ANNEXURE REFERRED TO IN MY REPORT OF EVEN DATE ON THE ACCOUNTS FOR THE

YEAR ENDED 31ST MARCH 2015 OF M/S STEEL HYPERMART INDIA PVT LTD.

On the basis of such checks as I considered appropriate and according to the information and
explanations given to me during the course of audit, I state that :
I.
A. The company has maintained proper records showing full particulars including
quantitative details and situation of fixed assets.

B. All the assets have been physically verified by the management during the year.
There
is regular program of verification which, in my opinion, is reasonable having regard to
the size of the company and the nature of its assets. No material discrepancies were
noted on such verification.

C. During the year, there was no sale of substantial part of fixed assets and hence the
going concern of the company in not affected.

II.
A. The inventory has been physically verified during the year by the management. In my
opinion, the frequency of verification is reasonable.

B. The procedures of physical verification of inventories followed by the management

are reaonable and adequate in relation to the size of the company and nature of its
business.

C. The company is maintaining proper records of inventory. The discrepancies noticed

on verification between the physical stock and the book records were not material.
III.
1.
a. The company has taken loans, unsecured from other parties listed in the register
maintained under the provisions of section 189 of the Company Act 2013.

b. The rate of interest and other terms and conditions of the unsecured loan taken by
The company are prima facie not prejudicial to the interest of the company.

c. The payment of the principal and interest are as stipulated.

d. There is no over due amount in respect of the loan mentioned in Para (1) (a)
above.
2.
a. The company has not granted any Loans secured / unsecured to companies firms
or other parties listed in the register maintained under the provisions of section
189 of the Company Act 2013.

IV In my opinion and according to the information and explanations given to me, 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 with regard
to the sale of goods. During the course of my audit, I have not observed any continuing
failure to correct major weaknesses in internal controls.
V
a. According to the information and explanations given to me, I am of the opinion that
the Transaction that need to be entered in to the register maintained under section 189
of the Companies Act, 2013 have been reviewed.

b. In my opinion and according to the information and explanation given to me, the
transactions made in pursuance of contracts or arrangements entered in the
register maintained under section 189 of the companies Act,2013 and
exceeding the value of rupees five lakhs in respect of any party during the year
have been made at prices which are reasonable having regard to prevailing market
prices at the relevant time.

VI In my opinion and according to the information and explanations given to me, the
company has not accepted any deposits from the public within the provisions of section
73 and 74 of the Companies Act, 2013 and the Companies (Acceptance of Deposits)
Rules, 2014 with regard to the deposits accepted from the public.

VII In my opinion, the company has an adequate internal audit system commensurate with
The size of the company and the nature of its business.

VIII We have broadly reviewed the cost records maintained by the Company pursuant to the
Companies (Cost Records and Audit) Rules, 2014 prescribed by the Central Government
under Section 148(1)(d) of the Companies Act, 2013 and are of the opinion that, prima
facie, the prescribed accounts and cost records have been maintained. We have, however,
not made a detailed examination of the cost records with a view to determine whether
they are accurate or complete..

IX The company is regular in depositing statutory dues with appropriates authorities

undisputed statutory dues including Income Tax, provident fund, Employee’s state
insurance sales tax vat, Service Tax Custom Duty Excise duty Profession Tax, cess and
other material statutory dues applicable to it.

X The company does not have accumulated losses as at 31st march 2015.The Company has
not incurred any cash losses during the financial year covered by my audit and the
immediately preceding financial year.

XI In my opinion according to the information and explanations given to me, the company
has not defaulted in repayment of dues to Banks.

XII In my opinion and according to the information and explanations given to me, the
company has not granted any loans and advance on the basis of security by way of pledge
of Shares, Debentures and Other Securities.

XIII According to the information and explanations given to me, the company has not given
any guarantee to any financial institution /Bank.

(xiv) XIV In my opinion, the term loans have been applied for the purpose for which they
were raised
(xv) According to the information and explanations given to me and on an overall
examination of the Balance Sheet of the company, I report that no funds raised on
short term basis have been used for long term investment and funds raised on long term
basis have not been used for short term investment.

(xvi) The company has not made any preferential allotment of shares during the year to
parties and companies covered in the register maintained under section 189 of the
companies Act 2013.

(xvii) The company has not issued any debentures during the year and therefore the question of
creating security in respect thereof does not arise.

(xviii) I have verified the end use of money raised by issuing of shares

(xix) According to the explanation and information given to me, based upon the audit
procedures performed and representations made by the management, I report that no
fraud on or by the company has been noticed or reported during the course of my Audit.

For BHANDARI PINCHA & SURANA

Chartered Accountants
(FRN: 010811S )

MUKESH SURANA
Partner
Partner M No: 077745

Bangalore, April 04th 2015