We have audited the attached Balance Sheet of KAMDHENU ISPAT LIMITED as
at 31st March, 2012 and the Statement of Profit and Loss Account and
the Cash Flow Statement for the year ended on that date annexed
thereto. These Financial Statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
1 We 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 a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
2 As required by Companies (Auditors Report) (Amendment) Order, 2004
issued by the Central Government of India in terms of section 227 (4A)
of the Companies Act, 1956, We annex hereto a statement on the matters
specified in paragraphs 4 & 5 of the said order, to the extent
3 Further to our comments in the annexure referred to in paragraph 2
above 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
(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 the
(c) The Balance Sheet and Statement of Profit and Loss and cash flow
statement dealt with by this report are in agreement with the books of
(d) In our opinion the Balance Sheet, statement of Profit & Loss and
Cash Flow Statement dealt with by this report have been prepared in
compliance with the Accounting Standards referred to in subsection (3C)
of Section 211 of the Companies Act., 1956.
(e) On the basis of written representation received from the Directors
as on 31st March, 2012 and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March,
2012 from being appointed as a Director in terms of clause (g) of Sub
section (I) of section 274 of the Companies Act. 1956;
(f) 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
''Significant Accounting Policies and Notes to Accounts 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 the Balance Sheet of the State of Affairs of the
Company as at 31st March, 2012 ;
(ii) In the case of the Statement of Profit & Loss of the Profit of the
Company for the year ending on 31st March, 2012 ; and
(iii) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO AUDITORS REPORT
Referred to in paragraph 2 of our report of even date
1. 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. According to the information & explanation given to us, the fixed
assets has been physically verified by the management during the year
in a phased periodical manner, which in our opinion, is reasonable
having regard to the size of the company and the nature of the assets.
No material discrepancies were noticed on such verification.
c. In our opinion, the Company has not disposed off a substantial part
of its fixed assets during the year and the going concern status of the
Company is not affected.
2. 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 explanation
given to us, 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. In our opinion and according to information & explanation given to
us, 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 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.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the 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
5. a. In our opinion and 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 that need to be entered in the
register, maintained under the said section have been so entered.
b. In our opinion and according to the information and explanation
given to us, the transactions exceeding the value of Rupees five lacs
in respect of any party during the year have been made at prices which
are reasonable having regard to the prevailing market prices at the
relevant time, where such prices are available.
6. In our opinion and according to the information & explanation given
to us, the company has not accepted deposits from public within the
meaning of Section 58A and 58AA or any other relevant provisions of the
Companies Act,1956 and the Rules framed there under.
7. In our opinion and according to the information and explanation
given to us, the Company has an internal Audit system commensurate with
the size and nature of its business.
8. We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules, 2011,
prescribed by the Central Government under section 209(1)(d) of the
Companies Act, 1956 and are of the opinion that prima facie that
prescribed cost records are general and not in precise manner for the
product of the Company. We have however not made a detailed examination
of the cost records with a view to determine whether they are accurate
9. a. According to the records of the Company, undisputed statutory
dues including Provident Fund, Employee State Insurance, Income Tax,
Sales tax, Wealth-tax, Service Tax, Custom Duty, Excise Duty, Cess and
other statutory dues have been generally regularly deposited with the
appropriate authorities except for delays in some cases. According to
the information and explanation given to us, no undisputed amount
payable in respect of the aforesaid dues were outstanding as at 31st
March, 2012 for a period of more than six months from the date of
b. The disputed statutory dues aggregating to Rs. 469.58 Lacs, (Gross
demand of Rs. 1032.83 Lacs less deposit under protest of Rs. 563.25
Lacs) have not been deposited on account of disputed matters pending
before appropriate authorities as per details given under :-
Name of the Nature of Period to which Amount Forum where
Statute the Dues the amount
Act Income Tax F.Y. 2001-02,
2003-04, 2004-05, 360.95 C I T (Appeals)
2005-06, 2006-07 Alwar & Jaipur
2007-08, 2008-09 Rajasthan
Excise Excise Duty & F. Y. 1998-99, CESTAT, High
Act & Finance
Act Service tax 2004-05, 2006-07, 286.93 Ad.
2007-08, 2008-09 Asst. Comm.
2009-10, 2010-11 Commissioner of
Sales F. Y. 1998-99, Dy. Comm.
Tax Act and Sales Tax 1999-00, 2000-01, 384.95 Board, Joint
Act of 2001-02, 2002-03,
various State 2003-04, 2004-05,
10. The Company has no accumulated Losses at the end of the financial
year. The Company has not incurred any cash losses during the financial
year covered by our audit or in the immediately preceding financial
11. Based on our audit procedure and according to the information and
explanations given to us, we are of the opinion that the company has
not defaulted in repayment of dues to financial institution or banks.
The company has not issued any debenture.
12. In our opinion and according to the explanations given to us and
based on the information available, 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.
13. In our opinion, the company is not a chit fund or a nidhi /mutual
benefit fund/ society. Therefore the provision of clause (xiii) of
paragraph 4 of the order are not applicable to the Company.
14. The company is not dealing or trading in shares, securities,
debentures and other investments as business.
15. According to the information and explanation given to us, the
company has not given any guarantee for loans taken by others from
banks or financial institutions.
16. According to the information and explanation given to us, and
record examined by us the term loans have been applied for the purpose
for which they were raised.
17. According to the information and explanation given to us and an
overall examination of the balance sheet of the company, we are of the
opinion that there no funds raised on short term basis that have been
used for long term investment.
18. According to the information and explanations given to us and in
our opinion during the year the company has not made preferential
allotment of shares to parties & companies covered in the register
maintained under section 301 of the Companies Act,1956 & price at which
shares have been issued is not prejudical to the interest of the
19. No debentures has been issued by the company during the year.
20. The Company has not raised any monies by way of Public Issues
during the year.
21. According to the information and explanation given to us, no fraud
on or by the company has been noticed and reported during the year.
For S.SINGHAL & CO
Place: Gurgaon (R.K.Gupta)