Mar 31, 2023
Independent Auditorâs Report
To the Members of
We have audited the accompanying standalone financial
statements of Shivalik Bimetal Controls Ltd (âthe
Companyâ), which comprise the Standalone Balance
Sheet as at 31st March, 2023, the Statement of Profit and
Loss (including Other Comprehensive Income), Statement
of Cash Flows, the Statement of Changes in Equity for the
year then ended, and notes to the standalone financial
statements, including a summary of significant accounting
policies and other explanatory information. (hereinafter
referred as âStandalone Financial Statementsâ).
In our opinion and to the best of our information and according
to the explanations given to us, the aforesaid standalone
financial statements give the information required by the
Companies Act, 2013 (âthe Actâ) in the manner so required
and give a true and fair view in conformity with the Indian
Accounting Standards prescribed under section 133 of the
Act read with Companies (Indian Accounting Standards)
Rules, 2015, as amended, (âInd ASâ) and other accounting
principles generally accepted in India, of the state of affairs
of the Company as at 31st March, 2023, and its profit and loss
(including other comprehensive income), changes in equity
and its cash flows for the year ended on that date.
We conducted our audit in accordance with the Standards
on Auditing (âSAâs) specified under Section 143(10) of
the Act. Our responsibilities under those SAs are further
described in the Auditorâs Responsibilities for the Audit of
the Standalone Financial Statements section of our report.
We are independent of the Company in accordance with
the Code of Ethics issued by The Institute of Chartered
Accountants of India (âICAIâ) together with the ethical
requirements that are relevant to our audit of the standalone
financial statements under the provisions of the Act and the
Rules thereunder, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and
the ICAIâs Code of Ethics. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a
basis for our opinion.
Key audit matters (âKAMâ) are those matters that, in our
professional judgment, were of most significance in our
audit of the standalone financial statements of the current
period. These matters were addressed in the context of our
audit of the standalone financial statements as a whole, and
in forming our opinion thereon, and we do not provide a
separate opinion on these matters. We have determined the
matters described below to be the key audit matters to be
communicated in our report.
The Companyâs management and Board of Directors are
responsible for the other information. The other information
comprises the information included in the Management
Discussion and Analysis, Boardâs Report including Annexures
to Boardâs Report, Business Responsibility Report, Corporate
Governance and Shareholderâs Information but does not
include the consolidated financial statements, standalone
financial statements and our respective auditorâs report
thereon.
Our opinion on the Standalone financial statements does not
cover the other information and we do not express any form
of assurance conclusion thereon.
In connection with our audit of the Standalone financial
statements, our responsibility is to read the other information
and, in doing so, consider whether the other information
is materially inconsistent with the standalone financial
statements or our knowledge obtained in the audit or
otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that
there is a material misstatement of this other information, we
are required to report that fact. We have nothing to report in
this regard.
The Companyâs Management and Board of Directors are
responsible for the matters stated in Section 134(5) of the
Act with respect to the preparation of these standalone
financial statements that give a true and fair view of the
state of affairs, profit / loss (including other comprehensive
income), changes in equity and cash flows of the Company
in accordance with the accounting principles generally
accepted in India, including the Indian Accounting
Standards (Ind AS) specified under Section 133 of the Act.
This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of
the Act for safeguarding of the assets of the company and
for preventing and detecting 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 adequate internal financial controls that were operating
effectively for ensuring the accuracy and completeness
of the accounting records, relevant to the preparation and
presentation of the standalone financial statements that give
a true and fair view and are free from material misstatement,
whether due to fraud or error.
In preparing the standalone financial statements,
Management and Board of Directors are responsible for
assessing the Companyâs ability to continue as a going
concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting
unless management either intends to liquidate the company
or to cease operations, or has no realistic alternative but to
do so.
The Board of Directors is also responsible for overseeing the
companyâs financial reporting process.
Our objectives are to obtain reasonable assurance about
whether the standalone financial statements as a whole
are free from material misstatement, whether due to fraud
or error, and to issue an auditorâs report that includes our
opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance
with SAs will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic
decisions of users taken on the basis of these standalone
financial statements.
As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional skepticism
throughout the audit. We also:
⢠Identify and assess the risks of material misstatement
of the standalone financial statements, whether due to
fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis
for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or
the override of internal control.
⢠Obtain an understanding of internal financial control
relevant to the audit in order to design audit procedures
that are appropriate in the circumstances. Under
Section 143(3)(i) of the Act, we are also responsible
for expressing our opinion on whether the Company
has adequate internal financial controls with reference
to standalone financial statements in place and the
operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by management.
⢠Conclude on the appropriateness of managementâs use
of the going concern basis of accounting and based
on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that
may cast significant doubt on the Companyâs ability
to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw
attention in our auditorâs report to the related disclosures
in the standalone financial statements or, if such
disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained
up to the date of our auditorâs report. However, future
events or conditions may cause the Company to cease
to continue as a going concern.
⢠Evaluate the overall presentation, structure and content
of the standalone financial statements, including the
disclosures, and whether the standalone financial
statements represent the underlying transactions and
events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the
standalone financial statements that, individually or in
aggregate, makes it probable that the economic decisions of
a reasonably knowledgeable user of the standalone financial
statements may be influenced. We consider quantitative
materiality and qualitative factors in (i) planning the scope of
our audit work and in evaluating the results of our work; and
(ii) to evaluate the effect of any identified misstatements in
the standalone financial statements.
We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we identify
during our audit.
We also provide those charged with governance with a
statement that we have complied with relevant ethical
requirements regarding independence, and to communicate
with them all relationships and other matters that may
reasonably be thought to bear on our independence, and
where applicable, related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of
most significance in the audit of the standalone financial
statements of the current period and are therefore the key
audit matters. We describe these matters in our auditorâs
report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances,
we determine that a matter should not be communicated
in our report because the adverse consequences of doing
so would reasonably be expected to outweigh the public
interest benefits of such communication.
1. As required by the Companies (Auditorâs Report) Order,
2020 (âthe Orderâ) issued by the Central Government
of India in terms of sub-section (11) of section 143 of
the Act, we give in the âAnnexure Aâ, statement on the
matters specified in paragraphs 3 and 4 of the Order, to
the extent applicable.
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 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 Standalone Balance Sheet, Standalone
Statement of Profit and Loss (including other
comprehensive income), Standalone Statement of
Changes in Equity and Standalone Statement of
Cash Flow with by this Report are in agreement with
the books of account;
d. In our opinion, the aforesaid standalone financial
statements comply with the Indian Accounting
Standards specified under Section 133 of the Act.
e. On the basis of written representations received
from the directors as on 31st March, 2023, and
taken on record by the Board of Directors, none
of the directors is disqualified as on 31st March,
2023, from being appointed as a director in terms
of section 164 (2) of the Companies Act, 2013.
f. With respect to the adequacy of the internal
financial controls over financial reporting of the
Company and the operating effectiveness of such
controls, refer to our separate report in âAnnexure
Bâ. Our report expresses an unmodified opinion on
the adequacy and operating effectiveness of the
Companyâs internal financial controls over financial
reporting.
g. In our opinion, the managerial remuneration for
the year ended 31st March, 2023 has been paid
/ provided by the company to its directors in
accordance with the provisions of Section 197 read
with Schedule V of the Companies Act, 2013; and
h. With respect to the other matters to be included in
the Auditorâs Report in accordance with Rule 11 of
the Companies (Audit and Auditors) Rules, 2014,
as amended, in our opinion and to the best of our
information and according to the explanations given
to us:
i. there are no pending litigations as on date of
financial statements, against the company
as such there is no impact thereof to be
considered;
ii. the Company did not have any long-term
contracts including derivative contracts for
which there were any material foreseeable
losses; and
iii. There has been no delay in transferring
amounts, required to be transferred, to the
Investor Education and Protection Fund by the
Company.
3. (a) The Management has represented that, to the
best of its knowledge and belief, no funds (which
are material either individually or in the aggregate)
have been advanced or loaned or invested (either
from borrowed funds or share premium or any
other sources or kind of funds) by the Company to
or in any other person or entity, including foreign
entity (âIntermediariesâ), with the understanding,
whether recorded in writing or otherwise, that the
Intermediary shall, whether, directly or indirectly
lend or invest in other persons or entities identified
in any manner whatsoever by or on behalf of the
Company (âUltimate Beneficiariesâ) or provide
any guarantee, security or the like on behalf of the
Ultimate Beneficiaries;
(b) The Management has represented, that, to the best
of its knowledge and belief, no funds (which are
material either individually or in the aggregate) have
been received by the Company from any person or
entity, including foreign entity (âFunding Partiesâ),
with the understanding, whether recorded in writing
or otherwise, that the Company shall, whether,
directly or indirectly, lend or invest in other persons
or entities identified in any manner whatsoever
by or on behalf of the Funding Party (âUltimate
Beneficiariesâ) or provide any guarantee, security
or the like on behalf of the Ultimate Beneficiaries;
(c) Based on the audit procedures that have been
considered reasonable and appropriate in the
circumstances, nothing has come to our notice that
has caused us to believe that the representations
under sub-clause (i) and (ii) of Rule 11(e), as
provided under (a) and (b) above, contain any
material misstatement.
4. The interim dividend paid and also the final dividend
proposed in the previous year, declared and paid by the
Company during the year is in accordance with Section
123 of the Act, as applicable.
Chartered Accountants
Firm Registration No: - 021313C
Partner
Place: New Delhi Membership No: - 514828
Dated: 17th May 2023 ICAI UDIN No:
23514828BGQAAL6822
Mar 31, 2018
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Shivalik Bimetal Controls Ltd. (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), Statement of Cash Flow, the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information. (Hereinafter referred as âStandalone Ind AS Financial Statementsâ).
Management''s Responsibility for the Standalone Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation of these standalone Ind AS 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 Indian Accounting Standards (IndAS) prescribed under 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting 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 adequate internal financial controls, 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. Auditors'' Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
In conducting 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 thereunder and the Order issued under section 143(11) of the Act.
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 standalone financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the Standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of standalone the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs directors, as well as evaluating the overall presentation of the Standalone Ind AS 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 standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone 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 including the Ind AS, of the state of affairs (financial position) of the Company as at March 31, 2018 and its profit (financial performance including other comprehensive income) , changes in equity and its cash flows for the year ended on that date.
Other Matter
The comparative financial information for the year ended 31st March 2017 and the transition date opening balance sheet as at 1st April 2016 are prepared in accordance with Ind AS included in these standalone financial statements, are based on the previously issued statutory financial statements for the year ended 31st March 2017 and 31st March 2016 respectively prepared in accordance with Accounting Standards prescribed under Section 133 of the Act which were audited by the predecessor auditor whose reports dated 25th May 2017 and 30th May 2016 respectively expressed unmodified opinion on those standalone financial statements, and have been adjusted for the differences in the accounting principles adopted by the Company on transition to Ind AS, which have been audited by us. Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. 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 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 including other comprehensive income, Statement of Changes in Equity and Statement of Cash Flow with by this Report are in agreement with the books of account;
d. in our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act.
e. on the basis of written representations received from the directors as on 31st March, 2018, and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018, from being appointed as a director in terms of section 164 (2) of the Companies Act, 2013.
f. with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company internal financial controls over financial reporting.
g. with respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. the Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements-Refer Note 38 to the financial statements;
ii. the Company does not have any long-term contracts including derivative contracts for which there were any material foreseeable losses; and
iii. there has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
2. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) 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, to the extent applicable.
Annexure- A to the Independent Auditorsâ Report
The Annexure referred to in Independent Auditors Report to the members of the Company on the standalone Ind AS financial statements for the year ended 31st March 2018, we report that:
(i) a. The Company has maintained proper records showing full particulars, including quantitative details and situ ation of fixed assets.
b. According to information and explanations given to us, the assets have been physically verified by the management during the year as per the regular programme of verification 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 verification.
c. According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
(ii) a. The management has conducted physical verification of inventory at reasonable intervals during the year.
b. In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.
c. In our opinion and according to the information and explanations given to us, the Company is maintaining proper records of inventory. No material discrepancies were noticed on verification between the physical stocks and the book records.
(iii) The company has not granted any loans, to companies, firms or other parties covered in register maintained under section 189 of the Companies Act, 2013. Accordingly, the provisions of clause 3 (iii) (a),(b), & (c) of the Companies (Auditorâs Report) Order, 2016 (hereinafter referred to as the said Order) are not applicable to the company.
(iv) In our opinion and according to the information and explanations given to us, the company has complied with the provisions of section 185 and 186 of the Act to the extent applicable in respect of loans, investments, guarantees, and security.
(v) The company has not accepted any deposits from the public and therefore provisions of clause 3(v) of the order are not applicable to the company.
(vi) Company has maintained the cost records as prescribed by the Central Government under sub-section (1) of section 148 of the Companies Act.
(vii) a. According to the records of the Company and information and explanation given to us, the company is regular in depositing undisputed statutory dues including provident fund, employeesâ state insurance, income-tax, sales-tax, wealth tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues with the appropriate authorities.
b. According to the information and explanations given to us, there were no undisputed dues outstanding of income tax or sales tax or wealth tax or service tax or duty of customs or duty of excise or value added tax or goods and service tax or cess for a period of more than six months from the date they became payable.
(viii) In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to financial institution, banks and debenture holders.
(ix) According to information and explanations given to us, the Company did not raise any money by way of initial public offer or further public offer (including debt instruments) during the year. Term loans raised during the year have been applied for the purpose for which they were raised.
(x) According to the information and explanations given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
(xi) According to the information and explanation given to us managerial remuneration has been paid/provided in accordance with the requisite approvals mandated by the provisions of section 197 read with schedule V of the Companies Act, 2013.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, clause 3(xii) is not applicable.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable Indian Accounting Standards.
(xiv) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, clause 3(xv) is not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
Annexure - B to the Independent Auditorsâ Report
(Referred to paragraph 1(f) under âReport on Other Legal and Regulatory Requirementsâ section of our report to the members of Shivalik Bimetal Controls Limited of even date)
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Shivalik Bimetal Controls Limited (âthe Companyâ) as of 31st March 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Board of Directors of the Company is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Arora Gupta & Co.
Chartered Accountants
Firm Registration No:- 021313C
Sd/-
Amit Arora
Place: New Delhi Partner
Dated: 28.05.2018 M.No. 514828
Mar 31, 2016
To
The Members of Shivalik Bimetal Controls Limited Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Shivalik Bimetal Controls Ltd. ("the Company"), which comprises the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation and presentation of these standalone 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 maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting 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 adequate internal financial controls, 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 standalone 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 standalone financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone 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 standalone the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the 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 standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone 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, of the state of affairs of the Company as at March 31, 2016 and its profit and its 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, 2016 ("the Order") issued by the Central Government of India in terms of sub-section (11) 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, to the extent applicable.
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 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 aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule7 of the companies (Accounts) Rules, 2014;
e. on the basis of written representations received from the directors as on 31st March, 2016, and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016, from being appointed as a director in terms of section 164 (2) of the Companies Act, 2013.
f. with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in "Annexure B"; and
g. with respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. the company has disclosed the impact of pending litigations on its financial position in its financial statements-Refer Note 33 to the financial statements;
ii. The Company does not have any long-term contracts including derivative contracts for which there were any material foreseeable losses; and
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company
ANNEXURE- A TO THE INDEPENDENT AUDITORS'' REPORT
The Annexure referred to in Independent Auditors Report to the members of the Company on the standalone financial statements for the year ended 31st March 2016, we report that:
(i) a. The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
b. According to information and explanations given to us, the assets have been physically verified by the management during the year as per the regular programme of verification 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 verification.
c. According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
(ii) a. The management has conducted physical verification of inventory at reasonable intervals during the year.
b. In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.
c. In our opinion and according to the information and explanations given to us, the Company is maintaining proper records of inventory. No material discrepancies were noticed on verification between the physical stocks and the book records.
(iii) The company has not granted any loans, to companies, firms or other parties covered in register maintained under section 189 of the Companies Act, 2013. Accordingly, the provisions of paragraph (iii) (a),(b), & (c) of the Companies (Auditor''s Report) Order, 2016 (hereinafter referred to as the said Order) are not applicable to the company.
(iv) In our opinion and according to the information and explanations given to us, the company has complied with the provisions of section 185 and 186 of the Act to the extent applicable in respect of loans, investments, guarantees, and security.
(v) The company has not accepted any deposits from the public.
(vi) Company has maintained the cost records as prescribed by the Central Government under sub-section (1) of section 148 of the Companies Act.
(vii) a. According to the records of the Company and information and explanation given to us, the company is regu
lar in depositing undisputed statutory dues including provident fund, employees'' state insurance, income-tax, sales-tax, wealth tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues with the appropriate authorities.
b. According to the information and explanations given to us, there were no dues outstanding of income tax or sales tax or wealth tax or service tax or duty of customs or duty of excise or value added tax or cess on account of any dispute.
(viii) In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to financial institution, banks and debenture holders.
(ix) According to information and explanations given to us, the Company did not raise any money by way of initial public offer or further public offer (including debt instruments) during the year. Term loans raised during the year have been applied for the purpose for which they were raised.
(x) According to the information and explanations given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
(xi) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) is not applicable.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable Accounting Standards.
(xiv) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) is not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
ANNEXURE - B TO THE AUDITORS'' REPORT
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Shivalik Bimetal Controls Limited ("the Company") as of 31 March 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAI''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the "Guidance Note") and the Standards on
Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. 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.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For MALIK S & CO.
Chartered Accountants
Firm Registration No:- 00383N
Sd/-
SURESH MALIK
Place : New Delhi Proprietor
Dated : May 30, 2016 M.No. 080493
Mar 31, 2015
We have audited the accompanying financial statements of Shivalik
Bimetal Controls Ltd. ("the Company"), which comprise the Balance
Sheet as at 31st March, 2015, the Statement of Profit and Loss and 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
stated in Section 134(5) of the Companies Act, 2013 ("the Act")
with respect to the preparation and presentation 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 maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting 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 adequate
internal financial controls, 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 thereunder.
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 the 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 a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the 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 standalone
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, of the state of affairs of the Company as
at March 31, 2015 and its profit and its cash flows for the year ended
on that date.
1. As required by the Companies (Auditor's Report) Order, 2015
("the Order") issued by the Central Government of India in terms of
sub-section (11) 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,
to the extent applicable.
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
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 specified
under Section 133 of the Act, read with Rule7 of the companies
(Accounts) Rules, 2014.
e. on the basis of written representations received from the directors
as on 31st March, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2015, from
being appointed as a director in terms of section 164 (2) of the
Companies Act, 2013.
f. with respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us;
i. the company has disclosed the impact of pending litigations on its
financial position in its financial statements- Refer Note 33 to the
financial statements;
ii. the Company does not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses; and
iii. there has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
(i) a. The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
b. According to information and explanations given to us, the assets
have been physically verified by the man- agement during the year as
per the regular programme of verification 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 verification.
(ii) a. The management has conducted physical verification of inventory
at reasonable intervals during the year.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of inventory. No
material discrepancies were noticed on verification between the
physical stocks and the book records.
(iii) a,b,. The company has not granted any loans, to companies, firms
or other parties covered in register maintained under section 189 of
the Companies Act, 2013. Accordingly, the provisions of clause (iii)
(a) and (b), of the Companies (Auditor's Report) Order, 2015
(hereinafter referred to as the said Order) are not applicable to the
company.
(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 regards to the purchase of inventory, fixed assets and
sale of goods. During the course of our audit, we have not observed any
continuing failure to correct major weakness in internal control system
of the company.
(v) The company has not accepted any deposit from the public.
(vi) Company has maintained the cost records as prescribed by the
Central Government under sub-section (1) of section 148 of the
Companies Act.
(vii) a. According to the records of the Company and information and
explanation given to us, the company is regular in depositing undis
-puted statutory dues including provident fund, employees' state
insurance, income- tax, sales-tax, wealth tax, service tax, duty of
customs, duty of excise, value added tax, cess and any other statutory
dues with the appropriate authorities.
b. According to the information and explanations given to us, there
were no dues outstanding of income tax or sales tax or wealth tax or
service tax or duty of customs or duty of excise or value added tax or
cess on account of any dispute.
c. According to the information and explanations given to us the amount
which were required to be transferred to investor education and
protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules made thereunder has been
transferred to such fund within time.
(viii) The Company does not have accumulated losses at the end of the
financial year and it has not incurred any cash losses in the current
financial year and in the immediately preceding financial year.
(ix) In our opinion and according to the information and explanations
given to us, the company has not de- faulted in repayment of dues to
financial institution, banks and debenture holders.
(x) The company has furnished Corporate Guarantee to the tune of Rs.746
Lakhs (Previous year Rs.538 Lakhs) for loans taken by the Joint venture
Company (in which company holds 50% of issued share capital) and
Associate Company (in which the company holds 45% of issued share
capital) from bank, the terms and conditions whereof are not
prima-facia prejudicial to the interest of the company.
(xi) In our opinion, the term loans have been applied for the purpose
for which they were raised.
(xii) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the finan- cial statements and as
per the information and explanations given to us, we report that no
fraud on or by the company has been noticed or reported during the year
ended 31st March, 2015.
For MALIK S & CO.
Chartered Accountants
Firm Registration No:- 00383N
Sd/-
SURESH MALIK
Place : New Delhi Proprietor
Dated : May 27, 2015 M.No. 080493
Mar 31, 2014
We have audited the accompanying financial statements of Shivalik
Bimetal Controls Ltd. ("the Company"), which comprise the Balance
Sheet as at 31st March, 2014, and the Statement of Profit and Loss and
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 the General
Circular 15/2013 dated 13th September 2013 of the Ministry of Corporate
Affairs in respect of Section 133 of the Companies Act, 2013. 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,
but not for the purpose of expressing an opinion on the effectiveness
on the entity''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.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion. Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a. In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014;
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, 2003
("the Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion proper books of account as required by law have been
kept by the Company so far as 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 the
General Circular 15/2013 dated 13th September 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act, 2013.
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 TO INDEPENDENT AUDITORS'' REPORT
(i) a. The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b. According to information and explanations given to us, the assets
have been physically verified by the man- agement during the year as
per the regular programme of verification 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
verification.
c. There was no substantial disposal of fixed assets during the year.
(ii) a. The management has conducted physical verification of inventory
at reasonable intervals during the year.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of inventory. No
material discrepancies were noticed on verification between the
physical stocks and the book records.
(iii) a,b,c,d. The company has not granted any loans, to companies,
firms or other parties covered in register maintained under section
301 of the Companies Act, 1956. Accordingly, the provisions of clause
(iii) (b), (c) and (d) of the Companies (Auditor''s Report) Order, 2003 (hereinafter referred to as the said Order) are not applicable to the
company.
e. The company has taken loans from a company covered in the register
maintained under section 301 of the Companies Act, 1956. The maximum
principal amount involved during the year was Rs. 647.31 lakhs and the
year-end balance of such loans was Rs. 647.31 lakhs.
f. In our opinion, the rate of interest and other terms and conditions
on which loan have been taken from the company listed in the register
maintained under section 301 of Companies Act, 1956 are, prima facie,
not prejudicial to the interest of the company.
g. The payment of principal amount and interest in respect of such
loans are as per stipulations.
(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 regards to the purchase of inventory, fixed assets and
sale of goods. During the course of our audit, we have not observed any
continuing failure to correct major weakness in internal control system
of the company.
(v) a. In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements referred to
in Section 301 of the Companies Act 1956, have been entered in the
register maintained under that section.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Com- panies Act, 1956 and exceeding the value of rupees five lacs
in respect of any party during the period have been made at prices
which are reasonable, having regard to prevailing market prices at the
relevant time.
(vi) The Company has not accepted any deposits from public during the
year under the provisions of section 58A, 58AA or any other relevant
provisions of the Companies Act 1956.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) To the best of our knowledge and as explained, the Central
Government has not prescribed maintenance of cost records under clause
(d) of sub-section (1) of Section 209 of the Companies Act 1956 for the
products of the company.
(ix) a. According to the records of the Company and information and
explanation given to us, the Company is
regular in depositing undisputed statutory dues including Provident
Fund, Investor Education and Protec- tion Fund, Employees'' State
Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs
Duty, Excise Duty, cess and other material statutory dues applicable to
it, which is deposited with the appropriate authorities.
b. According to the information and explanations given to us, there
were no undisputed amounts payable in respect of Income tax, wealth
tax, sales tax, service tax, customs duty and excise duty which have
remained outstanding as at 31st March, 2014 for a period of more than
six months from the date they became pay- able.
c. According to the information and explanations given to us, there are
no dues outstanding of Sales Tax, In- come Tax, Service Tax, Custom
Duty, Wealth Tax, Excise Duty or Cess on account of any dispute.
(x) The Company does not have accumulated losses at the end of the
financial year and it has not incurred any cash losses in 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 de- faulted in repayment of dues to
financial institution, banks and debenture holders.
(xii) According to the information and explanations given to us and
based on thedocuments and records pro- duced to us, the company has not
granted loans and the advances on the basis of security by way of
pledge of shares, debentures and other securities.
(xiii) The company is not a Chit Fund or Nidhi/ mutual benefit fund /
society. Therefore, the provisions of clause 4(xiii) of the Companies
(Auditor''s Report) Order, 2003 (as amended) are not applicable to the
Company.
(xiv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other invest- ments. Accordingly,
the provisions of clause 4(xiv) of the Companies (Auditor''s Report)
Order, 2003 (as amended) are not applicable to the Company.
(xv) The company has furnished Corporate Guarantee to the tune of '' 538
Lakhs for loans taken by the Joint Venture Company (in which company
holds 50% of issued share capital) and Associate Company (in which the
company holds 45% of issued share capital) from bank. The terms and
conditions whereof are not prima-facia prejudicial to the interest of
the company.
(xvi) In our opinion, the term loans have been applied for the purpose
for which they were raised.
(xvii) According to the information and explanations given to us and on
an overall examination of Balance Sheet of the Company, we report that
no funds raised on short term basis have been used for long-term
invest- ment by the company.
(xviii) The Company has not made any preferential allotment of shares
to parties and Companies covered in reg- ister maintained under Section
301 of the Companies Act, 1956.
(xix) Since the debentures have not been issued during the year,
question of creating securities does not arise.
(xx) The Company has not raised any money through a public issue during
the year.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the finan- cial statements and as
per the information and explanations given to us, we report that no
fraud on or by the company has been noticed or reported during the year
ended 31st March, 2014.
For MALIK S & CO.
Chartered Accountants
Firm Registration No:- 00383N
Sd/-
SURESH MALIK
Place : New Delhi Proprietor
Dated : May 28, 2014 M.No. 080493
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Shivalik
Bimetal Controls Ltd. ("the Company"), which comprise the Balance Sheet
as at 31st March, 2013, and the Statement of Profit and Loss and 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"). 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:
a. In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2013;
b. In the case of the Profit and Loss Account, 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, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion proper books of account as required by law have been
kept by the Company so far as 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;
e. On the basis of written representations received from the directors
as on 31st March, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st 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.
(Referred to in paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements" of our Report of even date)
(i) a. The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b. According to information and explanations given to us, the assets
have been physically verified by the management during the year as per
the regular programme of verification 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
verification.
c. There was no substantial disposal of fixed assets during the year.
(ii) a. The management has conducted physical verification of inventory
at reasonable intervals during the year except inventory comprising of
work-in progress. According to the information and explanations given
to us, and also keeping in view the nature of the operations of the
company, the inventory of work-in-progress can not be verified
periodically.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of inventory. No
material discrepancies were noticed on verification between the
physical stocks and the book records.
(iii) The company has not granted any loans, to companies, firms or
other parties covered in register maintained
a, b, c, d. under section 301 of the Companies Act, 1956. Accordingly,
the provisions of clause (iii) (b), (c) and (d) of the Companies
(Auditor''s Report) Order, 2003 (hereinafter referred to as the said
Order) are not applicable to the company.
e. The company has taken loans from a company covered in the register
maintained under section 301 of the Companies Act, 1956. The maximum
principal amount involved during the year was Rs. 377.90 lakhs and the
year-end balance of such loans was Rs. 62.46 lakhs.
f. In our opinion, the rate of interest and other terms and conditions
on which loan have been taken from the company listed in the register
maintained under section 301 of Companies Act, 1956 are, prima facie,
not prejudicial to the interest of the company.
g. The payment of principal amount and interest in respect of such
loans are as per stipulations.
(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 regards to the purchase of inventory, fixed assets and
sale of goods. During the course of our audit, we have not observed any
continuing failure to correct major weakness in internal control system
of the company.
(v) a. In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements referred to
in Section 301 of the Companies Act 1956, have been entered in the
register maintained under that section.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lacs in
respect of any party during the period have been made at prices which
are reasonable, having regard to prevailing market prices at the
relevant time.
(vi) The Company has not accepted any deposits from public during the
year under the provisions of section 58A, 58AA or any other relevant
provisions of the Companies Act 1956.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) To the best of our knowledge and as explained, the Central
Government has not prescribed maintenance of cost records under clause
(d) of sub-section (1) of Section 209 of the Companies Act 1956 for the
products of the Company.
(ix) a. According to the records of the Company and information and
explanation given to us, the Company is regular in depositing
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 other
material statutory dues applicable to it, which is deposited with the
appropriate authorities.
b. According to the information and explanations given to us, there
were no undisputed amounts payable in respect of Income tax, wealth
tax, sales tax, service tax, customs duty and excise duty which have
remained outstanding as at 31st March, 2013 for a period of more than
six months from the date they became payable.
c. According to the information and explanation given to us, there are
no dues outstanding of Sales Tax, Income Tax, Service Tax, Customs
Duty, Wealth Tax, Excise Duty or Cess on account of any dispute.
(x) The Company does not have accumulated losses at the end of the
financial year and it has not incurred any cash losses in 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 repayment of dues to
financial institution, banks and debenture holders.
(xii) According to the information and explanations given to us and
based on the documents and records produced to us, the company has not
granted loans and the advances on the basis of security by way of
pledge of shares, debentures and other securities.
(xiii) The company is not a Chit Fund or Nidhi/ mutual benefit fund /
society. Therefore, the provisions of clause 4(xiii) of the Companies
(Auditor''s Report) Order, 2003 (as amended) are not applicable to the
Company.
(xiv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order,
2003 (as amended) are not applicable to the Company.
(xv) The company has furnished Corporate Guarantee to the tune of Rs.
558.00 Lakhs for loans taken by the Joint Venture Company (in which
company holds 50% of issued share capital) and Associate Company (in
which the company holds 45% of issued share capital) from bank. The
terms and conditions whereof are not prima-facia prejudicial to the
interest of the company.
(xvi) In our opinion, the term loans have been applied for the purpose
for which they were raised.
(xvii) According to the information and explanations given to us and on
an overall examination of Balance Sheet of the Company, we report that
no funds raised on short term basis have been used for long-term
investment by the company.
(xviii) The Company has not made any preferential allotment of shares
to parties and Companies covered in register maintained under Section
301 of the Companies Act, 1956.
(xix) Since the debentures have not been issued during the year,
question of creating securities does not arise.
(xx) The Company has not raised any money through a public issue during
the year.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given to us, we report that no fraud
on or by the company has been noticed or reported during the year ended
31st March, 2013.
For MALIK S & CO.
Chartered Accountants
Firm Registration No:- 00383N
Sd/-
SURESH MALIK
Place : New Delhi Proprietor
Dated : May 29, 2013 M.No. 080493
Mar 31, 2012
1. We have audited the attached Balance Sheet of Shivalik Bimetal
Controls Limited as at 31st March, 2012, the Profit and Loss Account
and also the Cash flow statement for the year ended on that date
annexed thereto. 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 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 (as
amended) 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. Further to our comments in the Annexure referred to above, we
report that:
i. we have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii. in our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
iii. the Balance Sheet, Profit and Loss Account and Cash flow statement
dealt with by this report are in agreement with the books of account;
iv. in our opinion, the Balance Sheet, Profit and Loss Account and Cash
flow statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of section 211 of The
Companies Act, 1956;
v. on the basis of the 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 account give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India :
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
b) in the case of the Profit and Loss account, of the profit for the
year ended on that date; and
c) in the case of Cash flow statement, of the Cash flows for the year
ended on that date.
Annexure to Auditors' Report
(Referred to in paragraph 3 of our report of even date on the
Statements of Account of Shivalik Bimetal Controls Limited, as at and
for the year ended 31st March 2012)
(i) a. The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b. According to information and explanations given to us, the assets
have been physically verified by the management during the year as per
the regular programme of verification 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
verification.
c. There was no substantial disposal of fixed assets during the year.
(ii) a. The management has conducted physical verification of inventory
at reasonable intervals during the year except inventory comprising of
work-in progress. According to the information and explanations given
to us, and also keeping in view the nature of the operations of the
company, the inventory of work-in-progress can not be verified
periodically.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of inventory. No
material discrepancies were noticed on verification between the
physical stocks and the book records.
(iii) As informed, the Company has neither granted nor taken any loans,
secured or unsecured to/from companies, firms or other parties covered
in the register maintained under section 301 of the Companies Act,
1956.
(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 regards to the purchase of inventory, fixed assets and
sale of goods. During the course of our audit, we have not observed any
continuing failure to correct major weakness in internal control system
of the company.
(v) a In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements referred to
in Section 301 of the Companies Act 1956, have been entered in the
register maintained under that section.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lacs in
respect of any party during the period have been made at prices which
are reasonable, having regard to prevailing market prices at the
relevant time.
(vi) The Company has not accepted any deposits from public during the
year under the provisions of section 58A, 58AA or any other relevant
provisions of the Companies Act 1956.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) To the best of our knowledge and as explained, the Central
Government has not prescribed maintenance of cost records under clause
(d) of sub-section (1) of Section 209 of the Companies Act 1956 for the
products of the Company.
(ix) a. According to the records of the Company and information and
explanation given to us, the Company is regular in depositing
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 other
material statutory dues applicable to it, with the appropriate
authorities.
b. According to the information and explanations given to us, there
were no undisputed amounts payable in respect of Income tax, wealth
tax, sales tax, service tax, customs duty and excise duty which have
remained outstanding as at 31st March 2012 for a period of more than
six months from the date they became payable, except for a sum of Rs.
2518 thousands payable on account of Service Tax, which has since been
deposited on 26th May 2012.
c. According to the information and explanation given to us, there are
no dues outstanding of Sales Tax, Income Tax, Service Tax, Customs
Duty, Wealth Tax, Excise Duty or Cess on account of any dispute.
(x) The Company does not have accumulated losses at the end of the
financial year and it has not incurred any cash losses in 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 repayment of dues to
financial institution, banks and debenture holders.
(xii) According to the information and explanations given to us and
based on the documents and records produced to us, the company has not
granted loans and the advances on the basis of security by way of
pledge of shares, debentures and other securities.
(xiii) The company is not a Chit Fund or Nidhi/mutual benefit
fund/society. Therefore, the provisions of clause 4(xiii) of the
Companies (Auditor's Report) Order, 2003 (as amended) are not
applicable to the Company.
(xiv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor's Report) Order,
2003 (as amended) are not applicable to the Company.
(xv) The company has furnished Corporate Guarantee to the tune of Rs.
5.58 Crores for loans taken by the Joint Venture Company (in which
company holds 50% of issued share capital) and Associate Company (in
which the company holds 45% of issued share capital) from bank. The
terms and conditions whereof are not prima-facia prejudicial to the
interest of the company.
(xvi) In our opinion, the term loans have been applied for the purpose
for which they were raised.
(xvii) According to the information and explanations given to us and on
an overall examination of Balance Sheet of the Company, we report that
no funds raised on short term basis have been used for long-term
investment by the company.
(xviii) The Company has not made any preferential allotment of shares
to parties and Companies covered in register maintained under Section
301 of the Companies Act, 1956.
(xix) Since the debentures have not been issued during the year,
question of creating securities does not arise.
(xx) The Company has not raised any money through a public issue during
the year.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given to us, we report that no fraud
on or by the company has been noticed or reported during the year ended
31st March 2012.
For MALIK S & CO.
Chartered Accountants
Firm Registration No:- 00383N
Sd/-
SURESH MALIK
Proprietor
M.No. 080493
Place : New Delhi
Date : May 28, 2012
Mar 31, 2010
1. We have audited the attached Balance Sheet of Shivalik Bimetal
Controls Limited as at 31st March, 2010, the Profit and Loss Account
and also the Cash flow statement for the year ended on that date
annexed thereto. These Financial Statements are the responsibility of
the Companys management. Our responsibility is to express an opinion
on these financial statements based on our audit.
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 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. Further to our comments in the Annexure referred to above, we
report that:
i. we have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii. in our opinion, proper books of account as required by law
have been kept by the Company so far as appears from our examination of
those books;
iii. the Balance Sheet, Profit and Loss Account and Cash
flow statement dealt with by this report are in agreement
with the books of account;
iv. in our opinion, the Balance Sheet, Profit and Loss Account and
Cash flow statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956;
v. on the basis of the 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 account give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India :
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010;
b) in the case of the Profit and Loss account, of the-profit for the
year ended on that date; and
c) in the case of Cash flow statement, of the Cash flows for the year
ended on that date.
Annexure to the Auditors Report
(Referred to in paragraph 3 of our report of even date on the
Statements of Account of Shivalik Bimetal Controls Limited, as at and
for the year ended 31st March 2010)
(i) a. The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b. According to information and explanations given to us, the assets
have been physically verified by the management during the year as per
the regular programme of verification 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
verification.
c. There was no disposal of a substantial part of fixed assets.
(ii) a. The management has conducted physical verification of
inventory at reasonable intervals during the year.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of inventory. No
material discrepancies were noticed on verification between the
physical stocks and the book records.
(iii) The Company has neither granted nor taken any loans , secured or
unsecured to/from companies ,firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
(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 regards to the purchase of inventory, fixed assets and
sale of goods.
(v) a. The particulars of contracts or arrangements referred to in
Section 301 of the Act have been entered in the register maintained
under that section.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lacs in
respect of any party during the period have been made at prices which
are reasonable, having regard to prevailing market prices at the
relevant time.
(vi) The Company has not accepted any deposits from public during the
year under the provisions of section 58A of the Companies Act 1956.
(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 Section 209 (1) (d) of the Companies Act 1956.
(ix) a. According to the records of the Company and information and
explanation given to us, the Company is regular in depositing
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 other statutory dues
applicable to it, with the appropriate authorities.
b. According to the information and explanations given to us, there
were no undisputed amounts payable in respect of Income tax, wealth
tax, sales tax, customs duty and excise duty which have remained
outstanding as at 31st March 2010 for a period of more than six months
from the date they became payable.
c. According to the information and explanation given to us, there are
no dues outstanding of Sales Tax, Income Tax, Customs Duty, Wealth Tax,
Excise Duty or Cess on account of any dispute.
(x) The Company does not have accumulated losses at the end of the
financial year and it has not incurred any cash losses in 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 repayment of dues to the
bank.
(xii) According to the information and explanations given to us and
based on the documents and records produced to us, the company has not
granted loans and the advances on the basis of security by way of
pledge of shares, debentures and other securities.
(xiii) The company is not a Chit Fund or Nidhi/ mutual benefit fund /
society.
(xiv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments.
(xv) The company has furnished Corporate Guarantee to the tune of Rs.
1.21 Crores for loans taken by the Joint Venture Company (in which
company holds 50% of issued share capital) from bank. The terms and
conditions whereof are not prejudicial to the interests of the company.
(xvi) In our opinion, the term loans have been applied for the purpose
for which they were raised.
(xvii) According to the information and explanations given to us and on
an overall examination of Balance Sheet of the Company, we report that
the no funds raised on short term basis have been used for long-term
investment by the company.
(xviii)The Company has not made any preferential allotment of shares to
parties and Companies covered in register main- tained under Section
301 of the Companies Act, 1956.
(xix) Since the debentures have not been issued during the year,
question of creating securities does not arise.
(xx) The Company has not raised any money through a public issue during
the year.
(xxi) According to the information and explanation given to us, no
fraud on or by the company has been noticed or reported during the year
ended 31st March 2010.
For MALIK S & CO.
Chartered Accountants
Firm Registration No:- 00383N
-Sd-
SURESH MALIK
Place: New Delhi Proprietor
Dated: August 17, 2010 M. No. 080493