| We have audited the accompanying financial statements of Shiva Medicare
Limited ("the Company") which comprises the balance sheet as at 31
March, 2014, the statement of profit and loss and the cash flow
statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards notified under sub- section
(3C) of Section 211 of the Companies Act, 1956 ('the Act") (which
continue to be applicable in respect of Section 133 of the companies
Act 2013 in terms of the General Circular 15/2013 dated 13-09-2013 of
the Ministry of Corporate Affairs) and in accordance with the
Accounting principles generally accepted in India. This responsibility
includes the design implementation and maintenance of internal control
relevant to the preparation and > presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment
of the risks of material misstatement of the financial statements,
whether due to fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the Company's
preparation and fair presentation of the financial statements in order
to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness
of the Company's internal control. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness
of the accounting estimates made by Management, as well as evaluating
the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the balance sheet, of the state of affairs of the
Company as at 31st March 2014;
(b) in the case of the statement of profit and loss, of the profit of
the Company for the year ended on that date; and
(c) in the case of the cash flow statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors' Report) Order, 2003
("the Order"), as amended, issued by the Central Government in
terms of sub-section (4A) of Section 227 of the Act, we give in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of
the Order.
2. As required by Section 227(3) of the Act, we report that:
(a) 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;
(b) 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;
(c) the balance sheet, the statement of profit and loss and the cash
flow statement dealt with by this report are in agreement with the
books of account;
(d) in our opinion, the balance sheet, the statement of profit and loss
and the cash flow statement comply with the Accounting Standards
notified under the Act (which continue to be applicable in respect of
Section 133 of the companies Act 2013 in terms of the General Circular
15/2013 dated 13-09-2013 of the Ministry of Corporate Affairs); and
(e) on the basis of written representations received from the directors
as on 31st March, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March, 2014, from being
appointed as a director in terms of clause (g) of subsection (1) of
Section 274 of the Act.
STATEMENT REFERRED TO IN THE AUDIT REPORT
i. There were no fixed assets during the year ended on 31-03-2014.
a. The Company has no Stock and hence the question of physical
verification does not arise.
ii.
a) As per the Information and explanation given to us, the company has
taken interest free loan from parties covered u/s 301 of the Companies
Act, and it has not given any loans to any party covered u/s 301 of the
Companies Act, 1956.
b) The loans are interest free unsecured loan and as per the
information and explanation given to us is not prima-facie prejudicial
to the interest of the company.
c) We have been informed that there are no terms of repayment of the
principal and hence the reporting requirement of this clause and clause
iii (d) are not applicable.
The details of the loans are as under:-
Name of the Opening Receipt during Repayment Closing balance
party balance the year during the
year
Shiva paper 4,75,000 - - 4,75,000
mills limited
Sh.Pramod 10,00,000 - - 10,00,000
kumar jain
Sh. Amit Jain 5,00,000 - - 5,00,000
Smt. Kiran
Jain 1,65,000 - - 1,65,000
iii. The entire operation of the company remain closed and there was no
employee and consequently the internal control procedures established
in the past for purchase of inventory, fixed assets, sale of goods was
also not in operation.
iv. a) According to the information and explanation given to us, we
are of the opinion that the transaction that needs to be entered into
the register maintained under section 301 of the companies Act, 1956
have been so entered.
b) In our opinion and according to the information and explanation
given to us, there has been no transaction made in pursuance to
contracts or arrangements entered in the register maintained u/s 301
which exceed valued of five lakh in respect of any party during the
year.
c) As per the information and explanation given to us, the company has
not accepted any public deposit except outstanding inter-corporate
loans and deposits from share holders.
v. As the operation of the company remain closed during the financial
year there was no internal audit system in operation.
vi. Maintenance of the cost record has not been prescribed by the
Central Government u/s 209(1 )(d) of the companies Act, 1956.
vii.
a) We have to report that the custom duty of Rs. 36,778, property tax
Rs. 817,129, sales tax Rs. 14,874 & TDS on contractors Rs. 4239 & TDS
on salaries for Rs. 300 are outstanding as on 31.03.2014.
b) according to the information and explanations given to us, except as
above there were no other undisputed amounts, payable in respect of
income tax, wealth tax, sales tax, custom duty, excise and cess which
were arrears, as on 31.03.2014 for a period of more than six months
from the date they became payable and that there are no demands pending
on account of any disputes before any forum.
viii. The accumulated losses of the company at the end of the financial
year exceed its net worth. The company has incurred cash losses in this
financial year.
ix. As per records of the company and the information and explanations
given to us, we have to report that the company had defaulted in
repayment of its secured loans to banks. During the year ended
31.03.2006 the company paid entire amount due to banks on one time
settlement. Consequently there is no outstanding amount payable to
banks.
x. Based on our examination of documents and records maintained by the
company, we are of the opinion that since the company has not granted
any loans and advance on the basis of security by way of pledge of
shares, debenture and other securities, it is not required to maintain
records in respect thereof.
xi. In our opinion, the company is neither a chit fund nor nidhi /
mutual benefit fund/society and hence clause 4 (xiii) of the Order is
not applicable to the company.
xii. In our opinion and as per the information and explanations give by
management, the company is not dealing in or trading in shares,
securities, debentures and other investments.
xiii. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the company we report
that during the year no funds were raised on shorter basis have been
used for long-term investments and no long-term funds have been used to
finance short term investments.
xiv. During the year the company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under section 301 of the companies Act, 1956.
xv. During the year the company had not issued any debentures and as
such creation of security is not applicable.
xvi. During the year under review, no money was raised by public issue
and s such disclosure of end use of money raised is not applicable.
xvii. Based upon the audit procedure performed and information and
explanations given by the management we report that during the year no
fraud on or by the company has been noticed or reported by the
management.
Sd/-
V.RAMACHANDRA RAO
Place : Hyderabad Chartered Accountant
Date : 30.05.2014.
Membership No.203292 |