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Auditor Report of Simplex Castings Ltd.

Mar 31, 2015

We have audited the accompanying financial statements of Simplex Castings Limited ("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 signifcant 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 of these financial statements that give a true and fair view of the financial position, financial performance and cash fows 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 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 financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit.

We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. These Standards require that we comply with ethical requirements and plan and perform the audit to obtain 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 of 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 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 on the financial statements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2015, its Profit and its cash fows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors' Report) Order, 2015 ("the Order") issued by the Central Government of India in terms of Section 143(11) 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, the Statement of Profit & Loss and Cash Flow Statement dealt with by this report are in agreement with the books of account;

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

(e) On the basis of the written representations received from the directors as on 31st March, 2015 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 Act.

(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;

(ii) The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;

(iii) There has been no delay in transferring amounts, required to be transferred to the Investor Education and Protection Fund by the Company during the year (Previous year - delay in transferring Rs. 2.11 lacs).

Annexure to the Auditor's Report

The Annexure referred to in our Report to the members of Simplex Castings Limited on the Financial Statements for the year ended 31st March, 2015.

i) In respect of its Fixed Assets:- a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets on the basis of available information.

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

ii) In respect of its Inventories:- a) As explained by the management, the Inventories have been physically verified by the management during the year.

b) In our opinion and according to the information and explanation given to us the procedures of physical verification of stocks followed by the management were found to be reasonable and adequate in relation to the size of the company and nature of business.

c) In our opinion and according to the information and explanations given to us the company is maintaining proper records of inventory. The discrepancies noticed on verification between physical stock and book records were not significant and the same have been properly dealt with in the books of account.

iii) The Company has not granted any loans, secured or unsecured to companies, forms or other parties covered in the register maintained u/s 189 of the Companies Act, 2013, and accordingly clause iii(a) and iii(b) of paragraph 3 of the Order are not applicable to the company.

iv) In our opinion and according to the information and explanation given to us during the course of our audit, there are adequate internal control system commensurate with the size of the unit of the company and the nature of its business with regard to the purchases of stores, raw-materials, plant & machinery, equipment and other assets and for the sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in the internal control system.

v) The Company has not accepted any deposits from the public during the period to which the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules made there under are applicable.

vi) We have broadly reviewed the cost records maintained by the Company prescribed by the Central Government under section 148(1) of the Companies Act, 2013 and are of the opinion that prima facie the prescribed cost records have been maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

vii) In respect of statutory dues:- a) According to the information and explanations given to us, 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 other statutory dues have been regularly deposited with the appropriate authorities barring slight delay in few cases. According to the information and explanations given to us no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31st March 2015 for a period of more than six months from the date of becoming payable.

b) The disputed statutory dues that have not been deposited on account of matters pending before appropriate authorities are as under:

Sl Name of Statute Nature of Forum where No Dues dispute is pending

1 Income Tax Act Income Tax IT Appelate Tribunal

2 Central Excise Act Excise Duty Central Excise & Service Tax Appellate Tribunal. (CESTAT)

Commissioner (Appeal) Service Tax Supdt. Cental Excise

3 MP Municipal Corpn. Act Terminal Tax Commissioner,

Municipal Corpn., Bhilai

Sl.Name of statute Period Amount Rs.in lacs* No.

1. Income Tax act FY - 2010-11 46.83

2. Central Excise Act 2003-04 0.80 2005-06 3.30 & 2006-07 2009-10 17.94

2011 to 2013 4.52

3. MP Muncipal Corpon.Act 1999-2000 27.07 to 2012 - 13

c) According to the information and explanations given to us, the amounts which were required to be transferred to the Investor Education and Protection Fund in accordance with the relevant provisions of the Companies Act, 1956, (1 of 1956) and rules there under, has been transferred to such fund within time during the year (Previous year - delay in transferring Rs. 2.11 lacs).

viii) The company does not have accumulated losses and has not incurred any cash loss during the financial year and in the immediately preceding financial year.

ix) In our opinion and according to the information and explanations given to us and the records examined by us, the Company has not defaulted in repayment of dues to financial institutions/banks. The Company has not issued any debentures.

x) The company has not given guarantee for loans taken by others from banks or financial institutions.

xi) In our opinion and on the basis of information and explanation given to us, the term loans were applied for the purpose for which they were obtained.

xii) In our opinion and according to the information and explanation given to us, no fraud on or by Company has been noticed or reported during the year, that causes the financial statements to be materially misstated.

For M/s TAUNK & SRIKANTH

Chartered Accountants

(Registration No. 001524C)

(N. K. TAUNK) Place : Mumbai Partner

Dated : 28.05.2015 Membership No. 30421


Mar 31, 2014

Report on the Financial Statements

We have audited the accompanying financial statements of Simplex Castings Limited ("the Company"), which comprise the Balance Sheet as at 31st March, 2014, 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 notified under the Companies Act, 19566 ("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 and in accordance with the accounting principles generally accepted in India. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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 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:

i) in the case of Balance Sheet, of the state of affairs of the Company as at 31st March, 2014

ii) in the case of the Statement of Profit & Loss, of the profit for the year ended on that date; and

iii) in the case of Cash Flow Statement, of the cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditors'' Report) Order, 2003 ("the Order") issued by the Central Government of India in terms of Section 227(4A) of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

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, the Statement of Profit & 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 & Loss and Cash Flow Statement comply with the Accounting Standards notified under 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;

(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 section 274(1)(g) of the Act.

Annexure to the Auditors'' Report

Statement referred to in Paragraph (1) of the Auditors'' Report of even date to the Members of Simplex Castings Limited on the Financial Statements for the year ended 31st March, 2014.

i) In respect of its Fixed Assets:-

a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets on the basis of available information.

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

c) In our opinion the company has not disposed of substantial part of the fixed assets during the year and the going concern status of the company is not affected.

ii) In respect of its Inventories:-

a) As explained by the management, the Inventories have been physically verified by the management during the year.

b) In our opinion and according to the information and explanation given to us the procedures of physical verification of stocks followed by the management were found to be reasonable and adequate in relation to the size of the company and nature of business.

c) In our opinion and according to the information and explanations given to us the company is maintaining proper records of inventory. The discrepancies noticed on verification between physical stock and book records were not significant and the same have been properly dealt with in the books of account.

iii) In respect of the loans, secured and unsecured, granted or taken by the company to/from companies, firms and other parties covered in the register maintained u/s 301 of the Companies Act, 1956:-

a) The company has granted loan to one company covered in the register maintained u/s 301 of the Companies Act, 1956. The maximum amount involved during the year and the year end balance of the loan granted was same at Rs. 0.98 lacs (prev. yr Rs. 25.11 lacs). (Clause 4(iii)(a) of the Order)

b) In our opinion and according to the information and explanations given to us, the rate of interest and other terms and conditions on which loan has been granted to companies, firms or other parties listed in the register maintained u/s 301 of the Companies Act, 1956, were prima facie not prejudicial to the interest of the company. (Clause 4(iii)(b) of the Order)

c) According to the information and explanations given to us, there is no stipulation as to receipt of principal and interest. (Clause 4(iii)(c) of the Order)

d) There is no overdue amount of loans granted to companies, firms or other parties listed in the register maintained u/s 301 of the Companies Act, 1956. (Clause 4(iii)(d) of the Order)

e) The company has taken loan from five companies covered in the register maintained u/s 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs. 1222.63 lacs (prev. year Rs.1222.63 lacs) and the year end balance was Rs. 1187.45 lacs (prev. year Rs.1222.63 lacs) (Clause 4(iii)(e) of the Order)

f) In our opinion and according to the information and explanations given to us, the rate of interest and other terms and conditions on which loan has been taken from companies, firms or other parties listed in the register maintained u/s 301 of the Companies Act, 1956, were prima facie not prejudicial to the interest of the company. (Clause 4(iii)(f) of the Order)

g) According to the information and explanations given to us, there is no stipulation as to repayment of principal and interest, even though interest is credited to the respective parties accounts at the year end. (Clause 4(iii)(g) of the Order)

iv) In our opinion and according to the information and explanation given to us during the course of our audit, there are adequate internal control system commensurate with the size of the company and the nature of its business with regard to the purchases of stores, raw-materials, plant & machinery, equipments and other assets and for the sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in the internal control system.

v) In respect of the transaction covered u/s 301 of the Companies Act 1956:-

a) In our opinion and according to the information and explanations given to us, we are of the opinion that the particulars of contracts or arrangements that need to be entered into the register maintained u/s 301 of the Companies Act, 1956 have been so entered.

b) In our opinion and according to the information given to us the transactions made in pursuance of the contracts or arrangements entered in the register maintained u/s 301 of the Companies Act,1956 aggregating during the year to Rs.5,00,000/- or more in respect of any party were made at prices which are reasonable having regard to prevailing market prices at the relevant time where such market prices are available.

vi) The company has not accepted any deposits from the public during the year to which the directives issued by the Reserve Bank of India and the provisions of section 58A & 58AA or any other relevant provisions of the Act and the rules made thereunder are applicable.

vii) In our opinion, the company has an adequate internal audit system commensurate with the size and nature of its business.

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

ix) In respect of statutory dues:-

a) According to the information and explanations given to us, undisputed statutory dues including Provident Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other dues have been regularly deposited with the appropriate authorities barring slight delay in few cases. According to the information and explanations given to us no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31st March 2014 for a period of more than six months from the date of becoming payable.

b) The disputed statutory dues that have not been deposited on account of matters pending before appropriate authorities areas under:

Sl Name of Statute Nature of Forum where No Dues dispute is pending

1 Income Tax Act Income Tax Comm. of IT (Appeals) -- do --

2 Central Excise Act Excise Duty Central Excise & Service Tax Appellate Tribunal. (CESTAT)

3 MP Municipal Corpn. Act Terminal Tax Commissioner, Minicipal Corpn., Bhilai

Sl Name of Statute Period Amount No Rs. in lacs*

1 Income Tax Act FY - 2009-10 979.27

FY - 2010-11 465.18

2 Central Excise Act 2003-04 0.80 2005-06 3.30 & 2006-07

3 MP Municipal Corpn. Act 1999-2000 27.07 to 2012 - 13

x) The company does not have accumulated losses and has not incurred any cash loss during the financial year and in the immediately preceding financial year.

xi) In our opinion and according to the information and explanations given to us and the records examined by us, the Company has not defaulted in repayment of dues to financial institutions/banks. The Company has not issued any debentures.

xii) In our opinion and according to the information and explanation given to us no loans or advances have been granted by the company on the basis of security by way of pledge of shares, debentures or other securities.

xiii) In our opinion, the company is not a chit fund or a nidhi / mutual benefit fund / society. Accordingly, clause 4(xiii) of the Companies (Auditor''s Report) Order 2003 is not applicable to the company.

xiv) In our opinion and according to the information and explanation given to us the company is not dealing in or trading in shares, securities and other investments. Accordingly the provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order 2003 are not applicable to the company.

xv) The company has not given guarantee for loans taken by others from banks or financial institutions.

xvi) In our opinion and on the basis of information and explanation given to us, the term loans were applied for the purpose for which they were obtained.

xvii) According to the information and explanations given to us and on an overall examination of the Balance Sheet of the company, we are of the opinion that the company has utilised Rs. 230.42 lacs (prev. year Rs. 850.67 lacs) raised from short term sources towards long-term investment.

xviii) According to the information and explanations given to us, the company has not made any preferential allotment of shares during the year to parties and companies covered in the register maintained u/s 301 of the Companies Act, 1956.

xix) In our opinion and according to the informations and explanations given to us the company has not issued any secured debentures during the period covered by our report. Accordingly, the provisions of clause 4(xix) of the Companies (Auditor''s Report) Order 2003 are not applicable to the company.

xx) During the period covered by our audit report, the company has not raised any money by way of public issue.

xxi) In our opinion and according to the information and explanation given to us, no fraud on or by the company has been noticed or reported during the year, that causes the financial statements to be materially misstated.

For M/s TAUNK & SRIKANTH Chartered Accountants (Registration No. 001524C)

(N. K. TAUNK) Place : Mumbai Partner Dated :29.05.2014 Membership No. 30421


Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying fnancial statements of Simplex Castings Limited ("the Company" ), which comprise the Balance Sheet as at 31st March, 2013, and the Statement of Proft and Loss and Cash Flow Statement for the year then ended, and a summary of signifcant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

Management is responsible for the preparation of these fnancial statements that give a true and fair view of the fnancial position, fnancial performance and cash fows 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 fnancial 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 fnancial 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 fnancial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fnancial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the fnancial 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 fnancial 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 fnancial statements.

We believe that the audit evidence we have obtained is suffcient 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 aforesaid fnancial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

i) in the case of Balance Sheet, of the state of affairs of the Company as at 31st March, 2013

ii) in the case of the Statement of Proft & Loss, of the proft for the year ended on that date; and

iii) in the case of Cash Flow Statement, of the cash fows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors'' Report) Order, 2003 ("the Order" ) issued by the Central Government of India in terms of Section 227(4A) of the Act, we give in the Annexure a statement on the matters specifed 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, the Statement of Proft & 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 Proft & Loss and Cash Flow Statement comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Act;

(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 disqualifed as on 31st March, 2013, from being appointed as a director in terms of section 274(1)(g) of the Act.

Annexure to the Auditors'' Report

Statement referred to in Paragraph (1) of the Auditors'' Report of even date to the Members of Simplex Castings Limited on the Financial Statements for the year ended 31st March, 2013.

i) In respect of its Fixed Assets:- a) The company has maintained proper records showing full particulars including quantitative details and situation of fxed assets on the basis of available information.

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

c) In our opinion the company has not disposed of substantial part of the fxed assets during the year and the going concern status of the company is not affected.

ii) In respect of its Inventories:- a) As explained by the management, the Inventories have been physically verifed by the management during the year.

b) In our opinion and according to the information and explanation given to us the procedures of physical verifcation of stocks followed by the management were found to be reasonable and adequate in relation to the size of the company and nature of business.

c) In our opinion and according to the information and explanations given to us the company is maintaining proper records of inventory. The discrepancies noticed on verifcation between physical stock and book records were not signifcant and the same have been properly dealt with in the books of account.

iii) In respect of the loans, secured and unsecured, granted or taken by the company to/from companies, frms and other parties covered in the register maintained u/s 301 of the Companies Act, 1956:- a) The company has granted loan to one company covered in the register maintained u/s 301 of the Companies Act, 1956. The maximum amount involved during the year and the year end balance of the loan granted was same at Rs. 25.11 lacs (prev. yr Rs. 146.84 lacs). (Clause 4(iii)(a) of the Order)

b) In our opinion and according to the information and explanations given to us, the rate of interest and other terms and conditions on which loan has been granted to companies, frms or other parties listed in the register maintained u/s 301 of the Companies Act, 1956, were prima facie not prejudicial to the interest of the company. (Clause 4(iii)(b) of the Order)

c) According to the information and explanations given to us, there is no stipulation as to receipt of principal and interest. (Clause 4(iii)(c) of the Order)

d) There is no overdue amount of loans granted to companies, frms or other parties listed in the register maintained u/s 301 of the Companies Act, 1956. (Clause 4(iii)(d) of the Order)

e) The company has taken loan from fve companies covered in the register maintained u/s 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs. 1222.63 lacs (prev. year Rs.1150.25 lacs) and the year end balance was Rs. 1222.63 lacs (prev. year Rs. 1097.52 lacs) (Clause 4(iii)(e) of the Order)

f) In our opinion and according to the information and explanations given to us, the rate of interest and other terms and conditions on which loan has been taken from companies, frms or other parties listed in the register maintained u/s 301 of the Companies Act, 1956, were prima facie not prejudicial to the interest of the company.(Clause 4(iii)(f) of the Order)

g) According to the information and explanations given to us, there is no stipulation as to repayment of principal and interest, even though interest is credited to the respective parties accounts at the year end. (Clause 4(iii) (g) of the Order)

iv) In our opinion and according to the information and explanation given to us during the course of our audit, there are adequate internal control system commensurate with the size of the company and the nature of its business with regard to the purchases of stores, raw-materials, plant & machinery, equipments and other assets and for the sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in the internal control system.

v) In respect of the transaction covered u/s 301 of the Companies Act 1956:- a) In our opinion and according to the information and explanations given to us, we are of the opinion that the particulars of contracts or arrangements that need to be entered into the register maintained u/s 301 of the Companies Act, 1956 have been so entered.

b) In our opinion and according to the information given to us the transactions made in pursuance of the contracts or arrangements entered in the register maintained u/s 301 of the Companies Act,1956 aggregating during the year to Rs. 5,00,000/- or more in respect of any party were made at prices which are reasonable having regard to prevailing market prices at the relevant time where such market prices are available.

vi) The company has not accepted any deposits from the public during the year to which the directives issued by the Reserve Bank of India and the provisions of section 58A & 58AA or any other relevant provisions of the Act and the rules made thereunder are applicable.

vii) In our opinion, the company has an adequate internal audit system commensurate with the size and nature of its business.

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

ix) In respect of statutory dues:- a) According to the information and explanations given to us, undisputed statutory dues including Provident Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other dues have been regularly deposited with the appropriate authorities barring slight delay in few cases. According to the information and explanations given to us no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31st March 2013 for a period of more than six months from the date of becoming payable.

b) The disputed statutory dues that have not been deposited on account of matters pending before appropriate authorities are as under:

Sl Name of Statute Nature of Dues Forum where dispute is pending Period Amount No Rs. in lacs*

1 Income Tax Act Income Tax Comm. of IT (Appeals) F. Y. 2009 -10 979.27

x) The company does not have accumulated losses and has not incurred any cash loss during the fnancial year and in the immediately preceding fnancial year.

xi) In our opinion and according to the information and explanations given to us and the records examined by us, the Company has not defaulted in repayment of dues to fnancial institutions/banks. The Company has not issued any debentures.

xii) In our opinion and according to the information and explanation given to us no loans or advances have been granted by the company on the basis of security by way of pledge of shares, debentures or other securities.

xiii) In our opinion, the company is not a chit fund or a nidhi / mutual beneft fund / society. Accordingly, clause 4(xiii) of the Companies (Auditor''s Report) Order 2003 is not applicable to the company.

xiv) In our opinion and according to the information and explanation given to us the company is not dealing in or trading in shares, securities and other investments. Accordingly the provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order 2003 are not applicable to the company.

xv) The company has not given guarantee for loans taken by others from banks or fnancial institutions.

xvi) In our opinion and on the basis of information and explanation given to us, the term loans were applied for the purpose for which they were obtained.

xvii) According to the information and explanations given to us and on an overall examination of the Balance Sheet of the company, we are of the opinion that the company has utilised Rs. 850.67 lacs raised from short term sources towards long-term investment.

xviii)According to the information and explanations given to us, the company has not made any preferential allotment of shares during the year to parties and companies covered in the register maintained u/s 301 of the Companies Act, 1956.

xix) In our opinion and according to the informations and explanations given to us the company has not issued any secured debentures during the period covered by our report. Accordingly, the provisions of clause 4(xix) of the Companies (Auditor''s Report) Order 2003 are not applicable to the company.

xx) During the period covered by our audit report, the company has not raised any money by way of public issue

xxi) In our opinion and according to the information and explanation given to us, no fraud on or by the company has been noticed or reported during the year, that causes the fnancial statements to be materially misstated.



For M/s TAUNK & SRIKANTH

Chartered Accountants

(Registration No. 001524C)



(N. K. TAUNK)

Place : Mumbai Partner

Dated : 28th May, 2013 Membership No. 30421


Mar 31, 2012

We have audited the attached Balance Sheet of SIMPLEX CASTINGS LIMITED as at 31st March, 2012 and also the Profit & Loss Account and the Cash Flow Statement for the year ended on that date. 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.

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 statements presentation. We believe that our audit provides a reasonable basis of our opinion.

1. As required by the Companies (Auditors' Report) Order, 2003 issued by the Central Government of India in terms of Section 227(4A) of the Companies Act, 1956 we annex hereto a statement on the matters specified in paragraphs 4 and 5 of the said order.

2. Further to our comments in the Annexure referred to in paragraph (1) above, we state 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, the Profit & Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of accounts;

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

(e) On the basis of written representation from the directors as on 31st March, 2012, and taken on records by the Board of Directors in their meeting, we report that, none of the directors is disqualified as on 31st March, 2012 from being appointed as director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956.

(f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with the Significant Accounting Policies, and other Notes thereon 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;

i) in the case of Balance Sheet, of the state of affairs of the Company as at 31st March, 2012

ii) in the case of the Profit & Loss Account, of the profit for the year ended on that date; and

iii) in the case of Cash Flow Statement, of the cash flows for the year ended on that date.

ANNEXURE TO THE AUDITORS' REPORT

Statement referred to in Paragraph (1) of the Auditors' Report of even date to the Members of Simplex Castings Limited on the Financial Statements for the year ended 31st March, 2012.

i) In respect of its Fixed Assets:-

a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets on the basis of available information.

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

c) In our opinion the company has not disposed of substantial part of the fixed assets during the year and the going concern status of the company is not affected.

ii) In respect of its Inventories:-

a) As explained by the management, the Inventories have been physically verified by the management during the year.

b) In our opinion and according to the information and explanation given to us the procedures of physical verification of stocks followed by the management were found to be reasonable and adequate in relation to the size of the company and nature of business.

c) In our opinion and according to the information and explanations given to us the company is maintaining proper records of inventory. The discrepancies noticed on verification between physical stock and book records were not significant and the same have been properly dealt with in the books of account.

iii) In respect of the loans, secured and unsecured granted or taken by the company to/from companies, firms and other parties covered in the register maintained u/s 301 of the Companies Act, 1956:-

a) The company has granted loan to one companies covered in the register maintained u/s 301 of the Companies Act, 1956. The maximum amount involved during the year and the year end balance of the loan granted was same at Rs. 146.84 lacs (prev. yr Rs. 131.99 lacs). (Clause 4(iii)(a) of the Order)

b) In our opinion and according to the information and explanations given to us, the rate of interest and other terms and conditions on which loan has been granted to companies, firms or other parties listed in the register maintained u/s 301 of the Companies Act, 1956, were prima facie not prejudicial to the interest of the company. (Clause 4(iii)(b) of the Order)

c) According to the information and explanations given to us, there is no stipulation as to receipt of principal and interest. (Clause 4(iii)(c) of the Order)

d) There is no overdue amount of loans granted to companies, firms or other parties listed in the register maintained u/s 301 of the Companies Act, 1956. (Clause 4(iii)(d) of the Order)

e) The company has taken loan from five companies covered in the register maintained u/s 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs. 1150.25 lacs (prev. year Rs.1227.25 lacs) and the year end balance was Rs. 1097.52 lacs (prev. year Rs.1227.25 lacs) (Clause 4(iii)(e) of the Order)

f) In our opinion and according to the information and explanations given to us, the rate of interest and other terms and conditions on which loan has been taken from companies, firms or other parties listed in the register maintained u/s 301 of the Companies Act, 1956, were prima facie not prejudicial to the interest of the company.(Clause 4(iii)(f) of the Order)

g) According to the information and explanations given to us, there is no stipulation as to repayment of principal and interest, eventhough interest is credited to the respective party's account at the year end. (Clause 4(iii) (g) of the Order)

iv) In our opinion and according to the information and explanation given to us during the course of our audit, there are adequate internal control system commensurate with the size of the company and the nature of its business with regard to the purchases of stores, raw-materials, plant & machinery, equipments and other assets and for the sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in the internal control system.

v) In respect of the transaction covered u/s 301 of the Companies Act 1956:-

a) In our opinion and according to the information and explanations given to us, we are of the opinion that the particulars of contracts or arrangements that need to be entered into the register maintained u/s 301 of the Companies Act, 1956 have been so entered.

b) In our opinion and according to the information given to us the transactions made in pursuance of the contracts or arrangements entered in the register maintained u/s 301 of the Companies Act,1956 aggregating during the year to Rs.5,00,000/- or more in respect of any party were made at prices which are reasonable having regard to prevailing market prices at the relevant time where such market prices are available.

vi) The company has not accepted any deposits from the public during the year to which the directives issued by the Reserve Bank of India and the provisions of section 58A & 58AA or any other relevant provisions of the Act and the rules made thereunder are applicable.

vii) In our opinion, the company has an adequate internal audit system commensurate with the size and nature of its business.

viii) We habe broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Accounting Record) Rules, 2011 prescribed by the Central Government under section 209(1)(d) of the Companies Act, 1956 and are of the opinion that prima facie the prescribed cost records have been maintained. We have, however, not made a detailed examination of the cost records with a view to determine wheter they are accurate or complete.

ix) In respect of statutory dues:-

a) According to the information and explanations given to us, undisputed statutory dues including Provident Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other dues have been regularly deposited with the appropriate authorities barring slight delay in few cases. According to the information and explanations given to us no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31st March 2012 for a period of more than six months from the date of becoming payable.

b) The disputed statutory dues that have not been deposited on account of matters pending before appropriate authorities are as under:

Sl Name of Statute Nature of Dues Forum where dispute is pending Period Amount No Rs.in lacs

1 Central Excise Act Excise Duty Central Excise & Service Tax Appel- 2003-04 0.80 late Tribunal. (CESTAT)

2 Income Tax Act Income Tax Comm. of IT (Appeals) 2009-10 77.06

x) The company does not have accumulated losses and has not incurred any cash loss during the financial year and in the immediately preceding financial year.

xi) In our opinion and according to the information and explanations given to us and the records examined by us, the Company has not defaulted in repayment of dues to financial institutions/banks. The Company has not issued any debentures.

xii) In our opinion and according to the information and explanation given to us no loans or advances have been granted by the company on the basis of security by way of pledge of shares, debentures or other securities.

xiii) In our opinion, the company is not a chit fund or a nidhi / mutual benefit fund / society. Accordingly, clause 4(xiii) of the Companies (Auditor's Report) Order 2003 is not applicable to the company.

xiv) In our opinion and according to the information and explanation given to us the company is not dealing in or trading in shares, securities and other investments. Accordingly the provisions of clause 4(xiv) of the Companies (Auditor's Report) Order 2003 are not applicable to the company.

xv) The company has not given guarantee for loans taken by others from banks or financial institutions.

xvi) In our opinion and on the basis of information and explanation given to us, the term loans were applied for the purpose for which they were obtained.

xvii) According to the information and explanations given to us and on an overall examination of the Balance Sheet of the company, we are of the opinion that the company has utilised Rs.103.48 lacs raised from short term sources towards long-term investment.

xviii)According to the information and explanations given to us, the company has not made any preferential allotment of shares during the year to parties and companies covered in the register maintained u/s 301 of the Companies Act, 1956.

xix) In our opinion and according to the informations and explanations given to us the company has not issued any secured debentures during the period covered by our report. Accordingly, the provisions of clause 4(xix) of the Companies (Auditor's Report) Order 2003 are not applicable to the company.

xx) During the period covered by our audit report, the company has not raised any money by way of public issue.

xxi) In our opinion and according to the information and explanation given to us, no fraud on or by the company has been noticed or reported during the year, that causes the financial statements to be materially misstated.

For M/s TAUNK & SRIKANTH

Chartered Accountants

(Firm Regn. No. 001524C)

(N. K. TAUNK)

Place : Bhilai Partner

Dated : 10th August, 2012 Membership No. 30421


Mar 31, 2011

We have audited the attached Balance Sheet of SIMPLEX CASTINGS LIMITED as at 31st March, 2011 and also the Profit & Loss Account and the Cash Flow Statement for the year ended on that date. 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.

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 statements presentation. We believe that our audit provides a reasonable basis of our opinion.

1. As required by the Companies (Auditors' Report) Order, 2003 issued by the Central Government of India in terms of Section 227(4A) of the Companies Act, 1956 we annex hereto a statement on the matters specified in paragraphs 4 and 5 of the said order.

2. Further to our comments in the Annexure referred to in paragraph (1) above, we state that :

(a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

(b) In our opinion, proper books of Account as required by law, have been kept by the Company so far as appears from our examination of those books;

(c) The Balance Sheet and the Profit & Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of accounts;

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

(e) On the basis of written representation from the directors as on 31st March, 2011, and taken on records by the Board of Directors in their meeting, we report that, none of the directors is disqualified as on 31st March, 2011 from being appointed as director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956.

(f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with the Significant Accounting Policies, and other Notes thereon 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;

(i) in the case of Balance Sheet, of the state of affairs of the Company as at 31st March, 2011

(ii) in the case of the Profit & Loss Account, of the profit for the year ended on that date and

(iii) in the case of Cash Flow Statement, of the cash flows for the year ended on that date.

ANNEXURE TO THE AUDITORS' REPORT

Statement referred to in Paragraph (1) of the Auditors' Report of even date to the Members of Simplex Castings Limited on the Financial Statements for the year ended 31st March, 2011.

i) In respect of its Fixed Assets:-

a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets on the basis of available information.

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

c) In our opinion the company has not disposed of substantial part of the fixed assets during the year and the going concern status of the company is not affected.

ii) In respect of its Inventories:-

a) As explained by the management, the Inventories have been physically verified by the management during the year.

b) In our opinion and according to the information and explanation given to us the procedures of physical verification of stocks followed by the management were found to be reasonable and adequate in relation to the size of the company and nature of business.

c) In our opinion and according to the information and explanations given to us the company is maintaining proper records of inventory. The discrepancies noticed on verification between physical stock and book records were not significant and the same have been properly dealt with in the books of account.

iii) In respect of the loans, secured and unsecured, granted or taken by the company to/from companies, firms and other parties covered in the register maintained u/s 301 of the Companies Act, 1956:-

a) The company has not granted any loans, secured or unsecured loan to companies, firms or other parties covered in the register maintained u/s 301 of the Companies Act, 1956, and accordingly clause iii(b), iii(c) and iii(d) of paragraph 4 of the Order are not applicable to the company.

b) The company has taken loan from five companies covered in the register maintained u/s 301 of the Companies Act, 1956. The maximum amount involved during the year and the year end balance was same at Rs. 1227.25 lacs (prev. year Rs. 588.40 lacs) (Clause 4(iii)(e) of the Order)

In our opinion and according to the information and explanations given to us, the rate of interest and other terms and conditions on which loan has been taken from companies, firms or other parties listed in the register maintained u/s 301 of the Companies Act, 1956, were prima facie not prejudicial to the interest of the company.(Clause 4(iii)(f) of the Order)

According to the information and explanations given to us, there is no stipulation as to repayment of principal and interest, eventhough interest is credited to the respective party's account at the year end. (Clause 4(iii)(g) of th Order)

iv) In our opinion and according to the information and explanation given to us during the course of our audit, there are adequate internal control system commensurate with the size of the company and the nature of its business with regard to the purchases of stores, raw-materials, plant & machinery, equipments and other assets and for the sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in the internal control system.

v) In respect of the transaction covered u/s 301 of the Companies Act 1956:-

a) To the best of our knowledge and belief and according to the information and explanations given to us, we are of the opinion that the particulars of contracts or arrangements that need to be entered into the register maintained u/s 301 of the Companies Act, 1956 have been so entered.

b) In our opinion and according to the information given to us the transactions made in pursuance of the contracts or arrangements entered in the register maintained u/s 301 of the Companies Act, 1956 aggregating during the year to Rs.5,00,000/- or more in respect of any party were made at prices which are reasonable having regard to prevailing market prices at the relevant time where such market prices are available.

vi) The company has not accepted any deposits from the public during the year to which the directives issued by the Reserve Bank of India and the provisions of section 58A & 58AA or any other relevant provisions of the Act and the rules made thereunder are applicable.

vii) In our opinion, the company has an adequate internal audit system commensurate with the size and nature of its business.

viii) The Central Government has not prescribed the maintainance of cost records under section 209(1 )(d) of the Companies Act, 1956 for any of the products manufactured by the company.

ix) In respect of statutory dues:-

a) According to the information and explanations given to us, undisputed statutory dues including Provident Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other dues have generally been regularly deposited with the appropriate authorities barring slight delay in few cases. According to the information and explanations given to us no undisputed amounts payable in ' respect of the aforesaid dues were outstanding as at 31st March 2008 for a period of more than six months from the date of becoming payable.

b) The disputed statutory dues that have not been deposited on account of matters pending before appropriate authorities are as under:

SI Name of Nature of Forum where Period Amount No Statute Dues dispute is Rs. in lacs pending

1 Central Excise High Court, 2003-04 1.72 Excise Duty Bilaspur Act Central Excise & 2003-04 0.80 Service Tax Apellate Tribunal. (CESTAT)

2. Income Income Appellate 2001-02 2.42 Tax Tax Tribunal Act Mumbai High Court 2002-03 0.16 Comm, of IT (Appeals) 2008-09 440.12

* Net of pre-deposit paid in getting the appeal admitted

x) The company does not have accumulated losses and has not incurred any cash losses during the financial year and in the immediately preceeding financial year.

xi) In our opinion and according to the information and explanations given to us and the records examined by us, the Company has not defaulted in repayment of dues to financial institutions/banks. The Company has not issued any debentures.

xii) In our opinion and according to the information and explanation given to us no loans or advances have been granted by the company on the basis of security by way of pledge of shares, debentures or other securities.

xiii) In our opinion, the company is not a chit fund or a nidhi / mutual benefit fund / society. Accordingly, clause 4(xiii) of the Companies (Auditor's Report) Order 2003 is not applicable to the company.

xiv) In our opinion and according to the information and explanation given to us the company is not dealing in or trading in shares, securities and other investments. Accordingly the provisions of clause 4(xiv) of the Companies (Auditor's Report) Order 2003 are not applicable to the company. xv) The company has not given guarantee for loans taken by others from banks or financial institutions.

xvi) In our opinion and on the basis of information and explanation given to us, the term loans were applied for the purpose for which they were obtained.

xvii) According to the information and explanations given to us and on an overall examination of the Balance Sheet of the company, funds raised on short term basis have, prima facie, not been used during the year for long term investment.

xviii) According to the information and explanations given to us, the company has not made any preferential allotment of shares during the year to parties and companies covered in the register maintained u/s 301 of the Companies Act, 1956.

xix) In our opinion and according to the informations and explanations given to us the company has not issued any secured debentures during the period covered by our report. Accordingly, the provisions of clause 4(xix) of the Companies (Auditor's Report) Order 2003 are not applicable to the company.

xx) During the period covered by our audit report, the company has not raised any money by way of public issue. xxi) In our opinion and according to the information and explanation given to us, no fraud on or by the company has been noticed or reported during the year, that causes the financial statements to be materially misstated.

For TAUNK & SRIKANTH Chartered Accountants (Registration No. 001524C)

(N.K. Taunk) Partner Membership No. 30421

Place : Bhilai Dated : 25th July, 2011


Mar 31, 2010

We have audited the attached Balance Sheet of SIMPLEX CASTINGS LIMITED as at 31 st March, 2010 and also the Profit & Loss Account and the Cash Flow Statement for the year ended on that date. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclo- sures 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 statements presentation. We believe that our audit provides a reasonable basis of our opinion.

1. As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government of India in terms of Section 227(4A) of the Companies Act, 1956 we annex hereto a statement on the matters specified in para- graphs 4 and 5 of the said order.

2. Further to our comments in the Annexure referred to in paragraph (1) above, we state 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, the Profit & Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of accounts;

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

(e) On the basis of written representation from the directors as on 31st March, 2010, and taken on records by the Board of Directors in their meeting, we report that, none of the directors is disqualified as on 31 st March, 2010 from being appointed as director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956.

(f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with the Significant Accounting Policies, and other Notes thereon give the informa- tion 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;

i) in the case of Balance Sheet, of the state of affairs of the Company as at 31st March, 2010

ii) in the case of the Profit & Loss Account, of the profit for the year ended on that date; and

iii) in the case of Cash Flow Statement, of the cash flows for the year ended on that date.

ANNEXURE TO THE AUDITORS REPORT Statement referred to in Paragraph (1) of the Auditors Report of even date to the Members of Simplex Castings Limited on the Financial Statements for the year ended 31st March, 2010.

i) In respect of its Fixed Assets:-

a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets on the basis of available information.

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

c) In our opinion the company has not disposed of substantial part of the fixed assets during the year and the going concern status of the company is not affected.

ii) In respect of its Inventories:-

a) As explained by the management, the Inventories have been physically verified by the management during the year.

b) In our opinion and according to the information and explanation given to us the procedures of physical verification of stocks followed by the management were found to be reasonable and adequate in relation to the size of the company and nature of business.

c) In our opinion and according to the information and explanations given to us the company is maintaining proper records of inventory. The discrepancies noticed on verification between physical stock and book records were not significant and the same have been properly dealt with in the books of account.

iii) In respect of the loans, secured and unsecured, granted or taken by the company to/from companies, firms and other parties covered in the register maintained u/s301 of the Companies Act, 1956:-

a) The company has not granted any loans, secured or unsecured to companies, firms or other parties cov- ered in the register maintained u/s301 of the Companies Act, 1956, and accordingly clause iii(b), iii(c)and iii(d) of paragraph 4 of the Order are not applicable to the company.

b) The company has taken loan from four companies covered in the register maintained u/s 301 of the Compa- nies Act, 1956. The maximum amount involved during the year was Rs. 588.40 lacs(prev. year Rs.97.56 lacs) and the year end balance of loan taken was Rs. 588.40 lacs.(prev. year Rs.92.56 lacs) (Clause 4(iii)(e) of th Order)

In our opinion and according to the information and explanations given to us, the rate of interest and other terms and conditions on which loan has been taken from companies, firms or other parties listed in the register maintained u/s 301 of the Companies Act, 1956, were prima facie not prejudicial to the interest of the company.(Clause 4(iii)(f) of th Order)

According to the information and explanations given to us, there is no stipulation as to repayment of principal and interest, eventhough interest is credited to the respective partys account at the year end. (Clause 4(iii)(g) of th Order)

iv) In our opinion and according to the information and explanation given to us during the course of our audit, there are adequate internal control system commensurate with the size of the company and the nature of its business with regard to the purchases of stores, raw-materials, plant & machinery, equipments and other assets and for the sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in the internal control system.

v) In respect of the transaction covered u/s 301 of the Companies Act 1956:-

a) To the best of our knowledge and belief and according to the information and explanations given to us, we

are of the opinion that the particulars of contracts or arrangements that need to be entered into the register maintained u/s 301 of the Companies Act, 1956 have been so entered.

b) In our opinion and according to the information given to us the transactions made in pursuance of the contracts or arrangements entered in the register maintained u/s 301 of the Companies Act, 1956 aggregat- ing during the year to Rs.5,00,000/- or more in respect of any party were made at prices which are reason- able having regard to prevailing market prices at the relevant time where such market prices are available.

vi) The company has not accepted any deposits from the public during the year to which the directives issued by the Reserve Bank of India and the provisions of section 58A& 58AAor any other relevant provisions of the Act and the rules made thereunder are applicable.

vii) In our opinion, the company has an adequate internal audit system commensurate with the size and nature of its business.

viii) The Central Government has not prescribed the maintainance of cost records under section 209(1 )(d) of the Companies Act, 1956 for any of the products manufactured by the company.

ix) I n respect of statutory d ues :-

a) According to the information and explanations given to us, undisputed statutory dues including Provident Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Ex- cise Duty, Cess and other dues have been regularly deposited with the appropriate authorities barring slight delay in few cases. According to the information and explanations given to us no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31 st March 2010 for a period of more than six months from the date of becoming payable.

b) The disputed statutory dues that have not been deposited on account of matters pending before appropriate authorities are as under:

SI. Name of Statute Nature of Dues Forum where Period Amount No dispute is pending Rs.in lacs*

1 Central Excise Act Excise Duty High Court, Bilaspur 2003-04 1.72

Central Excise & Service Tax Appellate 2003-04 0.80 Tribunal. (CESTAT)

2 The Central Sales Tax CST Dy. Comm (Appeals) 2005-06 5.90 Act& Chhattisgarh CGCT 6.09

Commercial Tax Act Entry Tax 1.28

3 Income Tax Act Income Tax Appellate Tribunal 2001-02 2.85

Mumbai High Court 2002-03 3.65

* Net of pre-deposit paid in getting the appeal admitted

x) The company does not have accumulated losses and has not incurred any cash loss during the financial year and in the immediately preceding financial year.

xi) In our opinion and according to the information and explanations given to us and the records examined by us, the Company has not defaulted in repayment of dues to financial institutions/banks. The Company has not issued any debentures.

xii) In our opinion and according to the information and explanation given to us no loans or advances have been granted by the company on the basis of security by way of pledge of shares, debentures or other securities.

xiii) In our opinion, the company is not a chit fund or a nidhi/mutual benefit fund/society. Accordingly, clause 4(xiii) of the Companies (Auditors Report) Order 2003 is not applicable to the company.

xiv) In our opinion and according to the information and explanation given to us the company is not dealing in or trading in shares, securities and other investments. Accordingly the provisions of clause 4(xiv) of the Companies (Auditors Report) Order 2003 are not applicable to the company.

xv) The company has not given guarantee for loans taken by others from banks or financial institutions.

xvi) In our opinion and on the basis of information and explanation given to us, the term loans were applied for the purpose for which they were obtained.

xvii) According to the information and explanations given to us and on an overall examination of the Balance Sheet of the company, funds raised on short term basis have, prima facie, not been used during the year for long term investment.

xviii) According to the information and explanations given to us, the company has not made any preferential allotment of shares during the year to parties and companies covered in the register maintained u/s 301 of the Companies Act, 1956.

xix) In our opinion and according to the informations and explanations given to us the company has not issued any secured debentures during the period covered by our report. Accordingly, the provisions of clause 4(xix) of the Companies (Auditors Report) Order 2003 are not applicable to the company.

xx) During the period covered by our audit report, the company has not raised any money by way of public issue.

xxi) In our opinion and according to the information and explanation given to us, no fraud on or by the company has been noticed or reported during the year, that causes the financial statements to be materially misstated.

For M/s TAUNK & SRIKANTH

Chartered Accountants (Registration No. 001524C)

(N. K. TAUNK) Place : Bhilai Partner

Dated : 10.07.2010 Membership No. 30421

 
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