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Shahi Shipping Ltd.

BSE: 526508 Sector: Infrastructure
NSE: N.A. ISIN Code: INE825D01016
BSE LIVE 14:55 | 18 Aug 8.50 0.13
(1.55%)
OPEN

8.50

HIGH

8.50

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8.49

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 8.50
PREVIOUS CLOSE 8.37
VOLUME 2635
52-Week high 13.68
52-Week low 7.85
P/E 21.79
Mkt Cap.(Rs cr) 12
Buy Price 8.50
Buy Qty 500.00
Sell Price 0.00
Sell Qty 0.00
OPEN 8.50
CLOSE 8.37
VOLUME 2635
52-Week high 13.68
52-Week low 7.85
P/E 21.79
Mkt Cap.(Rs cr) 12
Buy Price 8.50
Buy Qty 500.00
Sell Price 0.00
Sell Qty 0.00

Shahi Shipping Ltd. (SHAHISHIPPING) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

SHAHI SHIPPING LIMITED.

Report on the Financial Statement

We have audited the accompanying financial statement of the Shahi Shipping Ltd.(The Company) which comprise the Balance Sheet as at 31st March 2016 theStatement of Profit and Loss and Cash Flow statement for the year ended and a summary ofsignificant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013("The Act") with respect to the preparation ofthese financial statements that gives a true and fair view of the financial positionfinancial performance and cash flow of the Company in accordance with the Accountingprinciples generally accepted in India including the Accounting Standards referred undersection 133 of the Companies Act 2013 ("The Act") read with rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies making judgments andestimates that are reasonable and prudent and design implementation and maintenance ofinternal financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility.

Our responsibility is to express an opinion on these financial statements based on ouraudit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standard on Auditing specified undersection 143(10) of the Companies Act 2013. Those standards requires 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 procedure to obtain audit evidence about the amount anddisclosures in the financial statements. The procedures selected depend on the Auditor'sjudgment including the assessment of the risk of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessment the auditorconsiders internal control relevant to the Company's preparation of the financialstatements that give a true and fair view in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made byCompany Directors as well as evaluating the overall presentation of the financialstatements.

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

Opinion

In our opinion and to the best of our information and according to the explanationgiven 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 the accountingprinciples generally accepted in India of the state of affairs of the company as at 31stmarch 2016 and its Loss and its Cash Flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by The Companies (Auditors Report) Order 2016 (the Order) issued by theCentral Government of India in terms of Sub Section (11) of Section 143 of the Act wegive in the Annexure ‘A' a statement on the matters specified in paragraphs 3 and 4of the order.

2. As required by section 143(3) of the Company Act 2013 we report that:

a) We have sought and obtained all the information and explanations which to the bestof our knowledge 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 it appears from our examination of such books.

c) The Balance Sheet and Statement Profit and Loss and Cash Flow statement dealt withby this report are in agreement with books of accounts.

d) In our opinion the financial statements comply with the Accounting Standardsspecified under section 133 of the act read with Rule 7 of the Companies (Accounts) Rules2014.

e) On the basis of written representations received from the directors as on 31stMarch 2016 and taken on record by the Board of Directors none of the Directors isdisqualified as on 31st March 2016 from being appointed as a director interms of section 164 (2) of the Companies Act 2013.

f) With respect to the internal financial controls over financial reporting of theCompany refer to our separate report in 'Annexure B'.

g) With respect to other matters to be included in the Auditors Report in accordancewith rules 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest of our information and according to the explanations given to us:

(i) The Company does not have any pending litigations which would impact its financialposition.

(ii) The company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any and as required on long term contractsincluding derivative contracts and

(iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For N. D. HEDA & CO.
Firm Registration No. 103604W
Chartered Accountants
(N.D. HEDA)
Proprietor
M. N. 32450
Place: Mumbai
Date : 30/05/2016

ANNEXURE ‘A' TO THE AUDITORS' REPORT:-

The Annexure referred to in Independent Auditors' Report to the members of ShahiShipping Ltd for the year ended 31st March 2016 we report that:

1. a) The Company has maintained on year to year basis the records showing particularsincluding quantitative details of fixed assets and company is in process of updating thefixed assets register.

b) Some fixed assets have been physically verified by the management during the year inaccordance with phased program of verification adopted by the company. No materialdiscrepancies between the book records and physical inventory were noticed in respect ofassets physically verified during the year.

c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company except for the following:

(Rs in Lacs)
Particulars Office Premises*
Gross Block as at
31 March 2016 2.34
Net Block as at
31 March 2016 1.92

* Included under the heading Building in the Note no 10(a) to the Financial Statements.

2. The Company is in Shipping business therefore Clause of the above mentioned orderregarding inventory and its physical verification etc. do not apply in its case. TheCompany does purchase stores and spare parts for its ships & barges which are directlytreated as consumed as and when supplied to its ships & barges. Thus paragraph 2 (i)(ii) and (iii) of the order is not applicable.

3. The Company has not given any Loans secured or unsecured to companies firm orother parties listed in the register maintained under section 189 of Companies Act 2013.

4. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 185 and 186 of the Act with respectto the loans and investments made.

5. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public in accordance with the provision ofsection 73 to 76 of the Act and Rules framed there under.

6. The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Companies Act 2013 for any of the services rendered by thecompany.

7. a) According to the information and explanations given to us and according to thebooks and records as produced and examined by us in our opinion the undisputed materialstatutory dues in respect of provident fund employees state insurance sales-taxincome-taxservice tax customs duty excise duty value Added Tax cess and othermaterial statutory dues as applicable have been generally regularly deposited by theCompany during the year with the appropriate authorities except due is respect of IncomeTax. The extent of the arrears of statutory dues outstanding as at 31/03/2016 for a periodof more than six months from the date became payable in respect of Income Tax pertainingto financial years 2010-11 & 2011-2012 Rs 9.46 Lacs. b) According to the informationand explanation given to us there are no dues of Income Tax Sales Tax Service TaxCustoms Duty Excise Duty or Value Added Tax outstanding on account of any dispute.

8. According to the information and explanations given by the management the Companyhas overdue repayment of loan installment of Dena Bank Term Loan aggregating to Rs 64.50Lacs and overdue installment of Interest on Dena Bank Term Loan aggregating to Rs 244.62Lacs relating to Financial Year 2013-14 to 2015-2016. There are no Debenture Holders.

9. The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) and term loans during the year. Accordingly paragraph3(ix) of the Order is not applicable.

10. According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

11. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration for the current year in accordance with the provisions of Section 197 readwith Schedule V to the Act.

12. In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

13. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with Sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

14. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

15. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

16. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.

For N. D. HEDA & CO.
Firm Registration No. 103604W
Chartered Accountants.
N. D. HEDA
Proprietor
Membership No. 32450
Place: Mumbai
Date : 30/05/2016

ANNEXURE ‘B' TO THE AUDITOR REPORT

Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section143 of the Companies Act 2013 (‘the Act')

We have audited the internal financial controls over financial reporting of ShahiShipping Ltd. (The Company) as of 31 March 2016 in conjunction with our audit of thefinancial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to the Company's policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the ‘Guidance Note') and the Standards on Auditing issued by ICAI and deemed to beprescribed under Section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. Because ofthe matter described in Disclaimer of Opinion paragraph below we are not able to obtainsufficient appropriate audit evidence to provide a basis for an audit opinion on internalfinancial controls system over financial reporting of the Company.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the Company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the Company are being made only in accordance with authorizations of theManagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of theCompany's assets that could have a material effect on the financial statements.

Disclaimer of Opinion

According to the information and explanation given to us the Company has notestablished its internal financial control over financial reporting on criteria based onor considering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls over Financial Reporting issued by the Institute ofChartered Accountants of India. Because of this reason we are unable to obtain sufficientappropriate audit evidence to provide a basis for our opinion whether the Company hadadequate internal financial controls over financial reporting and whether such internalfinancial controls were operating effectively as at March 312016.

We have considered the disclaimer reported above in determining the nature timing andextent of audit tests applied in our audit of the financial statements of the Company andthe disclaimer does not affect our opinion on the financial statements of the Company.

For N.D. HEDA & CO.
Firm Registration No. 103604W
Chartered Accountants.
N.D. HEDA
Proprietor
Membership No. 32450
Place: Mumbai
Date : 30/05/2016