1. We have audited the attached Balance Sheet of SHAKTIMAN
CONSTRUCTIONS LTD. as at 31st March, 2008 and also the Profit & Loss
A/c 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 from any 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 managements 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 Central Government of India in terms of sub-Section (4A) 01
Section 227 of the Companied Act, 1956, we enclose in the Annexure a
statement on the matters specified therein.
4. Further to our comments in the Annexure referred to above, we
I. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
II. 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 such
III. The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts.
IV. In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub section 3 C of Sec. 211 of the Companies
V. On the basis of written representations received from Director as
on 31st March, 2008 and taken on record by the Board of Directors, we
report that none of the Directors are disqualified as on 31st March,
2008 from being appointed as a Director in terms of Clause (g) of sub
section (1) of section 274 of the Companies Act, 1956.
VI. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts subject to Note 2(h)
regarding recover/ of loan from Anil Corporation and Suchit Bachalli
and Ankohleys & Company read together with the notes thereon, gives
the information required and give a true and fair view in conformity
with the accounting principle generally accepted in India.
a. In the case of the Balance Sheet of the state of affairs of the
Company as on 31st March, 2008.
b. In the case of Profit 8s Loss Account of the Profit for the year
ended that date and
c. In the case of Cash Flow statement, of the cash flow for the year
ended on that date.
ANNEXTURE TO THE AUDITORS REPORT
(Statement referred to in paragraph 3 of our Report of even date on the
Accounts of SHAKITIMAN CONSTRUCTIONS LIMITED (Formerly known as
Shaktiman Mercantile Co. Ltd.) for the year ended 31st March, 2008.)
1) Since the Company is not having any fixed assets, clause No. 1 & 2
are not applicable.
2) The Inventory has been physically verified during the year by the
Management. In our opinion, the frequency of verification is
3) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
4) On the basis of our examination of the records of inventory, we are
of the opinion that the Company is maintaining proper records of
inventory. The discrepancy noticed on verification between the physical
stocks and the book records were not material.
5) The Company has not taken any Loans from Companies, Firms and Other
Parties covered in the Register maintained under section 301 of the
6) The Company has not granted any loan to Companies, Firms and Other
Parties covered in the Register maintained under section 301 of the
7) In our opinion the rate of interest and other terms and conditions
on which loans have been taken from / granted to Companies, Firms or
other parties listed in the register maintained under Section 301 are
not prima facie, prejudicial to the-interest of the Company. However,
no interest has been charged or granted on the above loans taken /
8) The Company is regular in repaying the principal amounts as
stipulated and has been regular in the payment of interest. The parties
have repaid the principal amounts as stipulated and have been regular
in the payment of interest.
9) There is no overdue amount of loans taken from or granted to
Companies, Firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956.
10) In our opinion and according to the information and explanations
given to us, there are adequate 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 the sale of
goods. During the course of our audit, no major weakness has been
noticed in the internal controls.
11) Based on the audit procedures applied by us - and according to the
information and explanations provided by the management, we are of the
opinion that the transactions that need to be entered into the register
maintained under Section 301 have been so entered.
12) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the registers maintained under Section 301 and
exceeding the value of five lakh rupees in respect of any party during
the year have been made at prices which are reasonable having regard to
prevailing market prices at the relevant time.
13) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
58A and 58AA of the Companies Act, 1956 and the Companies (Acceptance
of Deposit) Rules, 1975 with regards to the Deposits accepted from the
public. No order has been passed by National Company Law Tribunal.
However during the year under report the Company has not accepted
Deposits under Sections 58A and 58M of the Companies Act, 1956 and the
Companies (Acceptance of Deposit) Rules, 1975.
14) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
15) According to the records of the Company, The Company is regular in
depositing with appropriate authorities undisputed statutory dues
including provident fund, investor education protection fund,
employees state insurance, income-tax, sales-tax, wealth-tax, excise
duty, cess tax, custom duty, excise-duty, cess and other statutory dues
applicable to it.
16) According to the information and explanations given to us, no
undisputed amount payable in respect of income tax, wealth tax, sales
tax, custom duty and excise duty were outstanding as at 31st March,
2008 for a period of more than six months from the date they became
17) According to the records of the Company, there are no dues of sales
tax, income-tax, customs tax/wealth-tax, excise duty / cess which have
not been deposited on account of any dispute.
18) Based on our audit procedure and on the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues of a financial
institution, Bank or debenture holders.
19) Based on our examination of documents and records, we are of the
opinion that the Company has maintained adequate records where the
Company has granted loans and advances on the basis of security by way
of pledge of shares, debentures and other securities.
20) Based on our examination of records and evaluation of the related
internal controls, we are of the opinion that proper records have been
maintained of the transaction and contracts and timely entries have
been made in those records. We also report that the Company has held
the shares, securities, debentures and other securities in its own
21) The Company has not given any guarantee for loans taken by others
from Bank or Financial Institution.
22) The Company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act.
23) During the period covered by our audit report, the Company has
issued debenture of Rs. NIL each. The Company has not created any
security in respect of debentures issued.
24) 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
25) Other clauses of the said order are not applicable to the Company.
For J K Lahoti & Co
J K Lahoti
Place : Mumbai M. No. 16655
Date : 30/08/2008