| Report on the Financial Statements
We have audited the accompanying financial statements of Mukesh Steels
Limited, which comprise the Balance sheet as at March 31, 2014, the
Statement of profit and loss and Cash flow statement for the year then
ended, and a summary of significant accounting policies and other
explanatory information.
Management's Responsibility for the Financial Statements
The 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. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by The Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatements.
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 entity's
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the said financial statements 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 March 31, 2014;
ii) in the case of statement of profit and loss, of the profit for the
year ended on that date; and
iii) in the case of cash flow statement, of the cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2003 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 Companies Act, 1956, 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 sub-section (3C) of section 211 of the Companies Act, 1956.
e. On the basis of written representations received from the directors
as on March 31,2014 and taken on record by the Board of Directors, none
of the directors is disqualified as on March 31, 2014 from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Annexure to Independent Auditors' Report
Referred to in paragraph I under the heading on "Report on Other Legal
and Regulatory Requirements" of our report of even date.
(i) a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) According to information and explanations given to us, the fixed
assets have been physically verified by the management during the year.
No material discrepancies were noticed on such physical verification.
In our opinion the frequency of physical verification of fixed assets
is reasonable having regard to the size of the company and nature of
its business.
c) According to the information and explanations given to us, the
company has not disposed off substantial part of its fixed assets
during the year.
(ii) a) According to the information and explanations given to us, the
inventories have been physically verified by the management during the
year. In our opinion the frequency of verification is reasonable.
b) In our opinion and according to the information and explanations
given tb us, the procedures of physical verification of inventories
followed by the management as evidenced by the written procedures and
instructions are reasonable and adequate in relation to the size of the
company and nature of its business.
c) On the basis of our examination of the records of the inventories,
in our opinion the company is maintaining proper records of
inventories. The discrepancies noticed on physical verification as
compared to book records were not material and have been properly dealt
with in the books of account.
(iii) a) According to the information and explanations given to us, the
company has not granted any loans to companies, firm or other parties
covered in the register maintained under section 301 of the Companies
Act, 1956. Therefore the provisions of clause 4 (iii) (b), (c) and (d)
of the above said order are not applicable to the company..
b) According to the information and explanations given to us, the
company has taken interest free unsecured loan from one party covered
in the register maintained under section 301 of the Companies Act,
1956. The maximum amount involved during the year is Rs. 50 lacs. The
amount payable as at the close of the year is Rs. Nil.
c) According to the information and explanations given to us, terms and
conditions in respect of unsecured loans taken by the company are not
prima- facie prejudicial, to the interest of the company.
d) According to the information and explanations given to us, the
principal amount of the loan taken has been repaid during the year.
e) The current account transactions with companies covered in the
register maintained under section 301 of the Companies Act, 1956 have
not been considered for the purpose of disclosure under this clause.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the company and nature of its business, for the
purchase of inventory and fixed assets and sale of goods and services.
During the course of our audit, we have not observed any continuing
failure to correct major weaknesses in internal control system.
(v) (a) According to the information and explanations given to us, the
particulars of contracts or arrangements referred to in section 301 of
the Companies Act, 1956 have been entered in the register maintained
under that section.
(b) In our opinion and according to the information and explanations
given to us, transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding Rs. five lacs or more in respect
of each party during the year have been made at prices which are
reasonable having regard to the prevalent market prices at that
relevant time.
(vi) According to the information and explanations given to us, the
company has not accepted any deposits from public. Therefore, the
provisions of section 58A and 58AA of the Companies Act, 1956 and the
Companies ' (Acceptance of Deposits) Rules, 1975 are not applicable
to the company. No order has been passed by the Company Law Board or
National Company Law Tribunal or Reserve Bank of India or any court or
any other Tribunal.
(vii) In our opinion, the company has an internal audit system
commensurate with its size and natur Of its business
(viii) We have broadly reviewed the books of account relating to
materials, labour and other items of cost maintained by the company
pursuant to the rules made by the Central Government for the
maintenance of cost records under section 209(l)(d) of the Companies
Act, 1956 and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. We have however not
made a detailed examination of the records with a view to determine
whether they are accurate or complete.
(ix) (a) According to the records of the company, we are of the view
that that company has been regular in depositing undisputed applicable
statutory dues including, provident fund, employees state insurance,
income tax, sales tax, custom duty, excise duty and other statutory
dues with appropriate authorities. According to information and
explanations given to us no undisputed amounts payable in respect of
aforesaid dues were outstanding as at 31st March 2014, for a period
more than six months from the date of becoming payable.
(b) According to information and explanations given to us there are no
disputed dues in respect of income tax, sales tax, service tax, custom
duty, wealth tax, excise duty, and cess.
(x) The company does not have accumulated losses as at the end of the
financial year. The company has not incurred cash losses during the
financial year covered under audit and in the immediately preceding
financial year.
(xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
banks, financial institutions and debenture holders.
(xii) According to the information and explanations given to us, the
company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities. Therefore,
the provisions of clause 4(xii) of the above said order are not
applicable to the company.
(xiii) The company is not a chit fund or a nidhi mutual benefit
fund/society. Accordingly, the provisions of clause 4 of the above said
order are not applicable to the company.
(xiv) According to the information and explanations given to us, the
company has not dealt or traded in share, securities, debentures and
other investments. Therefore, the provisions of clause 4(xiv) of the
above said order are not applicable to the company.
(xv) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from bank
or financial institutions. Accordingly, the provisions of clause 4(xv)
of the order are not applicable to the company.
(xvi) In our opinion and according to the information and explanations
given to us, no term loan has been taken by the company. Accordingly,
the provisions of clause 4(xvi) of the order are not applicable to the
company,
(xvii) In our opinion and according to information and explanations
given to us and on an overall examination of the balance sheet of the
company, we report that Rs. 358.62 lacs raised on short term basis have
been temporarily used for repayment of long term borrowings.
(xviii) According to the information and explanations given to us, the
company has not made any preferential allotment to the parties and
companies covered in the register maintained under section 301 of
Companies Act, 1956.
(xix) According to the information and explanations given to us, the
company has not issued debentures during the year. Accordingly the
provisions of clause 4 (xix) of the above said order are not applicable
to the company.
According to the information and explanations given to us, the company
has not raised any money by way of public issue during the year.
Accordingly the provisions of clause 4 (xx) of the above said order are
not applicable to the company.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
year.
Place: Ludhiana
Dated: 30.05.2014
For S. C. Vasudeva & Co.
Chartered Accountants
Firm Reg. No. 000235N
SANJIVMOHAN
(Partner) | 