Mar 31, 2014
We have audited the accompanying financial statements of Shah
Construction Company Limited (''the Company'') which comprise the Balance
Sheet as at 31 March 2014, the Statement of Profit and Loss and cash
flow statement for the year ended on that date and summary of
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s 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,1956 (the Act) read with the General Circular 15/2013 dated 13th
September, 2013 of the Ministry of Corporate Affairs in respect of
section 133 of the Companies Act,2013 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.
Auditors'' 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, subject to PARAGRAPH 3 UNDER THE HEADING
"REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS" below, the
financial statements give the information required by the Act in the
manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31stMarch 2014;
b) In the case of the Statement of Profit and Loss, of the Loss for the
year ended on that date;
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order"), as amended, issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Act, we give in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the
Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) the Balance Sheet and Statement of Profit and Loss and Cash flow
statement dealt with by this report are in agreement with the books of
account;
d) In our opinion, subject to Note 26(iv) regarding valuation of
Current Assets, Current Liabilities and Loans in Foreign currency at
the rate Prevailing as on 30-06-1984, the Balance Sheet, Statement of
Profit & Loss and Cash Flow Statement comply with Accounting Standards
notified under the Companies Act,1956 (the Act) read with the General
Circular 15/2013 dated 13th September,2013 of the Ministry of Corporate
Affairs in respect of section 133 of the Companies Act,2013.
e) On the basis of written representations received from the directors
as on 31 March 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
3. Attention is also invited to the following notes in Note "27"
a. Note No. 23 : Unascertained profit of Joint Venture.
b. Note No. 24 : Sale of land at Amboli Andheri (W)
c. Note No. 26: (iii) : Delay in realization of Foreign Assets
book Value Rs. 19,16,10,755/-
d. Note No.26 (iv) : Difference in Loans, Assets & liabilities
arising due to adoption of rate of
exchange as on 30/06/1984.
e. Note No. 26: (v) : Old & disputed outstanding amounting to
Rs.5,46,107/-(Previousyear Rs. 5,54,532/-)
ANNEXURE TO INDEPENDENT AUDITORS'' REPORT
REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING "REPORT ON OTHER LEGAL AND
REGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATE
1. In respect of its fixed assets:-
a) The Company has maintained proper records showing full particulars
including quantitative detail and situation of fixed assets on the
basis of available information.
b) As explained to us, the fixed assets have been physical verified by
the management during the year, which in our opinion is reasonable,
having regard to the size of the company and nature of its assets.
There were no material discrepancies noticed on such verifications.
Fixed Assets at Foreign sites costing Rs. 7.32 crores in Iraq are not
physically verifiable.
c) In our opinion, the Company has not disposed off a substantial part
of Fixed assets during the year and accordingly the going concern
status is not affected.
2. In respect of its inventories:
a. The Company is a Construction Company having a central stores
Department in Mumbai. The Management has claimed to have conducted
physically verification of stores & materials required for local jobs
at reasonable intervals during accounting year. In our opinion, the
frequency of verification is reasonable. The valuation of stock is fair
and proper and is in accordance with the normally accepted accounting
principles and is on the same basis as in the earlier years.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of the inventory
by the management are reasonable and adequate in relation to the size
of the company and nature of its business.
c. In our opinion and according to the information and explanations
given to us, the company has maintained proper records of its
inventories, and the discrepancies noticed on physical verification of
the inventory as compared to the book records were not material and
have been properly dealt with in the books of account.
3. (a) The Company has not granted any loan, secured or unsecured to
companies, firms and other parties covered in the Register maintained
under Section 301 of the Companies Act, 1956.
(b) The Company has taken unsecured loans, from companies, firms and
other parties covered in the Register maintained under Section 301 of
the Companies Act, 1956. In respect of the said loan from ten parties,
the maximum amount outstanding at any time during the year is Rs.
23,19,98,656 and the year end balance is Rs. 22,45,38,417. The rate of
interest and terms and conditions of the loans taken are not
prejudicial to the interest of the company. The repayment of the said
loans is not scheduled.
4. 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 also for the sale of
goods. During the course of audit, we have not observed any continuing
failure to correct major weaknesses in such internal control system.
5. In respect of the contracts or arrangements referred to in Section
301 of the Companies Act, 1956:
(a) According to information and explanation given to us, the
transactions made in pursuance of contracts or arrangements that need
to be entered in the register required to be maintained under referred
to in section 301 of the Companies Act. 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of
contracts/arrangements entered in the register maintained under section
301 of the Companies Act, 1956 and exceeding the value of Rs.
5,00,000/- in respect of each party during the year have been made at
prices which appear reasonable as per information with the company.
6. According to information and explanations given to us, the Company
has not accepted any deposit from the public. Therefore, the provisions
of clause (vi) of paragraph 4 of the Order are not applicable to the
Company.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. The central Government has not prescribed maintenance of cost
records under section 209 (1) (d) of the Companies Act. 1956.
9. In respect of statutory dues:
According to the records of the company. undisputed statutory dues
including Provident Fund, Investor education and protection fund,
Employee''s state insurance, Income Tax, Sales Tax, Service Tax, Wealth
Tax, Custom Duty, Excise Duty, Cess and other statutory dues have been
generally regularly deposited with the appropriate authorities.
According to the information and Explanations given to us, no
undisputed amount 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.
10. The Company has got accumulated losses not less than fifty percent
of its net worth. The company has incurred cash losses during the
Financial Year covered by the audit and in immediately preceding
financial year.
11. Based on our audit procedure and according to the information and
explanations given to us, we are of the opinion that the company has
not defaulted in the repayment of dues to the financial institutions,
Banks or Debenture holders.
12. In our opinion and according to the information and explanations
given to us, no loans and advances have been granted by the company on
the basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause (XIII) of
para 4 of the companies (Auditor'' reports) order, 2003 are not
applicable to the Company.
14. The Company has not entered into any transactions and contracts in
respect of trading in securities, debentures and other investments.
15. According to the information and explanations given to us and the
representations made by the management, company has not given any
guarantee for loans taken by others from any banks or financial
institutions during the year.
16. The Company has not obtained any term loan during the year.
17. 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 not utilized any amount from short term
sources towards repayment of long-term borrowing and acquisition of
fixed assets.
18. During the Financial Year 2013-14, the Company has not made any
allotment shares.
19. The Company has not issued any debenture and hence the question of
creating securities in respect of debenture does not arise.
20. The Company has not raised any monies by way of public issue during
the year.
21. To the best of our knowledge and belief, and according to the
information and explanations given to us, no material fraud on or by
the Company has been noticed or reported during the year.
For N. B. Purohit & Co.
Place - Mumbai Chartered Accountants
Date - 30th May, 2014 Firm Regn. No. 108241W
(N. B. Purohit)
Proprietor
M. Ship No. 31999
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Shah
Construction Company Limited (''the Company'') which comprise the Balance
Sheet as at 31 March 2013, the Statement of Profit and Loss and cash
flow statement for the year ended on that date and summary of
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flow of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, subject to PARAGRAPH 3 UNDER THE HEADING "
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS " below, the
financial statements give the information required by the Act in the
manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31stMarch 2013;
b) In the case of the Statement of Profit and Loss, of the Loss for the
year ended on that date;
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order"), as amended, issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Act, we give in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the
Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) the Balance Sheet and Statement of Profit and Loss and Cash flow
statement dealt with by this report are in agreement with the books of
account;
d) In our opinion, subject to Note 26(iv) regarding valuation of
Current Assets, Current Liabilities and Loans in Foreign currency at
the rate Prevailing as on 30-06-1984, the Balance Sheet, Statement of
Profit & Loss and Cash Flow Statement referred to in this report comply
with the accounting standards refer to in section (3C) of section 211
of the Companies Act, 1956.
e) on the basis of written representations received from the directors
as on 31 March 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
3. Attention is also invited to the following notes in Note "27"
a. Note No. 23 :Unascertained profit of Joint Venture.
b. Note No. 24(a) :Sale of land at Amboli Andheri (W)
c. Note No. 24(b) :Termination of Sale of land at
Amboli Andheri (W)
d. Note No. 26: (iii) :Delay in realization of Foreign Assets
book Value Rs. 19, 16, 10,755/=
e. Note No.26(iv) :Difference in Loans, Assets & liabilities
arising due to adoption of rate of exchange as on 30/06/1984.
f. Note No. 26: (v) : Old & disputed outstanding amounting to
Rs.5,54,532/=(Previous year Rs.5,46,107)
ANNEXURE TO INDEPENDENT AUDITORS REPORTREFERRED TO IN PARAGRAPH 1 UNDER
THE HEADING " REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS " OF
OUR REPORT OF EVEN DATE
1. In respect of its fixed assets:- a) The Company has maintained
proper records showing full particulars including quantitative detail
and situation of fixed assets on the basis of available information.
b) As explained to us, the fixed assets have been physical verified by
the management during the year, which in our opinion is reasonable,
having regard to the size of the company and nature of its assets.
There were no material discrepancies noticed on such verifications.
Fixed Assets at Foreign sites costing Rs. 7.32 crores in Iraq are not
physically verifiable.
c) In our opinion, the Company has not disposed off a substantial part
of Fixed assets during the year and accordingly the going concern
status is not affected.
2. In respect of its inventories :
a. The Company is a Construction Company having a central stores
Department in Mumbai. The Management has claimed to have conducted
physically verification of stores & materials required for local jobs
at reasonable intervals during accounting year. The valuation of stock
is fair and proper and is in accordance with the normally accepted
accounting principles and is on the same basis as in the earlier years
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of the inventory
by the management are reasonable and adequate in relation to the size
of the company and nature of its business.
c. In our opinion and according to the information and explanations
given to us, the company has maintained proper records of its
inventories, and the discrepancies noticed on physical verification of
the inventory as compared to the book records were not material and
have been properly dealt with in the books of account.
3. (a) The Company has not granted any loan, secured or unsecured to
companies, firms and other parties covered in the Register maintained
under Section 301 of the Companies Act, 1956.
(b) The Company has taken unsecured loans, from companies, firms and
other parties covered in the Register maintained under Section 301 of
the Companies Act, 1956. In respect of the said loan from eleven
parties, the maximum amount outstanding at any time during the year is
Rs.28,88,00,152 and the year end balance is Rs. 21,40,58,656. The rate
of interest and terms and conditions of the loans taken are not
prejudicial to the interest of the company. The repayment of the said
loans is not scheduled.
4. 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 also for the sale of
goods. During the course of audit, we have not observed any major
weaknesses in internal control system.
5. In respect of the contracts or arrangements referred to in Section
301 of the Companies Act, 1956:
(a) According to information and explanation given to us, contracts or
arrangements referred to in section 301 of the Companies Act. 1956 have
been entered in the register required to be maintained under that
section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts /
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of Rs.5,00,000/- in
respect of each party during the year have been made at prices which
appear reasonable as per information with the company.
6. The Company has not accepted any deposit from the public.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. The central Government has not prescribed maintenance of cost
records under section 209 (1) (d) of the Companies Act. 1956
9. In respect of statutory dues:
According to the records of the company. Undisputed statutory dues
including Provident Fund, Investor education fund, Employee''s state
insurance, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty,
Cess and other statory dues have been generally regularly deposited
with the appropriate authorities. According to the information and
Explanations given to us, no undisputed amount 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.
10. The Company has got accumulated losses not less than fifty per
cent of its net worth. The company has incurred cash losses during the
Financial Year covered by the audit and in immediately preceding
financial year.
11. Based on our audit procedure and according to the information and
explanations given to us, we are of the opinion that the company has
not defaulted in the repayment of dues to the financial institutions,
Banks or Debenture holders.
12. In our opinion and according to the information and explanations
given to us, no loans and advances have been granted by the company on
the basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore, the provisions of clause (XIII) of
para 4 of the companies (Auditor'' reports) order 2003 are not
applicable to the Company.
14. The Company has not entered into any transactions and contracts in
respect of trading in securities, debentures and other investments.
15. According to the information and explanations given to us and the
representations made by the management, company has not given any
guarantee for loans taken by others from any banks or financial
institutions during the year.
16. The Company has not obtained any term loan during the year.
17. 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 not utilized any amount from short
term sources towards repayment of long-term borrowing and acquisition
of fixed assets.
18. During the Financial Year 2011-12, the Company had made
preferential allotment of 48,20,000 7% Cumulative Redeemable Preference
Shares of Rs. 100 each at face value to Anchor Leasing Pvt. Ltd. , a
company covered in the Register maintained under section 301 of the
Companies Act. 1956. The price at which preferential allotment is made
is not prejudicial to the interest of the company.
19. The Company has not issued any debenture and hence the question of
creating securities in respect of debenture does not arise.
20. The Company has not raised any monies by way of public issue
during the year.
21. To the best of our knowledge and belief, and according to the
information and explanations given to us, there have been no cases of
fraud on or by the Company noticed or reported during the year.
For N. B. Purohit & Co.
Chartered Accountants
Firm Regn. No. 108241W
Place  Mumbai
Date  30th May, 2013
(N. B. Purohit)
Proprietor
M.Ship No.31999
Mar 31, 2012
We have audited the attached Balance Sheet of Shah Construction Company
Limited as on 31st March' 2012' the Statement of Profit & Loss and Cash
Flow Statement of the company 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.
1) We conduct 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 check 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.
2) As required by the Companies (Auditor's Report) Order 2003 issued by
the central Government of India in terms of Section 227 (4A) 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 give in the Annexure' hereto a statement on the matters
specified in the paragraphs 4 & 5 of the said order.
3) Further to our comments in the Annexure referred to in paragraph 2
above and subject to the notes to the Balance sheet we report that :-
a) We have obtained all the information & explanations which to the
best of our knowledge & belief were necessary for the purposes of our
audit.
b) In our opinion' proper books of Accounts as required by law have
been kept by the Company so far as appears for our examination of such
books.
c) The Balance Sheet' Statement of Profit & Loss and Cash Flow
Statement referred to in this report are in agreement with the books of
account.
d) In our opinion' subject to Note 27(iv) regarding valuation of
Current Assets ' Current Liabilities and Loans in Foreign currency at
the rate Prevailing as on 30-06-1984' the Balance Sheet' Statement of
Profit & Loss and Cash Flow Statement referred to in this report comply
with the accounting standards refer to in section (3C) of section 211
of the Companies Act' 1996.
e) On the basis of written representations received from the directors'
and taken on record by Board of Directors' we report that none of the
Directors are disqualified as on 31st March' 2012 from being appointed
as directors in terms of clause (g) of sub section (1) of section 274
of the Companies Act' 1956.
4. Attention is also invited to the following notes in Note "27"
a. Note No. 24 .Unascertained profit of Joint Venture.
b. Note No. 25(a) .Sale of land at Amboli Andheri (W)
c. Note No. 27 (Hi) -.Termination of Sale of land at
Amboli Andheri (W)
d. Note No. 27: (Hi) : Delay in realization of Foreign Assets
book ValueRs. 19'16' 10'755/=
e. Note No.27(iv) .Difference in Loans' Assets & liabilities
arising due to adoption of rate of exchange as on 30/06/1984.
f. Note No. 27: (v) Old & disputed outstanding amounting to
Rs.5'46'1077=(Previous year Rs.5'46'107)
5. In our opinion and to the best of information and according to
explanations given to us' subject to para 4 above' the said accounts
read together with Significant Accounting Policies and 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 Statement of Profit and Loss' of the Loss 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 2 OF OUR
REPORT OF EVEN DATE
1. In respect of its fixed assets:-
a) The Company has maintained proper records showing full particulars
including quantitative detail and situation of fixed assets on the
basis of available information.
b) As explained to us' the fixed assets have been physical verified by
the management during the year' which in our opinion is reasonable'
having regard to the size of the company and nature of its assets.
There were no material discrepancies noticed on such verifications.
Fixed Assets at Foreign sites costing Rs. 7.32 crores_in Iraq are not
physically verifiable.
c) In our opinion' the Company has not disposed off a substantial part
of Fixed assets during the year and accordingly the going concern
status is not affected.
2. In respect of its inventories :
a. The Company is a Construction Company having a central stores
Department in Mumbai. The Management has claimed to have conducted
physically verification of stores & materials required for local jobs
at reasonable intervals during accounting year. The valuation of stock
is fair and proper and is in accordance with the normally accepted
accounting principles and is on the same basis as in the earlier years
b. In our opinion and according to the information and explanations
given to us' the procedures of physical verification of the inventory
by the management are reasonable and adequate in relation to the size
of the company and nature of its business.
c. In our opinion and according to the information and explanations
given to us' the company has maintained proper records of its
inventories' and the discrepancies noticed on physical verification of
the inventory as compared to the book records were not material and
have been properly dealt with in the books of account.
3 (a) The Company has not granted any loan' secured or unsecured to
companies' firms and other parties covered in the Register maintained
under Section 301 of the Companies Act' 1956.
(b) The Company has taken unsecured loans' from companies' firms and
other parties covered in the Register maintained under Section 301 of
the Companies Act' 1956. In respect of the said loan from six parties'
the maximum amount outstanding at any time during the year is
Rs.79'87'25'619 and the year end balance is Rs.20'23'40'583. The rate
of interest and terms and conditions of the loans taken are not
prejudicial to the interest of the company. The repayment of the said
loans is not scheduled.
4) 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 also for the sale of
goods. During the course of audit' we have not observed any major
weaknesses in internal control system.
5. In respect of the contracts or arrangements referred to in Section
301 of the Companies Act' 1956:
(a)According to information and explanation given to us' contracts or
arrangements referred to in section 301 of the Companies Act. 1956 have
been entered in the register required to be maintained under that
section.
(b) In our opinion and according to the information and explanations
given to us' the transactions made in pursuance of contracts /
arrangements entered in the register maintained under section 301 of
the Companies Act' 1956 and exceeding the value of Rs.5'00'000/- in
respect of each party during the year have been made at prices which
appear reasonable as per information with the company.
6. The Company has not accepted any deposit from the public.
7. In our opinion' the Company has an internal audit system
commensurate with the size and nature of its business.
8. The central Government has not prescribed maintenance of cost
records under section 209 (1) (d) of the Companies Act. 1956
9. In respect of statutory dues:
According to the records of the company. Undisputed statutory dues
including Provident Fund' Investor education fond' Employee's state
insurance' Income Tax' Sales Tax' Wealth Tax' Custom Duty' Excise Duty'
Cess and other statory dues have been generally regularly deposited
with the appropriate authorities. According to the information and
Explanations given to us' no undisputed amount 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.
10. The Company has got accumulated losses not less than fifty per
cent of its net worth. The company has incurred cash losses during the
Financial Year covered by the audit and in immediately preceding
financial year.
11. Based on our audit procedure and according to the information and
explanations given to us' we are of the opinion that the company has
not defaulted in the repayment of dues to the financial institutions'
Banks or Debenture holders.
12. In our opinion and according to the information and explanations
given to us' no loans and advances have been granted by the company on
the basis of security by way of pledge of shares' debentures and other
securities.
13. In our opinion' the company is not a chit fond or a nidhi / mutual
benefit fund / society. Therefore' the provisions of clause (XIII) of
para 4 of the companies (Auditor' reports) order 2003 are not
applicable to the Company.
14. The Company has not entered into any transactions and contracts in
respect of trading in securities' debentures and other investments.
15. According to the information and explanations given to us and the
representations made by the management' company has not given any
guarantee for loans taken by others from any banks or financial
institutions during the year.
For N. B. Purohit & Co.
Chartered Accountants
Firm Regn. No. 108241W (N. B. Purohit)
Proprietor
M.Ship No.31999
Place - Mumbai
Date -31/08/2012
Mar 31, 2010
We have audited the attached Balance Sheet of Shah Construction Company
Limited as on 31st March 2010, the profit & Loss Account and Cash Flow
Statement of the company 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.
1) We conduct 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 check 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.
2) 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 and on the basis of such checks as we considered
appropriate and according to the information and explanations given to
us. we give in the Annexure, hereto a statement on the matters
specified in the paragraphs 4 & 5 of the said order.
3) Further to our comments in the Annexure referred to in paragraph 2
above and subject to the notes to the Balance sheet we report that :-
a) We have obtained all the information & explanations which to the
best of our knowledge & belief were necessary for the purposes of our
audit.
b) In our opinion, proper books of Accounts as required by law have
been kept by the Company so far as appears for our examination of such
books.
c) The Balance Sheet & Profit & Loss Account referred to in this report
are in agreement with the books of account.
d) In our opinion, subject to Note 8 to the Account in Schedule I
regarding valuation of Current Assets , Current Liabilities and Loans
in Foreign currency at the rate Prevailing as on 30-06-1984, the Profit
& Loss A/c and Balance Sheet comply with the accounting standards refer
to in section 3 (C) of section 211 of the Companies Act. 1996.
e) On the basis of written representations received from the directors,
and taken on record by Board of Directors, we report that none of the
Directors are disqualified as on 31st March, 2010 from being appointed
as directors in terms of caluse (g) of sub section (1) of section 274
of the Companies Act, 1956.
4. Attention is also invited to the following notes in Schedule "H"
a) NoteNo.B-2 Joint Venture unascertained profit
b) Note No. B-3 (a) Sale of land atAmboli Andheri (W)
c) Note No. B-3 (b) Sale of land atAmboli Andheri (W)
d. Note No. 5: (iii) Delay in realization of Foreign Assets book Value
Rs. 19, 16, 10,755/=
e. Note No. 5: (v) Old & disputed outstanding amounting to Rs.
5,46,107/= (Previous year Rs.5,46,107/ = )
f. Note No. 7: Difference in reduction in liability arising due to
adoption of 30/06/1 984 rates of exchange cannot be ascertained due to
UN Embargo.
5. In our opinion and to the best of information and according to
explanations given to us , the said accounts read with 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 on 31 st March, 2009.
(ii) In the case of the Profit and Loss Account of the Loss of the
Company for the year ended on that date. I and
(iii) In the case of the Cash Flow Statement of the Cash Flow of the
Company for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT REFERRED TO IN PARAGRAPH 2 OF OUR
REPORT OF EVEN DATE
1) In respect of its fixed assets:-
a) The Company has maintained proper records showing full particulars
including quantitative detail and situation of fixed assets on basis of
available information.
b) As explained to us. The fixed assets have been physical verified by
the management during the year. Which in our opinion is reasonable,
having regard to the size of the company and nature of its assets.
There were no material discrepancies noticed on such verifications
Fixed Assets at Foreign sites costing Rs. 7.32 crores in Iraq are not
physically verifiable.
c) In our opinion, the company has not disposed of substantial part of
Fixed assets during the year and accordingly the going concern is not
affected.
2. In respect of its inventories:
a. The Company is a Construction Company has a central stores
Department in Mumbai. The Management has claimed to have conducted
physically verification of stores & materials required for local jobs
at reasonable intervals during accounting year. The valuation of stock
is fair and proper and is in accordance with the normally accepted
accounting principles and is on the same basis as in the same basis as
in the earlier years.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of the inventory
by the management are reasonable and adequate in relation to the size
of the company and nature of its business.
c. In our opinion and according to the information and explanations
given to us, The company has maintained proper records of its
inventory, and the discrepancies noticed on physical verification of
the inventory as compared to the book records were not material and
have been properly dealt with in the books of account.
3. According to the information and explanation given to us, The
Company has neither taken nor granted any loan secured or unsecured,
from / to companies, firms or other parties listed in the register
maintained under section 301 of the Companies Act, 1956. Therefore, the
provisions of clause 4 (iii) of the Companies (Auditors Report) order,
2003 are not applicable to the Company.
4. 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 also for the sale of
goods. During the course of audit. We have not observed any major
weaknesses in internal controls.
5. In respect of the transaction covered under section 301 of the
Companies Act, 1956.:
a) In our opinion and according to the information and explanation
given to us the transaction made in pursuance of contracts or
arrangement that needed to be entered in the register maintained under
section 301 of the Companies Act, 1956 have been so entered.
b) In our opinion and according to the information and explanation
given to us there are no transactions in pursuance of contract or
arrangement entered in the register maintained under section 301 of the
Companies Act. 1956 aggregating during the year to Rs.5 Lacs ( Rupees
Five Lacs Only) or more in respect of any party.
6. The Company has not accepted any deposit from the public.
7. In our opinion, the internal audit system is commensurate with its
size and nature of its business.
8. The central Government has not prescribed maintenance of cost
records under section 209 (1) (d) of the Companies Act. 1956.
9. In respect of statutory dues:
a) According to the records of the company. Undisputed statutory dues
including Provident Fund, Investor education fund, Employees state
insurance, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty,
Cess and other statory dues have been generally regularly deposited
with the appropriate authorities. According to the information and
Explanations given to us, no undisputed amouni 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.
10. Based on our audit procedure and according to the information and
explanations given to us, we are of the. Ã opinion that the company has
not defaulted in the repayment of dues to the financial institutions,
Banks or Debenture holders.
11. In our opinion and according to the information and explanations
given to us. No loans and advances have been granted by the company on
the basis of security by way of pledge of shares, debentures and other
securities.
12. In our opinion, the company is not a chit fund or a nidhi / mutual
benefit fund / society, therefore, clause 4 (XIII) of the companies
(Auditor reports) order 2003 is not applicable to the Company.
13. The Company has not entered into any transactions and contracts in
respect of trading in securities", debentures and other investments.
All shares, debentures and other investments have been held by the
company in its own name.
14. According to the information and explanations given to us, and the
representations made by the management, company has not given any
guarantee for loans taken by others from any banks or financial
institutions, during the year.
15. The Company has not obtained any term loan during the year.
16. 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 not utilized any amount from short
term sources towards repayment of long-term borrowing and acquisition
of fixed assets.
17. During the year, the Company has not made any preferential
allotment of shares to parties and Companies covered in the Register
maintained under section 301 of the Companies Act. 1956.
18. The Company has not issued any debenture and hence the question of
creating securities in respect of debenture does notarise.
19. The Company has not raised any money by way of public issue during
the year.
20. To the best of our knowledge and belief, and according to the
information and explanations given to us, there have been no cases of
fraud on or by the Company noticed or reported during the year.
For N. B. Purohit & Co.
Chartered Accountants
Firm Regn. No. 108241W
Place : Mumbai (N.B. Purohit)
Dated: 02/12/2010 Proprietor
M.ShipNo.31999