Steel Strips Ltd.की ऑडीटर रिपोर्ट

Mar 31, 2014

We have audited the accompanying financial statements of STEEL STRIPS WHEELS LIMITED, 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 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 principles generally accepted in India, including the Accounting Standards notified under the Companies Act, 1956 ("the Act") read with the General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013. 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. 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 India:

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 Profit and Loss Account, of the profit/loss of the year ended on that date; and

c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

1. As required by the Companies (Auditor's Report) Order, 2003 ("theOrder") issued by the Central Government of India in terms of sub-section (4A) of section 227of the Act, we give in the Annexure a statement on the matters specified in paragraphs4 and 5 of the Order.

2. 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 of 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 appears from our examination of those books

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 account.

d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with the Accounting Standards notified under the Companies Act, 1956 read with the General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013; and

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.

ANNEXURE To Independent Auditors' Report

The Annexure referred to in paragraph 1 of the Our Report of even date to the members of STEEL STRIPS WHEELS LIMITED on the accounts of the company of the year ended 31st March, 2014.

On the basis of such checks as we considered appropriate and according to the information and explanation given to us during the course of our audit, we report that:

1. In respect of its fixed assets:

(a) The Company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets on the basis ofavailable information.

(b) As explained to us, Physical verification of inventory of fixed assets has been conducted at reasonable intervals by the management. The procedures of physical verification of inventory followed by the management appear to be reasonable and adequate in relation to the size of the Company and the nature of its business. The Company is maintaining proper records of inventory. No material discrepancies were noticed on physical verification dealt with in the books of accounts.

(c) In our opinion, the Company has not disposed off a substantial part of its fixed assets during the year and the going concern status of the Company is not affected.

2. In respect of its inventories:

(a) The inventories have been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

(b) In our opinion and according to the information and explanations given to us, 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.

(c) The Company has maintained proper records of inventories. As explained to us, there were no material discrepancies noticed on physical verification of inventories as compared to the book records.

3. The Company has not granted or taken any loan, secured or unsecured loans to/from Companies covered in the register maintained under section 301 of the Companies Act, 1956. The Provision of clause 4(iii) of Companies(Auditor's Report) order, 2003 are not applicable.

4. In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business for the purchases of inventory and fixed assets and of the sale of goods and services. During the course of the audit; we have not observed any continuing failure to correct major weaknesses in internal control system.

5. a) According to the information and explanations provided by the management, we are of the opinion that the particulars of contracts or arrangements referred to in section 301 of the Companies Act, 1956 that need to be entered into the register maintained under section 301 have been so entered.

b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of such contracts or arrangements and exceeding the value of Rupees five lakhs have been entered into during the financial year at prices which are reasonable having regard to the prevailing market prices of the relevanttime.

6. According to the information and explanations given to us, the Company has not accepted any deposit from the public. Therefore, directives issued by Reserve Bank of India and the provisions of Section 58A and 58AAof the Companies Act,1956 and rule framed thereunder are not applicable of the year under audit.

7. In our opinion, the Company has an internal audit system commensurate with the size and nature of its business.

8. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Accounting Records) Rules, 2011 prescribed by the Central Government under Section 209(1)(d) of the Companies Act, 1956 and are of the opinion that prima facie the prescribed cost records have been maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

9. In respect of statutory dues:

a. According to the records of the Company, undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees' State Insurance, Income-Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess, and other statutory dues have been generally regularly deposited with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at March 31,2014 for a period of more than six months from the date of be coming payable.

b. 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, Service tax, Custom Duty, Excise Duty, Cess and any other statutory dues with the appropriate authorities.

10. The Company has no accumulated losses at the end of financial year and it has not incurred cash losses in the current and immediately preceding financial year.

11. Based on our audit procedures and according to the information and explanations given to us, we are of the opinion that the Company has not defaulted in repayment of dues to financial institutions and banks.

12. In our opinion and according to the explanations given to us and based on the information available, no loans and advances have been granted by the Company on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opinion, the Company is not a chit fund / nidhi /mutual benefit fund / society. Therefore, the provisions of Clause (xiii) of paragraph 4 of the Companies (Auditor's Report) Order, 2003 are not applicable to the Company.

14. In our opinion and according to the information and explanations given to us, the Company is not a dealer or trader in shares, securities and other investments. The Company has maintained proper records of transactions and contracts in respect of shares, securities and other investments and timely entries have been made therein. All shares, securities and other investments have been held by the Company in its own name.

15. According to the information and explanation give to us, the Company has not given any guarantee for loans taken by others from bank or financial institutions.

16. Base on the information and explanations given to us by the management, term loan were applied for the purpose for which the loans were obtained.

17. According to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, we are of the opinion that there are no funds raised on short-term basis that have been used for long term investment.

18. The Company has not made any preferential allotment of equity shares to a company covered in the Register maintained under Section 301 of the CompaniesAct, 1956 during the financial year.

19. The Company has notissued any Debentures to the public.

20. The Company has not raised any monies byway of public issues during the year.

21. In our opinion and according to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the year

For S.C. Dewan & Co Chartered Accountants ICAI Firm Registration Number: 000934N

per S.C.Dewan Place : Chandigarh Partner Dated : 30th May, 2014 Membership Number: 015678

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Mar 31, 2012

We have audited the attached Balance Sheet of M/s. STEEL STRIPS LIMITED as at 31.03.2012 and also the Profit and Loss Account and the Cash Row Statement for the period ended on that date annexed thereto. These 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.

(1) As required by the Companies (Auditors' Report) Order, 2003 issued by the Central Government of India in terms of Section 227 (4-A) of the Companies Act, 1956 we enclose in the Annexure a statement on the matters as specified in paragraph 4 and 5 of the said order.

(2) Further to our comments in the Annexure referred to in paragraph 1 above, we state that: -

(i) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

(ii) In our opinion, proper books of account as required under the law, have been kept by the Company so far as appears from our examination of such books.

(iii) The Balance Sheet and Profit and Loss Account and the Cash Flow Statement referred to in this report are in agreement with the books of accounts.

(iv) In our opinion, the Balance Sheet and Profit and Loss Account and the Cash Flow Statement dealt with by this report, comply with the mandatory Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956.

(v) On the basis of written representation received from Directors, as on

31.03.2012 and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on

31.03.2012 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 read together with the significant accounting policies and notes thereon give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view 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

31.03.2012, and,

(b) In the case of Profit and Loss Account, of the Loss for the period ended on that date, and,

(c) In the case of cash flow statement, of the cash flows for the year ended on that date.

ANNEXURETO AUDITORS' REPORT

Referred to in paragraph 1 of our report of even date:

1. The company is not holding any Fixed Assets. Therefore, the reporting requirements under this clause are not applicable.

2. The company is not holding any Inventory. Therefore, the reporting requirements under this clause are not applicable.

3. The company has not granted or taken any loans, secured or unsecured to/from companies, firm or other parties covered in the registers maintained under Section 301 of the Act.

4. In our opinion and according to the information and explanations given to us, there are internal control procedures commensurate with the size of the company and nature of its business. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control system.

5. The transactions that need to be entered into a register in pursuance of section 301 of the Act have been so entered in the register. Each of these transactions have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

6. According to the information and explanations given to us, the Company has not accepted any deposit from the public. Therefore, the provisions of Clause (vi) of paragraph 4 of the Order are not applicable to the Company.

7. In our opinion, the company has an internal audit system commensurate with the size and nature of its business. .

8. Maintenance of cost records as prescribed by the Central Government under clause (d) of sub section (I)'of section 209 of the Act. are not applicable to company

9. In respect of statutory dues:

(a) According to the records of the Company, undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees' State Insurance, Income-Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess, and other statutory dues have been generally regularly deposited with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at March 31, 2012 for a period of more than six months from the date of becoming payable.

(b) The Company is regular in depositing undisputed statutory dues including, Provident Fund, Employees' State Insurance, Income Tax, VAT/Sales tax, Wealth tax, Service tax and any other statutory dues with the appropriate authorities.

10. The Company has been registered for a period of more than five years, having existing share capital of Rs.828.31 lakhs. Its accumulated losses at the

end of the financial year amounts to Rs.2727.28 lakhs and are more than 50% of its net worth. There is cash loss in the financial year under review. The Company is a sick industrial company within the meaning of clause (o) of Sub-Section (1) of Section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985 as amended.

11. Based on our audit procedures and according to the information and explanations given to us, we are of the opinion that the Company has not defaulted in repayment of dues to financial institutions and banks.

12. In our opinion and according to the explanations given to us and based on the information available, no loans and advances have been granted by the Company on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opinion, the Company is not a chit fund / nidhi /mutual benefit fund / society. Therefore, the provisions of clause (xiii) of paragraph 4 of the Order are not applicable to the Company.

14. In our opinion, the Company is not a Financing Company.

15. The company has not given any guarantee for loans taken by others from bank or financial institutions. .

16. The term loans were applied for the purpose for which the loans were obtained, as per information available from the records of the company.

17. According to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, we are of the opinion that there are no funds raised on short- term basis that have been used for long term investment.

18. The Company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under Section 301 of the Companies Act, 1956.

19. The Company has not issued any Debentures to the public 20. The Company has not raised any monies by way of public issues during the year.

21. In our opinion and according to the information and explanations given to us, no material fraud on or by the Company has been noticed or reported during the year.

For S. C. Dewan &Co. Chartered Accountants (Registration No.: 000934N)

Place : Chandigarh S.C. DEWAN

Dated -.29.05.2012 PARTNER

Membership No.: 015678

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Mar 31, 2010

We have audited the attached Balance Sheet of M/s. STEEL STRIPS LIMITED as at 31.03.2010 and also the Profit and Loss Account and the Cash Flow Statement for the period 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. We conducted our audit in accordance with auditing standards generally accepted in India. These 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.

(1) As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government in terms of Section 227 (4-A) of the Companies Act, 1956 we enclose in the Annexure a statement on the matters as specified in paragraph 4 and 5 of the said order.

(2) Further to our comments in the Annexure referred to in paragraph 1 above, we state that:-

(i) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

(ii) In our opinion, proper books of account as required under the law, have been kept by the Company so far as appears from our examination of such books.

(iii) The Balance Sheet, Profit and Loss Account and the Cash Flow Statement referred to in this report are in agreement with the books of accounts.

(iv) In our opinion, the Balance Sheet, Profit and Loss Account and the Cash Flow Statement dealt with by this report, comply with the mandatory Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956.

(v) On the basis of written representation received from directors, as on 31.03.2010 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31.03.2010 from being appointed as a director In terms of Clause (g) of sub - section (1) of Section 274 of 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 read together with the significant accounting policies as per schedule 9 of Notes on Accounts, and subject to note no. 8 of schedule 9 of Notes on Accounts, give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view 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 31.03.2010 and

(b) In the case of Profit and Loss Account, of the Loss for the period ended on that date.

(c) In the case of cash flow statement, of the cash flows for the year ended on that date.

ANNEXURE TO AUDITORS REPORT

Referred to in paragraph 1 of our report of even date:

1. (a) The company has maintained proper records of Fixed Assets, showing full particulars including quantitative details and situation thereof.

(b) The assets were physically verified by the management at reasonable intervals. No material discrepancies were noticed on such verification.

2. The Company is not holding any inventory. Therefore, the reporting requirements under this clause are not applicable.

3. The company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Act. However the company has taken loans from such companies, firms or other parties, covered in the said register, terms where of are not prejudicial to the interest of the company.

4. There is an adequate internal control procedure commensurate with the size of the company and the nature of its business.

5. The transactions that need to be entered into a register in pursuance of section 301 of the Act have been so entered in the register. Each of these transactions has been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

6. The company had not accepted deposits from the public under sections 58-A of the companies Act, 1956 during the year under consideration.

7. The company has an adequate internal audit system commensurate with the size and nature of its business.

8. The company is not required to maintain cost records u/s 209 (1) (d) of the companies Act, 1956. As such, no cost records have been maintained.

9. According to the records of the company, the Provident Fund and Employees State Insurance dues Income Tax, Sales Tax, Wealth Tax, Custom Duties, Excise Duty and Cess have been regularly deposited during the year with the appropriate authorities and there are no arrears as on 31st March, 2010.

10. The company has been registered for a period of more than five years, having existing share capital of Rs. 826.31 lakhs. Its accumulated;, losses at the end of the financial year amount to Rs. 3060.12 lakhs and are more than 50% of its net worth. It has incurred cash loss in the financial year under review. However, there was no cash loss immediately preceding financial year.

11. The company has not defaulted in repayment of dues to Financial Institutions or Banks or debenture holders during the year under consideration.

12. The company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. The company is not a chit fund company. The company is not running any Nidhi/ Mutual Benefit Fund/ Society.

14. The Company is not dealing or trading in Shares, Securities, Debentures or other investments.

15. The company is not a Financing Company. The company has not given any guarantee for loans taken by others from bank or financial institutions.

16. There are no term loans raised during the year, as such question of their utilization does not arise.

17. The company has not raised any short Term Funds during the year.

18. The company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under section 301 of the Act during the year.

19. The company has not issued any Debentures during the year.

20. The company has not raised any money by Public Issue during the year.

21. No fraud on or by the company has been noticed or reported during the year.

22. We have not come across any personal expenses, which have been charged to revenue account, other than those payable in accordance with generally accepted business practices.

23. The Company is a Sick Industrial Company within the meaning of clause (o) of Sub-Section (1) of Section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985 as amended. For S. C. Dewan & Co. Chartered Accountants

Place : Chandigarh S. C. DEWAN

Dated : 31.05.2010 PARTNER