We have audited the annexed Balance Sheet of M/s ASHIANA ISPAT LTD as
at 31st March 2011 and the Profit and Loss Account for the year ended
on that date annexed thereto and Cash Flow Statement for the year ended
on that date. 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.
1. 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 test basis evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used in significant estimates made
by management, as well as evaluating the over all financial statement
presentation. We believe that our audit provides a reasonable basis for
2. As required by Companies (Auditor''s Report) Amendment Order 2004
issued by the Central Government of India in terms of Section 227 (4A)
of the Companies Act, 1956. We enclose in the annexure a statement on
the matters Specified in paragraph 4 & 5 of the said Order.
3. Further to put our comments in the annexure referred to in
paragraph 2 above we state that :-
(a) We have obtained all the information and explanation, which to the
best of our knowledge and belief were necessary for the purpose of our
(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
(c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts.
(d) In our opinion the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards wherever applicable referred to in sub section (3C) of
Section 211 of the Companies Act, 1956.
(e) On the basis of written representation received from the Directors
as on 31s'' March, 2011 and taken on record by the Board of Directors,
we report that none of the Directors is disqualified as on 31st March,
2011 from being appointed as a Director in terms of Section 274(1 )(g)
of the Companies Act, 1956.
(f) We report that in our opinion and to the best of our information
and according to the explanation given to us the said accounts read
together with the notes thereon give the information required by the
Companies Act, 1956 in the manner so required and give a true & fair
view in conformity with the accounting principles generally accepted in
(i) In the case of Balance Sheet of the State of Affairs of the Company
as at 31st March, 2011;
(ii) In the case of Profit & Loss Account of the Profit of the Company
for the year ended on 31st March,2011 and
(iii) In the case of the Cash Flow Statement, of the Cash Flows for the
year ended on 31st March, 2011.
Annexure to Auditors'' Report
Refer to in paragraph 2 of our report of even date of M/s Ashiana Ispat
1. (a) The Company has maintained records of Fixed Assets in statement
(b) All the fixed assets have been physically verified by the
management at reasonable intervals. We are informed that the management
on such verification noticed no material discrepancies.
(c) The company has not disposed off substantial fixed assets during
the year and the going concern status of the company in not affected.
2. (a) Physical verification of Inventory has been conducted during
the year by the management at reasonable intervals.
(b) The procedures of physical verification of inventory 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 is maintaining proper records of Inventory. As
explained to us there were no material discrepancies noticed on
3. (a) The Company has taken Loans from Twenty Seven Parties covered
in the register maintained under section 301 of the Companies Act 1956.
The amount involved in loans taken & credited in all account is
Rs.3234.57Lacs. Opening Balance and Closing Balance of all these
accounts are Rs. 746.70 Lacs and Rs. 1054.29 Lacs respectively. The
company has not granted any loan to Companies, Firm or other parties
listed in the register maintained under section 301 of the Companies
act, 1956 except loan given to M/s Ashiana Commodities & Derivatives
Pvt. Ltd, without interest having opening Balance Rs.95.48 Lacs and
Closing Balance Rs.96.30 Lacs.
(b) The rate of interest and other terms and conditions of loans taken
by the company are not prima facie prejudicial to the interest of the
(c) The payment of the principal amount and interest thereon is on
(d) There is no overdue amount in respect of loans taken by the
4. In our opinion and according to information and explanation 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 for the sale of goods. During
the course of audit, we have not observed any major weakness in
5. (a) In our opinion and according to the information and explanation
given to us the transactions that need to be entered into a register in
pursuance of section 301 of the Companies Act 1956 have been so
(b) Transactions made in pursuance of such contracts or arrangements
have been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
6. The Company has not accepted deposits from the public within the
meaning of section 58A and 58AAof the Companies Act, 1956 and the rules
framed there under.
7. The Company did not have any formal internal audit system. However
internal check and control are maintained by the management.
8. In our opinion the cost records maintained by the company are
general and not in precise manner as prescribed by the Central
Government U/s 209(1) (d) of the Companies Act 1956 for the product of
the company. We have however not made a detailed examination of these
9. In respect of statutory dues:
(a) According to the records of the Company, undisputed statutory dues
including Provident Fund, Employee''s State Insurance, Income Tax, Sales
tax, Wealth tax, Service Tax, Customs Duty, Excise Duty, Cess and other
statutory dues have been generally regularly deposited with the
appropriate authorities. According to the information and explanations
given to us, no undisputed amounts payable in respect of the aforesaid
dues were outstanding as at 31st March, 2011 for a period of more than
six months from the date of becoming payable.
(b) The disputed statutory dues aggregating to Rs. 892.01 Lacs their
against Rs. 182.72 Lacs has been deposited under protest that have on
account of matters pending before appropriate authorities are as under:
10. The Company has no accumulated losses. The Company has not
incurred cash losses during the financial year covered by our audit and
immediately preceding financial year.
11. Based on our audit procedures and according to the information and
explanation given to us, we are of the opinion that the Company has not
defaulted in repayment of dues to financial institutions and banks
12. In our opinion and according to the 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
13. In our opinion, the Company is not a Chit Fund or a Nidhi/Mutual
benefits fund/society. Therefore, clause 4(xiii) of the Companies
(Auditor''s Report) Amendment Order 2004 is not applicable to the
14. The Company has not carried out of any transactions of trading in
securities during the year.
15. The Company has not given guarantees for loans taken by others
from banks or financial institutions.
16. Term Loans (Car Loan) raised during the year have been applied for
respective purpose (Buying Cars).
17. According to the information and explanations given and on an
overall examination of the Balance Sheet of the Company, we are of the
opinion that funds raised on short-term basis have been utilized for
long-term purposes to the tune of Rs. 100.87 lacs.
18. 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.
19. The Company has not issued any debentures. Hence the question of
creating securities in respect of debentures issued does notarise.
20. The Company has not raised any money by way of public issue during
21. 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 the materially
For S.Singal & Company
FirmRegn. No. 001526C
Place: Bhiwadi (Rakesh Gupata)
Date:10.08.2011 M.S.No. 073846