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Shakti Press Ltd.

BSE: 526841 Sector: Services
NSE: N.A. ISIN Code: INE794C01016
BSE LIVE 10:12 | 03 Aug Stock Is Not Traded.
NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 7.55
PREVIOUS CLOSE 7.30
VOLUME 4
52-Week high 7.55
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 3
Buy Price 7.55
Buy Qty 16.00
Sell Price 0.00
Sell Qty 0.00
OPEN 7.55
CLOSE 7.30
VOLUME 4
52-Week high 7.55
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 3
Buy Price 7.55
Buy Qty 16.00
Sell Price 0.00
Sell Qty 0.00

Shakti Press Ltd. (SHAKTIPRESS) - Auditors Report

Company auditors report

To

The Members of

SHAKTI PRESS LIMITED Nagpur

Report on the Financial Statements

We have audited the accompanying financial statements of SHAKTI PRESSLIMITED("the company") which comprise the Balance Sheet as at 31/03/2016 andthe Statement of Profit and Loss for the year then ended and a summary of significantaccounting policies and other explanatory information.

Management Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cashflow of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

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 Standards on Auditing specified undersection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe 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 the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give true and fair view in order to design audit procedures thatare appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating the overall presentation ofthe financial statements.

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

a) As told by Management Rs. 47881207.36/- worth of Debtors are morethan 3 years old the same being Time barred should have been written off but noprovision for the same had been provided in books of accounts. The same is the case withmajor portion of Sundry Creditors as per the management the same is under settlementprocess.

b) The details of Quantitative inventory is not being fully maintained moreparticularly in terms of raw material consumption work in progress & finished goodsoutput hence it is not possible for us to ascertain the exact valuation are therefore weare relying on the valuation of inventory provided by the management.

c) The Bank credit facilities availed from SBI have became NPA as per RBI guidelinesand consequently the said bank had stopped charging interest from 01.07.2008 on its creditFacilities. However till 31.03.2013 Company had been booking the interest part asliability amounting to Rs.13282292.00/-. However during the year ending 31.03.2015& 31.03.2016 Company has not provided for the provision of interest payable on thetotal outstanding amount which is not in accordance with the generally acceptedaccounting principles.

d) The balances of SBI CC A/c appearing in the books of accounts are not in accordancewith the bank statements and are subject to reconciliation in process.

e) The TDS payable by Co. amounting to Rs. 582611.50/- for the period 2002-2009 asper the management the same is due to unintentional incorrect accounting in the past. Asper the management rectification steps for the same is under process.

f) The company had written off account worth Rs.3974568.13/- as bad debts. As perthe management the same is irrecoverable (Debtors) as on date. The Company had written offRs.500000/- on account of TDS Receivable(for the period 2002-07) being wrongly accountedfor.

g) The company has not amortized its Brand value over its useful life it seems thatthey have not been following the provisions of AS-26.

h) The management has not been recognizing deferred tax asset/liability it is observedthat the provisions of AS-22 are not followed. However as the Company is a loss makingentity and application would normally result in Deferred Tax Asset creation and the sameshould be created only if there is virtual certainty supported by convincing evidence ofsufficient future maintainable profits to realize such deferred tax asset the same can beconsidered.

i) Share Application Money Amounting to Rs. 8512000/- is seen standing due forallotment which is not in accordance with the provisions of Companies act 1956 &latter Acts. As per the management the allotment is not possible as the BSEhas suspended Companies trading in its Stock Exchange the shares against the same will beallotted as soon as permitted.

j) The company had not complied with schedule II of Companies Act 2013 in relation todepreciation of Fixed Assets as per the management the rates applied are in accordance tothe remaining useful life of the asset. Management had obtained an Expert Certificate forthe same

k) Company had taken unsecured loan amounting to Rs.954760.00 and Rs. 1025825.00 fromMr Suresh Sharma and Smt. Kalpana Sharma respectively. The same is not in accordance withthe provisions of Companies Act 2013 and previous act.

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 subject to and to the extent as pointedin the PARA I above forming part of Auditors Report in conformity with the accountingprinciples generally accepted in India:

(a) in case of the Balance Sheet of the state of affairs of the Company as at31/03/2016;

(b) in case Statement of Profit and Loss Account of the Profit for the year ended onthat date; and

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2003 ("the order")as amended by Companies (Auditors Report) (Amendment) Order 2015 issued by CentralGovernment of India in terms of sub-section (4A) of section 227 of the Act We give in theAnnexure a statements on the matters specified in paragraphs 4 and 5 of the order.

2. As required by section 227(3) of the Act we report that:

a. We have obtained all information and explanations which to the best of our knowledgeand 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 theCompany so far as appears from our examinations of those books;

c. the Balance Sheet Statement of Profit and Loss dealt with by this Report are inagreement with the books of account;

d. In our opinion the Balance Sheet Statement of Profit and Loss comply with theAccounting Standards referred to in sub-section (3C) of section 211 of the CompaniesAct1956 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;

e. On the basis of written representations received from the directors as on 31/03/2016and taken on record by the Board of Directors none of the director is disqualified as on31/03/2016 from being appointed as a director 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 the rate at whichthe cess ids to be paid under section 441A of the Companies Act 1956 nor has it issuedany rules under the said section prescribing the manner in which such cess is to be paidno cess is due and payable by the company.

As Per Audit Report of Even Date
For MOTWANI & CO.
(Chartered Accountants)
Reg No. : 129065W
CA Surendra Mangrole
Date : 28/05/2016 (PARTNER)
Place : NAGPUR Membership No : 152268

ANNEXURES TO AUDITOR'S REPORT Re: SHAKTI PRESS LIMITED

(Referred to in Paragraph No. 3 of the Auditors Report of even date)

A) In respect to Fixed Assets

i) In our opinion and as per the information & explanation given to us company ismaintaining proper record showing full particulars including quantitative details andsituation of fixed assets.

ii) Fixed Assets have been physically verified by the management at regular intervalsand any material discrepancies noticed have been properly dealt with.

B) In respect to Inventories

i) In our opinion and as per the information & explanation given to us physicalverification of inventory has been conducted at reasonable interval by the management.

ii) In our opinion and according to the information given to us procedure of physicalinventory followed by the management is reasonable and adequate in relation to size of thecompany and the nature of its business.

iii) On inspection of the records maintained we are of the opinion that the records inrespect of inventory (raw material) work in progress and finished goods are notmaintained fully in accordance with the normally accepted practices. We are relying onvalue of closing stocks as certified by the management.

C) In respect to Loans to Certain Parties

i) As per our opinion and on the basis of information and explanation given to us bythe management company had not granted any loans secured or unsecured to companies firmsor other parties covered in the register under sec 189 of Companies Act 2013 during theyear.

a) Company is engaged in Trading with M/s Sankalp Marketing & Management Servicesduring the year. This transaction is normal business transaction therefore not beenconsidered as Loans & advances by the management.

D) In respect to Internal Control System

i) In our opinion and according to the information & explanations given to usinternal control procedures are adequate & commensurate with the size of the companyand the nature of business in relation to the purchase of inventory & Fixed Assetsand for the sale of goods & services.

ii) It has been observed that there is no adequate theft/loss insurance cover for thishigh cash balance. There is no internal control in relation to inventory as the records inquantitative terms are not maintained on regular basis.

E) In respect to Acceptance of Deposits

i) In our opinion and according to the information & explanations given to us thecompany had complied with the directives issued by Reserve Bank of India and theprovisions of sec 73 to 76 or any other relevant provisions of the Companies Act2013 andthe rules framed there under in respect of deposits. As per the information &explanation given to us no order has been passed by Company Law Board or National CompanyLaw Tribunal or Reserve Bank of India or any other Tribunal in this respect.

F) In respect to Maintenance of Cost Records

i) In our opinion and according to the information & explanations given to us thecompany had maintained proper cost records as specified by the Central Government U/s148(1) of Companies Act 2013.

G) In respect to Deposit of Statutory Dues

i) Except on few occasions the company is generally irregular in depositing withappropriate authorities payments on account of provident fund investors educationprotection fund employees state insurance income tax sales tax wealth tax customduty Excise duty cess and other material statutory dues applicable to it. As per themanagement following dispute are under process.

TDS Payable Rs.650877.50/- Forum/ Department: Income Tax Circle-2 (In process withIncome Tax Department)

H) In respect to Accumulated Losses

i) The company's accumulated losses at the end of the financial year are more than 50%of its net worth.

The company has incurred cash loss during the year. In the immediately precedingfinancial year the company had incurred cash loss.

I) In respect to Default in Repayment of Dues

i) In our opinion and according to the information & explanations given to us thecompany has defaulted in repayment of dues to financial institutions banks and itsaccount with SBI has been classified as NPA.

ii) Share Application Money Amounting to Rs. 8512000/- is seen standing due forallotment which is not in accordance with the provisions of Companies act 1956 &latter Acts. As per the management the allotment is not possible as the BSE has suspendedCompanies trading in its Stock Exchange the shares against the same will be allotted assoon as permitted.

J) In respect to Guarantee for Loans taken by Others from Banks or FinancialInstitutions

i) In our opinion and according to the information & explanations given to us noguarantee had been provided for loans taken by others from financial institutions &banks

K) In respect to Application of Term Loans

i) In our opinion and according to the information & explanations given to us theTerm Loans have been applied for the purpose for which they are raised.

L) In respect to Fraud Reporting

i) In our opinion and according to the information & explanations given to us nofraud on or by the company has been noticed or reported during the course of our audit.

As Per Audit Report of Even Date
For MOTWANI & CO.
(Chartered Accountants)
Reg No. : 129065W
CA Surendra Mangrole
Date : 28/05/2016 (PARTNER)
Place : NAGPUR Membership No : 152268