| We have audited the accompanying financial statements of MEENAKSHI
STEEL INDUSTRIES LIMITED ("the Company"), which comprise the
Balance Sheet as at March 31,2014 Statement of Profit and Loss and
Cash Flow Statement for the year ended March 31, 2014 and a summary of
significant accounting policies and other explanatory information.
Management Responsibility for 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 notified under the Companies Act, 1956
("the Act") read with the General Circular 15 / 2013 dated
September 13, 2013 ofthe 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.
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 me
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 file
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 Ho 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 31,2014;
b) in the case of the Profit and Loss Account, of the profit for the
year ended March 31, 2014;and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended March 31,2014.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2003, issued
by the Central Government in terms of Section 227(4A) of the Companies
Act, 1956, and in terms of the information and explanations given to
us and also on the basis of such checks, as we considered appropriate,
we enclose in the Annexure, a statement on the matters specified in
paragraphs 4 and 5 of the said Order, to the extent applicable.
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, 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 notified
under 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.
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 Act.
Annexure to the Auditors' Report
(Referred to in our report of even date to the members of Meenakshi
Steel Industries Limited for the year ended 31.03.2014)
i. The Company does not have any fixed assets Accordingly, Clauses
1(a), (b) and (c) ofthe Order, are not applicable to the Company
ii. According to information and explanations given to us, during the
year, the Company does not have any manufacturing or trading activity
and hence does not have any inventory. Accordingly, Clauses 2(a), (b)
and (c) of the Order, are not applicable to the Company.
iii. According to the information and explanations given to us, the
Company has neither granted nor taken any loans, secured or unsecured,
to/from companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956. Accordingly,
Clauses 4(iii) (a) to (g) of the Order is not applicable to the
Company.
iv. In our opinion and according to the information and explanations
given to us, it appears that there is an adequate internal control
system commensurate with the size of the Company and the nature of its
business with regard to purchase of shares & securities, and for the
sale of shares & securities and services. Further, on the basis of our
examination ofthe books and records ofthe Company, and according to
the information and explanation given to us, we have neither come
across nor have been informed of any continuing failure to correct
major weakness in the aforesaid internal control system.
v. According to the information and explanations given to us, we are
of the opinion that there are no contracts or arrangements, the
particulars of which need to be entered into the register maintained
under section 301 of the Companies Act, 1956. Having regard to the
same, Clause 4(v) (b) of the Order is not applicable to the Company.
vi. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposit from public
during the year, within the meaning of Section 58A and 58AA of the
Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules,
1975 and directives issued by the Reserve Bank of India in this
respect.
vii. The Company does not have a formal internal audit system.
However, effective internal controls are being exercised by the
management, which is broadly commensurate with the size of the Company
and nature of its business.
viii. According to the information and explanations given to us, the
maintenance of Cost records has not been prescribed by the Central
Government under Section 209 (1) (d) of the Companies Act, 1956.
ix. a) According to the records of the Company and information and
explanations given to us, the Company has been regular in depositing
undisputed statutory dues including Provident Fund, Employees State
Insurance, Income tax, Sales-Tax, Wealth Tax, Custom Duty, Investor
Education and Protection Fund, Excise Duty, Cess, Service Tax or any
other statutory dues, wherever applicable, with the appropriate
authorities and there were no arrears under the above heads which were
due for more than six months from the date they became payable as at
the close of the year.
b) According to the information and explanations given to us, there
are no dues of Income Tax, Wealth Tax, Service Tax, Customs Duty,
Excise Duty, Sales Tax and Cess which have not been deposited on
account of any disputes except disputed liability of:-
Nature of the Nature of dues Amount (Rs) Period to which Forum where
Statue amount relates dispute is
pending
Indian Stamp Stamp duty & 9,64,934/- FY 1992-93 Hon'ble
Act, 1899 penalty High Court
of
Judicature,
Allahabad
However, the said land was sold in the year 2005-06.
x. The Company does not have accumulated losses at the end of the
financial year. The Company has neither incurred any cash losses in
the current financial year nor in the immediately preceding financial
year.
xi. The Company has neither borrowed funds from financial institutions
or banks nor any amounts raised through debentures
xii. The Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures or other securities.
xiii. The provisions of any Special Statute applicable to Chit Fund,
Nidhi or Mutual Benefit Fund/ Societies are not applicable to the
Company.
xiv. The Company has maintained proper records of transactions and
contracts in respect of investments in shares, securities debentures
and other investments and those timely entries have been made therein.
The shares, securities debentures and other investments have been held
by the Company in its own name except to the extent of the exemption
granted under section 49(4) of the Companies Act, 1956 .
xv. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks and financial institutions.
xvi. The Company has not taken any terms loans during the year.
xvii. According to the information and explanation given to us, and on
an overall examination of the Balance Sheet of the Company, we report
that no funds have been raised on .short-term basis; therefore
question of utilization of short term funds for long term investment
does not arise.
xviii. 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 during the year.
xix. The Company has not issued any Debenture's and hence no
securities or charges are required to be created in respect thereof.
xx. The Company has not raised any money by way of public issues
during the year.
xxi. On the basis of our examination and according to the information
and explanations given to us, no fraud, on or by the Company, has been
noticed or reported during the year.
For VIJAY R. TATER & CO.
Chartered Accountants
FRN: 111426W
Place: Mumbai (Suresh G. Kothari)
Date: 30/06/2014 Partner
Membership No 47625 |