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Aditya Forge Ltd.

BSE: 522150 Sector: Engineering
NSE: N.A. ISIN Code: INE281H01013
BSE LIVE 14:04 | 09 May Stock Is Not Traded.
NSE LIVE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 3.11
PREVIOUS CLOSE 3.11
VOLUME 1255
52-Week high 3.11
52-Week low 3.11
P/E
Mkt Cap.(Rs cr) 1.34
Buy Price 3.11
Buy Qty 745.00
Sell Price 0.00
Sell Qty 0.00
OPEN 3.11
CLOSE 3.11
VOLUME 1255
52-Week high 3.11
52-Week low 3.11
P/E
Mkt Cap.(Rs cr) 1.34
Buy Price 3.11
Buy Qty 745.00
Sell Price 0.00
Sell Qty 0.00

Aditya Forge Ltd. (ADITYAFORGE) - Auditors Report

Company auditors report

INDEPENDENT AUDITORS REPORT

To The Members of

ADITYA FORGE LIMITED.

Report on the Financial Statements

We have audited the accompanying financial statements of ADITYA FORGE LIMITED (‘theCompany) which comprise the Balance Sheet as at March 31 2014 the Statement of Profitand Loss for the year ended and a summary of significant accounting policies and otherexplanatory information.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give atrue and fair view of the financial position financial performance of the Company inaccordance with the Accounting Standards notified under the Companies Act 1956 ("theAct) read with the General Circular 15/2013 dated 13th September 2013 of theMinistry of Corporate Affairs in respect of section 133 of the Companies act 2013. Thisresponsibility includes the design implementation and maintenance of internal controlrelevant to the preparation and presentation of the financial statements that give a trueand fair view and are free from material misstatement whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal control relevant to the Company’s preparation and fairpresentation of the financial statements in order to design audit procedures that areappropriate in the circumstances but not for the purpose of expressing an opinion on theeffectiveness of companies internal control. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by management as well as evaluating the overall presentation of thefinancial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:

(i) in the case of the Balance Sheet of the state of affairs of the Company as atMarch 31 2014;

(ii) in the case of the Statement of Profit and Loss of the 'LOSS’ for the yearended on that date;

(iii) In the case of the Cash Flow Statement of the cash flows for the year ended onthat date

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2003("theOrder") as amended issued by the Central Government of India in terms ofsub-section(4A) of section 227 of the Act we give in the Annexure a statement on thematters specified in paragraphs 4 and 5 of the Order.

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 ourknowledge and belief were necessary for the purpose of our audit;

b. in our opinion proper books of accounts as required by law have been kept by theCompany so far as appears from our examination of those books

c. the Balance Sheet Statement of Profit and Loss and the Cash Flow Statement dealtwith by this Report are in agreement with the books of account

d. in our opinion the Balance sheet statement of profit and loss and the Cash FlowStatement comply with Accounting Standards notified under the Companies Act 1956("the Act") read with General Circular 15/2013 dated 13th September2013 of the Ministry of Corporate Affairs in respect of Section 133 of Companies Act2013.

e. On the basis of written representations received from the directors as on March 312014 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2014 from being appointed as a director in terms of clause (g) ofsub-section (1) of section 274 of the Companies Act 1956.

For K.J.Shah & Co.
Chartered Accountants
Registration No.l32369W
(Kamlesh J Shah )
Date: 24th August 2014 Proprietor
Place: Vadodara Membership No.042390

Annexure referred to in paragraph titled as 'Report on Other Legal and RegulatoryRequirements’ of Independent Auditors Report to the members of ADITYA FORGE LIMITEDfor the year ended 31st March 2014.

1. In respect of its fixed assets:

(a) The company has maintained proper records showing full particulars includingquantitative details and situation of the fixed assets.

(b) As explained to us all the fixed assets have been physically verified by themanagement during the year in accordance with a phased programmed of verification adoptedby the Company. In our opinion the frequency of verification is reasonable having regardto the size of the company & nature of its assets. As informed to us no materialdiscrepancies were noticed on such physical verification.

(c) As explained to us the company has not made disposal of substantial part of fixedassets during the year under review and has not affected the going concern.

2. In respect of its inventories:

(a) Physical verification of inventory has been conducted at reasonable intervals bythe management.

(b) Procedures for physical verification of inventory followed by the management needsto improve to make it adequate in relation to the size of the company and the nature ofits business.

(c) In Our Opinion the Company is maintaining proper records of Inventory.Discrepancies noticed on Physical verification of Inventory as compared to book recordswere not material and have been properly dealt with in the books of accounts.

3. In respect of loans granted and taken to / from parties covered in the registermaintained u/s 301 of the Companies Act 1956.

(a) The company has not granted any loans secured or unsecured to companies firms orother parties covered in the register maintained under Section 301 of the Act.Accordingly clause (iii)(b) to (iii)(d) of paragraph 4 of the Order are not applicable tothe Company for the Current year.

(b) The Company has taken loans secured or unsecured from companies firms or otherparties covered in the register maintained under Section 301 of the Act.

(c) In our opinion and according to the information and explanation given to usbarring the nil rate of interest and other terms and conditions for such loans are notprima facie prejudicial to the interest of the company.

(d) The loans taken are re-payable on demand.

4. In respect of internal control

In our opinion and according to the information and explanations given to us there isadequate internal control system commensurate with the size of the company and the natureof its business for the purchase of inventory and fixed assets and for the sale of goodsand services. During the course of audit we have not observed continuing failure tocorrect major weaknesses in internal control system.

5. In respect of contracts or arrangements need to be entered into a registermaintained u/s 301 of the Companies Act 1956

(a) According to the information and explanation given to us we are of the opinionthat the particulars of contracts or arrangements referred to in section 301 of thecompanies Act 1956 have been entered in the register required to be maintained under thatsection.

(b) In our opinion and according to the information and explanation given to us thetransactions made in pursuance of contracts or arrangements entered in the registermaintained under section 301 of the companies Act 1956 are made at price which arereasonable having regard to prevailing market prices at the relevant time.

6. In respect of deposits from public

No deposits within the meaning of Sections 58A and 58AA or any other relevant provisionof the Act and rules farmed there under have been accepted by the Company.

7. In respect of internal audit system

In our opinion the Company has an in house internal audit system commensurate with thesize of the Company and nature of its business however the same is required to bestrengthened with regard to the scope reporting and its compliance.

8. In respect of maintenance of cost records

We have broadly reviewed the books of account maintained by the Company pursuant to therules made by the Central Government for Maintenance of cost records under section209(l)(d) of the Companies Act 1956 in respect of Company's product to which the saidrules are made applicable and are of the

opinion that prima facie the prescribed accounts and records have been made andmaintained. We have however not made a detailed examination of the records with a view todetermine whether they are accurate.

9. In respect of statutory dues

(a) The company is regular in depositing with appropriate authorities undisputedstatutory dues including provident fund investor education protection fund employees'state insurance income tax sales tax wealth tax service tax custom duty Cess andother material statutory dues applicable to it except Excise Duty amounting to Rs.1808267/- 85 Professional Tax amounting to Rs.89590/-

(b) According to the records of the Company there are no dues of Sales tax Customsduty Wealth tax service tax and cess that have not been deposited on amount of anydispute. There were disputed statutory dues of the company that have not been deposited onaccount of matters pending before appropriate authorities. The same are as below;

Sr No. Name of the Statue Nature of the Due

Amount (Rs. In Lakhs)

Period to which the amount relates

Forum where dispute is pending

1 Income Tax Tax & Interest

1059470/-

F.Y 2009-10

CIT(A)

2 Income Tax Tax & Interest

7751550/-

F.Y 2010-11

CIT(A)

10. In respect of accumulated losses and cash losses

There are accumulated losses of Rs.483.76 Lacs [Previous Year Rs.454.78 Lacs] of theCompany at the end of the financial year. There are no cash losses during the financialyear. In the current year company’s Net-Worth has exceeded Accumulated Losses. TheCompany has become Sick Industrial Company within the meaning of Sick Industrial Company(Special Provisions) Act 1985 as the accumulated losses were more than net worth of theCompany. A reference to BIFR is recommended by the Board.

11. In respect of dues to financial institution / banks / debentures

The company is not making payments to the Madhavpura Mercantile Co-op BankLimited(MMCB). The bank has filed a case against the company in the Court of Board ofNominees. The company has provided for Interest of Rs.19211140 to arrive at the figurefor which case is filed by the Bank with the Court of Board of Nominees as per the NoticeNo. MMCB/HO/44/229/2011-12 dated 4th January

2012 issued to the company by MMCB. Interest from the date of decree on the outstandingamount of the suit is yet to be charged to the Profit and loss account. The Company hadshown their willingness to settle the account as per OTS offered to them by the Bank(MMCB) vide their letter No. MMCB/ SHB/ 43/10/11 DatedlO/06/2010. The request of Companyis pending.

12. In respect of loans and advances granted on the basis of security

According to the information and explanations given to us and based on the documentsand records produced to us the company has not granted loans and advances on the basis ofsecurity by way of pledge of shares debentures and other securities.

13. In respect of provisions applicable to Chit fund

In our opinion and according to information and explanations given to us the company isnot chit fund or a nidhi or mutual benefit fund/society. Accordingly the provisions ofclause 4(xiii) of the Order are not applicable to the company.

14. In respect of dealing or trading in shares securities debentures and otherinvestment

According to the information and explanation given to us the company is not dealing inor trading in shares securities debentures and other investments. Accordingly theprovision of clause 4(xiv) of the Companies (Auditors Report) order 2003 are notapplicable to the company.

15. In respect of guarantee given for loans taken by others

According to the information and explanations given to us the company has not givenany guarantee for loans taken by others from bank or financial institutions.

16. In respect of application of term loans

According to the information and explanations given to us in our opinion the termsloans were applied for the purpose for which they were obtained.

17. In respect of fund used

According to the information and explanations given to us and on overall examination ofthe balance sheet and cash flow statement of the company we report that no funds raisedon short-term basis have been used for long-term investment.

18. In respect of preferential allotment of shares

The company has not made any preferential allotment of shares to parties and companiescovered in the register maintained u/s 301 of the Act during the year.

19. In respect of securities created for debentures

The company has not issued any debentures during the year. Therefore provisions ofclause 4(xix) of the Order are not applicable to the company.

20. In respect of end use of money raised by public issues

The company has not raised any money from the public during the year under audit.

21. In respect of fraud

Based upon the audit procedures performed for the purpose of recording the true andfair view of the financial statements and as per the information and explanations given bythe management we report that no fraud or by the company has been noticed or reportedduring the course of our audit.

For K.J.Shah & Co.
Chartered Accountants
Registration No.l32369W
(Kamlesh J Shah)
Date: 24th August 2014 Proprietor
Place: Vadodara Membership No.042390

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