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Shah Construction Company Ltd.

BSE: 509870 Sector: Infrastructure
NSE: N.A. ISIN Code: N.A.
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Shah Construction Company Ltd. (SHAHCONSTRUCTN) - Auditors Report

Company auditors report

To the Members of Shah Construction Company Limited

Report on the Standalone Financial Statements

1. We have audited the accompanying financial statements of Shah Construction CompanyLimited which comprise the Balance Sheet as at March 31 2015 the Statement of Profitand Loss and Cash Flow Statement for the year then ended and a summary of significantaccounting policies and other explanatory information

Management's Responsibility for the Standalone Financial Statements

2. The management and Board of Directors of the Company are responsible for the mattersstated in Section 134 (5) of the Companies Act 2013 ('the act') with respect to thepreparation of these financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with rule 7 of Companies (Accounts) Rules2014. This responsibility includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; design implementation and maintenance of adequate internal financial controlsthat are operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error

Auditor's Responsibility

3. Our responsibility is to express an opinion on these financial statements based onour audit. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made thereunder. We conducted our audit inaccordance with the Standards on Auditing specified under Section 143(10) of the Act.Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement

4. An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by the Company's management and Board of Directors aswell as evaluating the overall presentation of the financial statements

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

Opinion

6. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2015 its loss and its cash flows for the year ended on that date.

Emphasis of Matters

We draw attention to the following matters in the Notes to the financialstatements:

(a) In our opinion subject to Note 26(iv) regarding valuation of Current AssetsCurrent Liabilities and Loans in Foreign currency at the rate Prevailing as on 30-06-1984the Balance Sheet Statement of Profit & Loss and Cash Flow Statement comply withAccounting Standards notified under the Companies Act1956 (the Act) read with the GeneralCircular 15/2013 dated 13th September2013 of the Ministry of Corporate Affairs in respectof section 133 of the Companies Act2013.

(b) Attention is also invited to the following notes in Note "27"

a. Note No. 23 : Unascertained profit of Joint Venture.
b. Note No. 24 : Sale of land at Amboli Andheri (W)

 

c. Note No. 26: (iii) : Delay in realization of Foreign Assets book Value Rs. 19 16 10755/=
d. Note No.26(iv) : Difference in Loans Assets & liabilities arising due to adoption of rate of exchange as on 30/06/1984.

Our opinion is not modified in respect of these matters.

Report on Other Legal and Regulatory Requirements:

7. As required by the Companies (Auditor's Report) Order 2015 ("the Order")issued by the Central Government of India in terms of subsection (11) of section143 of theAct we give in the Annexure a statement on the' matters Specified in paragraphs 3 and 4of the Order to the extent applicable.

8. As required by section 143(3) of the Act we further report that: a) we have soughtand obtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purpose of our audit;

b) in our opinion proper books of account 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 Cash Flow Statement dealt withby this Repot are in agreement with the books of account;

d) in our opinion the aforesaid financial statements comply with the applicableAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

e) on the basis of written representations received from the directors as on March 312015 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2015 from being appointed as a director in terms of Section 164(2) of theAct. f) In our opinion and to the best of our information and according to theexplanations given to us we report as under with respect to other matters to be includedin the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014:

I. The Company does not have any pending litigations which would impact its financialposition.

II. The Company did not have any long-term contracts including derivative contracts; assuch the question of commenting on any material foreseeable losses thereon does not arise.

III. There has not been an occasion in case of the Company during the year under reportto transfer any sums to the Investor Education and Protection Fund. The question of delayin transferring such sums does not arise.

For N. B. Purohit & Co
Place – Mumbai Chartered Accountants
Date - 30th May 2015 Firm Regn. No. 108241W
(N. B. Purohit)
Proprietor
M.Ship No.31999

Annexure referred to in paragraph 7 Our Report of even date to the members of ShahConstruction Company Limited on the accounts of the company for the year ended 31st March2015

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

i. (a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets ;

(b) As explained to us fixed assets have been physically verified by the management atregular intervals; as informed to us no material discrepancies were noticed on suchverification. Fixed Assets at Foreign Sites costing Rs.7.32 crores in Iraq are notphysically verifiable.

ii. In respect of its inventories :

(a) The Company is a Construction Company having a central stores Department in Mumbai.The Management has claimed to have conducted physically verification of stores &materials required for local jobs at reasonable intervals during accounting year. In ouropinion the frequency of verification is reasonable. The valuation of stock is fair andproper and is in accordance with the normally accepted accounting principles and is on thesame basis as in the earlier years.

(b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of the inventory by the management are reasonable andadequate in relation to the size of the company and nature of its business.

(c) In our opinion and according to the information and explanations given to us thecompany has maintained proper records of its inventories and the discrepancies noticed onphysical verification of the inventory as compared to the book records were not materialand have been properly dealt with in the books of account.

iii. The company has not granted any loans secured or unsecured to companiesfirms or other parties covered in the register maintained under section 189 of the Act.

iv. In our opinion and according to the information and explanations given to usthere is adequate internal control system commensurate with the size of the company andthe nature of its business for the purchase of fixed assets and for the sale of services.Further on the basis of our examination of the books and records of the Company andaccording to the information and explanations given to us no major weakness has beennoticed or reported.

v. The Company has not accepted any deposits from the public covered under Section73 to 76 of the companies Act 2013

vi. As informed to us the Central Government has not prescribed maintenance ofcost records under sub-section (1) of Section 148 of the Act

vii. (a) According to the information and explanations given to us and based on therecords of the company examined by us the company is regular in depositing the undisputedstatutory dues including Provident Fund Employees' State Insurance Income-taxSales-tax Wealth Tax Service Tax Custom Duty Excise Duty and other material statutorydues as applicable with the appropriate authorities in India ;

(b) According to the information and explanations given to us and based on therecords of the company examined by us there are no dues of income Tax Wealth TaxService Tax Sales Tax Customs Duty and Excise Duty which have not been deposited onaccount of any disputes

(c) There has not been an occasion in case of the Company during the year underreport to transfer any sums to the Investor Education and Protection Fund. The question ofreporting delay in transferring such sums does not arise

viii. The Company has got accumulated losses not less than fifty percent of its networth. The company has incurred cash losses during the Financial Year covered by the auditand in immediately preceding financial year.

ix. According to the records of the company examined by us and as per theinformation and explanations given to us the company has not availed of any loans fromany financial institution or banks and has not issued debentures.

x. In our opinion and according to the information and explanations given to usthe Company has not given any guarantee for loan taken by others from a bank or financialinstitution during the year.

xi. In our opinion and according to the information and explanations given to usthe company has not raised any term loans during the year.

xii. During the course of our examination of the books and records of the companycarried in accordance with the auditing standards generally accepted in India we haveneither come across any instance of fraud on or by the Company noticed or reported duringthe course of our audit nor have we been informed of any such instance by the Management.

For N. B. Purohit & Co
Place – Mumbai Chartered Accountants
Date - 30th May 2015 Firm Regn. No. 108241W
(N. B. Purohit)
Proprietor
M.Ship No.31999