We have audited the attached FORM OF Balance Sheet of SAMKRG PISTONS
AND RINGS LIMITED as at 31st March, 2012 and FORM OF STATEMENT OF
Profit and Loss Account for the year ended as on that date annexed
thereto and the cash flow statement for the period ended on that date.
This financial statements are the responsibility of the company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
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 our opinion.
Further we report as follows :
1. As required by the Companies (Auditors Report) Order 2003 issued by
the central government of India in terms of subsection (4A) of section
227 of the Companies Act, 1956 and on the basis of the such checks of
books and records of the company as we considered appropriate and
according to information and explanations given to us during the course
of the audit, We annex hereto a statement on that matter specified in
paragraph 4 and 5 of the said order to the extent applicable.
2. Further to our comments in the statement referred to in paragraph
A. We have obtained all the information end explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
B. In our opinion, the Company has kept proper books of accounts as
required by law so far as appears from the examination of books.
C. The Balance Sheet and Profit and Loss Account referred to in the
Report are in agreement with the books of accounts.
D. In our opinion the Balance Sheet and the Profit and Loss account
dealt with by this Report comply with the mandatory Accounting
Standards referred to in subsection (3-C) of section 211 of the
Companies Act 1956.
E. On the basis of the 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 are disqualified as on
31st March 2012 from being appointed as director under clause (g) of
sub-section (1) of section 274 of companies act 1956,
F. In our opinion and to the best of our information and according to
the explanation given to us, the accounts read together with other
notes annexed to and forming part of the accounts give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view.
i) In so far as it relates to the FORM OF Balance Sheet of the state of
affairs of the Company as at 31 st March 2012 and
ii) In so far as it relates to the FORM OF STATEMENT OF Profit and Loss
Account of the Profit of the Company, for year ended as on that date.
iii) In the case of the cash flow statement of the cash flow for the
year ended on that date.
ANNEXURE TO AUDITORS REPORT
(statement referred to in paragraph 1 of our report of Even Date)
IN RESPECT OF ITS FIXED ASSETS
1. (a) The Company has maintained proper records showing the full
particulars including quantitative details and situation of fixed
(b) The Company has programe for phased physical verification of all
its fixed assets which in our opinion, is reasonable having regard to
the size of the Company and the nature if its assets. As informed, no
material discrepancies were noticed on such verification.
(c) The Company has not disposed off any substantial part if its fixed
assets during the year.
IN RESPECT OF ITS INVENTORIES
2. (a) The Management has conducted physical verification of the
finished goods at reasonable intervals.
(b) The Procedure of physical verification of stocks followed by the
Management are considered reasonable and adequate in relation to the
size of the company and the nature of its business.
(c) On the physical verification of stocks as compared to book records
no material discrepancies were noticed. The company is maintaining
proper records of inventory.
(d) On the basis of our examination of stocks, we are satisfied that
the valuation of stocks is fair and in accordance with normally
accepted accounting principles.
(e) The imported goods were valued at the invoice value. The exchange
rate variation if any at the end of the year were not considered since
the impact on the profit or loss is insignificant.
IN RESPECT OF THE LOANS SECURED OR UNSECURED GRANTED OR TAKEN BY THE
COMPANY TO/ FROM COMPANIES, FIRMS OR OTHER PARTIES COVERED IN THE
REGISTER MAINTAINED UNDER SEC 301 OF THE COMPANIES ACT.
3. (a) According to the information and explanations given to us, the
Company has taken unsecured loans from the Directors and their
relatives as listed in the register maintained under Section 301 of the
companies act 1956. In terms of subsection (6) of section 370 of the
companies act 1956 provision of this section is not applicable to the
(b) According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured to companies,
Firms or other parties listed in the register maintained under Section
301 of the Companies Act 1956 In terms of subsection (6) of section 370
of the companies act 1956 provision of this section is not applicable
to the company.
(c) The rates of interest and other terms and conditions of loans taken
by the company are unsecured and are prima facie not prejudicial to the
interest of the company.
(d) The payment of the principal and interest are reqular.
4. 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 regards to purchases of stores, spare parts including
components, plant and machinery, equipment and other assets and for the
sale of the goods.
5. (a) According to the information and explanations provided by the
managaement, we are of the opinion that the particulars of contracts or
arrangement referred to in section 301 of the act that need to be
entered into the register maintained under section 301 have been so
(b) In our opinion and according to the information and explanation
given to us the transactions made in pursuance of such contracts or
arrangement exceeding value of Rs.5,00,000 have been entered into
during the financial year at prices which are reasonable having regard
to the prevailing market prices at the relevant time.
6. As explained to us, there are no unserviceable or damaged stores
and there are no unserviceable or damaged raw materials or finished
7. The Company has not accepted any deposits from public. Hence, the
provisions of Section 58A of the companies Act, 1956, will not be
8. In our opinion reasonable records have been maintained by the
Company for the sales and disposal of realizable scrap.
9. In our opinion the company has internal audit system commensurate
with the size of the company and the nature of its business.
10. We have broadly reviewed the books of account relating to
materials, labour and other items of cost maintained by the company
pursuant to the rules made by the Central Government for the
maintenance of the cost records under Section 209 (i) (d) of the
Companies Act, 1956 and are of the opinion that, prima facie, the
prescribed records and accounts have been maintained by the Company. We
have, however, not made a detailed examination of the records with a
view to determine whether they are accurate and complete.
11. (a) The Provident Fund and Employees State Insurance dues have
regularly deposited with the appropriate authorities.
(b) According to the information and explanation given to us the
company does not have undisputed amounts payable in respect of Income
Tax, Wealth Tax, Excise Duty and Customs Duty outstanding for a period
of more than six months from the date they become payable.
In respect of Sale Tax (Entry Tax) there is disputed amount of Rs.
22.47 lacs not deposited with Sales Tax department. The Company had
filed an appeal with ADC(CT) PUNJAGUTTA DIVISION HYDERABAD against
certain points in the order of the for the assessment year 2002-03.
No Name Of Nature Of Amount In Forum Where
Of The Statue Dues Rs. In Lacs Dispute Is Pending
1 SALES ENTRY 22.47 ADC (CT)
TAX ACT TAX
12. During the year under report, the company has not made any
preferential allotment of shares to the parties and companies covered
in the register maintained under Section 301 of the companies Act,
13. The company has no accumulated losses at the end of the financial
year and, has not incurred any cash losses in the financial year under
report and in the immediately preceding financial year.
14. In our opinion and according to the information and explanation
given to us, the company has not defaulted in repayment of dues to
financial institutions/ banks. The company has not issued any
15. According to the information and explanations given to us, the
company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
16. In our opinion of the company is not chit fund or Nidhi/Mutual
fund/society. Therefore the provisions of Clause 4(XIII) of the
companies (Auditor's Report) order 2003 are not applicable to the
17. 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.
18. 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
19. The company has not raised any money by way of public issue during
20. According to the information and explanation given to us, no fraud
on or by the company has been noticed or reported durign the course of
For M/S. Ravi & Keshav
Registration No. : 003187S
Place : Hyderabad (K.K. KESAVAN)
Date : 26h May 2012 Propritor