Mar 31, 2014
1. We have audited the accompanying financial statements of Sharda
Ispat Ltd., Nagpur, which comprise the Balance Sheet as at 31H March,
2014, the statement of Profit & 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 forthe Financial Statements:
2. Management is responsible forthe preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flow of the company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 read with General Circular 15/2013 of the
Ministry of Corporate Affairs in respect of section133 of the 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:
3. 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.
4. An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in financial statements. The
procedures selected depends 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, but not for the purpose of expressing an opinion on the
effectiveness of the Company''s internal control. 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.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion:
6. 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 & 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 of the
company for the year ended on that date.
Emphasis of Matter:
7. We draw attention to the transactions covered under section 297 of
Companies Act, 1956, the previous sanction of central government under
section 297 of the companies act, 1956 was not made available.
Report on Other Legal and Regulatory Requirements:
8. 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 paragraph 4 & 5 of the order.
9. 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 and the Statement of Profit & 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 and the Statement of Profit &
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 read with General Circular 15/2013 of the Ministry of Corporate
Affairs in respect of section 133 of the Companies Act, 2013, and
e. On the basis of written representations received from the Directors
as on 31s'' 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 Directorin terms of clause (g) of sub-section (1)
of Section 274 of the Companies Act, 1956.
SHARDA ISPAT LTD.
(Referred to our Report of Even date)
On the Accounts as at 31st March. 2014
i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets except for additions of the current year.
(b) All the Assets have not been physically verified by the management
during the year but there is a regular programme of verification which
in our opinion is reasonable having regard to the size of the company
and nature of its assets. No material discrepancies have been noticed
on such verification, as reported to us.
(c) In our opinion and according to the information and explanations
given to us, there is no disposal of fixed assets by the company during
the year
ii) (a) As explained to us, inventory has been physically verified
during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of the physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and nature of its business.
{c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of inventories
and no material discrepancies were noticed on physical verification.
iii) (a) The Company has notgranted any loans, secured or unsecured to
companies, firms or other parties covered in the register under section
301 of the Act. The provisions of (iii) (b) & (d) of paragraph 4 of the
order are not applicable to the company.
(b) The Company has taken unsecured loans from Companies, Firms or
other parties covered in the register maintained u/s. 301 of the
Companies Act, 1956. The amount of Rs. 327.70 Lacs from five parties
have been taken during the financial year.
(c) The rate of interest and other terms and conditions of such
unsecured loan taken by the company are, in our opinion, prima facie
not prejudicial to the interest of the Company.
(d) The payment of the principal amount and interest are regular.
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 for the purchases of inventory, fixed assets and for the sale
of goods and services. Further, on the basis of our examination of the
books and records of the company and according to the information and
explanations given to us, we have neither came across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control procedures.
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 the
register maintained under section 301 of the Companies Act, 1956 have
been so entered.
(b) In our opinion and according to the information and explanations
given to us and as per the records of the company, the transactions of
sales of goods, materials and services aggregating during the year
exceeding Rs. 5 Lacs in value with each party as in the register in
pursuance of section 301 of the Companies Act, 1956, which are of
propritary in nature and for which comparable market prices are not
available and accordingly we are unable to comment on the
reasonableness or otherwise of such transaction.
vi) In our opinion, and according to the information and explanations
given to us, the company has not accepted any deposits from the public
to which the directives issued by Reserve Bank of India and the
provisions of sections 58-A, 58-AA or any other relevant provisions of
the Companies Act, 1956 and rules made there under are applicable.
vii) In our opinion, the company has an internal audit system
commensurate with its size and nature of its business.
viii) According to the information & explanations given to us, the cost
records under Section 209(1 )(d) of the Companies Act, 1956 read with
the Companies (Cost Accounting Records) Rules, 2011 have been
maintained but we have not made a detailed examination of the records
with a view to determine whether they are accurate or complete.
ix) (a) According to the information and explanations given to us &
records of the company examined by us, in our opinion, the company is
regular in depositing with the appropriate authorities undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees'' State Insurance, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and any other
statutory dues applicable to it. According to the information and
explanations given to us, there were no undisputed amounts payable in
respect of Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Custom duty, Excise duty and any other statutory dues which
remained outstanding as at 31st March, 2014 fora period of more than
six months from the date they became payable.
(b) According to the information and explanations given to us and the
records of the company examined by us, the following dues of Sales Tax
and Excise duty as at 31st March, 2014, have not been deposited on
account of disputes, are as under
Sr Name of Statute Nature of Amount Nature of Dues
No. Dues (Rs) Dispute is
pending
1. Central Excise Excise 1,257,012 High Court Delhi
Act Duty
2. Central Excise Penalty 224,000 Commissioner of
Act Central Excise,
Indore
3. Central Excise Excise Duty 1,760,778 CEGAT, Mumbai
Act & Penalty (Appeals), Nagpur
4. Central Excise Excise Duty 2,264,530 Add.Commissioner
Act & Penalty of Central Excise,
Customand Service
Tax, Nagpur
5. Central Excise Excise Duty 1,963,762 Jt. Commissioner
Act & Penalty of Central Excise,
Custom and Service
Tax, Nagpur
6. Central Excise Excise Duty 374,578 Dy. Commissioner
Act & Penalty Central Excise,
Division I, Nagpur
7. Central Excise Service Tax 115,559 Dy.Commissioner
Act Service Tax
Cell, Nagpur
8. Bombay Sales Tax Sates Tax, 1,308,650 Joint Commissioner
Act(1999-00) In terest of Sales Tax
and Penalty (Apparels). Nagpur
9. Central Sales Sales Tax, 237,211 Joint Commissioner
Tax Act (1999-00) Interest and of Sales Tax
Penalty (Appeals),Nagpur
10. Bombay Sales Tax Sales Tax, 12,162,805 Joint Commissioner
Act (2000-01) Interest of Sales Tax
and Penalty (Appeals),Nagpur
11. Central Sales Tax Sales Tax, 3,015,700 Joint Commissioner
Act (2000-01) Interest of Sales Tax
and Penalty (Appeals),Nagpur
(Above Sr.No. 8, 9, 10 and 11 are in total. The allocation shall be
made after final decision between demerged company and resultant
companies) (Refer Note No. 28.2)
x) As per Records of the company, the accumulated losses at the end of
the financial year are less than 50% of its net worth. The company has
not incurred cash losses during the current 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 the repayments of dues to
bank.
xii) The company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii) The provisions of any special statute applicable to chit
fund/nidhi/ mutual benefit fund/society are not applicable to the
company.
xiv) According to the information and explanations given to us, the
company is not dealing in or trading in shares, securities, debentures
and other investments.
xv) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from
Banks or Financial Institutions.
xvi) As per records examined by us, the company has not received any
term loan during the year.
xvii) According to the information and explanation given to us, and the
records of the company examined by us and on an overall basis, we
report that short term fund have not been used for long term investment
during the year.
xviii) The company has not made any preferential allotment of shares
during the year.
xix) The company has not issued any debentures during the year.
xx) The company has not raised any money by public issue during the
year.
xxi) According to information and explanations given to us, no fraud on
or by the company was noticed or reported during the year.
FOR LOYABAGRI & CO.,
Firm Registration No 105658W
Chartered Accountants,
Nagpur, Dated the, (GOPAL DAS BAGRI)
30th May, 2014 Partner (M.No.002933)
Mar 31, 2013
Report on the Financial Statements:
We have audited the accompanying financial statements of Sharda Ispat
Ltd., Nagpur, which comprise the Balance Sheet as at 31st March, 2013,
the statement of Profit & 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 flow of the company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956. 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 financial statements. The procedures
selected depends 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 ouraudit 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 31s'' March, 2013,
ii] in the case of the statement of Profit & 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 of the
company for the year ended on that date.
Emphasis of Matter:
We draw attention to the transactions covered under section 297 of
Companies Act, 1956, the previous sanction of central government
undersection 297 of the companies act, 1956 was not made available.
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 statementon the matters specified in paragraph 4 & 5 of the order.
2. As required by section 227(3) of the Act, we reportthat:
a. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of
ouraudit.
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 and the Statement of Profit & Loss, and the Cash
Flow Statement dealt with by th is Report are in agreement with the
books of account.
d. In our opinion, the Balance Sheet and the Statement of Profit &
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 31" March, 2013 and taken on record by the Board of Directors,
none of the directors is disqualified as on 31" March, 2013, from being
appointed as a Director in terms of clause (g) of sub-section (1) of
Section 274 of the Companies Act, 1956.
i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets except for additions of the current year.
(b) All the Assets have not been physically verified by the management
during the year but there is a regular programme of verification which
in our opinion is reasonable having regard to the size of the company
and nature of its assets. No material discrepancies have been noticed
on such verification, as reported to us.
(c) In our opinion and according to the information and explanations
given to us, there is no disposal of fixed assets by the company during
the year
ii) (a) As explained to us, inventory has been physically verified
during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of the physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and nature of its business.
(c) In our opinion and accordifig to the information and explanations
given to us, the Company has maintained proper records of inventories
and no material discrepancies were noticed on physical verification.
iii) (a) The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register under section
301 of the Act. The provisions of (iii) (b) & (d) of paragraph 4 of the
order are not applicable to the company.
(b) The Company has taken unsecured loans from Companies, Firms or
other parties covered in the register maintained u/s. 301 of the
Companies Act, 1956. The amount of Rs. 2.54 Lacs from one party has
been taken during the financial year.
(c) The rate of interest and other terms and conditions of such
unsecured loan taken by the company are, in our opinion, prima facie
not prejudicial to the interest of the Company.
(d) There is no stipulation for repayment of principal loan taken and
interest thereon.
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 for the purchases of inventory, fixed assets and for the sale
of goods and services. Further, on the basis of our examination of the
books and records of the company and according to the information and
explanations given to us, we have neither came across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control procedures.
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 the
register maintained under section 301 of the Companies Act, 1956 have
been so entered.
(b) In our opinion and according to the information and explanations
given to us and as per the records of the company, there is no
transaction made in pursuance of contracts or arrangements entered in
the register in pursuance of section 301 of the Companies Act, 1956 in
excess of Rs.5 lacs in respect of any party during the year.
vi) In our opinion, and according to the information and explanations
given to us, the company has not accepted any deposits from the public
to which the directives issued by Reserve Bank of India and the
provisions of sections 58-A, 58-AAor any other relevant provisions of
the Companies Act, 1956 and rules made there under are applicable.
vii) In our opinion, the company has an internal audit system
commensurate with its size and nature of its business.
viii) According to the information & explanations given to us, the cost
records under Section 209(1 )(d) of the Companies Act, 1956 has been
maintained but we have not made a detailed examination of the records.
ix)According to the information and explanations given to us &
records of the company examined by us, in our opinion, the company is
regular in depositing with the appropriate authorities undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees'' State Insurance, Income Tax, Sales Tax,
Wealth Tax, Customs Duty, Excise Duty, Cess and any other statutory
dues applicable to it. According to the information and explanations
given to us, there were no undisputed amounts payable in respect of
Provident Fund, Investor Education and Protection Fund, Employees''
State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom duty, Excise
duty and any other statutory dues which remained outstanding as at 31"
March, 2013 for a period of more than six months from the date they
became payable.
x) As per Records of the company, the accumulated losses at the end of
the financial year are less than 50% of its net worth. The company has
not incurred cash losses during the current 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 the repayments of dues to
bank.
xii) The company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii) The provisions of any special statute applicable to chit
fund/nidhi/ mutual benefit fund/society are not applicable to the
company.
xiv) According to the information and explanations given to us, the
company is not dealing in or trading in shares, securities, debentures
and other investments.
xv) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from
Banks or Financial Institutions.
xvi) As per records examined by us, the company has not received any
term loan during the year.
xvii) According to the information and explanation given to us, and the
records of the company examined by us and on an overall basis, we
report that short term fund have not been used for long term investment
during the year.
xviii) The company has not made any preferential allotment of shares
during the year.
xix) The company has not issued any debentures during the year.
xx) The company has not raised any money by public issue during the
year.
xxi) According to information and explanations given to us, no fraud on
or by the company was noticed or reported during the year.
FOR LOYABAGR1 & CO.,
Firm Registration No 105658W
Chartered Accountants,
Nagpur, Dated the,
(GOPAL DAS BAGRI)
29th May, 2013 Partner
(M.No.002933)
Mar 31, 2012
1) We have audited the attached Balance Sheet of Sharda Ispat Ltd.,
Nagpur, as at 31st March, 2012, the Profit and Loss Account for the
year ended on that date annexed thereto and also the Cash Flow
Statement for the year ended on that date read with notes annexed
hereto. These financial statements are the responsibility of the
Company's 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 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.
3) As required by the Companies (Auditor's 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 paragraphs '4' and '5' of the
said order.
4) Attention is invited to the transactions covered under section 297
of the Companies Act, 1956, the previous sanction of Central Government
under section 297 of the Companies Act was not made available.
5) Subject to our comments in Para 4, 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 purpose 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 Balance Sheet, Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
(iv) The Cash Flow Statement, the Profit & Loss Account and the Balance
Sheet comply the Accounting Standards referred to in Sub Section (3C)
of Section 211 of the Companies Act, 1956.
(v) On the basis of written representations received from the
Directors, as on 31st March, 2012 and taken on record by the Board of
Directors, 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 Companies Act, 1956.
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
notes thereon and attached thereto, give the information required by
the Companies Act, 1956, in the manner so required and give a true and
fair view in confirmity 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 and Loss Account of the Profit for the
year ended on that date.
(c) in the case of the cash flow statement, of cash flows for the year
ended on that date.
ANNEXURE TO AUDITOR'S REPORT OF SHARDA ISPAT LTD.
(Referred to in Paragraph 3 of our Report of Even date on the Accounts
as at 31st March, 2012.)
i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets except for additions of the current year.
(b) All the Assets have not been physically verified by the management
during the year but there is a regular programme of verification which
in our opinion is reasonable having regard to the size of the company
and nature of its assets. No material discrepancies have been noticed
on such verification, as reported to us.
(c) In our opinion and according to the information and explanations
given to us, substantial part of fixed assets has not been disposed off
by the company during the year.
ii) (a) As explained to us, inventory has been physically verified
during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of the physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of inventories
and no material discrepancies were noticed on physical verification.
iii) (a) The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register under section
301 of the Act. The provisions of (iii) (b) & (d) of paragraph 4 of the
order are not applicable to the company.
(b) The Company has taken unsecured loans from Companies, Firms or
other parties covered in the register maintained u/s. 301 of The
Companies Act, 1956. The amount of Rs. 195.00 Lacs from one party has
been taken.
(c) The rate of interest and other terms and conditions of such
unsecured loan taken by the company are, in our opinion, prima facie not
prejudicial to the interest of the Company.
(d) There is no stipulation for repayment of principal loan taken and
interest thereon.
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 for the purchases of inventory, fixed assets and for the sale
of goods and services. Further, on the basis of our examination of the
books and records of the company and according to the information and
explanations given to us, we have neither came across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control procedures.
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 the
register maintained under section 301 of the Companies Act, 1956 have
been so entered.
(b) In our opinion and according to the information and explanations
given to us and as per the records of the company, there is no
transactions made in pursuance of contracts or arrangements entered in
the register in pursuance of section 301 of the Companies Act, 1956 in
excess of Rs. 5 lacs in respect of any party during the year.
vi) In our opinion, and according to the information and explanations
given to us, the company has not accepted any deposits from the public
to which the directives issued by Reserve Bank of India and the
provisions of sections 58-A, 58-AA or any other relevant provisions of
the Companies Act, 1956 and rules made there under are applicable.
vii) In our opinion, the company has an internal audit system
commensurate with its size and nature of its business.
viii) According to the information & explanations given to us, the cost
records under Section 209(1 )(d) of the Companies Act, 1956 has been
maintained but we have not made a detailed examination of the records.
ix) (a) According to the information and explanations given to us &
records of the company examined by us, in our opinion, the company is
regular in depositing with the appropriate authorities undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees' State Insurance, Income Tax, Sales Tax,
Wealth Tax, Customs Duty, Excise Duty, Cess and any other statutory
dues applicable to it. According to the information and explanations
given to us, there were no undisputed amounts payable in respect of
Provident Fund, Investor Education and Protection Fund, Employees'
State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom duty, Excise
duty and any other statutory dues which remained outstanding as at 31st
March, 2012 for a period of more than six months from the date they
became payable.
(b) According to the information and explanations given to us and the
records of the company examined by us, the particulars of Sales Tax and
Excise duty as at 31st March, 2012, that have not been deposited on
account of a dispute pending are as under:
Sr. Name of Statute Nature of Dues Amount Forum where
Dispute
No. (Rs.) is pending
1. Central Excise Act Excise Duty 12,57,012 High Court,
Delhi
2. Central Excise Act Excise Duty 1,40,100 CEGAT.Mumbai
& Penalty (Appeals),
Nagpur.
3. Central Excise Act Penalty 2,24,000 CEGAT, North
Zone, Delhi
(Appeals),
Nagpur.
4. Central Excise Act Excise Duty 17,61,278 CEGAT, Mumbai
& Penalties (Appeals),
Nagpur.
5. Central Excise Act Excise Duty 22,64,530 Add.
& Penalty Commissioner
of Central
Excise, Custom
and Service
Tax, Nagpur
6. Central Excise Act Excise Duty 19,63,762 Jt.Commissioner
& Penalty of Central
Excise, Custom
and Service
Tax, Nagpur
7. Central Excise Act Excise Duty 1,87,639 Dep.
Commissioner
& Penalty Central Excise,
Division I,
Nagpur
8. Central Excise Act Service Tax 1,15,559 Dep.
Commissioner of
Service Tax
Cell, Nagpur
9. Bombay Sales Tax Act Sales Tax, 13,08,650 Joint
(1999-00) Interest Commissioner
and Penalty of Sales
Tax (Appeals),
Nagpur
10. Central Sales Tax Sales Tax, 2,37,211 Joint
Act (1999-00) Interest Commissioner
and Penalty of Sales
Tax (Appeals),
Nagpur
11. Bombay Sales Tax Sales Tax, 1,21,62,805 Joint
Act (2000-01) Interest Commissioner
and Penalty of Sales
Tax (Appeals),
Nagpur
12. Central Sales Tax Sales Tax, 30,15,700 Joint
Act (2000-01) Interest Commissioner
and Penalty of Sales
Tax (Appeals),
Nagpur
(Above Sr. No. 9,10 11 and 12 are in total. The allocation shall be
made after final decision between demerged company and resultant
companies) (Refer Note No. 29.2)
x) There are accumulated losses of the company at the end of the
financial year. The company has not incurred cash losses during the
current 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 the repayments of dues to
bank.
xii) The company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii) The provisions of any special statute applicable to chit
fund/nidhi/mutual benefit fund/society are not applicable to the
company.
xiv) According to the information and explanations given to us, the
company is not dealing in or trading in shares, securities, debentures
and other investments.
xv) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from
Banks or Financial Institutions.
xvi) As per records examined by us, the company has not received any
term loan during the year.
xvii) According to the information and explanation given to us, and the
records of the company examined by us and on an overall basis, we
report that short term fund have not been used for long term investment
during the year.
xviii) The company has not made any preferential allotment of shares
during the year.
xix) The company has not issued any debentures during the year.
xx) The company has not raised any money by public issue during the
year.
xxi) According to information and explanations given to us, no fraud on
or by the company was noticed or reported during the year.
For and on behalf of the Board of Directors
Poonam Sarda
Whole-Time Director
N.K. Sarda
Chairman & Managing Director
Place: Nagpur
Date : 01.08.2012
Mar 31, 2011
1) We have audited he attached Balance Sheet of Sharda spat Ltd.,
Nagpur, as at 31st March, 2011, the Profit and Loss Account it for the
year ended on the date annexed thereto and also the Cash Flow
Statement for the rear ended on that date read with notes annexed
hereto. These financial statements are the responsibility of the
Company's management. Our responsibility is to express a opinion on
these financial statements based on our audit.
2) We conducted out- audit in accordance with auditing standards
generally accepted a India. Those standards require that we plan and
perform the audit lo obtain reasonable assurance about whether the
financial statesmen s are free of material misstatement. An audit
includes examining on a test basis, evidence supporting the amounts t
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.
3) As required by the Companies [Auditor's 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 a
statement on the matters specified in paragraphs '4' and '5' of the
said order.
4) Attention is invited o the transactions covered under section 2 97
of the Companies Act, 1956, the previous sanction of Central Government
under Section 297 if the Companies Act was not made available.
5) Subject to our comments in Para 4 above, we report that:-
(i) We have obtain led all the information and explanations, which to
the best of oar knowledge and belief were necessary for the purpose of
ou] 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 o:
those books.
(iii) The Balance Sheet, Profit and Loss Account and Cash Fl 3W
Statement death with by this report are in agreement with the
books of account at.
(iv) The Cash Flow Statement, the Profit & Loss Account and the Balance
Sheet :comply the Accounting Standards referred to in Sub Section (30)
of Section 211 of the Companies Act, 1956.
(v) On the basis of written representations received from the
Directors, as 31st March 2(m &and taken on
Board of Directors, we report that none of the Directors is
disqualified as on 31- March, 2011 from being appointed as a Director
in terns of clause (g) of sub-section (1) of Section 274 of the
Company :s Act, 1956.
(vi) In our opinion and to the best of our information and according to
the explain ions given to us, the said accounts read together with the
does thereon and attached thereto, give the information required by
the Companies Act, 1956, in the manner so red aired 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, 2011;
(b) in the case of the Profit and Loss Account of the profit for the
year med on that date.
(c) in the case of the cash flow statement, of cash flows for the year
ended on that date.
ANNEXURE To AUDITORS' REPORT OF SHARDA ISPAT LTD
Referred to Paragraph 3 of our Report of Even date on 1fhc
Accounts as at 31st March. 2011.
i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets except for additions of the current year.
(b) All the Ass its have not been physically verified by the management
during the year but there is a regular programme of verification which
in our opinion is reasonable hurting regard to the size of :he company
and nature of its assets. No material discrepancies have been noticed
on such verification, as reported to us
(c) In our opinion and according to the information and explanations
given to us, substantial part of fixed assets has not been) disposed
off by the company during the year
ii) (a) As explained to us, inventory has been physically verified
during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of the physical verification of inventories
followed by the management are reasonable are d adequate in relation to
'the size of the Company and nature all its business.
(c) In our opinions and according to the information and explanations
*even to us, the Company has maintained proper records of inventories
arid no material discrepancies were noticed /social verification.
iii) (a) The C0mpany has not granted any loans, secured or 1 unsecured
t) companies, firms or other parties covered in the f register under
section 301 of the Act. The provisions c f (iii) (b) I & (d) of par
agraph 4 of the order are not applicable to the f company.
(b) The Company has taken unsecured loans from Companies, Firms or
other parties in the register maintained u/s 301 of the Companies Act,
1956. The amount of Rs.327.50 Lacs from one party has been taken.
(c) The Rate of interest and other terms and conditions of such
insecure loan taken by the company are, in our opinion, prima facie
not prejudicial; to the interest of the Company.
(d) There is no stipulation for repayment of principal loan taken and
interest thereon.
(iv) In our opinion, and according to the information and explanations
given to us, there adequate internal control procedures corn menstruate
with the size of the company and the nature of its business for the
purchases of inventory, fixed assets and for the sale of goods and
services. Further on the basis of our examination of the books and
records of the company and according to the information and
explanations given to us, we have neither came across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control procedures.
v (a) According to the information and explanations that need to be
entered in the register maintained under section 301 of the Companies
Act, 1956 have been so entered
9b) in our opinion and according to the information and explanations
given to us and as per the records of the company, there is no
transaction made in pursuance of contracts or arrangements entered in
the register in pursuance of section 301 of the companies Act, 1956 in
excess of Rs.51 lacs in respect of any party during the year.
vi) In our opinion, and according to the information and explanations
given to us, the company has not accepted any deposits from the public
to which the directives issued by Reserve Bank of India and the
provisions of sections 58-A, 58-AA or any other relevant provisions of
the Companies Act, 1956 and rules made there under are applicable.
vii) In our opinion, the company has an internal audit system
commensurate with its size and nature of its business.
viii) The maintained of cost records has not been prescribed by the
Central Government under section 209(l)(d) of the Companies Act, 1956,
for the products of the company.
ix) (a) According to he information and explanations given to us and
records of the company examined by us, in our opinion, the company is
regular in depositing with the appropriate authorities undisputed
statutory dues including provident Fund, bravest Education and
Protection Fund, Employees' State Incurrence, Income Tax, Sales Tax,
Wealth Tax, Customs Duty, Excite Duty, Cess and any other statutory
dues applicable to t. According to the information and explanations
given to us, there were no undisputed amounts pa} able in respect
Provident Fund, Investor Education and Protection Fund, Enfold fees'
State Insurance, Income Tax, Saabs Tax, Wealth Tax, Custom duty,
Excise duty and any other statutory dues which remained outstanding as
at 31st March, 2011 for a period of move than six months from the
date they Decame payable.
(b) According :to the information and explanations given to us and the
records of the company examined by us, the particulars of Sales Tax and
Excise duty as at 315t March, 2011, that have not been deposited on
account Of disputes pending, a e as under :-
Sr. Name of statute Nature of Amount Forum where
No Dues (Rs.) Dispute is pending
1. Central Excise
Act Excise Duty 12,57,012 High Court Delhi
2 Central Excise
.Act Excise Duty 1,40,100 CEGAT, Mumbai
& Penalty (Appeal), Nagpur
3 Central Excise
Act Penalty 2,24,000 CEGAT, worth Zone,
Delhi (Appeals),
Nagpur
4 Central Excise
Act Excise Duty 23,47,706 CEGAT, Mumbai
& Penalty (Appeal), Nagpur
5. Central Excise
Act Excise Duty 22,64,530 Add. Commissioner
& Penalty of Ceititial excise,
custom end service
tax, Nagpur
6. Central Excise
Act Excise Duty 19,63,762 Jt. Commissioner of
& Penalty Central excise,
custom end service
tax, Nagpur
7 Central Excise
Act Service Tax 1,15,559 Dep. Commissioner
Service Tax Cell,
Nagpur._
8 Bombay Sales
Tax Sales Tax, 13,08,650 Joint Commissioner
Act (1999-00) Interest and of Sales Tax
Penalty (Appeals), Nagpur
9. Central Sales
Tax Sales Tax, 2,37,211 Joint Commissioner
Act (19991-00) Interest and of Sales Tax
Penalty (Appeals) Nagpur
10. Bombay Sales
Tax Sales Tax, 1,21,62,805 Joint Commissioner
Act (2000-01) Interest
and of Sales Tax
Penalty (Appeals) Nagpur
11. Central Sales
Tax Sales Tax, 30,15,700 Joint Commissioner
Act(2000-01) Interest
and of Sides Tax
Penalty (Appeals), Nagpur
(Above Sr. No 8, 9, 10 and 11 are in total. The allocation Shill be
made after final decision between demerged company and resultant
companies) (Refer Note No. 9 of Schedule )
x) There are accumulated losses of the company at the end of the
financial year. the company has not incurred cash losses urinate
current financial 3 ear and in the immediately preceding
financial
xi) In our opinion, according to the information and explanations
given to us, this company has not defaulted in the repayment s of dues
to bank.
xii) The company As to granted any loans or advances on the basis
of security by was of p ledge of shares, debentures and other
securities.
xiii) The provisions] of any special statute applicable to chit
fund/nidhi/ mutual benefit funs /society are not applicable to the
company.
xiv) According to [the information and explanations given to us, the
company is not dealing in or trading in shares, securities, de
dentures and other investments its.
xv) According to the information and explanations given to us, the
company has to given any guarantee for loans taken by others from
Banks or Financial Institutions.
xvi) As per record examined by us, the company has not received any
term loan during the year.
xvii) According to the information and explanation given to us and the
records of the company examined by us and on an overall basis, we
report that short term fund have not been used for long term
investment during :he year.
xviii) The company has not made any' preferential allotment :f shares
during the year.
xix) The company has not issued any debentures during the year.
xx) The company has not raised any money by public issue during the
year.
xxi) According to information and explanations given to us, no fraud
on or by the company was noticed or reported during the year.
FOR LOYA BAGRI & CO.
Firm registration No 105658W
Chartered Accountants
Nagpur Dated the, GOPAL DAS BAGRI
29th August, 2011. Partner.(M.No.002933)
LOYA BAGRI & CO
Chartered Accountants
Popular Market, Gandhibadh
NAGPUR-440 002.
Mar 31, 2010
1) We have audited the attached Balance Sheet of Sharda Ispat Ltd.,
Nagpur, as at 31st March, 2010, the Profit and Loss Account for the
year ended on that date annexed thereto and also the Cash Flow
Statement for the year ended on that date read with notes annexed
hereto. 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 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.
3) 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 paragraphs 4 and 5 of the
said order.
4) Attention is invited to the transactions covered under section 297
of the Companies Act, 1956, the previous sanction of Central Government
under Section 297 of the Companies Act was not made available.
5) Subject to our comments in Para 4 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 purpose 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 Balance Sheet, Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
(iv) The Cash Flow Statement, the Profit & Loss Account and the Balance
Sheet comply the Accounting Standards referred to in Sub Section (3C)
of Section 211 of the Companies Act, 1956.
(v) On the basis of written representations received from the
Directors, as on 31st March, 2010 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2010 from being appointed as a Director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956.
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
notes thereon and attached thereto, give the information required by
the Companies Act, 1956, in the manner so required and give a true and
fair view in confirmity 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, 2010;
(b) in the case of the Profit and Loss Account of the Profit for the
year ended on that date.
(c) in the case of the cash flow statement, of cash flows for the year
ended on that date.
ANNEXURE TO AUDITORS REPORT OF SHARDA ISPAT LTD. Referred to in
Paragraph 3 of our Report of Even date on the Accounts as at 31st
March, 2010.
i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets except for additions of the current year.
(b) All the Assets have not been physically verified by the management
during the year but there is a regular programme of verification which
in our opinion is reasonable having regard to the size of the company
and nature of its assets. No material discrepancies have been noticed
on such verification, as reported to us.
(c) In our opinion and according to the information and explanations
given to us, substantial part of fixed assets has not been disposed off
by the company during the year
ii) (a) As explained to us, inventory has been physically verified
during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of the physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of inventories
and no material discrepancies were noticed on physical verification.
iii) (a) The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register under section
301 of the Act. The provisions of (iii) (b) & (d) of paragraph 4 of the
order are not applicable to the company.
(b) The Company has taken unsecured loans from Companies,
Firms or other parties covered in the register maintained u/s. 301 of
the Companies Act, 1956. The amount of Rs. 310.80 Lacs from one party
has been taken.
(c) The rate of interest and other terms and conditions of such
unsecured loan taken by the company are, in our opinion, prima facie
not prejudicial to the interest of the Company.
(d) There is no stipulation for repayment of principal loan taken and
interest thereon.
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 for the purchases of inventory, fixed assets and for the sale
of goods and services. Further, on the basis of our examination of the
books and records of the company and according to the information and
explanations given to us, we have neither came across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control procedures.
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 the
register maintained under section 301 of the Companies Act, 1956 have
been so entered.
(b) In our opinion and according to the information and explanations
given to us and as per the records of the company, there is no
transactions made in pursuance of contracts or arrangements entered in
the register in pursuance of section 301 of the Companies Act, 1956 and
exceeding the value of Rs.5 lacs in respect of any party during the
year.
vi) In our opinion, and according to the information and explanations
given to us, the company has not accepted any deposits from the public
to which the directives issued by Reserve Bank of India and the
provisions of sections 58-A, 58-AA or any other relevant provisions of
the Companies Act, 1956 and rules made thereunder are applicable.
vii) In our opinion, the company has an internal audit system
commensurate with its size and nature of its business.
viii) The maintenance of cost records has not been prescribed by the
Central Government under section 209(l)(d) of the Companies Act, 1956,
for the products of the company.
ix) (a) According to the information and explanations given to us and
records of the company examined by us, in our opinion, the company is
regular in depositing with the appropriate authorities undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees State Insurance, Income Tax, Sales Tax,
Wealth Tax, Customs Duty, Excise Duty, Cess and any other statutory
dues applicable to it. According to the information and explanations
given to us, there were no undisputed amounts payable in respect of
Provident Fund, Investor Education and Protection Fund, Employees
State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom duty, Excise
duty and any other statutory dues which remained outstanding as at 31st
March, 2010 for a period of more than six months from the date they
became payable.
(b) According to the information and explanations given to us and the
records of the company examined by us, the particulars of Sales Tax and
Excise duty as at 31st March, 2010, that have not been deposited on
account of disputes pending, are as under :-
Sr. Name of Statute Nature of Amount
No. Dues (Rs.)
1. Central Excise Act Excise Duty 12,57,012
2. Central Excise Act Excise Duty 1,40,100
& Penalty
3. Central Excise Act Penalty 2,24,000
4. Central Excise Act Excise Duty 23,47,706
& Penalty
5. Bombay Sales Tax Sales Tax, 13,08,650
Act (1999-00) Interest and
Penalty
6. Central Sales Tax Sales Tax, 2,37,211
Act (1999-00) Interest and
Penalty
7. Bombay Sales Tax Sales Tax, 1,21,62,805
Act (2000-01) Interest and
Penalty
8. Central Sales Tax Sales Tax, 30,15,700
Act (2000-01) Interest and
Penalty
Name of Statue Forum where
Dispute is pending
Central Excise Act High Court Delhi
Central Excise Act CEGAT, Mumbai
(Appeals), Nagpur
Central Excise Act CEGAT, North Zone,
Delhi (Appeals),
Nagpur
Central Excise Act CEGAT, Mumbai
(Appeals), Nagpur
Bombay Sales Tax
Act (1999-00) Joint Commissioner
of Sales Tax
(Appeals), Nagpur
Central Sales Tax
Act (1999-00) Joint Commissioner
of Sales Tax
(Appeals), Nagpur
Bombay Sales Tax
Act (2000-01) Joint Commissioner
of Sales Tax
(Appeals), Nagpur
Central Sales Tax
Act (2000-01) Joint Commissioner
of Sales Tax
(Appeals), Nagpur
(Above Sr. No 5,6,7 and 8 are in total. The allocation shall be made
after final decision between demerged company and resultant companies)
(Refer Note No. 11 of Schedule R)
x) There are accumulated losses of the company at the end of the
financial year. The company has not incurred cash losses during the
current 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 the repayments of dues to
bank or Financial Institutions as the dues of all the Financial
Institutions and Banker are settled during the year.
xii) The company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii) The provisions of any special statute applicable to chit
fund/nidhi/ mutual benefit fund/society are not applicable to the
company.
xiv) According to the information and explanations given to us, the
company is not dealing in or trading in shares, securities, debentures
and other investments.
xv) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from
Banks or Financial Institutions.
xvi) As per records examined by us, the company has not received any
term loan during the year.
xvii) According to the information and explanation given to us, and the
records of the company examined by us and on an overall basis, we
report that short term fund have not been used for long term investment
during the year.
xviii) The company has not made any preferential allotment of shares
during the year.
xix) The company has not issued any debentures during the year.
xx) The company has not raised any money by public issue during the
year.
xxi) According to information and explanations given to us, no fraud on
or by the company was noticed or reported during the year.
FOR LOYA BAGRI & CO.,
Firm registration No 105658W
Chartered Accountants,
(GOPAL DAS BAGRI)
Partner. (M.No.002933)
LOYA BAGRI & CO.
Chartered Accountants
Popular Market, Gandhibagh,
NAGPUR-440 002.
Nagpur, Dated the,
24th August, 2010.
Mar 31, 2009
1) We have audited the attached Balance Sheet of Sharda Ispat Ltd.,
Nagpur, as at 31 st March, 2009, the Profit and Loss Account for the
year ended on that date annexed thereto and also the Cash Flow
Statement for the year ended on that date read with notes annexed
hereto. 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 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.
3) 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 paragraphs 4 and 5 of the
said order.
4) Attention is invited to the following:
a) Regarding adjustment of settlement with Financial Institution and
effect on Capital Reserve, Secured Loans from Financial Institutions in
Balance Sheet and Liability no longer payable under settlement with
Banker and Financial Institutions (Net) under "Extra Ordinary Items" in
Profit & Loss Account as the no dues certificate from Financial
Institution is in process. (Note "11 (i) of Schedule "R")
b) Regarding transactions covered under section 297 of the Companies
Act, 1956 the previous sanction of Central Government under Section 297
of the Companies Act was not made available.
5) In our opinion, subject to our comments vide Paragraph 4(a) above,
the Cash Flow Statement, the Profit & Loss Account and the Balance
Sheet comply the Accounting Standards referred to in Sub Section (3C)
of Section 211 of the Companies Act, 1956.
6) Subject to our comments in Paras 4, 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 purpose 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 Balance Sheet, Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
(iv) On the basis of written representations received from the
Directors, as on 31st March, 2009 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2009 from being appointed as a Director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956.
(v) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
notes thereon, give the information required by the Companies Act,
1956, in the manner so required and give a true and fair view in
confirmity 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 st March, 2009.
(b) in the case of the Profit and Loss Account of the profit for the
year ended on that date.
(c) in the case of the cash flow statement, of cash flows for the year
ended on that date.
ANNEXURE TO AUDITORSS REPORT OF SHARDAISPAT LTD.
(Referred to in Paragraph 3 of our Report of Even date on the Accounts
as at 31st March, 2009.) i) (a) The company has maintained proper
records showing full particulars including quantitative details and
situation of fixed assets except for additions of the current year.
(b) All the Assets have not been physically verified by the management
during the year but there is a regular programme of verification which
in our opinion is reasonable having regard to the size of the company
and nature of its assets. No material discrepancies have been noticed
on such verification, as reported to us.
(c) In our opinion and according to the information and explanations
given to us, substantial part of fixed assets has not been disposed off
by the company during the year.
ii) (a) As explained to us, inventory has been physically verified
during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of the physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of inventories
and no material discrepancies were noticed on physical verification.
iii) (a) The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register under section
301 of the Act. The provisions of (iii) (b) & (d) of paragraph 4 of the
order are not applicable to the company.
(b) The Company has taken unsecured loans from Companies, Firms or
other parties covered in the register maintained u / s. 301 of The
Companies Act, 1956. The amount of Rs. 98.74 Lacs from one party has
been taken.
(c) The rate of interest and other terms and conditions of such
unsecured loans taken by the company are, in our opinion, prima facie
not prejudicial to the interest of the Company.
(d) There is no stipulation for repayment of principal loans taken and
interest thereon.
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 for the purchases of inventory, fixed assets and for the sale
of goods and services. Further, on the basis of our examination of the
books and records of the company and according to the information and
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control procedures. 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 the register maintained
under section 301 of the Companies Act, 1956 have been so entered. (b)
In our opinion and according to the information and explanations given
to us and as per the records of the company, there is no transactions
made in pursuance of contracts or arrangements entered in the register
in pursuance of section 301 of the Companies Act, 1956 and exceeding
the value of Rs. 5 lacs in respect of any party during the year. vi)
In our opinion, and according to the information and explanations given
to us, the company has not accepted any deposits from the public to
which the directives issued by Reserve Bank of India and the provisions
of sections 58-A, 58-AA or any other relevant provisions of the
Companies Act, 1956 and rules made thereunder are applicable.
vii) In our opinion, the company has an internal audit system
commensurate with its size and nature of its business.
viii) The maintenance of cost records has not been prescribed by the
Central Government under section 209 (1 )(d) of the Companies Act,
1956, for the products of the company.
ix) (a) According to the information and explanations given to us and
records of the company examined by us, in our opinion, the company is
regular in depositing with the appropriate authorities undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees State Insurance, Income Tax, Sales Tax,
Wealth Tax, Customs Duty, Excise Duty, Cess and any other statutory
dues applicable to it. According to the information and explanations
given to us, there were no undisputed amounts payable in respect of
Provident Fund, Investor Education and Protection Fund, Employees
State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom duty, Excise
duty and any other statutory dues which remained outstanding as at 31
st March, 2009 for a period of more than six months from the date they
became payable. (b) According to the information and explanations
given to us and the records of the company examined by us, the
particulars of Sales Tax and Excise duty as at 31 st March, 2009, that
have not been deposited on account of a dispute pending are as under:
Sr. Name of Statute Nature of Dues Amount Forum where
Dispute
No. (Rs.) is pending
1. Central Excise Act Excise Duty 12,57,012 High Court, Delhi
2. Central Excise Act Excise Duty 10,55,280 High Court, Delhi
3. Central Excise Act Excise Duty 80,000 Customs, Excise and
Service Tax
Appellate
Tribunal WZB,
Mumbai
4. Central Excise Act Penalty 6,29,933 Custom, Excise,
Service Tax
Appellate Tribunal,
Mumbai.
5. Central Excise Act Excise Duty 1,74,990 CEGAT, Mumbai
& Penalties (Appeals), Nagpur
6. Central Excise Act Excise Duty 2,80,200 Customs, Excise and
& Penalty Service Tax
Appellate
Tribunal WZB,
Mumbai
7. Central Excise Act Excise Duty 1,87,954 Customs, Excise
and Service
Tax Appellate
Tribunal WZB,
Mumbai
8. Bombay Sales
Tax Act Sales Tax,
Interest 13,08,650 Dy. Commissioner
of Sales
and Penalty
Tax (Appeals),
Nagpur
9. Central Sales
Tax Act Sales Tax,
Interest 2,37,211 Dy. Commissioner
of Sales
and Penalty Tax (Appeals),
Nagpur
10. Bombay Sales
Tax Act Sales Tax 28,515 Joint Commissioner
of Sales
Tax (Appeals),
Nagpur
x) There is no accumulated losses of the company at the end of the
financial year. The company has not incurred cash losses during the
current 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 the repayments of dues to
bank or Financial Institutions as the dues of all the Financial
Institutions and Banker are settled during the year.
xii) The company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii) The provisions of any special statute applicable to chit
fund/nidhi/mutual benefit fund/society are not applicable to the
company.
xiv) According to the informationand explanations given to us, the
company is not dealing in ortrading in shares, securities, debentures
and other investments.
xv)According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from
Banks or Financial Institutions.
xvi) As per records examined by us, the company has not
received any term loan during the year.
xvii) According to thenformation and explanation given to us, and the
records of the company examined by us and on an overall basis, we
report that short term fund have not been used for long term investment
during the year.
xviii) The company has not made any preferential allotment of shares
during the year.
xix) The company has not issued any debentures during the year.
xx) The company has not raised any money by public issue during the
year.
xxi) According to information and explanations given to us, no fraud on
or by the company was noticed or reported during the year.
For LOYA BAGRI & CO.
Chartered Accountants
(GOPAL DAS BAGRI)
Partner
(M. No. 2933)
Nagpur, Dated the,
17th August, 2009.