Mar 31, 2011
1. We have audited the attached Balance Sheet of VIKASH METAL & POWER
LIMITED as at 31st March, 2011 and also the Profit & Loss Account and
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 in terms of sub-section (4A)
of Section 227 of the Companies Act, 1956 and on the basis of such
checks as we considered appropriate, and according to the information
and explanations given to us, we enclose in the Annexure a statement on
the matters specified in paragraphs 4 and 5 of the said Order to the
extent applicable to the Company.
4. Further to our comments in the Annexure referred to in paragraph 3
above, 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 purposes of
our audit;
b) In our opinion, proper books of account, as required by law have
been kept by the Company so far as appears from our examination of
those books;
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the Balance Sheet, Profit & 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;
e) On the basis of the written representations received from the
directors and taken on record by the Board of Directors, none of the
directors is disqualified as on 31 st March, 2011 from being appointed
as a 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 statements of accounts, read
with the Accounting Policies & 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 the 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 of the
Company for the year ended on that date, and
iii. in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Annexure to the Auditors' Report
(Referred to in Paragraph 3 of our Report of even date to the members
of Vikash Metal & Power Limited on the financial statements for the
year ended 31st March, 2011).
(i) (a) The Company has maintained proper records to show full
particulars, including quantitative details and situation of its fixed
assets.
(b) We are informed that fixed assets of significant value have been
physically verified by the management at reasonable intervals, in a
phased programme and no material discrepancies were noticed in respect
of the assets verified.
(c) The Company has not made any substantial disposal of Fixed Assets
during the year.
(ii) (a) As explained to us, inventories have been physically verified
by the management during the year at reasonable intervals.
(b) In our opinion, 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, the Company has maintained proper records of
inventories and the discrepancies noticed on physical verification as
compared to book records were not material.
(iii) (a) The Company has not granted any loan during the year to
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956. Accordingly, clauses
(iii)(b), (c) and (d) of Para 4 of the Order are not applicable to the
Company.
(b) The Company has taken interest free unsecured loans from four
parties covered in the register maintained under Section 301 of the
Companies Act, 1956. The maximum amount involved during the year and
the year-end balance of such loans are ? 25,239.31 Lacs and Rs.
16,965.62 Lacs respectively.
(c) The terms and conditions of loans taken as aforesaid are prima
facie not prejudicial to the interest of the Company.
(d) In respect of the aforesaid loans taken by the Company, there are
no stipulations as to repayment thereof.
(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 nature of its business,
for the purchase of inventory and fixed assets and for the sale of
goods. Further, on the basis of our examination of the books and
records of the Company, we have neither come across nor have we been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
(v) (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 the contracts or arrangements that need to be
entered in the register maintained under Section 301 of the Companies
Act, 1956, have been so entered.
(b) In our opinion, the transactions made in pursuance of such
contracts or arrangements and exceeding the value of five lakh rupees
in respect of any party during the year have been made at prices which
are reasonable having regard to prevailing market prices at the
relevant time.
(vi) The Company has not accepted any deposit during the year from the
public within the meaning of the provisions of Sections 58A and 58AA of
the Companies Act, 1956, and the rules framed there under.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the books of account and records
maintained by the Company pursuant to the Order made by the Central
Government for maintenance of cost records u/s 209(1 )(d) of Companies
Act, 1956 and are of the opinion that prima fade the prescribed
accounts and records have been made and maintained. The contents of
these accounts and records have not been examined by us.
(ix) (a) According to the books and records examined by us, the Company
is generally regular in depositing undisputed statutory dues Service
Tax, Custom Duty, Sales Tax, Provident Fund, Professional Tax, Excise
Duty and Cess.
According to the information and explanations given to us, there are no
undisputed outstanding statutory dues as at 31 st March, 2011 for a
period exceeding six months from the date they became payable.
(b) According to the records of the Company and the information and
explanations given to us and upon our enquiries in this regard, details
of statutory dues which have not been deposited on account of any
dispute are as stated in Note 1 in Schedule 19 to the accounts.
(x) The Company has neither accumulated losses at the end of the
financial year nor has it incurred cash losses in the financial year
under report or in the immediately preceding financial year.
(xi) Based on our audit procedures and as per the information and
explanations given to us, the Company has not defaulted in repayment of
loans and interest to banks and financial institutions except delays
for few days in payment of interest on term loan on certain occasions.
The term loan instalment and interest due on 31st March, 2011 for Rs.
1,087.30 Lacs has since been paid.
(xii) As explained to us, the Company has not granted any loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
(xiii) Clause (xiii) of the Order is not applicable, as the Company is
not a chit fund company or nidhi/mutual benefit fund/society.
(xiv) The Company has maintained proper records of the transactions in
respect of investments made during the year and timely entries have
been made therein. All investments are held by the Company in its own
name.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
(xvi) The Company has not raised any new term loan during the year. The
term loans outstanding at the beginning of the year were applied for
the purposes for which they were taken.
(xvii)ln our opinion, and according to the information and explanations
given to us, the funds raised on short-term basis have not been used
for long-term investment.
(xviii)The Company has not made fresh allotment of shares during the
year to parties and companies covered in the Register maintained u/s
301 of the Companies Act, 1956.
(xix) No debentures have been issued by the Company and hence the
question of creating security or charge in respect thereof does not
arise.
(xx) The Company has not raised any money by way of public issue during
the year.
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
year.
For S.JAYKISHAN
Chartered Accountants
FRN:309005E
CAV.NEWATIA
Place :Kolkata Partner
Dated : The 30th day of May, 2011 M. No. 062636
Mar 31, 2010
1. We have audited the attached Balance Sheet of VIKASH METAL & POWER
LIMITED as at 31st March, 2010 and also the Profit & Loss Account and
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 (as
amended) issued by the Central Government in terms of sub-section (4A)
of Section 227 of the Companies Act, 1956 and on the basis of such
checks as we considered appropriate, and according to the information
and explanations given to us, we enclose in the Annexure a statement on
the matters specified in paragraphs 4 and 5 of the said Order to the
extent applicable to the Company.
4. Further to our comments in the Annexure referred to in paragraph 3
above, 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 purposes of
our audit;
b) In our opinion, proper books of account, as required by law have
been kept by the Company so far as appears from our examination of
those books;
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the Balance Sheet, Profit & 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;
e) On the basis of the written representations received from the
directors and taken on record by the Board of Directors, none of the
directors is disqualified as on 31st March, 2010 from being appointed
as a director in terms of clause (g) of subsection (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 statements of accounts, read
with the Accounting Policies & 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 the 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 of the
Company for the year ended on that date, and
iii. in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Annexure to the Auditors Report
(Referred to in Paragraph 3 of our Report of even date to the members
of Vikash Metal & Power Limited on the financial statements for the
year ended 31st March, 2010)
(i) (a) The Company has maintained proper records to show full
particulars, including quantitative details and situation of its fixed
assets.
(b) We are informed that fixed assets of significant value have been
physically verified by the management at reasonable intervals, in a
phased programme and no material discrepancies were noticed in respect
of the assets verified.
(c) The Company has not made any substantial disposal of Fixed Assets
during the year.
(ii) (a) As explained to us, inventories have been physically verified
by the management during the year at reasonable intervals.
(b) In our opinion, 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, the Company has maintained proper records of
inventories and the discrepancies noticed on physical verification as
compared to book records were not material.
(iii) (a) The Company has not granted any loan during the year to
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956. Accordingly, clauses
(iii)(b), (c) and (d) of Para 4 of the Order are not applicable to the
Company.
(b) The Company has taken unsecured loans from three parties covered in
the register maintained under Section 301 of the Companies Act, 1956.
The maximum amount involved during the year and the year-end balance of
such loans are Rs.15562.51 lacs and Rs. 14222.42 lacs respectively.
(c) The terms and conditions of loans taken as aforesaid are prima
facie not prejudicial to the interest of the Company.
(d) In respect of the loans taken by the Company, there are no
stipulations as to repayment thereof.
(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 nature of its business,
for the purchase of inventory and fixed assets and for the sale of
goods. Further, on the basis of our examination of the books and
records of the Company, we have neither come across nor have we been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
(v) (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 the contracts or arrangements that need to be
entered in the register maintained under Section 301 of the Companies
Act, 1956, have been so entered.
(b) In our opinion, the transactions made in pursuance of such
contracts or arrangements and exceeding the value of five lakh rupees
in respect of any party during the year have been made at prices which
are reasonable having regard to prevailing market prices at the
relevant time.
(vi) The Company has not accepted any deposit during the year from the
public within the meaning of the provisions of Sections 58A and 58AA of
the Companies Act, 1956, and the rules framed there under.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the books of account and records
maintained by the Company pursuant to the Order made by the Central
Government for maintenance of cost records u/s 209(l)(d) of Companies
Act, 1956 and are of the opinion that prima-facie the prescribed
accounts and records have been made and maintained. The contents of
these accounts and records have not been examined by us.
(ix) (a) According to the books and records examined by us, except for
income-tax payments the Company is generally regular in depositing
undisputed statutory dues Service Tax, Custom Duty, Sales Tax,
Provident Fund, Professional Tax, Excise Duty and Cess.
According to the information and explanations given to us, except
income-tax payment of Rs. 291.83 Lacs, there are no undisputed
outstanding statutory dues as at 31st March, 2010 for a period
exceeding six months from the date they became payable.
(b) According to the records of the company and the information and
explanations given to us and upon our enquiries in this regard, details
of statutory dues which have not been deposited on account of any
dispute are as follows :
Nature of Dues Amount Forum where
(Rs in lacs) dispute is pending
Sales Tax 671.86 Senior Joint
Commissioner of Sales Tax
Central Sales Tax 13.99 Senior Joint
Commissioner of Sales Tax
(x) The Company has neither accumulated losses at the end of the
financial year nor has it incurred cash losses in the financial year
under report or in the immediately preceding financial year.
(xi) Based on our audit procedures and as per the information and
explanations given to us, the Company has not defaulted in repayment of
loans and interest to banks and financial institutions except delays
for few days in payment of interest on term loan during the year and
term loan installment and interest due on 31st March, 2010 for Rs.
1104.67 Lacs.
(xii) As explained to us, the Company has not granted any loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
(xiii) Clause (xiii) of the Order is not applicable, as the Company is
not a chit fund company or nidhi/mutual benefit fund/society.
(xiv) Clause (xiv) of the Order is not applicable, as the Company has
not dealt or traded in shares, securities, debentures or other
investments during the year.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
(xvi) The Company has not raised any new term loan during the year. The
term loans outstanding at the beginning of the year were applied for
the purposes for which they were taken.
(xvii) In our opinion, and according to the information and
explanations given to us, the funds raised on short-term basis have not
been used for long-term investment.
(xviii) The Company has not made fresh allotment of shares during the
year to parties and companies covered in the Register maintained u/s
301 of the Companies Act, 1956.
(xix) No debentures have been issued by the Company and hence the
question of creating security or charge in respect thereof does
notarise.
(xx) The Company has not raised any money by way of public issue during
the year.
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
year.
For S. JAYKISHAN
Chartered Accountants
FRN: 309005E
CA V.Newatia
Place: Kolkata Partner
Dated : The 29th day of May, 2010. Membership No. 062636