We have audited the accompanying financial statements of Ahmedabad
Steelcraft Limited (CIN : L2709GJ1972PLC011500), which comprise the
Balance Sheet as at March 31, 2014, and 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 the Companies Act, 1956 (which, for the time being, are deemed to be
the Accounting Standards prescribed under Section 133 of the
Companies Act, 2013 in terms of General Circular 15/2013 dated 13th
September, 2013 of the Ministry of Corporate Affairs). 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.
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 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 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 but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. 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.
In our opinion and to the best of our information and according to the
explanations given to us, the 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
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 Profit for
the year ended on that date; and
c) in the case of Cash Flow Statement, of the Cash flows for the year
ended on that date. Report on Other Legal and Regulatory Requirements
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.
1. 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
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
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
d) In our opinion, the Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statements comply with the Accounting Standards
referred to in subsection (3C) of section 211 of the Companies Act,
1956 (which for the time being, are deemed to be the Accounting
Standards prescribed under Section 133 of the Companies Act, 2013 in
terms of General Circular 15/2013 dated 13th September, 2013 of the
Ministry of Corporate Affairs);
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.
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
(c) As per our information and explanation given to us on our
enquiries, there is no substantial disposal of assets during the year
so as to have an impact on the operations of the company, or affect its
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 or taken by the
Company to / from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956:
(a) The company has granted unsecured loan to one company covered in
the register maintained u/s.301 of the Act and maximum amount involved
in the transactions is Rs. 1,98,54,037/- and the year-end balance of
loans granted to such party was Rs. 1,98,54,037/-.
(b) As per the information and records made available, the rate of
interest and other terms and conditions on which loans have been
granted to parties covered in the register maintained under section 301
of the Companies Act, 1956 are not, prima facie, prejudicial to the
interest of the company except to the extent that there is no covenant
with regard to the repayment of loan.
(c) As there is no stipulation with regard to repayment of the
aforesaid loans granted, it cannot be commented upon, whether the
amount (principal as well as interest) has been repaid regularly or
(d) As per information given to us and on the basis of record made
available to us, as there is no stipulation with regard to repayment of
the aforesaid loans granted, it cannot be commented upon, whether there
is any overdue amount in respect of principal or interest.
(e) The company has not taken any loan, secured or unsecured from any
Companies, Firms or other parties covered in the register maintained
u/s. 301 of the Companies Act, 1956. Accordingly, clause (f) & (g) are
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). In respect of the contracts or arrangements referred to in section
301 of the Companies Act, 1956 :
(a) Based on the audit procedures applied by us and according to the
information and explanations given to us the company has not carried
out any contract or arrangement referred to in Section 301 of the
Companies Act, 1956. Hence, Clause 4(v) of the Order is not applicable
to the company.
vi) The company has not accepted any deposit during the year in
contravention of provisions of section 58A of the Companies Act, 1956
and Companies (Acceptance of Deposit) Rule 1975.
vii) The internal audit functions carried out during the year by a firm
of Chartered Accountants appointed by the management have been
commensurate with the size of the company and nature of its business.
viii) We are informed that the Central Government has not prescribed
maintenance of cost records under section 209(1 )(d) of the Companies
Act, 1956 for any products of the company.
ix) 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, Investor
Education and Protection Fund, Employees'' State Insurance, Income-tax,
Sales-tax, Wealth Tax, Custom Duty, Excise Duty, Service tax, Cess and
other material statutory dues applicable to it with the appropriate
(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, Custom Duty, Excise Duty and Cess other than the
Statute Asst. Year Amt Rs. Forum where dispute is pending
Act, 1961 2004-05 5,01,640 CIT(Appeal)
x) 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
xi) 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, banks, or
xii) In our opinion and according to the information and explanations
given to us, no loans or advances have been granted by the company on
the basis of security by way of pledge of shares, debentures and other
xiii) In our opinion the company is not a chit fund or a nidhi/mutual
benefit funds/society. Therefore, clause 4(xiii) of the Companies
(Auditor''s Report) Order 2003 is not applicable to the Company.
xiv) In our opinion, the company is not dealing in shares, securities,
debentures and other investments. Accordingly, the provision of clause
4(xiv) of the Companies (Auditor''s Report) Order 2003 is not applicable
to the Company.
xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by its subsidiaries
and associates from bank or financial institutions.
xvi) The company did not have any term loan outstanding during the
current financial year or in the immediately preceding financial year.
xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short term basis have been used for long term
xviii) During the year, the Company has not made any preferential
allotment of shares to parties or companies covered in the register
maintained under section 301 of the Companies Act, 1956.
xix) The Company did not have any outstanding debentures during the
xx) The Company has not raised any money through a public issue during
xxi) Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the course of our audit
that causes the financial statements to be materially misstated.
FOR, DHIREN SHAH & CO.,
Firm Reg. No. 114633W
Memb. No. 035824
Place : Ahmedabad
Dated : 27-05-2014