You are here » Home » Companies » Company Overview » Shamken Multifab Ltd

Shamken Multifab Ltd.

BSE: 514152 Sector: Industrials
NSE: SHAMKNFAB ISIN Code: INE565B01012
BSE LIVE 05:30 | 01 Jan Stock Is Not Traded.
NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN
PREVIOUS CLOSE
VOLUME
52-Week high 0.00
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 0
Buy Price
Buy Qty
Sell Price
Sell Qty
OPEN
CLOSE
VOLUME
52-Week high 0.00
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 0
Buy Price
Buy Qty
Sell Price
Sell Qty

Shamken Multifab Ltd. (SHAMKNFAB) - Auditors Report

Company auditors report

SHAMKEN MULTIFAB LIMITED ANNUAL REPORT 2007-2008 AUDITORS' REPORT To The Members of SHAMKEN MULTIFAB LIMITED 1. We have audited the attached Balance Sheet of M/s. SHAMKEN MULTIFAB LTD., NEW DELHI, as at 31st March 2008 and also the Profit and Loss Account of the company for the year ended on that date, annexed there to. These financial statements are the responsibility of the company's management. Our responsibility is to express an opinion on these financial statements based on our Audit. 2. We have teed our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statements presentation. We believe that our audit provides reasonable basis for our opinion. 3. As required by the Companies (Auditor's Report) Order, 2003 as amended by the companies (Auditors' Report) amendment order 2004, issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, and on the basis of such checks of the books and records of the company as we considered appropriate and according to the information and explanation given to us, We enclose in the Annexure a statement on the matters specified in paragraphs 4 & 5 of the said Order. 4. Further to our comments in the Annexure enclosed (I & II) herewith, and subject to the same we report that: I. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit. II. In our opinion, proper books of account, as required by law, have been kept by the company, so far as appears from our examination of those books. III. The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the Books of Account. IV. In our opinion, the Balance Sheet and Profit & Loss Account dealt with by this report comply with the accounting standards referred to in sub- section (3C) of section 211 of the Companies Act, 1956. V. On the basis of written representations received from the directors, as on 31st March, 2008, and taken on record by the Board of Directors, we report that all of the directors are disqualified as on 31st March, 2008 from being appointed as a director in any other public company in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956, VI. Subject to the effect of the qualifications given in the annexures, in our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Companies Act, 1956, in the manner so equired and give a true and fair view in conformity with accounting principles generally accepted in India: i. In the case of the Balance Sheet, of the State of Affairs of the Company as at 31st March, 2008 and; ii. In the case of the Profit & Loss Account, of LOSS for the year ended on that date. iii. In the case of Cash Flow Statement of the cash flows for the year ended on that date. For and on behalf of, For J.P. CHATURVEDI & COMPANY Chartered Accountants sd/- (J.P. CHATURVEDI) M.No. 31373 Prop. Place : Mumbai, Date : 25th August, 2008. ANNEXURE TO THE AUDITORS' REPORT: ANNEXURE No. 1: (Referred to in Paragraph (3) of the Auditors' Report of even date to the members of M/s SHAMKEN MULTIFAB LIMITED on the financial statements for the year ended 31st March 2008: I. a. The company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets on the basis of available information. b. Fixed assets represented to have been physically verified by the management during the period in phased periodical manner and according to the information given to us no material discrepancies were noticed. c. The Company has represented, to have made no sale/disposal of a substantial part of fixed assets during the year. Under review, as such reliance is placed in the absence of any such substantial sale / disposal of fixed assets,the status of the company as going concern was not impaired. II. a. As per management, the stocks of the finished goods, stores and spare parts, represented, to have been physically verified by the management at reasonable intervals during the year. b. In our opinion, the procedures of physical verification of stocks followed by the management are reasonable and adequate relation to the size of the company and nature of its business. c. The discrepancies noticed on verification between the physical stocks and the books and records were not materialized, in our opinion, the valuation of the above named stocks is fair and proper in accordance with normally accepted accounting principles and is on the same basis as in the earlier years. III. a. The company has granted secured/unsecured loans to the company's, firms or other parties covered in the register maintained under section 301 of the Companies Act 1956. The maximum amount involved during the year was Rs.349.28 lakhs and year end balance of such loan was Rs.289.03 lakhs. b. The rate of interest, wherever applicable and other terms and conditions are not prima facie prejudicial to interest of the company in view of reliance placed on the assurances of the management. c. Reliance is placed on Company's claim that there is no over due amount in respect of loans taken/granted try the Company covered u/s 301 of the Companies Act, 1956. IV. Having regard to the explanation that certain items purchased are of special nature for which suitable alternative sources do not exist for obtaining comparative quotations, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods. Further, on the basis of our examination of the books and records of the Company. And according to the information and explanations given to us, we have neither come across nor have been informed of any continuing failure to correct major weaknesses in the aforesaid internal control system. V. Based on the representations made by the company and relied upon, we are of the opinion that the transactions that need to be entered into the register maintained u/s 301 of the Companies Act, 1956 have been so entered. According to representations made, the transactions materialized in pursuance of contracts or arrangements entered in the registers maintained under section 301 and exceeding the vale of Rs. 500,000 in respect of any party during the period have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time. VI. During the year under review, the Company has not accepted fresh public deposits within the meaning of Section 58A of the Companies Act, 1956. However, deposits, received in preceding periods and due for payment still continue to be outstanding for which management application to the Company Law Board for further extension of time against of its earlier order for repayment of deposits, is in process. VII. In our opinion, the Company needs to have a review of it's internal audit system commensurate with the size and the nature of its business. VIII. The Company is required to maintain cost records as prescribed under Section 209 (1) (d) of the Companies Act, 1956. The company has represented to have maintained proper cost records as required. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete. IX. a. According to the information and explanation given to us, no undisputed amount is payable in respect of provident fund, income-tax, sales-tax, wealth tax, service tax, customs duty, excise duty, cess and other undisputed statutory dues were outstanding, at the year-end, for a period of more than six months from the date they became payable. b. The company represented that there was disputed demand of Rs.18.97 crores payable on account of Income tax for the block period (from 1st April, 1996 to 30 Jan., 2002) and assessment Year 2002-03 and pending adjudication at Income tax (CIT) Appeal, however the same is depicted as contingent liability. X. The accumulated losses of the company have exceeded fifty percent of its Net worth as at 31st March 2008. The company has incurred a cash loss of Rs.117.48 Lakhs in the current reporting year and earned a cash profit of Rs.18.14 Lakhs in the immediately preceding reporting year. XI. The Company has defaulted in repayment of loans (either secured or unsecured) including term loans from Financial Institutions or Bank or Debenture holder. The banks/financial institutions have levied restraints and put moratorium in the operations of bank accounts of the company. However, one time settlement (OTS) under negotiation is being efforted to be attained. XII. The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities, in lieu of reliance placed on corroboration of the management. XIII. The Company is not a Chit Fund, Nidhi or mutual benefit Society. Hence the requirements of clause (xiii) of paragraph 4 of the Order are not applicable to the Company. XIV. The company is not a dealer or trader in shares, securities, debentures and other investments as pronounced by the management. XV. The Company has not, during the year under review, given any guarantee for loans taken by others from Bank or Financial Institutions in lieu of reliance placed on corroboration of the management. XVI. No fresh term loans have been raised and received by the company during the year under review. XVII. The company has made preferential allotment of shares to promoters against their share application money lying in the share application money account. XVIII. On the basis of our examination of the books of accounts and other information and explanation given to us and in our opinion, the fund raised on short-term basis have not been used for long-term investment and via- versa. XIX. The Company has not issued any debentures. Hence the requirements of clause (xix) of paragraph 4 of the Order are not applicable to the Company. XX. The company has not raised any money by public issues during the reporting period. XXI. No fraud committed by the company, related to the year under audit. The other matters, referred to in the order have not been reported upon, as they are not applicable to the Company. For and on behalf of J.P. CHATURVEDI & COMPANY Chartered Accountants (J.P. CHATURVEDI) (M.No. 31373), Prop. Place : Mumbai Date : 25th August, 2008. ANNEXURE TO THE AUDITORS' REPORT: ANNEXURE No. II: (Referred to in Paragraph (3) of the Auditors' Report of even date to the members of M/s SHAMKEN MULTIFAB LIMITED on the financial statements for the year ended 31st March 2008. Attention is specifically invited to the following clauses.: a) The company has not provided for interest payable on working capital loans and Term loans amounting to Rs.3899.90 Lakhs as calculated by the management during the year under review. In case this interest had been provided in the books amounting to Rs. 3399.90 Lakhs the loss would have been amounting to Rs.5125.62 lakhs instead of Rs.1225.72 lakhs. During the earlier periods the company had also not provided interest on working capital loans and Term loans to tune of Rs.13983.83 lakhs in case the same has been provided the loss would have beer. Rs.26924.67 lakhs as against Rs.9040.94 lakhs as shown in Profit & Loss Account. b) Further persisting capitalization of expenditure on projects discontinued, in earlier periods) has resulted in over statement of the Gross Fixed Assets of the Company by Rs.16,332.60 lakhs and an under statement of accumulated losses by Rs.16,332.60 lakhs. And accordingly the accumulated losses of the company as on 31.03.21708 would stand further enhanced from Rs.43257.27 lakhs. c) The losses of the company exceed its net-worth and therefore the company is classified as a sick industrial company as per provisions of the Sick Industrial Companies (Special Provisions) Act, 1985. Despite this, the company has prepared its accounts as a going concern. The other matters, referred to in the order have not been reported upon, as they are not applicable to the Company. For and on behalf of J.P. CHATURVEDI & COMPANY Chartered Accountants sd/- (J.P. CHATURVEDI) (M.No. 31373) Place : Mumbai Date : 25th August, 2008.