We have audited the accompanying financial statements of PRABHU STEEL
INDUSTRIES LIMITED , which comprise the Balance Sheet as at 31st
March, 2014, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act,
1956 ("the Act") read with the General Circular 15/2013 dated 13
September 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.
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 the
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 the 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 the 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 the 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
ATTENTION IS INVITED TO THE FOLLOWING
* The representation made to us by the management (which cannot be
verified and hence accepted) relating to.
1. NON INCLUSION OF CONTINGENT LIABILITY OF RS. 80,00,497/- ITEM NO.
11(1) "Claim not acknoweledged as debts in Notes 13"
* Balances of sundry debtors and debit balances of sundry creditors and
loans and advances are subject to confirmation.
* The Investment in shares in 2 listed company at book value of Rs.
168422/- for which no quotation is available as on 31.03.2014 whereas
the management has treated such investment as "unquoted Investment" as
delisted .
We report that the accounts are made without considering our above
observation in paragraph (1) to (3) above, the effect of which is
presently not ascertainable.
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 subject to our comments above 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 Statement of Profit and Loss, of the profit of
the Company for the year ended on that date, and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company 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") 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 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 it appears from our examination of
those books.
(c) The Balance Sheet, Statement of Profit and Loss, and the 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 read with
the General Circular 15/2013 dated 13 September 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act, 2013.
and
(e) On the basis of the written representations received from the
directors as on 31st March, 2014 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 Act.
ANNEXURE REFERRED TO IN PARAGRAPH 2 OP THE AUDITOR'S REPORT ON THE
ACCOUNTS OF PRABHU STEEL INDUSTRIES LIMTED FOR THE YEAR ENDING 31st
MARCH 2014
As required by the Companies (Auditor's report) Order, 2003 issued by
the central Government of India in terms of section 227(4-A) of the
Companies Act, 1956, we report that.
1. In respect of fixed assets:
(A) The company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets on the
basis of available information.
(B) As explained to us, all the fixed assets have been physically
verified by the management during the year at reasonable intervals,
which in our opinion, is reasonable having regard to the size of the
company and the nature of assets. No material discrepancies were
noticed on such physical verification.
(C) In our opinion the Company has not disposed off any
substantial/major part of fixed assets during the year and the going
concern status of the company is not affected.
2. In respect of its inventories:
(A) As explained to us, the inventory of stocks of raw material,
trading goods & finished goods has been physically verified by the
management at regular intervals during the year.
(B) In our opinion and according to the information and explanations
given to us and on the basis of our examination of the records of
inventory, the Company has maintained proper records of inventory. And
there were no material discrepancies noticed on physical verification
of inventory as compared to the book records. The discrepancies, if
any, in respect of other than finished goods, trading goods and raw
materials, could not be ascertained in the absence of records which
should have been maintained.
3. In respect of loans, secured or unsecured, granted or taken by the
company to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act 1956:
(A) The company has granted Loans to two parties. At the year end the
outstanding balance of such loans granted was Rs. NIL and the maximum
amount involved during the year was Rs. 22.67 Lacs.
(B) In our opinion and according to the information and explanations
given to us, the rate of interest, wherever applicable and other the
terms and conditions are not prima-facie prejudicial to the interest of
the company.
(D) Since the loans taken and granted by the company are repayable on
demand, no question of overdue amounts arises.
In our opinion and according to the information and explanations given
to us, there are no internal control procedures commensurate with the
size of the company and nature of its business with regard to purchase
of inventory and fixed assets and with regard for the sale of goods and
services.
In respect of contracts or arrangements entered in the register
maintained in pursuance of Section 301 of the Companies Act, 1956.
(A) In our opinion and according to the information and explanation
given to us, the transactions made in pursuance of contracts or
arrangements 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 explanation given to us, the transactions
exceeding the value of 5 lakh in respect of any party during the year
have been made at prices which are prima-facie reasonable having regard
to prevailing market prices at the relevant time where such prices are
available.
In our opinion and according to the information and explanations given
to us, the Company has not accepted deposits from the public and
therefore, the provisions of Section 58A and 58AA of the Companies Act,
1956 and Rules made there under are not applicable to the Company.
In our opinion, the company has no internal audit system commensurate
with its size and nature of its business.
The maintenance of cost record has not been prescribed by the Central
Government under section 209(1 )(d) of the Companies Act, 1956.
4. In respect of statutory dues:
(A) According to the information and explanations given to us, the
company was generally regular in depositing dues in respect of
Employees Provident Fund, Employees State Insurance Fund, and other
statutory dues except in certain cases of income tax and sales tax,
with the appropriate authority during the year.
(B) According to the records examined by us and the information and
explanations given to us, there are no disputed amounts due in respect
of income tax, wealth tax, sales tax, excise duty, Employees provident
fund, Employee state insurance fund and other statutory dues at the end
of the year.
The Company has accumulated losses of Rs. Nil and the company incurred
cash loss of Rs. Nil during the financial year covered by our audit and
Rs. NIL in the immediately preceding financial year.
5. Based on our audit procedures and on the basis of information and
explanations given by the management, the Company has not defaulted in
the repayment of dues to banks, financial institutions and Debentures
holders during the year.
6. In our opinion and according to information and explanation 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 security.
7. In our opinion the company is not a Chit Fund, Nidhi or Mutual
Benefit Fund/Society. Therefore, the provisions of clause 4(XIII) of
the CARO,2003 are not applicable to the company.
8. The company is not dealing in or trading in shares, securities,
debentures and other investments. Accordingly, the provisions of clause
4(xiv) of the order are not applicable.
9. The Company has not given Guarantees for the loan taken by others
from banks or financial institutions.
10. As per record of the company, the company has not received any term
loans during the year.
11. According to the information and explanations given to us and on
examination of balance sheet, funds raised on short term basis have,
prima facie, not been used during the year for long term investment and
vice versa.
12. The Company has not made any preferential allotment to parties and
companies covered under register maintained under Section 301 of the
Companies Act, 1956, during the year.
13. The Clause 13 of the order is not applicable, as the company has
not issued any debentures during the year.
14. The Company has not raised money by any public issues during the
year and hence the question of disclosure and verification of end use
of such money does not arise.
15. The Company has not given Guarantees for the loan taken by others
from banks or financial institutions.
16. As per record of the company, the company has not received any
term loans during the year.
17. According to the information and explanations given to us and on
examination of balance sheet, funds raised on short term basis have,
prima facie, not been used during the year for long term investment
and vice versa.
18. The company has not made any preferential allotment to parties
and companies covered under register maintained under Section 301
of the Companies Act, 1956, during the year.
19. The Clause 13 of the order is not applicable, as the company
has not issued any debentures during the year.
20. The Company has not raised money by any public issues during
the year and hence the question of disclosure and verification of
end use of such money does not arise.
For Lalit Jham & Co. For Prabhu Steel Industries Ltd
Chartered Accountants
FRN114158w
Director Director
Lalit Jham Harish Agarwal Dinesh Agarwal
Partner DIN 291083 DIN 291066
M.no: 040501 |