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Shakti Press Ltd.

BSE: 526841 | NSE: | Series: NA | ISIN: INE794C01016 | SECTOR: Printing & Stationery

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Shakti Press is not traded on BSE in the last 30 days

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Shakti Press is not listed on NSE

Annual Report

For Year :
2013 2012 2011 2010 2009 2008 2007 2006

Auditor's Report

Report on the Financial Statements We have audited the accompanying financial statements of Shakti Press Limited which comprise the Balance Sheet as at 30th June, 2013, statement of Profit and Loss Account and the Cash Flow Statement of the Company for the year ended and a summary of significant accounting policies and other explanatory information. Management''s Responsibility for the Financial Statements Management is responsible for preparation of these financial statement that gives a true and fair view of the financial position and financial performance of the Company in accordance with the Accounting Standard referred to in sub section (3c) of section 211 of the Companies Act 1956. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statement that gives a true and fair view and are free from material misstatement, whether due to fraud or error. Auditor''s Responsibility Our responsibility to express an opinion these financial statements based on our audit. We have conducted our audit in accordance with the standard on Auditing issued by the Institute of Chartered Accountants of 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 involve performing procedure to obtain audit evidence about the amount and disclosure in the financial statements. The procedure selected depend on the Auditor''s judgments, including the assessment of the risk of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessment the auditor consider internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audid procedure that are appropriate in the circumstance. An audit also includes evaluation the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the managements as well as evaluation the overall presentation of the financial statement 1. We believe that our audit provides a reasonable basis for our opinion, and report that: a) As told by management 3,44,00,000/- worth of debtors are more than five years old and considered unrecoverable , but no provision of bad debts has been passed in the books. b) The details of quantitative inventory not being fully maintained, more particularly in terms of raw material consumption, work in progress and finished goods output, it is not possible for us to ascertain the exact valuation hence we are relying on the valuation of the inventory provided by the management. c) The bank credit facilities availed from SBI have become NPA (Non performing Asset) as per RBI Guidelines (Prudential Norms) and consequently the said bank has stopped charging interest from 01.07.08. As a result the company has provided for interest on estimation basis w.e.f. 01.07.08 on its credit facilities with SBI. d) The balance of SBI CC A/c appearing in the books of accounts of the company are not in accordance with the bank statements provided to us and are subject to reconciliation in process. e) The TDS is payable by the Company amounting to Rs.16,05,050/- ever since 2008-09 but no proper explanation is received and no requisite effective steps taken by the management. f) The management has passed the wrong entry in the year 2008-09 of Excise Receivable worth Rs. 41,47,368.61/- and Interest Receivable worth Rs.38,08,282.98/- in the year 2007-08 but they have not taken any corrective steps to rectify these entries till date. g) The company has not amortised Brand over its useful life, it seems that they have not been following the provisions of AS-26.The quantum of such amortization should be Rs. 2,05,00,000/- as on 30.6.2013. h) The Company has paid retention money deposit of worth Rs.2,11,090.70/- and earnest money deposit of worth Rs.2,93.472/- ever since 2009-10 and earlier years but the individual party wise break-up is not available with the management. Hence, the recovery is doubtful. i) The management has not been recognizing deferred tax asset/liability it seems that provisions of AS-22 has not been followed. j) Impairmentis not recognized to the extent that the recoverable amount of assets is less than its carrying amount and is charged to profit & loss a/c as prescribed in AS 28 Opinion In our opinion and to the best of our information and according to the explanations given to us, they said financial statements together with the notes thereon, give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view subject to and to the extent as pointed in the Annexure to this report and Note 1(j) of Schedule 15 to Notes to Accounts and Para 2 above forming a part of Auditors Report, in conformity with the accounting principles generally accepted in India. a) in the case of Balance Sheet, of the state of affairs of the Company as at 30th June, 2013. b) in the case of Profit and Loss Account, of the loss of the Company for the year ended on that date. Report on other legal and regulatory Requirement 1. As required by the Companies (Auditor''s Report) order 2003, issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, we give in the annexure a statement on matter specified in paragraphs 4 and 5 of others. 2. As required by section 227 of Act, 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 audit. b) In our opinion proper books of account as required by law have been kept by the Company so far as appear from our examination of those books c) The Balance Sheet and Statement of Profit & Loss, dealt with by this Report are in agreement with the books of account. d) In our opinion , the Balance Sheet and Statement of Profit and Loss comply with the Accounting Standard referred to in section (3c) of section 211 of the Companies Act 1956; e) On basis of written representation received from the Directors s on 30th June 2013 and taken on record by the Board of Directors, none of the Directors is disqualified as on 30th June 2013, from being appointed as Directors 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 rate at which the cess is to be paid under section 441 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. (Referred to in Paragraph No.3 of the Auditor''s Report of even date) (i) a) In our opinion and according to the information and explanation given to us. Company is maintaining proper record showing full particulars including quantitative details and situation of fixed Assets. b) Fixed assets have been physically verified by the management at reasonable intervals any material discrepancies noticed have been properly dealt with. c) In our opinion and according to the information and explanation given to us no substantial part of fixed assets has been disposed off during the year. (ii) a) In our opinion and according to the information and explanation given to us physical verification of inventory has been conducted at reasonable intervals by the management b) In our opinion and according to the information and explanation given to us procedure of physical verification followed by the management is reasonable and adequate in relation to size of the company and the nature of its business. c) On inspection of the records maintained we are of the opinion that the records in respect of inventory (Raw Material), Work in Progress and Finished Goods are not maintained fully in accordance with the normally accepted practices. We are relying on value of closing stocks as certified and provided by the management. (iii) (a) The Company had taken loan from other Companies covered in register maintained under section 301 of the Companies Act, 1956.Such register has not maintained by management. (b) The Company has not given loan to other Companies / firms or other parties listed in the register maintained under section 301 of the companies Act, 1956. (c) In our opinion and according to the information and explanations given to us, internal control procedures are inadequate commensurate with the size of the company and the nature of its business with regard to purchase of inventory, fixed assets, sale of goods, debtor, creditors and cash. Further there is no adequate theft / loss insurance cover for this high cash balance. Further still the balances of outstanding Debtors and Creditors are unconfirmed but only 3,44,00,000/- considered good by the management. During the course of our audit, except for our remarks on cash balance and Debtors and Creditors, high level of inventory as above, we have observed continuing failure to correct major weaknesses in the internal controls. iv) (a) According to the information and explanations given to us, we are of the opinion that all the transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered. (b) In our opinion, transactions exceeding the value of Rs 5 Lacs have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time. (v) In our opinion and according to the information and explanations given to us, the Company has complied with the directives issued by Reserve Bank of India and the provisions of Section 58 A and 58 AA or any other relevant provisions of the Companies Act, 1956 and the rules framed there under in respect of deposits. As per the information and explanations given to us no order has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other Tribunal in this respect. (vi) The Central Government has prescribed maintenance of cost records under section 209(1) (d) of the Companies Act, 1956 for any products of the company. Accordingly the Company has appointed Cost Auditor, However no cost Audit Report has been received, till date of Audit. (vii) (a) Except on few occasions the Company is generally irregular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education protection fund, employees'' state insurance, income tax, sales tax, wealth tax, custom duty, excise duty, cess and other material statutory dues applicable to it. (b) According to the information and explanations given to us, no undisputed amounts payable in respect of income tax, wealth tax, sales tax, customs duty, excise duty and cess were in arrears, as at 30.06.2013 for a period of more than six months from the date they became payable. Except for those items refered to Notes to Accounts in Schedule 15 Item No. 2(2). In respect of Sales tax, the company has not availed Sales Tax Exemption under 1993, Package scheme of Incentives of issued by the government of Maharashtra State vide its sanctioned letter COE No.440012/S/914/E-3/LM/1823 & 1824 dated 24/10/2008. (c) According to the information and explanation given to us, there is no disputed amount payable in respect of statutory dues. (viii) In our opinion and according to the information and explanations given to us, the company has defaulted in repayment of dues to a financial institution, bank and its account with SBI has classified as NPA. (ix) We are of the opinion that the company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. (x) In our opinion, the company is not a chit fund or a nidhi mutual benefit fund / society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the company. (xi) In our opinion, the company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the company. (xii) In our opinion, the company has not given any guarantees for loans taken by others from banks or financial institutions. (xiii) Based on information and explanation given to us by the Management, in our opinion, the Term Loans have been applied for the purpose for which they were raised. (xiv) According to the information and explanations given to us and on an overall examination of the balance sheet of the company, we report that the no funds raised on short-term basis have been used for long-term investment. No long-term funds have been used to finance short-term assets except permanent working capital. (xv) According to the information and explanations given to us, during the period covered by our audit report, the company had not issued any debentures. (xvi) There was no public issue during the year, but increase in capital by way of Share Application money against private placement of equity shares to Lenders and Creditors. (xvii) According to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the course of our audit. For L.B. HAJARE & CO., CHARTERED ACCOUNTANTS, Place : Nagpur L.B. HAJARE Date :29/08/2013 (PROPRIETOR) M.No. 039940