To the Members Shakti Press Limited .
Report on the Financial Statements
We have audited the accompanying financial statements of Shakti Press Limited ('theCompany') which comprise the Balance Sheet as at 31st March 2017 theStatement of Profit and Loss for the year then ended and a summary of the significantaccounting policies and other explanatory information.
Management7 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 ofthese financial statements that give a true and fair view of the financial position andfinancial performance of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities selection and application of appropriateaccounting policies making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
Our responsibility is to express an opinion on these financial statements based on ouraudit.
We gave taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.
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 but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of 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 financial statements except :
(a) The details of quantitative inventory and rates thereof have not been provided tous. Hence we are relying on the total figures for each category of inventory as providedby the management.
(b) No Bank Statement of SBI CC A/C has been provided to us hence it could not beverified.
MATTER OF EMPHASIS
a) In many cases tax deducted but not deposited timely and hence interest has beencharged.
b) The company has not amortized its Brand value over its useful life it seems theyhave not been following the provisions of AS 26.
c) The management has not been recognising deferred tax asset/liability. However asthe company is a loss making entity and application would normally result in deferred taxasset creation the same should be created only if there is virtual certainty supported byconvincing evidence of sufficient future maintainable profits to realize such deferred taxasset.
d) Pursuant to insertion of Rule 11(d) in Companies (Audit and Auditor's) Rules 2014we report that the company has not provided requisite disclosures in the financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom 8th November 2016 to 30th December2016.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view subject to and to the extent aspointed above forming part of the Auditor's Report in conformity with the accountingprinciples generally accepted in India
a) In case of Balance Sheet of the state of affairs of the Company as at 31stMarch 2017;
b) In case of Statement of Profit & Loss of the loss for the year ended on thatdate.
Report on Other Legal and Regulatory Requirements
Matters specified in paragraphs 3 & 4 of the Companies (Auditor's Report) Order2016 ("the Order") issued by the Central Government of India in terms ofsub-section (11) of section 143 of the Act are given in the Annexure.
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 purposes 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 and the Statement of Profit & Loss dealt with by this Reportare in agreement with the books of account.
(d)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(Accounts) Rules 2014.
(e)On the basis of the written representations received from the directors as on 31stMarch 2017 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in termsof Section 164(2) of the Act.
(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 forwhich there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
| ||For B K Sen & Associates |
| ||Chartered Accountants |
| ||FRN: 316103E |
| ||(N.K.SEN) |
|Place: Kolkata ||Partner |
|Date : 30.05.2017 ||M. No. 052754. |
"Annexure A" to the Independent Auditors' Report
Referred to earlier under the heading 'Report on Other Legal & RegulatoryRequirements' of our report of even date to the financial statements of the Company forthe year ended March 31 2017:
(a) In our opinion and as per the information and explanations provided to us theCompany has maintained proper records showing full particulars including quantitativedetails and situation of fixed assets;
(b) The Fixed Assets have been physically verified by the management at regularintervals and no material discrepancies were noticed.
(c) The title deeds of immovable properties are held in the name of the company.
ii. (a) In our opinion and as per the information and explanations provided to us Themanagement has conducted the physical verification of inventory at reasonable intervals.
(b) The discrepancies noticed on physical verification of the inventory as compared tobook records which has been properly dealt with in the books of accounts were notmaterial.
iii. The Company has not granted any loans secured or unsecured to companies firmsLimited Liability partnerships or other parties covered in the Register maintained undersection 189 of the Act. Accordingly the provisions of clause 3 (iii) (a) to (C) of theOrder are not applicable to the Company and hence not commented upon.
iv. In our opinion and according to the information and explanations given to us thequestion of compliance with the provisions of section 185 and 186 of the Companies Act2013 does not arise since the company has neither made any loan or investments nor givenany guarantee or security during the financial year 2016-17.
v. 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 or National Company Law Tribunal or ReserveBank of India or any court or any other Tribunal.
vi. In our opinion and according to the information and explanation provided to us theCost Records has been maintained by the company as specified by the Central Governmentunder section 148(1) of the Act.
a) According to information and explanations given to us and on the basis of ourexamination of the books of accounts and records the Company has been generally regular indepositing undisputed statutory dues including Income-Tax Value Added Tax Service TaxCess and any other statutory dues with the appropriate authorities. There are some casesin which tax deducted but deposited after due date. In case of rent legal consultancyservices and security agency services service tax for the month of September was paid on01.11.2016 25.11.2016 and 03.12.2016 respectively. According to the information andexplanations given to us no undisputed amounts payable in respect of the above statutorydues were in arrears as at March 31 2017 for a period of more than six months from thedate on which they become payable.
b) According to the information and explanations given to us there are no statutorydues outstanding on account of any dispute.
viii. In our opinion and according to the information and explanations given to us theCompany has neither taken loan or borrowing from a financial institution or bank norissued debentures. The question of default in repayment to financial institutions banksgovernment or debenture holders does not arise.
ix. Based upon audit procedure performed and the information and explanations providedto us the company has not raised money by way of initial public offer (including debtinstruments)and term loans. Accordingly the provisions of clause 3 (ix) of the Order arenot applicable to the Company and hence not commented upon.
x. Based upon the audit procedures performed and the information and explanations givenby the management we report that no fraud by the Company or on the company by itsofficers or employees has been noticed or reported during the year.
xi. Based upon the audit procedures performed and the information and explanationsgiven by the management the managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act.
xii. In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 3(xii) of the Order are not applicable to the Company.
xiii. In our opinion the company has complied with sec 177 and 188 of CompaniesAct2013 in relation to related party transactions. However the same are not disclosed inthe financial transactions.
xiv. Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Accordingly the provisions of clause 3 (xiv) of the Order are not applicable tothe Company and hence not commented upon.
xv. Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not entered into any non-cash transactions withdirectors or persons connected with him. Accordingly the provisions of clause 3 (xv) ofthe Order are not applicable to the Company and hence not commented upon.
xvi. In our opinion the company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934 and accordingly the provisions of clause 3 (xvi)of the Order are not applicable to the Company and hence not commented upon.
| ||For and on behalf of |
| ||B.K. Sen & Associates |
| ||Chartered Accountants |
| ||F.R.N. 316103E |
| ||(N.K.Sen) |
|Place: KOLKATA ||Partner |
|Date: 30.05.2017 ||M.No.- 052754 |