1) We have audited the attached Balance Sheet of- MEENAKSHI STEEL
INDUSTRIES LIMITED as at 31st March, 2007 and also the Profit & 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.
2) 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 misstatements. 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
3) As required by the Companies (Auditors Report) Order, 2003 issued
by the Company Law Board 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
set out in the Annexure, a statement on the matters specified in
paragraphs 4 & 5 of the said Order.
4) Further to our comments in Annexure referred to in paragraph 3 above
we report 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 account as required by law have been
kept by the Company so far as it appears from our examination of those
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 have been prepared, in all material respects in
compliance with the Accounting Standards referred to in Section 211(3C)
of the Companies Act, 1956.
e) On the basis of the written representations received from the
Directors as on 31st March, 2007, and taken on the record by the E3oard
of Directors, we report that none of the Directors is disqualified as
on 31st March, 2007 from being appointed as a Director in terms of
clause (g) of sub-section (1) of section 274 of the Companies Act,
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
Notes thereon the information required by the Companies Act, 1956, in
the manner so required and also give subject to note no. 1 of Notes on
Accounts regarding non-provision of stamp duty on purchase of freehold
land, 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 2007;
(ii) in the case of the Profit and Loss Account, of the profit for the
year ended on that date;
(iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Annexure to the Auditors Report
(Referred to in paragraph 3 of our report of even date to the members
of Meenakshi Steel Industries Limited for the year ended 31 ,,03.2007)
1. The Company does not have any fixed assets, therefore the question
of maintenance of records, any material discrepancies on physical
verification and disposal of the fixed asset, does not arise.
2. According to information and explanations given to us, during the
year, the company does not have any trading activity and hence does not
have any inventory. Therefore the question of physical verification,
adequacy of procedures of physical verification and maintenance of
proper records of inventories does not arise.
3. According to the information and explanations given 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, the clauses
4(iii) (b) to (g) of the Order is not applicable to the company.
4. In our opinion and according to the information and explanations
given to us, it appears that there are 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 other
assets, and for the sale of shares & securities and services. We have
not observed any major weakness in the internal control system during
the course of the audit.
5. According to the information and explanations given to us, during
the year no contracts or arrangements referred to in section 301 of the
Act, have been entered by the company. Accordingly, the Clause 4 (v)
(b) of the order is also not applicable.
6. 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 58-A and 58AA and other
relevant provisions of the Companies Act, 1956 and rules framed there
7. The Company does not have an internal audit system.
8. 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.
9. 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 and
records of the company examined by us, the Company has disputed
liability in respect of stamp duty and penalty raised by District
Magistrate amounting to Rs. 9,64,935/- in respect of freehold lands
purchased in the year 1992-93. However, the said land was disposed off
in the year 2005-06.
10. The Company has no accumulated losses at the end of the financial
year and has not incurred any cash losses in the current financial year
and in the immediately preceding financial year.
11. No amounts were borrowed by the company from bank and through
debentures or financial institutions. Therefore, question of default in
repayment of dues of such borrowings does not arise.
12. The Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures or other securities.
13. The provisions of any Special Statute applicable to Chit Fund,
Nidhi or Mutual Benefit Fund / Societies are not applicable to the
14. The Company has maintained proper records of transactions and
contracts in respect of investments in shares, securities debentures
and other investments and that 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.
15. 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.
16. The Company has not taken any terms loans during the year.
17. According to the cash flow statement and other records examined by
us and the information and explanation given to us, on an overall
basis, the Company has not raised any short funds during the year.
Hence, the question of use of such fund for long term investments does
18. 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.
19. The Company has not issued any Debentures and hence no securities
or charges are required to be created in respect thereof.
20. The Company has not raised any money by way of public issues
during the year.
21. 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.
Place : Mumbai
Date : 03-09-2007 (Suresh G. Kothari)
Membership No. 47625