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Shakti Press Ltd.

BSE: 526841 Sector: Services
NSE: N.A. ISIN Code: INE794C01016
BSE 00:00 | 11 Feb Shakti Press Ltd
NSE 05:30 | 01 Jan Shakti Press Ltd
OPEN 7.48
PREVIOUS CLOSE 7.47
VOLUME 100
52-Week high 7.48
52-Week low 0.00
P/E 0.54
Mkt Cap.(Rs cr) 3
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 7.48
CLOSE 7.47
VOLUME 100
52-Week high 7.48
52-Week low 0.00
P/E 0.54
Mkt Cap.(Rs cr) 3
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Shakti Press Ltd. (SHAKTIPRESS) - Auditors Report

Company auditors report

To

The Members of

Shakti Press Limited

Report on the Audit of the Standalone Financial Statements of Shakti Press Limited

Opinion

We have audited the accompanying standalone financial statements of SHAKTIPRESSLIMITED (“the Company”) which comprise the Balance Sheet as at 31/03/2019the Statement of Profit and Loss and statement of cash flow for the year then ended andnotes to the financial statements including a summary of the significant accountingpolicies and other explanatory information.

Qualified 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 March 31 2019 and profit/loss and its cash flows for the year ended on that date;except for the qualifications as mention in the Basis for Opinion section.

Basis for Qualified Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our opinion.

1. The following are the basis for us to form a qualified opinion;

i) Some operating expenses like salaries PF ESIC etc. have not been booked for somemonths.

ii) Stock Register and other details have not been provided. Hence physicalverification of stock could not be carried out and we had to rely on the stock figures asgiven by the management.

iii) Abnormal items in the current year Profit and Loss A/c are;

• A prior period item of Interest Provision reversed on account of One TimeSettlement Rs. 20000000 considered as income.

• Non recoverable receivables and obsolete investments amounting to Rs. 6313711have been written off in P&L A/c as an expenditure.

iv) The management has not been recognizing deferred tax asset/liability it seems theyhave not been following the provisions of IndAS12.

v) Share application Money of Rs. 8512000 was refunded this year. However interest @12% for Rs. 5107200 on account of refund of Share Application Money of Rs. 8512000 hasneither been given to the applicants nor been provided for in the P&L A/c. as per 42of companies Act 2013.

vi) Debtors of Rs. 18181306 are more than 3 years old. The same being time barredshould have been written off but they were not considered while writing off other Debtsduring the current year.

vii) 20 CENVAT Credit of Rs. 27945.84 on account of Service Tax and Excise had to beshifted to GST Input Tax Credit Account. As we were not provided the details of GST Tran-1and other GST returns we could not verify them and the balances in CENVAT Credit Accountare as it is.

viii) Depreciation is calculated on aggregate basis as the company has not maintainedthe component wise records of fixed assets. This is not in accordance with Ind as 16“Property Plant and Equipments”.

ix) Details of GST returns and working were not provided to us. Hence we are unable toascertain the company's position wit to GST liability. The figure mentioned in the balancesheet is as given by the Management.

x) Internal auditor for the F.Y. 2018-19 has not been appointed by the company asrequired under section 138 of the Companies Act 2013.

xi) The balance of other current assets trade payables unsecured loans and othercurrent liabilities includes balance remaining outstanding for a substantial period. Thebalances are subject to confirmation and reconciliation. The reported financials mighthave consequential impact which remains unascertained.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.

Except for the matter described in the ‘Basis for Qualified Opinion' section wehave determined that there are no other Key Audit Matters to communicate in our report

Responsibility of management for the standalone 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 ofthese standalone financial statements that give a true and fair view of the financialposition financial performance (changes in equity) and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theaccounting Standards specified under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate implementationand maintenance of accounting policies; making judgments and estimates that are reasonableand prudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatement that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so. Those Board of Directors are also responsible for overseeing thecompany's financial reporting process

Auditor's Responsibility

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Other Matters

We did not audit the financial statement of preceding financial year ended on 31stMarch 2018. According to Standard on Auditing 510 we placed reliance on the closingbalances contained in the financial statement of preceding period however we obtainedaudit evidence wrt opening balances contained in financial statement of current period.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2016 (“the Order”)issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give in the Annexure a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

As required by Section 143(3) of the Act we report that:

We have sought and obtained all the information and explanations which to the best ofour knowledge and belief were necessary for the purposes of our audit.

a) 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;

b) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account;

c) 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.

d) On the basis of the written representations received from the directors as on 31stMarch 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 from being appointed as a director in terms of Section164 (2) of the Act.

e) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in “Annexure A”.

f) With respect to the other matters to be included in the Auditor's 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 financialposition.

ii) The Company did not have any long-term contracts including derivative contracts; assuch the question of commenting on any material foreseeable losses thereon does not arise.

iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company {or following are the instancesof delay in transferring amounts required to be transferred to the Investor Educationand Protection Fund by the Company or there were no amounts which were required to betransferred to the Investor Education and Protection Fund by the Company}.

For D P Sarda & Co
Date : 30-05-2019 Chartered Accountants
Place : Nagpur (Firm Registration No. 117227w)
CA Pavankumar Gahukar
M.No. : 140097

“Annexure A” to the Independent Auditor's Report of even date on theStandalone Financial Statements of “Shakti Press Ltd”

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 (“the Act”)

We have audited the internal financial controls over financial reporting of SHAKTIPRESS LIMITED (“The Company”) as of March 31 2019 in conjunction with our auditof the standalone financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the “Guidance Note”) and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence amount the adequacyof the internal financial control system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reportingassessing the risk that a material weakness exists and operating effectiveness ofinternal control based on the assessed risk. The procedures selected depend upon on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2019 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting issues by the Institute of CharteredAccountants of India.

Date : 30-05-2019 FOR D P Sarda & Co
Place : Nagpur Chartered Accountants
(Firm Registration No. 117227w)
CA Pavankumar Gahukar
M.No. : 140097

Reports under The Companies (Auditor's Report) Order 2016 (CARO 2016) for the yearended on 31st March 2019

To

The Members of SHAKTI PRESS LIMITED

(i) In Respect of Fixed Assets

(a) The company has not maintained (Component wise) proper records of fixed assetwhich showing full particulars including quantitative details and situation of fixedassets. Hence we charge depreciation on fixed asset on aggregate value of asset.

(b) As explanation given to us management fixed assets have been physically verifiedby the management at reasonable intervals; No material discrepancies were noticed on suchverification.

(c) Records of fixed asset are not given to us for examination and also Title deeds ofcompany's asset are not provided to us hence we are unable to comment whether suchTitle deeds are in the name of company or not.

(ii) In Respect of Inventories

Physical verification of inventory has been conducted at reasonable intervals by themanagement.

(iii) Compliance under section 189 of The Companies Act 2013

The company has not granted any loans secured or unsecured to companies firms orother parties covered in the register maintained u/s 189 of the companies Act-2013

(iv) Compliance under section 185 and 186 of The Companies Act 2013

During the year company advanced the below mentioned amount to its director which isnot in compliance with section 185 of companies Act 2013. But company complied withsection 186 of the Act in respect of making investments and providing loan guaranteesand securities as applicable.

Non-compliance of sec 185 of companies Act 2013 is reported as follow:-

Sr. No. Name of Director Amount (Rs.) Closing Balance on Balance sheet Date (Rs.)
1 Ashutosh Potnis 100000 450000
2 Shantanu Sharma 61777 25177

(v) Compliance under section 73 to 76 of The Companies Act 2013 and Rules framedthereunder while accepting Deposits

The company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of sections 73 to 76 or any otherrelevant provisions of the Act and the rules framed thereunder are not applicable. Noorder has been passed by company Law Board on National company Law Tribunal or ReserveBank of India or any court or any other Tribunal.

(vi) Maintenance of cost records

The maintenance of cost records has not been specified by the Central Government undersection 148(1) of the Companies Act 2013 for the business activities carried out by theCompany. Thus reporting under clause 3(vi) of the order is not applicable to the Company.

(vii) Deposit of Statutory Dues

(a) The company is not regular in depositing the undisputed statutory dues includingprovident fund employees` state insurance income tax sales tax wealth tax servicetax custom duty excise duty Cess and other statutory dues applicable to the Companywith the appropriate authorities. There are some cases where TDS has been deducted butdeposited after due date. For the month of April- Sep 18 the TDS amount of Rs. 8 49530was not deposited till the date of audit. No other undisputed statutory dues wereoutstanding as at the last day of the financial year for a period of more than six monthsfrom the date they became payable.

(b) There arefollowing disputes with the revenue authorities regarding any duty or taxpayable;

SN Statute Amount Financial Year to which amount relates Status
1 Income Tax Act 1961 Rs. 2764550 2015-16 Appeal filed with CIT
2 Income Tax Act 1961 Rs.194330 2007-08 Appeal Filed with ACIT
3 Income Tax Act 1961 Rs.807190 2008-09 Appeal Filed with ACIT
4 Income Tax Act 1961 Rs.48940 2009-10 Appeal Filed with ACIT
5 Income Tax Act 1961 Rs.1820 2010-11 Appeal Filed with ACIT
6 Income Tax Act 1961 Rs.1300 2011-12 Appeal Filed with ACIT
7 Income Tax Act 1961 Rs.20670 2012-13 Appeal Filed with ACIT
8 Income Tax Act 1961 Rs.12900 2013-14 Appeal Filed with ACIT
9 Income Tax Act 1961 Rs.2540 2014-15 Appeal Filed with ACIT
10 Income Tax Act 1961 Rs.2020 2015-16 Appeal Filed with ACIT
11 Income Tax Act 1961 Rs.8660 2016-17 Appeal Filed with ACIT
12 Income Tax Act 1961 Rs.5020 2017-18 Appeal Filed with ACIT

(viii) Repayment of Loans and Borrowings

The Company has not taken any loans or borrowings from financial institutions andgovernment or has not issued any debentures. However company has a cash credit of Rs.4.95 Crores from Arvind Bank Ltd. and its outstanding balance as on 31.3.2019 is of Rs.4.43 Crores.

(ix) Utilization of Money Raised by Public Offers and Term Loan For which they Raised

The company has not raised any money by way of initial public offer or further publicoffer {including debt instruments) and term loans. Hence this clause is not applicable.

(x) Reporting of Fraud During the Year

Based on our audit procedures and the information and explanation made available to usno such fraud noticed or reported during the year.

(xi) Managerial Remuneration

Managerial remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct.

(xii) Compliance by Nidhi Company Regarding Net Owned Fund to Deposits Ratio

As per information and records available with us The company is not Nidhi Company.

(xiii) Related party compliance with Section 177 and 188 of companies Act 2013

Yes all transactions with the related parties are in compliance with section 177 and188 of Companies Act 2013 where applicable and the details have been disclosed in theFinancial Statements etc. as required by the applicable accounting standards. Details arementioned in Note 20 to the Balance Sheet.

(xiv) Compliance under section 42 of Companies Act - 2013 regarding Private placementof Shares or Debentures

Company had a long outstanding of Rs. 85.12 Lacs in the name of Share Application MoneyPending Allotment. The company has repaid such amount of Rs. 85.12 Lacs without payinginterest to the applicants. This in violation of section 42 of the Companies Act 2013.

(xv) Compliance under section 192 of Companies Act 2013

Apart from those mentioned in the notes to accounts the company has not entered intoany non-cash transactions with directors or persons connected with him and the provisionsof section 192 of Companies Act 2013 have been complied with.

(xvi) Requirement of Registration under 45-IA of Reserve Bank of India Act 1934

The company is not required to be registered under section 45-IA of the Reserve Bank ofIndia Act.

Date : 30-05-2019 For D P Sarda & Co
Place : Nagpur Chartered Accountants
(Firm Registration No. 117227w)
CA Pavankumar Gahukar
M.No. : 140097

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