SHUKUN CONSTRUCTION LIMITED
ANNUAL REPORT 2004-2005
The Members of
Shukun Construction Ltd.
We have audited the attached Balance Sheet of Shukun Construction Limited
as at 31-03-2005 and also the Profit & Loss Account of the company for the
year ended on that date annexed thereto. 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.
We conducted 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 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 statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
(1) As required by the Companies Auditor's Report Order 2004 issued under
Provisions of the Companies Act, 1956. We annex hereto a statement on the
matters specified in paragraphs 4 and 5 of the said order.
(2) Further to our comments in the Annexure referred to in Paragraph 1
above, we report that: -
(a) We have obtained all the information explanation which to the best of
our knowledge and belief were necessary for the purpose of our audit.
(b) In our opinion, proper books of account and records as required by law
have been kept so far as appears from our examination of such books.
(c) The Balance Sheet and Profit & Loss Account referred to in this report
are in agreement with the books of account.
(d) In our opinion the Balance Sheet and Profit & Loss Account dealt with
by this report are in compliance with the Accounting Standards referred to
in Section - 211 (3C) of the Companies Act, 1956
(e) On the basis of written representations received from the Directors as
on 31st March, 2005 and taken on record by the Board of Directors none of
the directors is disqualified as on above date from being appointed as a
director of the company under provisions of Sec. 274(1)(g) of the Companies
In our opinion and to the best of our knowledge and according to
explanation given to us the accounts read together with the notes,
schedules attached thereto and statement on Accounting Policies give the
information required by the Companies Act, 1956 in the manner so required
and give a true and fair view in conformity with the accounting principle
generally accepted in India:
(i) In the case of the Balance sheet of the state of affairs of the company
as at March 31st, 2005 and
(ii) In the case of Profit & Loss account of the profit for the year ended
on that date.
(iii) In the case Cash Flow Statement, of the Cash Flow for the year ended
For Khese Associates
Place : Ahmedabad
Date : 25/07/2005
ANNEXURE TO THE AUDITORS REPORT
REFERRED TO IN PARAGRAPH (1) OF OUR REPORT OFF EVEN DATE) REF: SHUKUN
1. (a) The company is maintaining proper records showing full particulars
including quantitative details of fixed assets.
(b) All the fixed assets have not been verified by the management during
the year but, according to the information and explanations given to us,
there is a regular programme of verification which, in our opinion, is
reasonable having regard to the size of Company and the nature of assets.
No material 'discrepancies between-the book records and the physical
inventory have been noticed in respect of the assets physically verified.
(c) During the year, in our opinion, a substantial part of fixed assets has
not been disposed off by the Company.
2.(a) The Inventory of the Company has been physically verified during the
year by the management. In our opinion, the frequency of verification is
(b) The procedures of physical verification of stocks followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of its business.
(c) The Company has maintained proper records of Inventory. No
discrepancies were noticed on verification between the physical stocks and
the book records.
3. (a) The Company has neither granted nor taken any loans, secured or
unsecured, from Companies, Firms or other Parties covered in the register,
maintained under Section 301 of the Companies Act, 1956. as the company has
not granted/taken any loans, secured or unsecured, to/from parties listed
in the register maintained under section 301 of the companies Act,1956
clauses iii(b), iii(c) & iii(d) of paragraph 4 of the order, are not
4. According to the information and explanations given to us, there are
adequate internal control procedures commensurate with the size of the
company and the nature of its business with regard to purchases of
inventory, fixed assets and for sale of goods.
5. (a) According to the information and explanations given to us, the
transaction made in pursuance of contract or agreements, that need to be
entered into the register maintained under section 301 of the Companies
Act, 1956 have been recorded.
(b) There are no transaction of purchase & sale of goods, materials and
services made in pursuance of contracts or arrangement entered in register
maintained under Section 301 of the Companies Act, 1956 aggregating during
the year to Rs. 5,00,000/- or more in respect of each party.
6. The Company has not accepted any deposits from public.
7. In our opinion, the company has an internal audit system commensurate
with its size and nature of business.
8. According to the information and explanations given to us, maintenance
of cost records has not been prescribed by the Central Government under
section 209 (1) (d) of the Companies Act, 1956.
9. As per the information and explanation given to us, the Company is not
liable for Provident Fund, Investor Education & Protection Funds or
Employees State Insurance, Wealth Tax, Custom Duty, Excise Duty and Cess.
The Company is regular in payment of Income Tax, Sales tax and according to
the information and explanations given to us, no undisputed amount payable
in respect of such statutory dues.
(b) According to the information and explanations given to us, there are no
cases of non-deposit with the appropriate authorities of disputed dues of
sales tax/income tax/custom tax/wealth tax/excise duty/cess.
10. The Company has no accumulated losses and has not incurred cash losses
in the current year and in immediately preceding financial year.
11. According to the information and explanations given by the management,
we are of the opinion that the Company has not defaulted in repayment of
dues to financial institution and bank or debenture holder. There were no
debenture holders at any time during the year.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debenture and other securities.
13. As per the information and explanation given to us, the provisions of
any special statute applicable to Chit Fund, Nidhi or Mutual Benefit
Fund/Societies are not applicable to the Company.
14. In our opinion and according to the information and explanation given
to us the company is not a dealer or trader in securities.
15. The Company has not given any guarantee for loans taken by others from
bank or financial institutions, the terms and conditions whereof in our
opinion are prima facie, prejudicial to the interest of the Company.
16. The Company has not taken any term loan during the year.
17. Based on the examination of documents and records made available and on
the basis of information and explanation given to us, since the company has
not raised short-term and long-term fund, Para 4 of the order is not
18. According to the information and explanations given to us, the Company
has not made any preferential allotment of shares to parties & Companies
covered in the register maintained under section 301 of the Companies Act,
1956 during the year.
19. No debentures have been issued by the Company and hence question of
creating security does not arise.
20. The Company has not raised any money by way of public issue during the
21. On the basis of our examination and according to the information and
explanations given to us, no fraud on or by the Company has been noticed or
reported during the year.
For Khese Associates
Place : Ahmedabad
Date : 25/07/2005