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Auditor Report of Beekay Steel Industries Ltd.

Mar 31, 2015

We have audited the accompanying financial statement of BEEKAY STEEL INDUSTRIES LIMITED ("the company"), which comprise the Balance Sheet as at 31st March, 2015, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended and a summary of the significant accounting policies and other explanatory information.

Management's Responsibility for the 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 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 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 thereunder.

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 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 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; and

f) 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 No. 37 to the financial statements;

ii) The Company has made provision, as required under the applicable law or accounting standards,

for material foreseeable losses, if any, on long-term contracts including derivative contracts - Refer Note_____to the financial statements; and

iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

Annexure to the Auditors' Report

The Annexure referred to in our Independent Auditors's Report to the members of the company on the financial statements for the year ended 31.03.2015, we report 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 not been physically verified by the management during the year but there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.

(ii) a) The Inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

b) The procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

c) On the basis of our examination of the records of inventory, we are of the opinion that the Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material.

(iii) a) There are no firms covered in the register to be maintained under section 189 of the Companies Act, 2013 to which the Company has granted loans and therefore other sub part of this clause is not applicable.

(iv) In our opinion and according to the information and explanations given to us, 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 and services. During the course of our audit, no major weakness has been noticed in the internal controls.

(v) The Company has not accepted any deposits from public

(vi) We have broadly reviewed the books of account relating to materials, labour and other items of cost maintained by the Company pursuant to the Rules made by the Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013 and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained.

(vii) a) According otthe records of the Company, the Company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employees' state insurance, income-tax, sales-tax, value added tax, wealth-tax, custom duty, excise-duty, service tax cess and other statutory dues applicable to it.

b) According to the information and explanations given to us, there were undisputed amount payable in respect of Income Tax relating to F.Y. 2008-09 and F.Y. 2010-11 amounting Rs. 11,67,469/- which have remained outstanding as at 31st March, 2015 for a period of more than six months from the date they become payable. However no undisputed dues is payable in respect of wealth-tax, sales-tax, value added tax, service tax value added rax, service tax, customs duty and excise duty which have remained outstanding as at 31.03.2015 for a period of more than six months from the date they became payable.

c) According to the records of the Company, there are dues of sales tax, income tax, customs tax/wealth tax, value added tax, service tax, excise duty/cess which have not been deposited on account of any dispute.

Excise Duty 1998-1999 Hon'ble High Court, Kolkata 831,204

Particulars Financial year to Forum where which the matter matter is pertains pending

— Do — 2001-2002 Jt. Comm. Of Central Excise, — Do — 2002-2003 Jamshedpur

— Do — 1994-1995 Comm., Central Excise (Appeal)

— Do — 2010-2011 Comm., Central Excise (Appeal), Vishakapatanum

— Do — 2008-2013 Commissioner of Central Excise (Appeals), Chennai

— Do — 2005-2008 Customs,Excise & Service Tax Appeallate Tribunal, Kolkata.

— Do — 2009-13 The Commissioner of Central Excise & Service Tax, Jamshedpur

Income Tax 2004-05 Income Tax Appellate Tribunal, Kolkata

— Do — 2011-12 The Commissioner of Income Tax (Appeal-1), Kolkata



Particulars Amount Involved (Rs)

— Do — 144,046 — Do — 276,757

— Do — 94,185

— Do — 590,078

— Do — 210,156

— Do — 3,150,000

— Do — 49,353,416

Income Tax 6,063,651

— Do — 76,142,440

d) These amounts required to be transferred to the Investor Education and Protection Fund in accordance with the provisions of the Companies Act, 1956 (1 of 1956) and rules made thereunder have been transferred to such fund within time.

(viii) The accumulated losses of the Company are not more than fifty per cent of its net worth. The Company has not incurred any cash losses during the financial year covered by our audit and the immediately preceding financial year.

(ix) Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that the Company has not defaulted in repayment of dues to a financial institution, bank or debenture holders.

(x) The Company has not given any guarantee for loans taken by others from bank or financial institutions.

(xi) The term loans have been applied for the purpose for which they were raised.

(xii) Based upon the audit procedures performed and information and explanations given by the management, we report that no fraud on or by the Company has been noticed or reported during the course of our audit.

For RUSTAGI & ASSOCIATES Place : 59, Bentinck Street, Chartered Accountants Kolkata - 700 069. Firm Regd. No.314194E

Dated : 30th day of May, 2015

Sd/- (S.K. RUSTAGI) Partner Mem. No.051860




Mar 31, 2014

We have audited the accompanying Financial Statements of BEEKAY STEEL INDUSTRIES LIMITED, which comprise the Balance Sheet as at March 31, 2014, and 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.

2. Management''s Responsibility for the Financial Statements

The Company''s Management is resposible 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 the Companies Act, 1956 (the Act) read with the General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013 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.

3. 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 resonable assurance about whether the financial statements are free from material misstatement.

An Audit involves performing procedure to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgement, 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 resonableness 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.

4. 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, 2014; and

b) In the case of the Profit and Loss Account, of the Profit for the year ended on that date.

c) In case of Cash Flow Statement, of the Cash Flows of the Company for the year ended on that date.

5. Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor''s Report) Order, 2003 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 to the extent applicable.

a) We have obtained all the information and explanation 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 as 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 accounts.

d) In our opinion, the Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement comply with Accounting Standards notified under the Act read with the General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013.

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 are disqualified as on 31st March, 2014, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

With reference to the Annexure referred to in Paragraph 4 of the report of the Auditors to the Members of BEEKAY STEEL INDUSTRIES LIMITED for the year ended 31st March, 2014 on the basis of the records produced to us for verification / perusal such checks as we considered appropriate, and in terms of information and explanations given to us on our enquiries, We state that:

1) In respect of its Fixed Assets:

(a) The Company has maintained proper records showing full particulars, including, quantitative details and situation of Fixed Assets on the basis of available information.

(b) As explained to us, considering the nature of the Fixed Assets, the same have been physically verified by the management at reasonable intervals during the year in a phased manner. According to the information''s and explanations given to us and the records produced to us for our verification, discrepancies noticed on such physical verification were not material and the same have been properly dealt in the books of accounts.

(c) Fixed Assets disposed off during the year were not significant and would neither have an impact on the operation of the Company nor affected.

2) In respect of its Inventories:

(a) As explained to us, the inventories were physically verified during the year by the Management the frequency of verificaiton is reasonable.

(b) The procedures of physical verification of inventory followed by management were found reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) The Company has maintained proper records of inventory. In our opinion and according to the information and explanations given to us, the maintenance of records for inventory is adequate and discrepancies noticed on physical verification of inventories have been property dealt with in the books of account.

3) a) The Company has taken Unsecured Loan from Companies which are covered by the Act. The terms and condition of such loan are prima facie not prejudicial to the interest of the Company. The Maximum amount outstanding during the year including accrued interest was Rs.1,42,54,986/- and the year end balance is Rs. 88,03,718/-

b) The Company has taken unsecured loan from directors during the year and the year end balance is Rs.1 0,617,855/- inclusive of accrued interest which falls under the category of the Companies, Firms or other parties under the Act.

4) In our opinion and according to the explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchase of inventory including components, equipment, other assets and for the sale of goods. In our opinion there is no major weaknesses in internal control.

5) In respect of contracts or arrangements entered in the Register maintained in pursuanance of Act, to the best of our knowledge and according to the information and explanations given to us:

(a) The particulars of contracts or arrangements referred to Section 301 that needed to be entered in the Register maintained under said Section have been so entered.

(b) where each of such transaction is in excess of Rs. 5 lakhs in respect of any party, the transactions have been made at prices which are prima facie reasonable having to the prevailing market prices at the relevant time.

6) The Company has not accepted any public, deposits during the year. Therefore, the provisions of clause (vi) of paragraph 4 of the Order are not applicable to the Company.

7) In the basis of the internal audit reports broadly reviewed by us, we are of the opinion that the Company has an adequate internal audit system commensurate with the size of the Company and the nature of its business.

8) The Company has maintained cost records as prescribed by the central government under section 209(1)(a) of the Act. We have not made a detailed examination of such records with a view to determine whether they are accurate or complete.

9) (a) There were undisputed amounts payable in respect of Income Tax relating to Financial Year''s from 2006 -2007 to 2010-2011 amounting Rs. 16,64,604 which have remained outstanding as at 31st March, 2014 for a period of more than six months from the date they become payable. But no undisputed dues is payable in respect of Wealth Tax, Custom Duty, Excise Duty, Cess, Service Tax, Investor Education and Protection Fund, Employee State Insurance and Other materials statutory dues applicable to it which have remained outstanding as at 31st March, 2014 for a period of more than six months from the date they become payable.

(b) According to the information and explanations given to us, the details of Statutory dues of Sales tax, Excise Duty & Service Tax which have not deposited on account of dispute are given below :

Particulars Financial year to which Forum where matter is pending the matter pertains

Excise Duty 1998-1999 Hon''ble High Court, Kolkata

-- Do -- 2001-2002 Jt. Comm. Of Central Excise, -- Do -- 2002-2003 Jamshedpur

-- Do -- 1994-1995 Comm., Central Excise (Appeal)

-- Do -- 2011-2012 Comm., Central Excise (Appeal), Vishakapatanum

-- Do -- 2010-2011 Comm., Central Excise (Appeal), Vishakapatanum

-- Do -- 2008-2012 Comm., Central Excise (Appeal), Vishakapatanum

-- Do -- 2004-2008 Customs,Excise & Service Tax Appeallate Tribunal, Bangalore.

-- Do -- 2008-2013 Commissioner of Central Excise (Appeals), Chennai

-- Do -- 2005-2008 Customs,Excise & Service Tax Appeallate Tribunal, Kolkata.

Sales Tax 2008-09 CIT(Appeal), Jamshedpur

-- Do -- 2007-08 The Appellate Deputy Commissioner (CT), Visakhapatnam

Sales Tax 2009-10 The Appellate Deputy Commissioner (CT), Visakhapatnam

Particulars Amount Involved (Rs.)

Excise Duty 8,31,204

-- Do -- 1,44,046

-- Do -- 2,76,757

-- Do -- 94,185

-- Do -- 11,66,247

-- Do -- 5,90,078

-- Do -- 54,94,510

-- Do -- 13,47,300

-- Do -- 2,10,156

-- Do -- 31,50,000

Sales Tax 40,13,333

-- Do -- 14,40,730

Sales Tax 2,95,46,895

10) The Company has no accumulated losses at the end of the financial year and has not incurred any cash losses during the financial year and in the financial year immediately preceeding financial year.

11) The Company has not defaulted in repayment of dues to the financial institution, banks and the company has not issued any debentures.

12) The Company has not granted any loans and advances on the basis of Security by way of pledge shares, debentures and other securities.

13) The Company is not a Chitfund/Nidhi/Mutual Benefit Fund/Society. Therefore, the provisions of clause 4 (xiii) of the Companies (Auditor''s Report) (Amendment) Order 2004 are not applicable to the Company.

14) In our opinion and according to information and explanation given to us, the Company has not made any investments in any shares & security or in any mutual fund during the year. The investments made by Company are held in its own name.

15) According to the information and explanations given to us, the Company has not given any guarantee for loan taken by any others from a bank or financial institution.

16) In our opinion and according to the information explanations given to us, the term loans have been applied for the purpose for which they were raised.

17) According to the records examined by us and information and explanation given to us, on an overall basis, funds raised on short term basis have prima facie not been used during the year for Long Term Investments

18) According to the information and explanations given to us, the Company has not made any preferential allotment of shares to parties or Companies covered under section 301 of Companies Act, 1956 at a price which is prejudicial to the interest of the Company.

19) According to the information and explanations given to us, the Company has not issued any secured debentures.

20) The Company has not raised any money by way of a Public Issue.

21) Based upon the audit procedures perfiormed and information and explanation given by the management, we report that no fraud on or by the company has been noticed or reported during the course of our audit.

For RUSTAGI & ASSOCIATES Firm Regd. No.314194E Chartered Accountants

Sd/- (S.K. RUSTAGI) Partner Mem.No.51860

59, Bentinck Street, Kolkata - 700 069 Dated : 30th day of May, 2014


Mar 31, 2013

1. Report on the Financial Statements

We have audited the accompanying Financial Statements of BEEKAY STEEL INDUSTRIES LIMITED, which comprise the Balance Sheet as at March 31, 2013, and 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.

2. 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 the 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 and error.

3. 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 resonable assurance about whether the financial statements are free from material misstatement.

An Audit involves performing procedure to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgement, 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 resonableness 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.

4. 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, 2013; and

b) In the case of the Profit and Loss Account, of the Profit for the year ended on that date.

c) In case of Cash Flow Statement, of the Cash Flows for the year ended on that date.

5. Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor''s Report) Order, 2003 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 to the extent applicable.

a) We have obtained all the information and explanation 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 as 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 accounts.

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 are disqualified as on 31st March, 2013, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

ANNEXURE TO THE AUDIT REPORT

With reference to the Annexure referred to in Paragraph 4 of the report of the Auditors to the Members of BEEKAY STEEL INDUSTRIES LIMITED for the year ended 31st March, 2013 on the basis of the records produced to us for verification / perusal such checks as we considered appropriate, and in terms of information and explanations given to us on our enquiries, We state that:

i) (a) The Company has maintained proper records showing full particulars, including, quantitative details and situation of Fixed Assets.

(b) As explained to us, considering the nature of the Fixed Assets, the same have been physically verified by the management at reasonable intervals during the year as per the verification schedule adopted by the company whereby all the assets are verified, in a phased manner. According to the information''s and explanations given to us and the records produced to us for our verification, discrepancies noticed on such physical verification were not material and the same have been properly dealt in the books of accounts.

(c) Fixed Assets disposed off during the year were not significant and would neither have an impact on the operation of the Company nor affect its going concern.

ii) (a) As explained to us, the inventories of finished goods and raw materials were physically verified during the year by the Management. The Company has a programme of verification of stocks having regards to the nature and location of stocks, the frequency of verificaiton is reasonable.

(b) In our opinion and according to the records produced and explanations given to us, the procedures of physical verification of inventory followed by management were found reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) In our opinion and according to the information and explanations given to us the company has maintained proper records of inventory. In our opinion and according to the information and explanations given to us, the maintenance of records for inventory is adequate according to the size of Company and nature of business and discrepancies noticed on physical verification of inventories to above as compared to book records have been property dealt with in the books of account.

iii) a) According to the information and explanations given to us, the Company has taken Unsecured Loan from Companies which are covered by Section 301 of the Companies Act,1956. The terms and condition of such loan are prima facie not prejudicial to the interest of the Company. The Maximum amount outstanding during the year was Rs.4,38,84,579/- and the year end balance is Rs. 1,02,54,986/-

b) According to the information and explanations given to us, the Company has taken unsecured loan from directors during the year and the year end balance is Rs.76,07,715/- inclusive of accrued interest which falls under the category of the Companies, Firms or other parties which are covered by Section 301 of the Companies Act,1956.

iv) In our opinion and according to the explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchase of inventory including components, equipment, other assets and for the sale of goods. In our opinion there is no major weaknesses in internal control.

v) In respect of contracts or arrangements entered in the Register maintained in pursuanance of Section 301 of the Companies Act, 1956, to the best of our knowledge and according to the information and explanations given to us:

(a) The particulars of contracts or arrangements referred to Section 301 that needed to be entered in the Register maintained under said Section have been so entered.

(b) where each of such transaction is in excess of Rs. 5 lakhs in respect of any party, the transactions have been made at prices which are prima facie reasonable having to the prevailing market prices at the relevant time.

vi) The Company has not accepted any public, deposits during the year within the meaning of Section 58A / 58AA or other relevant provisions of Companies Act,1956 and The Companies(Acceptance of Deposit) Rules, 1975.

vii) In the basis of the internal audit reports broadly reviewed by us, we are of the opinion that the Company has an adequate internal audit system commensurate with the size of the Company and the nature of its business.

viii) As informed to us, the company has made and maintained cost records as prescribed by the central government under section 209(1)(a) of the Act. We have not made a detailed examination of such records. However we have broadly reviewed the records maintained and are of the opinion, that primafacie the prescribed accounts and records have been maintained.

ix)According to the information and explanations given to us and on the basis of our examination of the books of accounts, there were no undisputed amounts payable in respect of Income Tax, Wealth Tax, Custom Duty, Excise Duty, Cess, Service Tax Investor Education and Protection Fund, Employee State Insurance and Other materials statutory dues applicable to it which have remained outstanding as at 31st March, 2013 for a period of more than six months from the date they become payable.

x) According to the information and explanations given to us, the Company has not granted any loans and advances on the basis of Security by way of pledge shares, debentures and other securities.

xi) The Company has no accumulated losses at the end of the financial year and has not incurred any cash losses during the financial year and in the financial year immediately preceeding financial year.

xii) According to the information and explanation given to us, the Company has not defaulted in repayment of dues to the financial institution, banks and the company has not issued any debentures.

xiii) The Company is not a Chitfund/Nidhi/Mutual Benefit Fund/Society. Therefore, the provisions of clause 4 (xiii) of the Companies (Auditor''s Report) (Amendment) Order 2004 are not applicable to the Company.

xiv) In our opinion and according to information and explanation given to us, the Company has not made any investments in any shares & security or in any mutual fund during the year. The investments made by Company are held in its own name.

xv) According to the information and explanations given to us, the Company has not given any guarantee for loan taken by any others from a bank or financial institution.

xvi) In our opinion and according to the information explanations given to us, the term loans have been applied for the purpose for which they were raised.

xvii) According to the Cash Flow Statement and other records examined by us and information and explanation given to us, on an overall basis, funds raised on short term basis have prima facie not been used during the year for Long Term Investments

xviii) According to the information and explanations given to us, the Company has not made any preferential allotment of shares to parties or Companies covered under section 301 of Companies Act, 1956 at a price which is prejudicial to the interest of the Company.

xix) According to the information and explanations given to us, the Company has not issued any secured debentures during the period covered by our report.

xx) During the period covered under our Audit Report the Company has not raised any money by way of a Public Issue.

xxi) Based upon the audit procedures performed and information and explanation given by the management, we report that no fraud on or by the company has been noticed or reported during the course of our audit.

For RUSTAGI & ASSOCIATES

Firm Regd. No.314194E

Chartered Accountants

Sd/-

(S.K. RUSTAGI)

Partner

Mem.No.51860

59, Bentinck Street,

Kolkata - 700 069.

Dated : 30th day of May, 2013


Mar 31, 2012

1. We have audited the attached Balance Sheet of BEEKAY STEEL INDUSTRIES LIMITED, as at 31st March, 2012, the related Profit and Loss Account and Cash Flow Statement of the Company for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company''s management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with the 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 (Auditor''s Report) Order, 2003 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 in paragraph, we report that :

i) 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;

ii) 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;

iii) The Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account;

iv) In our opinion, the Balance Sheet, Profit & Loss Account & Cash Flow Statement dealt with this report comply with the Accounting Standards referred to in Sub-Section (3C) of Section 211 of the Companies Act, 1956;

v) On the basis of written representations received from the Directors, as on 31st March, 2012 and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31st March, 2012 from being appointed as a Director in terms of clause (g) of Sub-section (1) of Section 274 of the Companies Act, 1956;

vi) In our opinion and to the best of our information and according to the explanations given to us, the said accounts 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, 2012;

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 Cash Flows for the year ended on that date.

ANNEXURE TO THE AUDIT REPORT

With reference to the Annexure referred to in Paragraph 3 of the report of the Auditors to the Members of BEEKAY STEEL INDUSTRIES LIMITED for the year ended 31st March, 2012 on the basis of the records produced to us for verification / perusal such checks as we considered appropriate, and in terms of information and explanations given to us on our enquiries, We state that:

i) (a) The Company has maintained proper records showing full particulars, including, quantitative details and situation of Fixed Assets.

(b) As explained to us, considering the nature of the Fixed Assets, the same have been physically verified by the management at reasonable intervals during the year as per the verification schedule adopted by the company whereby all the assets are verified, in a phased manner. According to the information''s and explanations given to us and the records produced to us for our verification, discrepancies noticed on such physical verification were not material and the same have been properly dealt in the books of accounts.

(c) Fixed Assets disposed off during the year were not significant and would neither have an impact on the operation of the Company nor affect its going concern.

ii) (a) As explained to us, the inventories of finished goods and raw materials were physically verified during the year by the Management. The Company has a programme of verification of stocks having regards to the nature and location of stocks, the frequency of verificaiton is reasonable.

(b) In our opinion and according to the records produced and explanations given to us, the procedures of physical verification of inventory followed by management were found reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) In our opinion and according to the information and explanations given to us the company has maintained proper records of inventory. In our opinion and according to the information and explanations given to us, the maintenance of records for inventory is adequate according to the size of Company and nature of business and discrepancies noticed on physical verification of inventories to above as compared to book records have been property dealt with in the books of account.

iii) a) According to the information and explanations given to us, the Company has granted an Unsecured Loan to a Company which are covered by Section 301 of the Companies Act,1956. The terms and condition of such loan are prima facie not prejudicial to the interest of the Company. The Maximum amount involved during the year was Rs. 2,745 lacs.

b) According to the information and explanations given to us, the Company has taken unsecured loan from directors during the year and the year end balance is Rs. 139.00 lacs inclusive of accrued interest which falls under the category of the Companies, Firms or other parties which are covered by Section 301 of the Companies Act,1956.

iv) In our opinion and according to the explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchase of inventory including components, equipment, other assets and for the sale of goods. In our opinion there is no major weaknesses in internal control.

v) In respect of contracts or arrangements entered in the Register maintained in pursuanance of Section 301 of the Companies Act, 1956, to the best of our knowledge and according to the information and explanations given to us:

(a) The particulars of contracts or arrangements referred to Section 301 that needed to be entered in the Register maintained under said Section have been so entered.

(b) where each of such transaction is in excess of Rs. 5 lakhs in respect of any party, the transactions have been made at prices which are prima facie reasonable having to the prevailing market prices at the relevant time.

vi) The Company has not accepted any public, deposits during the year within the meaning of Section 58A / 58AA or other relevant provisons of Companies Act,1956 and The Companies (Acceptance of Deposit) Rules, 1975.

vii) In the basis of the internal audit reports broadly reviewed by us, we are of the opinion that the Company has an adequate internal audit system commensurate with the size of the Company and the nature of its business.

viii) As informed to us, the company has made and maintained cost records as prescribed by the central government under section 209(1)(a) of the Act. We have not made a detailed examination of such records. However we have broadly reviewed the records maintained and are of the opinion, that primafacie the prescribed accounts and records have been maintained.

ix) According to the information and explanations given to us and on the basis of our examination of the books of accounts, there were no undisputed amounts payable in respect of Income Tax, Wealth Tax, Custom Duty, Excise Duty, Cess, Service Tax Investor Education and Protection Fund, Employee State Insurance and Other materials statutory dues applicable to it which have remained outstanding as at 31st March, 2012 for a period of more than six months from the date they become payable.

x) According to the information and explanations given to us, the Company has not granted any loans and advances on the basis of Security by way of pledge shares, debentures and other securities.

xi) The Company has no accumulated losses at the end of the financial year and has not incurred any cash losses during the financial year and in the financial year immediately preceeding financial year.

xii) According to the information and explanation given to us, the Company has not defaulted in repayment of dues to the financial institution, banks and the company has not issued any debentures.

xiii) The Company is not a Chitfund/Nidhi/Mutual Benefit Fund/Society. Therefore, the provisions of clause 4 (xiii) of the Companies (Auditor''s Report) (Amendment) Order 2004 are not applicable to the Company.

xiv) In our opinion and according to information and explanation given to us, the Company has not made any investments in any shares & security or in any mutual fund during the year. The investments made by Company are held in its own name.

xv) According to the information and explanations given to us, the Company has not given any guarantee for loan taken by any others from a bank or financial institution.

xvi) In our opinion and according to the information explanations given to us, the term loans have been applied for the purpose for which they were raised.

xvii) According to the information and explanations given to us, the Company has not used any short term funds to pay-off long term investment and vice-versa.

xviii) According to the information and explanations given to us, the Company has not made any preferential allotment of shares to parties or Companies covered under section 301 of Companies Act, 1956 at a price which is prejudicial to the interest of the Company.

xix) According to the information and explanations given to us, the Company has not issued any secured debentures during the period covered by our report.

xx) During the period covered our Audit Report the Company has not raised any money by way of a Public Issue. However 20,00,000 Equity Shares of the Company having face value of `10/- has been issued during the year.

xxi) According to the information and explanations given to us, no material frauds on the Company has been noticed or reported during the course of our Audit.

For RUSTAGI & ASSOCIATES

Firm Regd. No.314194E

Chartered Accountants

Sd/-

(S.K. RUSTAGI)

Partner

Mem.No.51860

59, Bentinck Street,

Kolkata - 700 069.

Dated: 21st day of August, 2012


Mar 31, 2011

1. We have audited the attached Balance Sheet of BEEKAY STEEL INDUSTRIES LIMITED, as at 31st March, 2011 the related Profit and Loss Account and Cash Flow Statement of the Company for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with the 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 (Auditor’s Report) Order, 2003 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 in paragraph, we report that :

i) 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;

ii) 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;

iii) The Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account;

iv) In our opinion, the Balance Sheet, Profit & Loss Account & Cash Flow Statement dealt with the this report comply with the Accounting Standards referred to in Sub-Section (3C) of Section 211 of the Companies Act, 1956;

v) On the basis of written representations received from the Directors, as on 31st March, 2011 and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31st March, 2011 from being appointed as a Director in terms of clause (g) of Sub-section (1) of Section 274 of the Companies Act, 1956;

vi) In our opinion and to the best of our information and according to the explanations given to us, the said accounts 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, 2011;

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 Cash Flows for the year ended on that date.

ANNEXURE TO THE AUDIT REPORT

With reference to the Annexure referred to in Paragraph 3 of the report of the Auditors to the Members of BEEKAY STEEL INDUSTRIES LIMITED for the year ended 31st March, 2011 on the basis of the records produced to us for verification / perusal such checks as we considered appropriate, and in terms of information and explanations given to us on our enquiries, We state that:

i) (a) The Company has maintained proper records showing full particulars, including, quantitative details and situation of Fixed Assets.

(b) As explained to us, considering the nature of the Fixed Assets, the same have been physically verified by the management at reasonable intervals during the year as per the verification schedule adopted by the company whereby all the assets are verified, in a phased manner. According to the information’s and explanations given to us and the records produced to us for our verification, discrepancies noticed on such physical verification were not material and the same have been properly dealt in the books of accounts.

(c) Fixed Assets disposed off during the year were not significant and would neither have an impact on the operation of the Company nor affect its going concern.

ii) (a) As explained to us, the inventories of finished and semi-finished goods and raw materials were physically verified during the year by the Management. The Company has a programme of verification of stocks having regards to the nature and location of stocks, the frequency of verificaiton is reasonable.

(b) In our opinion and according to the records produced and explanations given to us, the procedures of physical verification of inventory followed by management were found reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) According to the records produced company has maintained proper records of inventory. In our opinion and according to the information and explanations given to us, the maintenance of records for inventory is adequate according to the size of Company and nature of business and discrepancies noticed on physical verification of inventories to above as compared to book records have been property dealt with in the books of account.

iii) a) According to the information and explanations given to us, the Company has granted an Unsecured Loan to a Company which are covered by Section 301 of the Companies Act, 1956. The terms and condition of such loan are prima facie not prejudicial to the interest of the Company.

b) According to the information and explanations given to us, the Company has taken unsecured loan from directors during the year and the year end balance is Rs. 270.57 lacs inclusive of accrued interest which falls under the category of the Companies, Firms or other parties which are covered by Section 301 of the Companies Act, 1956.

iv) In our opinion and according to the explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchase of inventory including components, equipment, other assets and for the sale of goods. In our opinion there is no continuous failure to correct major weaknesses in internal control.

v) In respect of contracts or arrangements entered in the Register maintained in pursuanance of Section 301 of the Companies Act, 1956, to the best of our knowledge and according to the information and explanations given to us:

(a) The particulars of contracts or arrangements referred to Section 301 that needed to be entered in the Register maintained under said Section have been so entered.

(b) where each of such transaction is in excess of Rs. 5 lakhas in respect of any party, the transactions have been made at prices which are prima facie reasonable having to the prevailing market prices at the relevant time.

vi) The Company has not accepted any public, deposits during the year (as per provision of 58A/58AA of Acceptance of Deposit Rules, 1975).

vii) In the basis of the internal audit reports broadly reviewed by us, we are of the opinion that the Company has an adequate internal audit system commensurate with the size of the Company and the nature of its business.

viii) To the best of our knowledge and according to the information given to us, the Central Government has not prescribed maintenance of Cost Records under Section 209(1)(d) of the Companies Act, 1956, in respect of the Company’s products.

ix) According to the information and explanations given to us and on the basis of our examination of the books of accounts, there were no undisputed amounts payable in respect of Income Tax, Wealth Tax, Custom Duty, Excise Duty, Cess, Service Tax Investor Education and Protection Fund, Employee State Insurance and Other materials statutory dues applicable to it which have remained outstanding as at 31st March, 2011 for a period of more than six months from the date they become payable.

x) According to the information and explanations given to us, the Company has not granted any loans and advances on the basis of Security by way of pledge shares, debentures and other securities.

xi) The Company has no accumulated losses at the end of the financial year and has not incurred any cash losses during the financial year and in the financial year immediately proceeding financial year.

xii) According to the information and explanation given to us, the Company has not defaulted in repayment of dues to the financial institution, banks and the company has not issued any debentures.

xiii) The Company is not a Chitfund/Nidhi/Mutual Benefit Fund/Society. Therefore, the provisions of clause 4 (xiii) of the Companies (Auditor’s Report) (Amendment) Order 2004 are not applicable to the Company.

xiv) In our opinion and according to information and explanation given to us, the Company has not made any investments in any shares & security or in any mutual fund during the year. The investments made by Company are held in its own name.

xv) According to the information and explanations given to us, the Company has not given any guarantee for loan taken by any others from a bank or financial institution.

xvi) In our opinion and according to the information explanations given to us, the term loans have been applied for the purpose for which they were raised.

xvii) According to the information and explanations given to us, the Company has not used any short term funds to pay-off long term investment and vice-versa.

xviii) According to the information and explanations given to us, the Company has not made any preferential allotment of shares to parties or Companies covered under section 301 of Companies Act, 1956 at a price which is prejudicial to the interest of the Company.

xix) According to the information and explanations given to us, the Company has not issued any secured debentures during the period covered by our report.

xx) During the period covered our Audit Report the Company has not raised any money by way of a Public Issue.

xxi) According to the information and explanations given to us, no material frauds on the Company has been noticed or reported during the course of our Audit. For RUSTAGI & ASSOCIATES

Firm Regd. No.314194E

Chartered Accountants

Sd/-

(S.K. RUSTAGI)

Partner

Mem.No.51860 59,

Bentinck Street,

Kolkata - 700 069.

Dated: 16th day of August, 2011

 
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