensurate with the size and nature of its business.

VIII. The Central Government has not prescribed maintenance of Cost Records under under Section 209(1 )(d) of the Companies Act, 1956.

IX. (a) The company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education protection fund, employees state insurance, income tax, sales tax, wealth tax , custom duty, excise duty cess and other material statutory dues applicable to it.

(b) According to the information and explanations given to us, there are no undisputed amount payable in respect of Income Tax, Sales Tax, Wealth Tax, Custom Duty , Excise Duty and Cess were in arrears, as at 31.03.10 for a period of more than six months from the date they became payable.

X The company neither has accumulated losses as at the financial year nor has incurred cash losses during the financial year and in the immediately preceding financial year.

XI. in our opinion , and according to the information and explanations given to us, the company nas not defaulted in repayment of dues to a financial institutions or bank as at balance sheet date.

XII. Based on our examination and 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 company is not a chit fund/nidhi/mutual benefit fund/society and clause (xiii) of the Order is not applicable.

XIV. The company is not dealing or trading in shares, securities, debentures and other investments.

XV. The company has not given guarantees for loans taken by others from banks or financial institutions.

XVI. In our opinion, the term loans have been applied for the purpose for which they were raised.

XVII. On the basis of our examination of the Balance Sheet of the Company and according to the explanation given to us, in our opinion , funds raised on short term basis have not been used for long term investment.

XVIII. The Company has not allotted equity shares on preferential basis to parties and companies in the register maintained u/s 301 of the Act.

XIX The Company has not issued any secured debentures.

XX The Company has not raised money by issue of shares.

XXI. According to the information and explanation given to us, we have neither come across any instance of fraud on or by the company, noticed nor reported during the year nor have we been informed of such case by the

For R.R.MANDALI & CO.

CHARTERED ACCOUNTANTS

Place : Ahmedabad ( R.R.Mandali)

Date : 26th August, 2010 Proprietor

M.N0.33118

 
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