Mar 31, 2015
1. We have audited the accompanying financial statements of SHREE
PRECOATED STEELS LIMITED ("the company"), which comprise the Balance
Sheet as at 31 March 2015, the Statement of Profit and Loss, the Cash
Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
2. The Company's Board of Directors is responsible for the matters 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 flows of
the Company in accordance with the accounting principles generally
accepted in India, including the Accounting Standards specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014. This responsibility also includes the maintenance of
adequate accounting records in accordance with the provision of the Act
for safeguarding of the assets of the Company and for preventing and
detecting the 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 internal financial control, 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
3. Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made thereunder.
4. We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
5. 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.
6. In making those risk assessments, the auditor considers internal
financial control relevant to the Company's preparation of the
financial statements that give 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
Company's Directors, as well as evaluating the overall presentation of
the financial statements.
7. 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
8. In our opinion and to the best of our information and according to
the explanations given to us, the financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
b) in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
9 As required by the Companies (Auditor's Report) Order, 2015 ("the
Order"), issued by the Central Government of India in terms of
sub-section (11) of Section 143 of the Companies Act, 2015, we give in
the Annexure a statement on the matters specified in paragraphs 3 and 4
of the Order, to the extent applicable.
10 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
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, the Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the aforesaid 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 written representations received from the directors
as on 31 March, 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on 31 March, 2015, from being
appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the other matters included in the Auditor's Report
and to the best of our information and according to the explanations
given to us :
i. The Company does not have any pending litigations which would impact
its financial position.
ii. The Company did not have any long-term contracts including
derivatives 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.
ANNEXURE REFERRED TO IN PARAGRAPH 9 TO OUR REPORT ON THE ACCOUNTS FOR
THE YEAR ENDED 31 ST MARCH, 2015
1. In respect of it's Fixed Assets:
(a) The company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) These fixed assets have been physically verified by the management
at reasonable intervals. Discrepancies noticed during the course of
such verification are dealt with adequately in the books of accounts.
2. In respect of it's inventories:
(a) Physical verification of inventory has been conducted at reasonable
intervals by the management.
(b) In our opinion and according to the explanations given to us, the
procedures for physical verification of inventories followed by the
Management are reasonable and adequate in relation to the size of the
Company and nature of its business.
(c) In our opinion and according to the explanations given to us, the
Company has maintained proper records of its inventories and no
material discrepancies were observed during the course of physical
verification.
3. The company has not granted any loan, secured or unsecured, to the
company to companies, firms or other parties covered in the register
maintained under Section 189 of the Companies Act, 2013.
4. There an adequate internal control system commensurate with the
size of the company and the nature of its business, for the purchase of
inventory and fixed assets and for the sale of goods and services.
During the course of our audit no major weakness has been noticed in
the internal controls.
We have not observed any failure on the part of the Company to correct
major weakness in internal control system.
5. The company has not accepted deposits, 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 and the rules framed
thereunder.
6. The Central Government has not prescribed maintenance of Cost
Records under Section 148(1) of the Act in respect of the activities of
the Company. We have broadly reviewed the accounts and records have
been made and maintained. We have not made a detailed examination of
the same.
7. a. The Company is generally regular in depositing with appropriate
authorities, undisputed statutory dues including provident fund,
investor education fund, employees state insurance, income tax, sales
tax, wealth tax, service tax, custom duty, excise duty, cess and other
statutory dues to the extent applicable to it. There is no outstanding
statutory dues as at the last day of the financial year concerned for a
period of more than six months from the date they became payable.
b. The Company does not have any dues of income tax or sales tax or
wealth tax or service tax or duty of customs or duty of excise or value
added tax or cess which have not been deposited on account of any
dispute, Except the amounts involved and the forum where dispute is
pending given below:-
Name of Nature of Dues Amount Year Forum where pending
Statute (Rs. in
Lacs)
Service Tax GTA of Services 22.85 2005 -06 Appeal has been
filed in CESTAT
Service Tax Cenvat credit on 95.84 2006-07
& 2007-08 Appeal has been
filed in CESTAT.
Service Tax
Arbitration Damages for non 338.71 2005-06 Mumbai High Court
Award Supply of goods
c. The Company has transferred the amount required to be transferred to
investor education and protection fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and rules made
thereunder.
8. The Company has accumulated losses at the end of the financial year
and however, it has not incurred cash losses in the current and the
immediately preceding financial year.
9. In our opinion and according to information and explanation given
to us, the Company has not defaulted in repayment of dues to a
financial institution, bank or debenture holder.
10. In our opinion and according to the information and explanations
given to us the Company has not given any guarantees for loans taken by
others from banks and institutions.
11. Based on the information and explanations given to us by the
Management, Term Loans obtained during the year were applied for the
purpose for which the loans were obtained.
12. Based on the audit procedures performed and information and
explanations given by the Management, we report that no fraud on or by
the Company has been noticed or reported during the year.
FOR AND ON BEHALF OF
V. PAREKH & ASSOCIATES
CHARTERED ACCOUNTANTS
FIRM REGN NO. 107488W
Place: Mumbai RASESH V. PAREKH - PARTNER
Dated : 28th May, 2015 MEMBERSHIP NO. 38615
Mar 31, 2014
We have audited the accompanying financial statements of "SHREE
PRECOATED STEELS LIMITED,", which comprise the Balance Sheet as at 31st
March 2014, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
2. Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards *referred to in sub-section (3C) of section
211 of the Companies Act, 1956 ("the Act") read with the general
circular 15/2013 dated September 13, 2013 of the ministry of corporate
affairs in respect of section 133 of the Companies Act, 2013. This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
3. Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinion.
4. Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2014;
b) in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
5. Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account ;
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956 read with the
general circular 15/2013 dated September 13, 2013 of the ministry of
corporate affairs in respect of section 133 of the Companies Act, 2013.
e) on the basis of written representations received from the directors
as on 31st March 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2014, from
being appointed as a director in terms of clause (g) of sub-section (1)
of section 274 of the Companies Act, 1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
ANNEXURE REFERRED TO IN PARA 5 OF OUR REPORT OF EVEN DATE
i. In respect of its Fixed Assets:
a. The Company has maintained proper records showing full particulars,
including quantitative details and situation of its fixed assets.
b. The fixed assets have been physically verified by the Management at
reasonable intervals. No material discrepancies were noticed during the
course of such verification.
c. The disposal of part of fixed assets, in our opinion has not
affected the going concern.
ii. In respect of its inventories:
a. The physical verification of inventories has been conducted at
reasonable intervals by the Management.
b. In our opinion and according to the explanations given to us, the
procedures for physical verification of inventories followed by the
Management are reasonable and adequate in relation to the size of the
Company and nature of its business.
c. In our opinion and according to the explanations given to us, the
Company has maintained proper records of its inventories and no
material discrepancies were observed during the course of physical
verification.
iii. a. The Company has not granted any loans to any entity covered in
the register maintained under Section 301 of the Act.
b. The Company has taken interest free unsecured loans from one
promoters companies covered in the register maintained under section
301 of the Act. The maximum amount involved during the year and year
end balance of the loans taken from such companies was Rs. 1500.00
lacs.
c. In our opinion and according to the information and explanations
given to us, the terms and conditions on which loan have been taken
from companies, firm or other parties listed in the register maintained
under section 301 of the Companies Act,1956 are not, prima facie,
prejudicial to the interest of the company.
d. There were no stipulations as to the repayment of the loans taken
as the same are repayable on demand.
iv. In our opinion, and according to the explanations given to us, the
Company has adequate internal control systems commensurate with the
size of the Company with regard to the purchase of inventory, fixed
assets and sale of goods. During the course of our audit no major
weakness has been noticed in the internals controls. We have not
observed any failure on the part of the Company to correct major
weakness in internal control system.
v. a) Based on the audit procedures applied by us and according to the
information and explanations provided to us by the Management, we are
of the opinion that the particulars of the contract or arrangements
referred to in Section 301 of the Act have been entered in the register
required to be maintained under that Section.
b) According to the information and explanation given to us, the
transactions made in pursuance of contracts or arrangements entered in
the registers maintained under Section 301 of the Act have been made at
prices which are reasonable having regard to prevailing market prices
at relevant time.
vi. In our opinion and according to the explanations given to us the
Company has not accepted any deposits within the meaning of Section 58A
and Section 58AA or any other relevant provisions of the Act and the
rules framed there under.
vii. The Company does not have any formal internal audit system.
viii. The Central Government has not prescribed maintenance of Cost
Records under Section 209 (1)
(d) of the Act in respect of activities of the Company. We have
broadly reviewed the accounts and records have been made and
maintained. We have not, made a detailed examination of the same.
ix. a. According to the information and explanations given to us the
Company is regular in depositing with appropriate authorities,
undisputed statutory dues including provident fund, investor education
fund, employees state insurance, income tax, sales tax, wealth tax,
service tax, custom duty, excise duty, cess and other statutory dues to
the extent applicable to it.
b. In respect of Contingent dues on account of Sales tax, Service tax
and Custom duty dues disputed by the Company including liability of the
unit vested in to the company pursuant to Demerger and not being paid
vis-Ã -vis forums where such disputes are pending are mentioned below:
Name of Statute Nature of Dues Amount Period to
(Rs. in Lacs) which amount
relates
Service Tax GTA of Services 22.85 2005-06
Service Tax Cenvat credit on
Service Tax 95.84 2006-07 &
2007-08
Arbitration Award Damages for non
supply of 338.71 2005-06
Goods
Name of Statute Forum where pending
Service Tax Appeal has been filed in CESTAT
Service Tax Appeal has been filed in CESTAT.
Arbitration Award Mumbai High Court
x. The Company''s accumulated losses are more than 50% of its net worth,
however company has not incurred any cash losses in current as well as
preceding financial year.
xi. In our opinion and according to information and explanation given
to us, the Company has not defaulted in repayment of dues to a
financial institution, bank or debenture holder.
xii. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii. In our opinion, the Company is not a Chit Fund or a Nidhi /
Mutual Benefit Society. Therefore, the provisions of clause are not
applicable to the Company.
xiv. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly the
provisions of the clause are not applicable to the Company.
xv. In our opinion and according to the information and explanations
given to us the Company has not given any guarantees for loans taken by
others from banks and institutions
xvi. Based on the information and explanations given to us by the
Management, no term Loans obtained during the year.
xvii According to the information and explanation given to us and on
overall examination of the balance sheet of the Company, we report that
no funds raised on short term basis have been used for long term
investment.
xviii The Company has not made any preferential allotment of shares to
any of the entities/ persons covered in the register maintained under
Section 301 of the Act.
xix. The Company has not issued any debentures during the year, which
required creation of security or charge.
xx. The company has not raised any money by public issue during the
yearended.
xxi. Based on the audit procedures performed and information and
explanations given by the Management, we report that no fraud on or by
the Company has been noticed or reported during the year ended.
For and on behalf of
V. PAREKH & ASSOCIATES
CHARTERED ACCOUNTANTS
Firm Reg. No. 107488W
Place : Mumbai R ASESH V. PAREKH - PARTNER
Dated : 13th May, 2014 Membership No. 38615
Mar 31, 2012
1 We have audited the attached Balance Sheet of Shree Precoated Steels
Limited as at 31st March 2012, the Statement of Profit & Loss and also
the Cash Flow Statements 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 have conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the Management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government of India in terms of Section (4A) of Section
227 of the Companies Act, 1956 of India (the "Act"), we enclose in the
Annexure a statement of the matters specified in paragraph 4 and 5 of
the said order.
4. Further to our comments in the Annexure referred to 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 purpose 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 from our examination of the
books of account.
c) The Balance Sheet, Statement of Profit & Loss and the Cash Flow
Statements dealt with by this report are in agreement with the books of
account.
d) In our opinion, the attached Balance Sheet, Statement of Profit &
Loss and the Cash Flow Statements dealt with by this report comply with
the Accounting Standards referred in Sub - Section (3C) of Section 211
of the Companies Act, 1956.
e) On the basis of the written representations received from the
directors taken on record by the Board of Directors, we report that
none of the directors are disqualified as on 31st March, 2012 from
being appointed as a director in terms of Section 274 (1)(g) of the
Act.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said statement of accounts read with
other notes thereon give the information required by the Act, in the
manner so required and gives 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 Statement of Profit and Loss of the Profit of the
Company for the year ended on that date; and
iii. In the case of the Cash Flow Statements of the cash flows for the
year ended on that date.
ANNEXURE REFERRED TO IN PARA 3 OF OUR REPORT OF EVEN DATE
I. In respect of it's Fixed Assets:
a. The Company has maintained proper records showing full particulars,
including quantitative details and situation of its fixed assets.
b. The fixed assets have been physically verified by the Management at
reasonable intervals. No material discrepancies were noticed during the
course of such verification.
c. The disposal of part of fixed assets, in our opinion has not
affected the going concern.
ii. In respect of it's inventories:
a. The physical verification of inventories has been conducted at
reasonable intervals by the Management.
b. In our opinion and according to the explanations given to us, the
procedures for physical verification of inventories followed by the
Management are reasonable and adequate in relation to the size of the
Company and nature of its business.
c. In our opinion and according to the explanations given to us, the
Company has maintained proper records of its inventories and no
material discrepancies were observed during the course of physical
verification.
iii. a. The Company has not granted any loans to any entity covered in
the register maintained under Section 301 of the Act.
b. The Company has taken interest free unsecured loans from three
promoters companies covered in the register maintained under section
301 of the Act. The maximum amount involved during the year was Rs.
5425.21 lacs and yearend balance of the loans taken from such companies
was Rs. 4806.94 lacs.
c. in our opinion and according to the information and explanations
given to us, the terms and conditions on which loan have been taken
from companies, firm or other parties listed in the register maintained
under section 301 of the Companies Act, 1956 are not, prima facie,
prejudicial to the interest of the company.
d. There were no stipulations as to the repayment of the loans taken
as the same are repayable on demand.
iv. In our opinion, and according to the explanations given to us, the
Company has adequate internal control systems commensurate with the
size of the Company with regard to the purchase of inventory, fixed
assets and sale of goods. During the course of our audit no major
weakness has been noticed in the internal controls. We have not
observed any failure on the part of the Company to correct major
weakness in internal control system.
v. a. Based on the audit procedures applied by us and according to the
information and explanations provided to us by the Management, we are
of the opinion that the particulars of the contract or arrangements
referred to in Section 301 of the Act have been entered in the register
required to be maintained under that Section.
b. According to the information and explanation given to us, the
transactions made in pursuance of contracts or arrangements entered in
the registers maintained under Section 301 of the Act have been made at
prices which are reasonable having regard to prevailing market prices
at relevant time.
vi. In our opinion and according to the explanations given to us the
Company has not accepted any deposits within the meaning of Section 58A
and Section 58AA or any other relevant provisions of the Act 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. The Central Government has not prescribed maintenance of Cost
Records under Section 209 (1) (d) of the Act in respect of activities
of the Company. We have broadly reviewed the accounts and records have
been made and maintained. We have not, made a detailed examination of
the same.
ix. a. According to the information and explanations given to us the
Company is regular in depositing with appropriate authorities,
undisputed statutory dues including provident fund, investor education
fund, employees state insurance, income tax, sales tax, wealth tax,
service tax, custom duty, excise duty, cess and other statutory dues to
the extent applicable to it.
b. In respect of Contingent dues on account of Sales tax, Service tax
and Custom duty dues disputed by the Company including liability of the
unit vested in to the company pursuant to Demerger and not being paid
vis-a-vis forums where such disputes are pending are mentioned below:
Name of Nature of Dues Amount Period Forum where
Statute (Rs. in to which pending
Lacs) amount
relates
Service Tax GTA of Services 22.85 2005-06 Appeal has
been filed
in CESTAT.
Service Tax Cenvat credit 95.84 2006-07 & Appeal has
on Service Tax 2007-08 been filed
in CESTAT.
Custom Act Fine 15.00 2006-07 Appeal has
Penalty 5.00 been filed
in CESTAT.
x. As the company is registered for a period less than five years,
hence the clauses related to accumulated losses and cash loss incurred
are not applicable.
xi. In our opinion and according to information and explanation given
to us, the Company has not defaulted in repayment of dues to a
financial institution, bank or debenture holder.
xii. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii. In our opinion, the Company is not a Chit Fund or a Nidhi/Mutual
Benefit Society. Therefore, the provisions of clause are not applicable
to the Company.
xiv. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly the
provisions of the clause are not applicable to the Company.
xv. In our opinion and according to the information and explanations
given to us the Company has not given any guarantees for loans taken by
others from banks and institutions
xvi. Based on the information and explanations given to us by the
Management, no term Loans obtained during the year.
xvii. According to the information and explanation given to us and on
overall examination of the balance sheet of the Company, we report that
no funds raised on short term basis have been used for long term
investment.
xviii. The Company has not made any preferential allotment of shares to
any of the entities/persons covered in the register maintained under
Section 301 of the Act.
xix. The Company has not issued any debentures during the year, which
required creation of security or charge.
xx. The company has not raised any money by public issue during the
year ended.
xxi. Based on the audit procedures performed and information and
explanations given by the Management, we report that no fraud on or by
the Company has been noticed or reported during the year ended.
For and on behalf of
V. PAREKH & ASSOCIATES
CHARTERED ACCOUNTANTS
Firm Reg. No. 107488W
RASESH V. PAREKH
PARTNER
Membership No. 38615
Place : Mumbai
Dated : 30th July, 2012
Mar 31, 2011
1. We have audited the attached Balance Sheet of Shree Precoated
Steels Limited as at 31st March 2011, the Profit & Loss Account and
also the Cash Flow Statement for the 18 months period 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 have conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the Management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of Section (4A) of Section
227 of the Companies Act, 1956 of India (the "Act"), we enclose in the
Annexure a statement of the matters specified in paragraph 4 and 5 of
the said order.
4. Further to our comments in the Annexure referred to above, we
report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessaryfor the purpose of our
audit.
I) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of the
books of account.
c) The Balance Sheet, Profit & Loss Account and the Cash Flow Statement
dealt with by this report are in agreement with the books of account.
d) In our opinion, the attached Balance Sheet, Profit & Loss Account
and the Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred in Sub - Section (3C) of Section 211
of the Companies Act,1956.
e) On the basis of the written representations received from the
directors except nominee Director and taken on record by the Board of
Directors, we report that none of the directors are disqualified as on
31st March 2011 from being appointed as a director in terms of Section
274 (1) (g) of the Act.
f) In our.opinion and to the best of our information and according to
the explanations given to us, the said statement of accounts read with
other notes thereon give the information required by the Act, in the
manner so required and gives 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 31 st March 2011;
ii. In the case of Profit and Loss Account of the Loss of the Company
forthe 18 months period ended onHPthat date; and
iii. In the case of the Cash Flow Statement of the cash flows for the
period ended on that date.
i. In respect of its Fixed Assets:
a. The Company has maintained proper records showing full particulars,
including quantitative details and situation of its fixed assets.
I. The fixed assets have been physically verified by the Management at
reasonable intervals. No material discrepancies were noticed during the
course of such verification.
c. The transfer of Fixed Assets on account of sale of Steel Business
has not affected as going concern.
ii. In respect of its inventories:
a. The physical verification of inventories has been conducted at
reasonable intervals by the Management.
I. In our opinion and according to the explanations given to us, the
procedures for physical verification of inventories followed by the
Management are reasonable and adequate in relation to the size of the
Company and nature of its business.
c. In our opinion and according to the explanations given to us, the
Company has maintained proper records of its inventories and no
material discrepancies were observed during the course of physical
verification.
iii. a. The Company has not granted any loans to any entity covered in
the register maintained under Section 301 of the Act.
I. The Company has taken interest free unsecured loans from four
promoters companies covered in the register maintained under section
301 of the Act .The maximum amount involved during the period was
Rs. 9006.73 lacs and period end balance of the loans taken from such
companies was Rs. 5692.14 lacs. The loans from promoters are taken as
per the stipulation of the lending institution and banks.
c. in our opinion and according to the information and explanations
given to us, the term and conditions on which loan have been taken from
companies, firm or other parties listed in the register maintained
under section 301 of the Companies Act,1956 are not, prima facie,
prejudicial to the interest of the company.
d. There are no stipulations as to the repayment of the loans taken as
the same are repayable on demand on fulfilling of requirement of
lending institutions and banks.
iv. In our opinion, and according to the explanations given to us, the
Company has adequate internal control systems commensurate with the
size of the Company with regard to the purchase of inventory, fixed
assets and sale of goods. During the course of our audit no major
weakness has been noticed in the internals controls. We have not
observed any failure on the part of the Company to correct major
weakness in internal control system.
v. a. Based on the audit procedures applied by us and according to the
information and explanations provided to us by the Management, we are
of the opinion that the particulars of the contract or arrangements
referred to in Section 301 of the Act have been entered in the register
required to be maintained under that Section.
I. According to the information and explanation given to us, the
transactions made in pursuance of contracts or arrangements entered in
the registers maintained under Section 301 of the Act have been made at
prices which are reasonable having regard to prevailing market prices
at relevant time.
vi. In our opinion and according to the explanations given to us the
Company has not accepted any deposits within the meaning of Section
58Aand Section 58AA or any other relevant provisions of the Act 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. The Central Government has not prescribed maintenance of Cost
Records under Section 209 (1) (d) of the Act in respect of activities
of the Company. We have broadly reviewed the accounts and records have
been made and maintained. We have not, made a detailed examination of
the same.
ix. a. According to the information and explanations given to us the
Company is regular in depositing with appropriate authorities,
undisputed statutory dues including provident fund, investor education
fund, employees state insurance, income tax, sales tax, wealth tax,
service tax, custom duty, excise duty, cess and other statutory dues to
the extent applicable to it.
b. In respect ofHPContingent duesHPon account ofHPSales tax, Service
tax and Custom duty dues disputed by the Company including liability of
the unit vested in to the company pursuant to Demerger and not being
paid vis-a-vis forums where such disputes are pending are mentioned
below:
Name of Statute Nature of Dues Amount
(Rs. in Lacs)
Service Tax GTA of Services 22.85
Service Tax Cenvat credit on
Service Tax 95.84
Service Tax Service Tax on
export 47.38
sales commission
Custom Act Fine 15.00
Penalty 5.00
Period to Forum where pending
Name of the Statute
which amount relates
Service Tax 2005 -06 Appeal has been filed in
CESTAT.
Service Tax 2006-07 & Appeal has been filed in
2007-08 CESTAT.
Service Tax 2004-05 & Commissioner of service
2005-06 Tax
Service Tax 2006-07 Appeal has been filed in
CESTAT.
x. As the company is registered for a period less than five years,
hence the clauses related to accumulated losses and cash loss incurred
are not applicable.
xi. In our opinion and according to information and explanation given
to us, the Company has not defaulted in repayment of dues to a
financial institution, bank orHPdebenture holder.
xii. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii. In our opinion, the Company is not a Chit Fund or a Nidhi /
Mutual Benefit Society. Therefore, the provisions of clause are not
applicable to the Company.
xiv. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly the
provisions of the clause are not applicable to the Company.
xv. In our opinion and according to the information and explanations
given to us the Company has not given any guarantees for loans taken by
others from banks and institutions
xvi. Based on the information and explanations given to us by the
Management, no term Loans obtained during the period.
xvii. According to the information and explanation given to us and on
overall examination of the balance sheet of the Company, we report that
no funds raised on short term basis have been used for long term
investment.
xviii. The Company has not made any preferential allotment of shares to
any of the entities/ persons covered in the register maintained under
Section 301 ofHPtheHPAct.
xix. The Company has not issued any debentures during the period, which
required creation of security or charge.
xx. The company has not raised any money by public issue during the
period ended.
xxi. Based on the audit procedures performed and information and
explanations given by the Management, we report that no fraud on or by
the Company has been noticed or reported during the period ended.
For and on behalf of
V. PAREKH & ASSOCIATES
CHARTERED ACCOUNTANTS
Firm Reg. No. 107488W
RASESH V. PAREKH - PARTNER
Membership No. 38615
Place : Mumbai
Dated : 25th April, 2011
Sep 30, 2009
1. We have audited the attached Balance Sheet of Shree Precoated
Steels Limited (Formerly Known as Ajmera Precoated Steels Limited) as
at 30th September 2009, the Profits Loss Account and also the Cash Flow
Statement for the 8 month period 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 have conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the Management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of Section (4A) of Section
227 of the Companies Act, 1956 of India (the "Act"), we enclose in the
Annexure a statement of the matters specified in paragraph 4 and 5 of
the said order.
4. Further to our comments in the Annexure referred to 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 purpose 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 from our examination of the
books of account.
c) The Balance Sheet, Profit & Loss Account and the Cash Flow Statement
dealt with by this report are in agreement with the books of account.
d) In our opinion, the attached Balance Sheet, Profit & Loss Account
and the Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred in Sub - Section (3C) of Section 211 of
the Companies Act, 1956.
e) On the basis of the written representations received from the
directors except nominee Director and taken on record by the Board of
Directors, we report that none of the directors are disqualified as on
30th September 2009 from being appointed as a director in terms of
Section 274 (1) (g) of the Act.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said statement of accounts read with
other notes thereon give the information required by the Act, in the
manner so required and gives 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 30th September, 2009;
ii. In the case of Profit and Loss Account of the Loss of the Company
for the 18 month period ended on that date; and
iii. In the case of the Cash Flow Statement of the cash flows for the
period ended on that date.
ANNEXURE REFERRED TO IN PARA 3 OF OUR REPORT OF EVEN DATE
i. In respect of its Fixed Assets:
a. The Company has maintained proper records showing full particulars,
including quantitative details and situation of its fixed assets.
b. The fixed assets have been physically verified by the Management at
reasonable intervals. No material discrepancies were noticed during the
course of such verification.
c. The disposal of part of fixed assets, in our opinion has not
affected the going concern.
ii. In respect of its inventories:
a. The physical verification of inventories has been conducted at
reasonable intervals by the Management.
b. In our opinion and according to the explanations given to us, the
procedures for physical verification of inventories followed by the
Management are reasonable and adequate in relation to the size of the
Company and nature of its business.
c. In our opinion and according to the explanations given to us, the
Company has maintained proper records of its inventories and no
material discrepancies were observed during the course of physical
verification.
iii a. The Company has not granted any loans to any entity covered in
the register maintained under Section 301 of the Act.
b. The Company has taken interest free unsecured loans from five
companies and fourteen promoters covered in the register maintained
under section 301 of the Act. The maximum amount involved during the
period was Rs. 30836.39 lacs and period end balance of the loans taken
from such companies and promoters was Rs. 9006.73 lacs. The loans from
promoters are taken as per the stipulation of the lending institution
and banks.
c. in our opinion and according to the information and explanations
given to us, the term and conditions on which loan have been taken from
companies, firm or other parties listed in the register maintained
under section 301 of the companies Act,1956 are not, prima facie,
prejudicial to the interest of the company.
d. There are no stipulations as to the repayment of the loans taken as
the same are repayable on demand on fulfilling of requirement of
lending institutions and banks.
iv. In our opinion, and according to the explanations given to us, the
Company has adequate internal control systems commensurate with the
size of the Company with regard to the purchase of inventory, fixed
assets and sale of goods. During the course of our audit no major
weakness has been noticed in the internals controls. We have not
observed any failure on the part of the Company to correct major
weakness in internal control system.
v. a. Based on the audit procedures applied by us and according to the
information and explanations provided to us by the Management, we are
of the opinion that the particulars of the contract or arrangements
referred to in Section 301 of the Act have been entered in the register
required to be maintained under that Section.
b. According to the information and explanation given to us, the
transactions made in pursuance of contracts or arrangements entered in
the registers maintained under Section 301 of the Act have been made at
prices which are reasonable having regard to prevailing market prices
at relevant time.
vi. In our opinion and according to the explanations given to us the
Company has not accepted any deposits within the meaning of Section 58A
and Section 58AA or any other relevant provisions of the of the Act 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. The Central Government has not prescribed maintenance of Cost
Records under Section 209 (1) (d) of the Act in respect of activities
of the Company. We have broadly reviewed the accounts and records have
been made and maintained. We have not, made a detailed examination of
the same.
ix. a. According to the information and explanations given to us the
Company is regular in depositing with appropriate authorities,
undisputed statutory dues including provident fund, investor education
fund, employees state insurance, income tax, sales tax, wealth tax,
service tax, custom duty, excise duty, cess and other statutory dues to
the extent applicable to it.
b. In respect of Contingent dueson account of sales tax, service tax
and custom duty dues disputed by the Company including liability of the
unit vested into the company persuant to demerger and not being paid
vis-a-vis forums where such disputes are pending are mentioned below:
Name of Statute Nature of Dues Amount
(Rs. in Lacs)
West Bengal Ex- Parte Order passed 1.00
Sales Tax Act.
Service Tax GTA of Services 22.85
Service Tax Cenvat credit on 95.84
Service Tax
Service Tax Service Tax on export 47.38
sales commission
Custom Act Fine Penalty 15.00
5.00
Name of the Statue Period to Forum where pending
which amount
relates
West Bengal
Sales Tax Act. 1997-98 & The Company is in the
1998-99 process of filing appeal
Service Tax 2005 - 2006 Appeal has been filed in
CESTAT.
Service Tax 2006 - 2007 & Appeal has been filed in
2007 - 2008 CESTAT.
Service Tax 2004 - 2005 & Commissioner of
2005 - 2006 service Tax
Custom Act 2006 - 2007 Appeal has been
filed in CESTAT.
x. As the company is registered for a period less than five years,
hence the clauses related to accumulated losses and cash loss incurred
are not applicable.
xi. In our opinion and according to information and explanation given
to us, the Company has not defaulted in repayment of dues to a
financial institution, bank or debenture holder.
xii. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii. In our opinion, the Company is not a Chit Fund or a Nidhi /
Mutual Benefit Society. Therefore, the provisions of clause are not
applicable to the Company.
xiv. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly the
provisions of the clause are not applicable to the Company.
xv. In our opinion and according to the information and explanations
given to us the Company has not given any guarantees for loans taken by
others from banks and institutions
xvi. Based on the information and explanations given to us by the
Management, term Loans obtained during the year were applied for the
purpose for which the loans were obtained.
xvii. According to the information and explanation given to us and on
overall examination of the balance sheet of the Company, we report that
no funds raised on short term basis have been used for long term
investment.
xviii. The Company has not made any preferential allotment of shares to
any of the entities/ persons covered in the register maintained under
Section 301 of theAct. However share capital issued during the period
is based on the demerger scheme (refer note no 4 of schedule 17).
xix. The Company has not issued any debentures during the period, which
required creation of security or charge.
xx. The company has not raised any money by public issue during the
period ended.
xxi. Based on the audit procedures performed and information and
explanations given by the Management, we report that no fraud on or by
the Company has been noticed or reported during the period ended.
For and on behalf of
V. PAREKH & ASSOCIATES
CHARTERED ACCOUNTANTS
Place : Mumbai RASESH V. PAREKH - PARTNER
Dated : 19th December 2009 Membership No. 38615
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