Mar 31, 2015
We have audited the accompanying standalone financial statements of
Ashirwad Steels & Industries Limited (''the Company''), which comprise
the balance sheet as at 31 March 2015, 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 Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation and presentation of these standalone 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 principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
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.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. 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 the 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 financial control relevant
to the Company''s preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company''s Directors, 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 on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone 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, of the state of affairs of the Company as
at 31 March 2015 and its profit and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in the paragraph 3 and 4 of the
Order, to the extent applicable.
2. 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 best of 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 the Company so far as it 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 aforesaid standalone financial statements
comply with the Accounting Standards 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 31 March 2015
taken on record by the Board of Directors, none of the directors is
disqualified as on 31 March 2015 from being appointed as a director in
terms of Section 164 (2) of the Act;
(f) In our opinion the Company has adequate internal financial control
system in place and the operating effectiveness of such controls; and
(g) with respect to the other matters to be included in the Auditor''s
Report in accordance with
Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our
opinion and to the best of our information and according to the
explanations given to us:
i. the Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 29(b) to
the financial statements;
ii. There were no material foreseeable losses, if any, on long-term
contracts including long- term derivative contracts, therefore the
requirement for making any provision does not arise.
iii. There has been no event requiring any amount to be transferred,
to the Investor Education and Protection Fund by the Company.
Annexure to the Auditors'' Report
The Annexure referred to in our report to the members of Ashirwad
Steels & Industries Ltd. for the year ended on 31st March,2015. We
report that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the management as
per a phased program of verification. In our opinion, the frequency of
verification is reasonable having regard to the size of the Company and
the nature of its assets. The discrepancies reported on such
verification were not material and have been properly dealt with in the
books of accounts.
(ii) As explained to us the management has conducted physical
verification of inventory at reasonable intervals during the year
wherever possible and/or required.
(iii) The requirement of clause (iii) a and (iii) b of the order are
not applicable since no loans have been given to companies, firms or
parties covered under Section 189 of the Companies Act, 2013.
(iv) In our opinion and according to the information and explanations
given to us, having regard to the explanation that some of the items
purchased are of special nature and suitable alternative sources do not
exist for obtaining comparable quotation, there are adequate internal
control procedures commensurate with the size of the company and the
nature of its business for the purchase of inventory, fixed assets and
with regard to the sale of goods. During the course of our audit, no
major weakness has been observed in the internal controls regarding
purchase of inventory and fixed assets and sale of goods.
(v) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits within the
meaning of sections 73 to 76 or any other relevant provisions of the
Companies Act,2013 and the rules framed there under.
(vi) Since the net worth of the Company is less than Rupees one hundred
and fifty crores and the turnover in respect of sponge iron is less
than Rupees twenty five crore, the requirement of maintenance of cost
records is not considered necessary.
(vii) (a) The company is generally regular in depositing undisputed
statutory dues including Staff Provident Fund, Employees''
State Insurance, Income Tax, VAT, CST, Service Tax, Excise Duty, Cess,
duty of customs and other material statutory dues as applicable to it.
(b) According to the information and explanations given to us the
following taxes were not deposited as the same were disputed in appeal
at the end of the year:
Particulars Disputed Forum where dispute
Amount (Rs.) is pending in
appeal As on
31.03.2015
i) VAT Tax on Coal 15,08,910 Appellate Dy.
purchase (Net of Commissioner (CT),
payment) Hyderabad Rural
Division.
ii) Income Tax for:
Asst. Yr. 2003-04 2,43,395 Hon''ble Income Tax
Appellate
Tribunal, Kolkata.
Asst. Yr. 2008-09 1,49,196 C.I.T. (Appeals)
-C-IM, Kolkata.
Asst. Yr. 2010-11 8,00,230 C.I.T. (Appeals)
-C-IM, Kolkata.
iii) CENVAT on Capital 12,14,662 Commissioner of
Goods(Net of Customs, Central
payment) Excise and Service
Tax (Appeals III ),
Hyderabad.
(c) In our opinion there is no amount required to be transferred to
Investor education and protection fund in accordance with the relevant
provisions of the Companies Act,1956 and rules framed thereunder.
(viii) The Company does not have any accumulated past losses at the end
of the financial year under review and has not incurred cash loss in
the current financial year. There was no cash loss incurred in the
immediately preceding financial year.
(ix) According to the information and explanations given to us and the
records examined by us, the Company has not defaulted in repayment of
dues to banks or any financial institutions. The company has not
accepted any fund on account of issue of debentures.
(x) According to the information and explanations given to us and the
records examined by us, the Company has not given any guarantees for
loans taken by others from banks or financial institutions, the terms
and conditions whereof could have been prima facie prejudicial to the
interest of the Company.
(xi) As informed to us, the company has not taken any term loans during
the year.
(xii) 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 A. Pradhan & Associates
Chartered Accountants
Firm''s registration number: 325131E
Place- 28B Kalidas Patitundi Lane
Kolkata -700026
Date- 29th May , 2015.
A. Pradhan
(Proprietor)
Membership number: 053543
Mar 31, 2014
We have audited the accompanying financial statements of Ashirwad
Steels & Industries Limited, which comprise the Balance Sheet as at
March 31,2014, and the Statement of Profit and Loss and Cash Flow
Statement for the year ended, and a summary of significant accounting
policies and other explanatory information.
Management''s Responsibility for the Financial Statements
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 referred to in sub-section (3C) of section 211
of the Companies Act, 1956. 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.
Auditor''s 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. 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 financial statements 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 principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(b) in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
* in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Emphasis of Matter:
We draw attention to Note No.37 to the Financial Statements with
respect to Company having filed a legal suit in the Hon''ble High Court
of Ranchi against Central Coalfields Ltd. for their illegal adjustment
of Company''s purchase advance of Rs. 1,14,30,107/- given to them for
purchase of Coal. Meanwhile, the Company has raised Compensation Bill
on Central Coalfields Ltd. for Rs. 99,45,450/- for the Accounting Year
2011-12 and also Rs. 99,45,450/- for the Accounting Year 2012-13 along
with all amount of interest accrued and due thereon till March, 2014.
The entire matter is pending for hearing and adjudication in the
Hon''ble High Court, Ranchi. Pending outcome of the aforesaid legal suit
against Central Coalfields Ltd.; the Company has not made any
adjustments for the above financial transactions/matters in the
Financial Statements of Accounts for the Financial Year 2013-14.
Our Opinion is not qualified in respect of the above.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India 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, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e. on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the company.
Annexure to the Auditors'' Report:
Referred to in Paragraph 1 of the ''Report on other Legal & Regulatory
Requirements'' of our report of even date on the accounts of Ashirwad
Steels & Industries Ltd. for the year ended March 31, 2014:
1. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the management as
per a phased program of verification. In our opinion, the frequency of
verification is reasonable having regard to the size of the Company and
the nature of its assets. The discrepancies reported on such
verification were not material and have been properly dealt with in the
books of accounts.
(c) In our opinion, no fixed assets employed by the company had been
disposed off during the year.
2. (a) As explained to us the management has conducted physical
verification of inventory at reasonable intervals during the year.
(b) In our opinion, the procedures followed by the management for such
physical verification of inventory sure reasonable and adequate in
relation to the size of the Company and nature and volume of its
business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between physical inventories and
the book records were not material and have been properly dealt with in
the books of accounts.
3. (a) The Company has not given any loan secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
(b) In our opinion, the requirement of clause (iii) (b), (iii) (c) &
(iii) (d) of the order are not applicable since no loans have been
given to companies, firms or parties covered under section 301 of the
Companies Act, 1956.
(c) The company has not taken any loan from companies, firms or other
parties covered in the register maintained under section 301 of the
Act.
(d) In our opinion, the requirement of clause (iii) f and (iii) g of
the order is not applicable as the company has not taken any such loan
which is covered under section 301 of the Act.
4. In our opinion and according to the information and explanations
given to us, having regard to the explanation that some of the items
purchased are of special nature and suitable alternative sources do not
exist for obtaining comparable quotation, there are adequate internal
control procedures commensurate with the size of the company and the
nature of its business for the purchase of inventory, fixed assets and
with regard to the sale of goods, services and disposal of fixed
assets. During the course of our audit, no major weakness has been
observed in the internal controls regarding purchase of inventory and
fixed assets and sale of goods and services.
5. (a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the particulars of contracts or arrangements referred to
in section 301 of the Act have been entered in the said register.
(b) During the year the company has not purchased raw material from a
company under the same management exceeding the value of five lakhs
rupees at cost price.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
within the meaning of Section 58A and Section 58AA or any other
relevant provisions of the Companies Act, 1956 and the rules framed
thereunder.
7. The Company has an internal audit system, which in our opinion, is
commensurate with the size and nature of its business.
8. As informed to us, the company has initiated the process of
maintaining cost records as has been prescribed by the Central
Government u/s 209(1)(d) of the Companies Act, 1956, in respect of the
sponge iron production activities carried on by the Company.
9. (a) The company is generally regular in depositing undisputed
statutory dues including Staff Provident Fund, Investor Education and
Protection Fund, Employees'' State Insurance, Income Tax, VAT, CST,
Service Tax, Excise Duty, Cess and other material statutory dues
applicable to it except as stated in Notes on Accounts - Clause No. 31
(b) According to the information and explanations given to us the
following taxes were not deposited as the same were disputed in appeal
at the end of the year:
Particulars Disputed Forum where dispute is pending in
Amount (Rs.) appeal as on 31.03.2014
i) VAT Tax on Coal 15,08,910 Appellate Dy. Commissioner (CT),
purchase (Net of Hyderabad Rural Division,
payment)
ii) Income Tax for:
Asst. Yr. 2003-04 2,43,395 Hon''ble ITAT, Kolkata.
Asst. Yr. 2008-09 1,49,196 C.I.T. (Appeals)-C-lll, Kolkata.
Asst. Yr. 2010-11 8,00,230 C.I.T. (Appeals)-C-lll, Kolkata.
iii) CENVAT on Capital 12,14,662 Commissioner of Customs, Central
Goods(Net of Excise and Service Tax
payment) (Appeals III), Hyderabad.
10. The Company does not have any accumulated past losses at the end of
the financial year under review and has not incurred cash loss in the
current financial year. There was no cash loss incurred in the
immediately preceding financial year.
11. According to the information and explanations given to us and the
records examined by us, the Company has not defaulted in repayment of
dues to banks or any financial institutions. The company has not
accepted any fund on account of issue of debentures.
12. According to the information and explanations given to us and the
records examined by us, the company has not granted any loan on the
basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion and according to the information and explanations
given to us, the nature of the activities of the Company does not
attract any special statute applicable to chit fund and nidhi/mutual
benefit fund/societies.
14. In our opinion, the Company has maintained proper records of the
transactions and contracts for dealing in investments in shares and
timely entries have been made therein. The investments made by the
Company are held in its own name.
15. According to the information and explanations given to us and the
records examined by us, the Company has not given any guarantees for
loans taken by others from banks or financial institutions, the terms
and conditions whereof could have been prima facie prejudicial to the
interest of the Company.
16. As informed to us, the company has not taken any term loans during
the year.
17. On the basis of an overall examination of the balance sheet and
cash flows of the Company and the information and explanation given to
us, we report that the Company has not utilized short term loans taken
for any long term investments.
18. During the year the company has not made any preferential allotment
of shares.
19. According to the information and explanations given to us, the
company has not issued any debentures.
20. The Company has not raised any money by public issue during the
year.
21. 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 A PRADHAN & ASSOCIATES,
Chartered Accountants
Firm Regd. No:325131E
Place: 28B, Kalidas Patitundi Lane,
Kolkata - 700026.
Date: 30th May 2014
A. PRADHAN
(Proprietor)
Membership No: 053543
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Ashirwad
Steels & Industries Limited, which comprise the Balance Sheet as at
March 31,2013, and the Statement of Profit and Loss and 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
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 referred to in sub-section (3C) of section 211
of the Companies Act, 1956. 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.
Auditor''s 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.
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 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 March 31,2013;
(b) in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003
("the Order") issued by the Central Government of India 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, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956;
e. on the basis of written representations received from the directors
as on March 31,2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31,2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the company.
Referred to in Paragraph 1 of the ''Report on other Legal & Regulatory
Requirements'' of our report of even date on the accounts of Ashirwad
Steels & Industries Ltd. for the year ended March 31, 2013:
1. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the management as
per a phased program of verification. In our opinion, the frequency of
verification is reasonable having regard to the size of the Company and
the nature of its assets. The discrepancies reported on such
verification were not material and have been properly dealt with in the
books of accounts.
(c) In our opinion, no substantial part of fixed assets employed by the
company had been disposed off during the year.
2. (a) As explained to us the management has conducted physical
verification of Inventory at reasonable intervals during the year.
(b) In our opinion, the procedures followed by the management for such
physical verification of inventory are reasonable 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 physical inventories and
the book records were not material and have been properly dealt with in
the books of accounts.
3. (a) The Company has not given any loan secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
(b) In our opinion, the requirement of clausa (iii) (b), (iii) (c) &
(iii) (d) of the order are not applicable since no loans have been
given to companies, firms or parties covered under section 301 of the
Companies Act, 1956.
(c) The company has not taken any loan from companies, firms or other
parties covered in the register maintained under section 301 of the
Act.
(d) In our opinion, the requirement of clause (iii) f and (iii) g of
the order is not applicable as the company has not taken any such loan
which is covered under section 301 of the Act.
4. In our opinion and according to the information and explanations
given to us, having regard to the explanation that some of the items
purchased are of special nature and suitable alternative sources do not
exist for obtaining comparable quotation, there are adequate internal
control procedures commensurate with the size of the company and the
nature of its business for the purchase of inventory, fixed assets and
with regard to the sale of goods, services and disposal of
fixed.assets. During the course of our audit, no major weakness has
been observed in the internal controls regarding purchase of inventory
and fixed assets and sale of goods and services.
5. (a) Based on the audit procedures applied by us and according to
the information and explanations provided by the management, we are of
the opinion that the particulars of contracts or arrangements referred
to in section 301 of the Act have been entered in the said register.
(b) During the year the company has purchased raw material from a
company under the same management exceeding the value of five lakhs
rupees at cost price and the same was reasonable.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
within the meaning of Section 58A and Section 58AA or any other
relevant provisions of the Companies Act, 1956 and the rules framed
there under.
7. The Company has an internal audit system, which in our opinion, is
commensurate with the size and nature of its business.
8. As informed to us, the company has initiated the process of
maintaining cost records as has been prescribed by the Central
Government u/s 209(1 ){d) of the Companies Act, 1956, in respect of the
sponge iron production activities carried on by the Company.
9. (a) The company is generally regular in depositing undisputed
statutory dues including Staff Provident
Fund, Investor Education and Protection Fund, Employees'' State
Insurance, Income Tax, VAT, CST,
- Service Tax, Excise Duty, Cess and other material statutory dues
applicable to it except as stated in
Notes on Accounts - Clause No.31
(b) According to the information and explanations given to us the
following taxes were not deposited as the same were disputed in appeal
at the end of the year:
Particulars Disputed Forum where dispute is pending in
Amount (Rs.) appeal as on 31.03.2013
i) VAT Tax
on Coal 15,08,910 Appellate Dy. Commissioner (CT),
purchase
(Net of Hyderabad Rural Division,
payment)
ii) Income
Tax for:
Asst. Yr.
2003-04 2,43,395 C.I.T. (Appeals)-C-lll, Kolkata.
Asst. Yr.
2008-09 1,49,196 C.I.T. (Appeals)-C-lll, Kolkata.
Asst. Yr.
2010-11 8,00,230 C.I.T. (Appeals)-C-I(l, Kolkata.
iii) CENVAT on Capital 12,14,662 Commissioner of Customs, Central
Excise Goods(Netof payment) and Service Tax (Appeals III), Hyderabad.
-10. The Company does not have any accumulated past losses at the end
of the financial year under review and has not incurred cash loss in
the current financial year. However there was cash loss incurred in the
immediately preceding financial year.
11. According to the information and explanations given to us and the
records examined by us, the Company has not defaulted in repayment of
dues to banks or any financial institutions. The company has not
accepted any fund on account of issue of debentures.
12. According to the information and explanations given to us and the
records examined by us, the company has not granted any loan on the
basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion and according to the information and explanations
given to us, the nature of the activities of the Company does not
attract any special statute applicable to chit fund and nidhi /mutual
benefit fund/ societies.
14. In our opinion, the Company has maintained proper records of the
transactions and contracts for dealing in investments in shares and
timely entries have been made therein. The investments made by the
Company are held in its own name.
15. According to the information and explanations given to us and the
records examined by us, the Company has not given any guarantees for
loans taken by others from banks or financial institutions, the terms
and conditions whereof could have been prima facie prejudicial to the
interest of the Company.
16. As informed to us, the company has not taken any term loans during
the year.
17. On the basis of an overall examination of the balance sheet and
cash flows of the Company and the information and explanation given to
us, we report that the Company has not utilized short term loans taken
for any long term investments.
18. During the year the company has not made any preferential
allotment of shares.
19. According to the information and explanations given to us, the
company has not issued any debentures.
20. The Company has not raised any money by public issue during the
year.
21. 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 A PRADHAN & ASSOCIATES
Chartered Accountants
Firm Regd. No:325131E
Place: 28B, K. P. Lane,
Kolkata - 700026.
A. PRADHAN
(Proprietor)
Date: 30th May 2013 Membership No: 053543
Mar 31, 2010
1. We have audited the attached Balance Sheet of ASHIRWAD 9TEELS &
INDUSTRIES LTD. as at 31st March 2010 and also the Profit and Loss
Account for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Companys
Management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. 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 statements 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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors report) Order 2003 as
amended by Companies (Auditors Report) (Amendment) Order, 2004 issued
by the Central Government of India in terms of Sub-section (4A) of
Section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
order.
4. Further to our comments in the Annexure referred to above, 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 purposes of our
audit.
b. In our opinion, the Company has kept proper books of accounts as
required by law so far as appears from our examination of such books.
c. The Balance Sheet and Profit & Loss Account dealt with by this
report are in agreement with the books of account.
d. In our opinion, the Balance Sheet and Profit and Loss Account dealt
with by this report comply with the accounting standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956.
e. On the basis of written representations received from the directors
as on 31st March 2010 and taken on record by the Board of Directors, we
report that none of the Directors is disqualified as on 31st March 2010
from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956.
f. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with the notes
thereon 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 principles generally accepted in India:
i. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010, and
ii. in the case of the Profit and Loss Account, of the Profit for the
year ended on that date.
iii. in the case of Cash Flow statement ,of the cash flows for the
year ended on that date.
Annexure to the Auditors Report. Referred to in Paragraph 3 of our
report of even date on the accounts of Ashirwad Steels & industries Ltd.
for the year ended March 31, 2010:
1. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the management as
per a phased program of verification. In our opinion, the frequency of
verification is reasonable having regard to the size of the Company and
the nature of its assets. The discrepancies reported on such
verification were not material and have been properly dealt with in the
books of accounts.
(c) In our opinion, no substantial part of fixed assets employed by the
company had been disposed off during the year.
2. (a) As explained to us the management has conducted physical
verification of inventory at reasonable intervals during the year.
(b) In our opinion, the procedures followed by the management for such
physical verification of inventory are reasonable 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 physical inventories and
the book records were not material and have been properly dealt with in
the books of accounts.
3. (a) The Company has not given any loan secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
(b) In our opinion, the requirement of clause (iii) (b), (iii) (c) &
(iii) (d) of the order are not applicable since no loans have been
given to companies, firms or parties covered under section 301 of the
Companies Act, 1956.
(c) The company has taken un-secured loans from three companies covered
in the register maintained under section 301 of the Act. The maximum
amount outstanding during the year was Rs.3,10,47,204/- and the year
end balance of such loans was Rs. NIL.
(d) The rate of interest and other terms and conditions of un-secured
loans taken by the company are prima facie not prejudicial to the
interest of the company.
(e) The repayment of such loans including interest thereon were found
to be regular and/or as per stipulation.
4. In our opinion and according to the information and explanations
given to us, having regard to the explanation that some of the items
purchased are of special nature and suitable alternative sources do not
exist for obtaining comparable quotation, there are adequate internal
control procedures commensurate with the size of the company and the
nature of its business for the purchase of inventory, fixed assets and
with regard to the sale of goods, services and disposal of fixed
assets. During the course of our audit, no major weakness has been
observed in the internal controls regarding purchase of inventory and
fixed assets and sale of goods and services.
5. (a) Based on the audit procedures applied by us and according to
the information and explanations provided by the management, we are of
the opinion that the particulars of contracts or arrangements for loans
taken referred to in section 301 of the Act have been entered in the
said register.
(b) During the year there were no contracts or arrangements exceeding
the value of five lakhs rupees with any concern listed in the register
maintained under Section 301 of the Companies Act, 1956.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
within the meaning of Section 58A and Section 58AA or any other
relevant provisions of the Companies Act, 1956 and the rules framed
there under.
7. The Company has an internal audit system, which in our opinion, is
commensurate with the size and nature à of its business.
8. As informed to us, the company has initiated the process of
maintaining cost records as has been prescribed by the Central
Government u/s 209(1 )(d) of the Companies Act, 1956, in respect of the
sponge iron production - activities carried on by the Company.
9. (a) The company is generally regular in depositing undisputed
statutory dues including Staff Provident Fund, Investor Education and
Protection Fund, Employees State Insurance, Income Tax, VAT, CST,
Service Tax, Excise Duty, Cess and other material statutory dues
applicable to it.
(b) According to the information and explanations given to us the
following taxes were not deposited as the same were disputed in appeal
at the end of the year:
Disputed Forum where dispute is pending
in appeal
Amount (Rs.) As on 31.03.2010
Purchase Tax
(Vat) on * 30,17,821 Appellate Dy. Commissioner (CT),
Coal purchase Hyderabad Rural Division.
Income Tax 15,79,364 Commissioner of Income Tax
(Appeals)- C-lll, Kolkata.
* Out of the said disputed amount, Rs. 15.09 Lacs had been deposited
till the year-ended 31.03.2010
(b) On the basis of a writ petition filed by the Company against State
Governments order withdrawing remission of Sales Tax pursuant to
imposition of VAT in the State; the Honble High Court of Jharkhand at
Ranchi has allowed the benefit of deferment of tax for VAT and although
the Honble High Court order is not specific about deferment of CST,
the Company assumes that deferment order is applicable to both VAT and
CST in respect of its sales from its Sponge Iron project at
Jamshedpur. The company has accordingly shown deferred tax liability on
account of CST Rs. 16,64,369/-and of VAT Rs.22,46,636/- as at the end
of the year. This matter is pending for decision before the Honble
Supreme Court.
10. The Company does not have any accumulated past losses at the end
of the financial year under review and has not incurred any cash losses
in the financial year. There was no cash loss incurred in the
immediately preceding financial year.
11. According to the information and explanations given to us and the
records examined by us, the Company has not availed or taken any loan
from banks or any financial institutions and hence there is no default
in repayment of loan. The company has not accepted any fund on account
of debentures.
12. According to the information and explanations given to us and the
records examined by us, the company has not granted any loan on the
basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion and according to the information and explanations
given to us, the nature of the activities of the Company does not
attract any special statute applicable to chit fund and nidhi /mutual
benefit fund/ societies.
14. In our opinion, the Company has maintained proper records of the
transactions and contracts for dealing in investments in shares and in
the share derivatives transactions and timely entries have been made
therein. The investments made by the Company are held in its own name.
15. According to the information and explanations given to us and the
records examined by us, the Company has not given any guarantees for
loans taken by others from banks or financial institutions, the terms
and conditions whereof could have been prima facie prejudicial to the
interest of the Company.
16. As informed to us, the company has not taken any term loans during
the year.
17. On the basis of an overall examination of the balance sheet and
cash flows of the Company and the information and explanation given to
us, we report that the Company has not utilized short term loans taken
from body corporates (ICD) for any long term investments.
18. The company has made preferential allotment of 45, 00,000 equity
shares during the year at Rs. 40 per share including premium of Rs. 30
each.
19. According to the information and explanations given to us, the
company has not issued any debentures.
20. The Company has not raised any money by public issues during the
year.
21. 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, A PRADHAN & ASSOCIATES,
Chartered Accountants
Place: 2D, Panditia Rd.,
Kolkata
Date: 31 th May, 2010 A. PRADHAN
(Proprietor)
Membership No: 053543
Mar 31, 2009
1. We have audited the attached Balance Sheet of Ashirwad Steels &
Industries Ltd. as at 31st March 2009 and also the Profit and Loss
Account for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Companys
Management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. 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 statements 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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors report)Order 2003 as
amended by Companies (Auditors Report) (Amendment) Order, 2004 issued
by the Central Government of India in terms of Sub-section (4A) of
Section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
order.
4. Further to our comments in the Annexure referred to above, 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 purposes of our
audit.
b. In our opinion, the Company has kept proper books of accounts as
required by law so far as appears from our examination of such books.
c. The Balance Sheet and Profit & Loss Account dealt with by this
report are in agreement with the books of account.
d. In our opinion, the Balance Sheet and Profit and Loss Account dealt
with by this report comply with the accounting standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956.
e. On the basis of written representations received from the directors
as on 31st March 2009 and taken on record by the Board of Directors, we
report that none of the Directors is disqualified as on 31st March 2009
from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956.
f. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with the notes
thereon 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 principles generally accepted in India:
i. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March,
2009, and
ii. in the case of the Profit and Loss Account, of the Profit for the
year ended on that date.
iii. in the case of Cash Flow statement, of the cash flows for the
year ended on that date.
Referred to in Paragraph 3 of our report of even date on the accounts
of Ashirwad Steels & Industries Ltd. for the year ended March, 31,
2009:
1. (a) The Company has maintained proper records showing full
particulars, including quantitative
details and situation of fixed assets.
(b) The fixed assets have been physically verified by the management as
per a phased program of verification. In our opinion, the frequency of
verification is reasonable having regard to the size of the Company and
the nature of its assets. The discrepancies reported on such
verification were not material and have been properly dealt with in the
books of accounts.
(c) There was no disposal of fixed assets during the year.
2. (a) As explained to us the management has conducted physical
verification of inventory at reasonable
intervals during the year.
(b) In our opinion, the procedures followed by the management for such
physical verification of inventory are reasonable 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 physical inventories and
the book records were not material and have been properly dealt with in
the books of accounts.
3. (a) The Company has not given any loan secured or unsecured to
companies, firms or other parties
covered in the register maintained under Section 301 of the Companies
Act, 1956.
(b) In our opinion, the requirement of clause (iii) (b), (iii) (c) &
(iii) (d) of the order are not applicable since no loans have been
given to companies, firms or parties covered under section 301 of the
Companies Act, 1956.
(c) The company has taken un-secured loans from three companies covered
in the register maintained under section 301 of the Act. The maximum
amount outstanding during the year was Rs.13,234,821/- and the year end
balance of such loans was Rs. 10,033,500/-
(d) The rate of interest and other terms and conditions of un-secured
loans taken by the company are prima facie not prejudicial to the
interest of the company.
(e) The repayment of such loans including interest thereon were found
to be regular and/or as per stipulation.
4. In our opinion and according to the information and explanations
given to us, having regard to the explanation that some of the items
purchased are of special nature and suitable alternative sources do not
exist for obtaining comparable quotation, there are adequate internal
control procedures commensurate with the size of the company and the
nature of its business for the purchase of inventory, fixed assets and
with regard to the sale of goods and services. During the course of our
audit, no major weakness has been observed in the internal controls
regarding purchase of inventory and fixed assets and sale of goods and
services.
5. (a) Based on the audit procedures applied by us and according to
the information and explanations
provided by the management, we are of the opinion that the particulars
of contracts or arrangements or loans taken referred to in section 301
of the Act have been entered in the said register.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts and
arrangements entered in the registers maintained under section 301 and
exceeding the value of five lakhs rupees 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.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
within the meaning of Section 58A and Section 58AA or any other
relevant provisions of the Companies Act, 1956 and the rules framed
there under.
7. The Company has an internal audit system, which in our opinion, is
commensurate with the size and nature of its business.
8. As informed to us, the company has initiated the process of
maintaining cost records as has been prescribed by the Central
Government u/s 209(1 )(d) of the Companies Act, 1956, in respect of the
sponge iron production activities carried on by the Company.
9. (a) The company is generally regular in depositing undisputed
statutory dues including Staff Provident
Fund, investor Education and Protection Fund, Employees State
Insurance, Income Tax, VAT, CST, Service Tax, Excise Duty, Cess and
other material statutory dues applicable to it.
(b) According to the information and explanations given to us the
fallowing taxes were not deposited as the same were disputed in appeal
at the end of the year:
Disputed. Forum where dispute is pending in
Amount (Rs.) appeal As on 31.03.2009
Purchase Tax (Vat) on * 30,17,821 Appellate Dy. Commissioner (CT),
Coal purchase Hyderabad Rural Division.
Income Tax 15,79,364 Commissioner of Income Tax .
(Appeals)-C-lll, Kolkata.
* Out of the said disputed amount, Rs. 15.09 Lacs had been deposited
till the year-ended 31.03.2009.
(c) On the basis of a writ petition filed by the Company against State
Governments order withdrawing remission of Sales Tax pursuant to
imposition of VAT in the State; the Honble High Court of Jharkhand at
Ranchi has allowed the benefit of deferment of tax for VAT and although
the Honble High Court order is not specific about deferment of CST,
the Company assumes that deferment order is applicable to both VAT and
CST in respect of its sales from its Sponge Iron project at
Jamshedpur. The company has accordingly shown deferred tax liability on
account of CST Rs. 24,93,949/- and of VAT Rs.33,69,392/- as at the end
of the year. This matter is pending for decision before the Honble
Supreme Court.
10. The Company does not have any accumulated past losses at the end
of the financial year under review and has not incurred any cash losses
in the financial year. There was no cash loss incurred in the
immediately preceeding financial year.
11. According to the information and explanations given to us and the
records examined by us, the Company has not availed or taken any loan
from banks or any financial institutions and hence there is no default
in repayment of loan. The company has not accepted any fund on account
of debentures.
12. According to the information and explanations given to us and the
records examined by us, the company has not granted any loan on the
basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion and according to the information and explanations
given to us, the nature of the activities of the Company does not
attract any special statute applicable to chit fund and nidhi /mutual
benefit fund/ societies.
14. In our opinion, the Company has maintained proper records of the
transactions and contracts for dealing in investments in shares and in
the share derivatives transactions and timely entries have been made
therein. The investments made by the Company are held in its own name.
15. According to the information and explanations given to us and the
records examined by us, the Company has not given any guarantees for
loans taken by others from banks or financial institutions, the terms
and conditions whereof could have been prima facie prejudicial to the
interest of the Company.
16. As informed to us, the company has not taken any term loans during
the year.
17. On the basis of an overall examination of the balance sheet and
cash flows of the Company and the information and explanation given to
us, we report that the Company has not utilized short term loans taken
from body corporates (ICD) for any long term investments.
18. The company has not made any preferential allotment of shares
during the year.
19. According to the information and explanations given to us, the
company has not issued any debentures.
20. The Company has not raised any money by public issues during the
year.
21. 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 A PRADHAN & ASSOCIATES
Chartered Accountants
Place: Kolkata A. Pradhan
Dated: 29,h June,2009 Partner
Membership No : 053543
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