We have audited the accompanying financial statements of AHMEDABAD
STEELCRAFT LTD.(theCompany), which comprise the Balance Sheet as at
March 31, 2015, the Statement of Profit and Loss,the Cash Flow
Statement for the year ended March 31, 2015 and a summary of the
significant accounting policies and other explanatory information for
the year ended as on 31st March, 2015. Management''s Responsibility for
the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 (the Act) with respect
to 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 principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies(Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, 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.
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. 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 the 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 financial control relevant
to the Company''s preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial control system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company''s Directors, 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 on the financial
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid 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, of the state of affairs of the Company as
at 31st March, 2015 and its loss and its 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, 2015 (the
Order) issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in the paragraph 3 and 4 of the
Order, to the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(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
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
(f) The Company is having adequate internal financial control system
and same is operating effectively.
(g) With respect to the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company does not have any pending litigations which would
impact its financial position.
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses; hence the Company need not make any provision.
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
The Annexure referred to in our Independent Auditors'' Report to the
members of the Company on the standalone financial statements for the
year ended 31 March 2015, we report that:
i) In respect of its Fixed Assets:
(a) The Company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) All the assets have been physically verified by the management
during the year as per the regular programme of verification which, in
our opinion, is reasonable having regard to the size of the Company and
the nature of its assets. No material discrepancies were noticed on
ii) In respect of its inventories:
(a) The management has conducted physical verification of inventory at
(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 and no
material discrepancies were noticed on physical verification by the
iii) In respect of loans, secured or unsecured, granted by the Company
to Companies, firms or other parties covered in the register maintained
under Section 189 of the Companies Act, 2013:
(a) The Company has granted unsecured loan to one Company covered in
the register maintained u/s. 189 of the Act.
(b) In the case of the loans granted to the body corporate in the
register maintained under section 189 of the Act, the borrower is
regular in the payment of the Interest as stipulated. The terms of
arrangements do not stipulate any repayment and the loans are repayable
on demand. Accordingly, paragraph 4 (iii) (c) of the order is not
applicable to the Company in respect of repayment of the principal
(c) As per information and explanation given to us the loans are
repayable on demand, hence there are no overdue amounts of more than
rupees one lakh in respect of the loans granted to the body corporate
as mentioned in registered under section 189 of the Act.
iv) 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, with regard to purchases of inventory, fixed assets and with
regard to sale of goods, and services. During the course of our audit,
no major weakness has been noticed in internal control system.
v) The Company has not accepted any deposit from public.
vi) We are informed that the Central Government has not prescribed
maintenance of cost records under section 148(1) of the Companies Act
for any products of the Company.
vii) In respect of statutory dues:
(a) According to the records of the Company, the Company is regular in
depositing undisputed statutory dues including Provident Fund,
Employees'' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service
tax, duty of Custom Duty, Duty of Excise, Value added tax, Cess and
other statutory dues with the appropriate authorities.
(b) According to the information and explanation given to us, there are
no outstanding disputed dues of Income Tax, Sales Tax, Wealth Tax,
Service Tax, duty of Custom, duty of Excise, value added tax or Cess.
(c) According to the information and explanations given to us there is
no amount which are required to be transferred to the investor
education and Protection fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and rules there
viii) In our opinion, the Company has no accumulated losses. During the
financial year covered by our audit, Company has not incurred cash
losses. In the immediately preceding financial year also, there were no
ix) The Company has not taken any loan from any financial institutions
and bank and the Company has not raised the fund by issue of debentures
hence paragraph 3(ix) of the order is not applicable to the Company.
x) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
xi) The Company not taken any term loan during the year. Accordingly
paragraph 4(xi) of the order is not applicable to the Company.
xii) Based upon the audit procedures performed and information and
explanations given by the management, we report that no material fraud
on or by the Company has been noticed or reported during the course of
FOR, DHIREN SHAH & CO.,
Firm Reg. No. 114633W
Place : Ahmedabad (DHIREN SHAH)
Dated : 28-05-2015 PARTNER
Memb. No. 035824