| We have audited the accompanying financial statements of Shri Matre
Power & Infrastructure Limited ("the Company"), 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
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 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 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 judgement, 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, the financial statements, together with the
Accounting Policies and Notes to Accounts(Schedule - 2.20), 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 Statement of Profit and Loss, of the Loss 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
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 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;
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.
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.
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 details and situation of fixed assets, which
require to be updated.
b. As explained to us, the fixed assets have been physically verified
by the management at reasonable intervals and no material discrepancies
between the books / record and the physical inventory were noticed on
such verification.
c. In our opinion, the Company has not disposed off substantial 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, inventories have been physically verified by
the management at reasonable intervals during the year
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. The Company has maintained proper records of inventories. As
explained to us, there was no material discrepancies noticed on
physical verification of inventory as compared to the book records.
3. The Company did not take nor grant any loans, secured or unsecured,
from or to companies, firms or other parties listed in the Register
maintained under Section 301 of the Companies Act, 1956.
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 the nature of its
business for the purchase of inventory, fixed assets and also for the
sale of goods.
5. In our opinion and according to the information and explanations
given to us, there are no transactions in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956, aggregating during the year to Rs.5,00,000/--
(Rupees Five lakhs only) or more in respect of any party.
6. The Company has not accepted any deposits from the public.
7. The company has an in-house Internal Audit Department. In our
opinion, the scope and coverage of internal audit system of the Company
is commensurate with its size and nature of its business.
8. We have been informed that, though maintenance of Cost Records has
been prescribed by the Central Government for the company's product,
the maintenance of such records are not applicable to the Company as
the aggregate value of the turnover does not exceed Rs.10 Crores.
9. a) The Company is fairly regular in depositing amounts of Provident
Fund and Employees State Insurance dues. In respect of Income tax,
Sales Tax , Wealth Tax, Custom Duty and Excise duty there no undisputed
amounts outstanding as at March 31,2014, for a period of more than six
months from the date they became due.
b) The disputed statutory dues aggregating to Rs.352.77 Lakhs that have
not been deposited on account of matters pending before appropriate
authorities are as under:
Forum Amount
Sl. Nature of the where
No. Name of the Statute dues Dispute (Rs.)
is in Lakhs
pending
1. Customs Duty Act Customs Duty CEGAT 352.77
Total 352.77
10. The accumulated losses as at the end of the Financial Year are
less than 50% of the net worth of the Company. The Company has incurred
cash losses during the Financial Year covered by the Audit and but has
not incurred cash losses in the immediately preceding Financial Year.
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
(Auditors' Report) Order, 2003, is not applicable to the Company.
13. The Company has not dealt in or traded in shares, securities,
debentures and other investments.
14. The Company has given a corporate guarantees for a loan taken by
Shri Shakti Resorts Ltd from a commercial bank and, in our opinion, the
terms and conditions whereof are not prejudicial to the interests of
the company.
15. The Company has not raised any new term loans during the year from
banks nor there are any term loans outstanding as at 31.03.2013.
16. The company during the year did not raise any short-term loans and
hence the question of their usage does not arise.
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 debentures during the year.
19. The Company has not raised any money by way of public issue during
the year.
20. In our opinion 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, that causes the financial statements to be materially
misstated.
For VENUGOPAL & CHENOY,
CHARTERED ACCOUNTANTS
Hyderabad Sd/-
( P.V.SRI HARI )
20.05.2014 Partner
Membership No.21961
|