on the Summary Financial Statements
To the Members of Shelter Infra Projects Limited
The accompanying summary financial statements which comprise the summary Balance Sheetas at March 31 2015 the summary statement of Profit & Loss and Cash Flow Statementfor the year then ended and related notes are derived from the audited financialstatements of Shelter Infra Projects Limited for the year ended March 31 2015. Thosefinancial statements and the summary financial statements do not reflect the effects ofevents that occurred subsequent to the date of our report on those financial statements.The summary financial statements do not contain all the disclosures required by theAccounting Standards referred to in section 133 of the Companies Act 2013 ("the Act)[applied in the preparation of the audited financial statements of Shelter Infra ProjectsLimited]. Reading the summary financial statements therefore is not a substitute forreading the audited financial statements of Shelter Infra Projects Limited.
2. Management's Responsibility for the Summary Financial Statements.
Management is responsible for the preparation of the audited financial statements inaccordance with [Accounting Standards referred to in section 133 of the Companies Act2013. ("the Act) and accounting principles generally accepted in India].
3. Auditor's Responsibility
Our responsibility is to express an opinion on the summary financial statements basedon our procedures which were conducted in accordance with Standard on Auditing (SA) 810"Engagements to Report on Summary Financial Statements" issued by the Instituteof Chartered Accountants of India.
4. Basis of qualified opinion
i) Interest on bank borrowings aggregating to Rs. 1217.48 lacs is pending forprovision.
This led to understatement of aggregate loss by Rs. 1217.48 lacs which include currentyear's interest of
Rs 470.03 lacs.
ii) Payment against Directors' remuneration since previous financial year aggregatingto Rs. 30.41 lacs is pending approval of Department of Company Affairs after applicationbeing made to the effect by the Company.
5. Qualified Opinion
In our opinion the summary financial statements derived from the audited financialstatements of Shelter Infra Projects Limited for the year ended March 31 2015 except forpossible effect of the matter referred to in '4' above are fair summary of thosefinancial statements in accordance with Accounting Standards referred to in of section133 of the Companies Act 2013 ("the Act) and accounting principles generallyaccepted in India.
6. Focus on Emphasis:
a) We invite attention without qualifying of huge amount of overdue debtors lyingunrealized as well as unconfirmed for which due scrutiny is warranted for the purpose ofcreating appropriate provisions if any.
b) Accounts of the company have been complied on the basis of going concern conceptdespite net worth turning negative with the provision against interest with our consequentinability to comment on extent of adjustments that will be called for against assets andliabilities if the company loses going concern identity following adverse predicament indays ahead.
7) Report on Other Legal and Regulatory Requirements:
a) As required by the companies (Auditor's Report) order 2015 ( "the Order'')issued by central Government of India in terms of subsection (11) of section 143 of theCompanies Act 2013we give in the Annexure -'A' a statement of the matters specified inparagraph 3 and 4 of the order to the extent applicable.
As required by section 143 (3) of the act we report that
i) We have sought and obtained all the information's and explanations which to the bestof our knowledge and belief were necessary for the purpose of the audit.
ii) In our opinion proper books of accounts as required by law have been kept by thecompany so far as appears from our examination of those books.
iii) The Balance Sheet statement of Profit and Loss and cash flow statements dealtwith by this report are in agreement with the books of account.
iv) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under section 133 of the Act read with Rule 7 of the companies(Account) Rules 2014
v) On the basis of the written representations received from the directors as on 31stMarch 2015 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2015 from being appointed a director in terms ofsection 164 (2) of the Act.
vi) 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 explanations given to us
A) The company has disclosed the impact of pending litigations on its financialpositions in its financial statements-refer note 21(c)(9) of the financial statements
B) The company did not have derivative contract. Long term contracts undertaken by thecompany is presently meagre in quantum and as such not expected to sustain material loss.
C) There has been no delay in transferring amounts required to be transferred to theInvestors Education and Protection fund by a company.
Date: May 28 2015