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Shakti Pumps (India) Ltd.

BSE: 531431 Sector: Engineering
NSE: SHAKTIPUMP ISIN Code: INE908D01010
BSE LIVE 10:45 | 22 Sep 497.50 -3.10
(-0.62%)
OPEN

498.00

HIGH

504.10

LOW

494.00

NSE 10:38 | 22 Sep 496.85 -3.70
(-0.74%)
OPEN

499.00

HIGH

504.00

LOW

492.05

OPEN 498.00
PREVIOUS CLOSE 500.60
VOLUME 10848
52-Week high 556.85
52-Week low 114.35
P/E 39.93
Mkt Cap.(Rs cr) 914
Buy Price 496.70
Buy Qty 36.00
Sell Price 497.90
Sell Qty 74.00
OPEN 498.00
CLOSE 500.60
VOLUME 10848
52-Week high 556.85
52-Week low 114.35
P/E 39.93
Mkt Cap.(Rs cr) 914
Buy Price 496.70
Buy Qty 36.00
Sell Price 497.90
Sell Qty 74.00

Shakti Pumps (India) Ltd. (SHAKTIPUMP) - Auditors Report

Company auditors report

To

The Members of

SHAKTI PUMPS (INDIA) LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of SHAKTI PUMPS (INDIA) LIMITED("the Company") which comprise the Balance Sheet as at Marc Rs 31 2015 andthe Statement of Profit and Loss and Cash Flow Statement for the year then ended and asummary of significant 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 andpresentation of these standalone financial statements that give true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under section 133 of the Act read with rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial 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 standalone financial statementsbased on our audit. We have taken into accounts the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder.

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 andthe 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. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in 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 31 Marc Rs 2015 and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2015 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure a statement on the matters specified in paragraphs 3 and4 of the Order to the extent available.

2. As required by section 143(3) of the Act 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 account as required by law have been kept by thecompany so far as it appears from our examination of those books;

c. the balance sheet statement of profit and loss and cash flow statement dealt withby this Report are in agreement with the books of account;

d. in our opinion the aforesaid standalone financial statements comply with theAccounting 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 Marc Rs31 2015 and taken on record by the Board of Directors none of the directors isdisqualified as on Marc Rs 31 2015 from being appointed as a director in terms of section164(2) of the Act; and

f. with respect to the other matters to be included in the Auditors Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i) the Company does not have any pending

litigations which would impact its financial position;

ii) the company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses;

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

For Vinay Gandhi & Associates
Chartered Accountants
FRN: 014442C
Vinay Gandhi
Place: Pithampur (Proprietor)
Date: 21.05.2015 M No. 75972

Annexure to the Auditor's Report

The Annexure referred to in our Independent Auditors Report to the members of thecompany on the standalone financial statements for the year ended 31 Marc Rs 2015 wereport that:

1. In respect of its fixed Assets:

a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets in respect of all its locations on thebasis of available information.

b) As explained to us all the fixed Assets have been physically verified during theyear by the management in accordance with a regular programme of verification of the fixedassets at reasonable intervals which in our opinion is reasonable having regard to thesize of the company and the nature of its assets. According to the information andexplanation given to us no material discrepancies were noticed on such physicalverification.

2. In respect of its inventories:

a) The inventory (excluding stocks with third parties) has been physically verified bythe management during the year at reasonable interval. In respect of inventory lying withthird parties these have substantially been confirmed by them. In our opinion thefrequency of verification is reasonable.

b) In our opinion the procedures of physical verification of inventory followed by themanagement are reasonable and adequate in relation to the size of the company and natureof its business.

c) On the basis of our examination of the inventory records in our opinion theCompany is maintaining proper records of inventory. As explained to us there were nomaterial discrepancies noticed on physical verification.

3. In respect of loans secured or unsecured granted by the company to companiesfirms or other parties covered in the register maintained under section 189 of the Act:

a) The company has granted loan to one body corporate covered in the registermaintained under section 189 of the Act as follows:

Name of the Party Max. Amount Outstanding During the Year Balance as on 31.03.2015
Vintex Tools Pvt. Ltd RS 95326772/-_ RS 95326772/-

b) In case of loan granted to the body corporate listed in the register maintainedunder section 189 of the Act the borrower have been regular in the payment of theinterest as stipulated. The terms do not stipulate any repayment schedule and the loansare repayable on demand.

c) There are no overdue amounts of more than rupees one lakh in respect of the loangranted to the body corporate listed in the register maintained under section 189 of theAct.

4. In our opinion and according to the information and explanation given to us thereis an adequate Internal Control system commensurate with the size of the company and thenature of its business for the purchase of inventory and fixed assets and for the sale ofgoods. Further on the basis of our examination of the books and records of the companycarried out in accordance with the auditing standards generally accepted in India andaccording to the information and explanation given to us we have neither come across norhave been informed of any continuing failure to correct major weaknesses in the aforesaidinternal control system.

5. In our opinion and according to the information and explanation given to us thecompany has not accepted deposits from the public during the year. Therefore theprovisions of clause (v) of paragrap Rs 3 of the order is not applicable to the company.

6. We have broadly reviewed the cost records maintained by the company pursuant to theCompanies (Cost Accounting Records) Rules 2014 prescribed by the Central Government undersection 148 of the Act and are of the opinion that prima facie the prescribed cost recordshave been maintained. We have however not made a detailed examination of the cost recordswith a view to determine whether they are accurate or complete.

7. In respect of statutory dues:

a) According to the information and explanations given to us and the records of thecompany examined by us in our opinion the company is generally regular in depositingundisputed statutory dues including provident fund employees' state insurance IncomeTax VAT wealth tax service tax custom duty excise duty cess and any other statutorydues as applicable with the appropriate authorities.

b) According to the information and explanations given to us and the records of thecompany examined by us there are no dues of wealth tax service tax custom duty and cesswhich have not been deposited on account of any dispute. The particular of dues of exciseduty sales tax & income tax as at 31st March 2015 which have not been deposited orpartially been deposited on account of a dispute are as below :

Name of the statue Nature of dues Amount (Rs In Lakhs) Period to which the amount relates Forum where the dispute is pending
The Central Excise Act 1944 Excise duty Including Interest and penalty 47.70 FY 2005-06 Appellate Tribunal New Delhi
The Income Tax Act 1961 Income Tax Demand including Interest 19.09 FY 2007-08 CIT - Appeal
Income Tax Demand including Interest 20.83 FY 2008-09 CIT - Appeal
Income Tax Demand including Interest 165.51 FY 2009-10 CIT - Appeal
Income Tax Demand including Interest 50.00 FY 2010-11 CIT - Appeal
Income Tax Demand including Interest 16.75 FY 2011-12 CIT - Appeal
Commercial Tax VAT and Entry Tax demand 70.44 FY 2010-11 M.P. High Court Indore Bench
VAT and CST demand 6.16 FY 2010-11 M.P. Commercial Tax Appeal Board Bhopal
VAT and CST Tax demand 4.23 FY 2011-12 Add. Commissioner of Comm. Tax Indore
VAT CST and Entry Tax demand 12.46 FY 2012-13 Appellate Authority Commercial Tax Indore

c) According to the information and explanations given to us the amounts which wererequired to be transferred to the investor education and protection fund in accordancewith the relevant provisions of the Companies Act 1956 (1 of 1956) and rules there underhas been transferred to such fund time to time.

8. The company does not have accumulated losses as at Marc Rs 31 2015.The Company hasnot incurred cash losses during the financial year covered by our audit and in theimmediately preceding financial year.

9. According to the records of the company examined by us and the information andexplanations given to us the company has not defaulted in repayment of dues to anyfinancial institution or bank or debenture holder.

10. According to the information and explanation given to us the company has givenguarantee to the tune of RS 9.62 Crores for loans taken by Shakti Irrigation India Limitedfrom banks during the year for setting up micro irrigation plant.

11. In our opinion and according to the information and explanations given to us on anoverall basis the term loans have been applied for the purpose for which they wereobtained.

12. During the course of our examination of the books and records of the companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us no material instance of fraudon or by the company noticed or reported during the year.

For Vinay Gandhi & Associates
Chartered Accountants
FRN: 014442C
Vinay Gandhi
Place: Pithampur (Proprietor)
Date: 21.05.2015 M No. 75972