Mar 31, 2015
We have audited the accompanying financial statements of Facor Steels
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 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 of 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. 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 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 31st March, 2015 and its loss and its cash flows for the year ended
on that date.
Emphasis of Matter
Without qualifying our opinion, we draw our attention to Note 1 (b) of
the financial statement. The company's operating results has been
materially affected due to various factors and as on 31st March, 2015
the company's accumulated losses has fully eroded the net worth of the
company The appropriateness of the going concern assumption is
dependent on the company's ability to establish consistent profitable
operations as well as raising adequate finance to meet it short term
and long term obligations. Based on the mitigation factors discussed in
the said note, management believes going concern assumption is
appropriate and no adjustment have been made in the financial statement
for the year ended 31st March, 2015.
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 Section
143 (11) 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 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(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 be 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 financial statements - refer note 42 (b) to the
financial statements;
ii) the Company did not have any long term contracts including the
derivative contracts for which there were any material foreseeable
losses;
iii) there was no amount required to be transferred to the Investor
Education and Protection Fund by the Company.
ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT
The Annexure referred to in our report to the members of Facor Steels
Limited ('the Company'), for the year ended 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) All the fixed assets have been physically verified by the Management
at reasonable intervals and no material discrepancies were noticed on
such verification.
ii) a) Physical verification of inventory has been conducted at
reasonable intervals by the Management.
b) In our opinion, the procedures of physical verification of inventory
followed by the Management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed by the Management on physical
verification.
iii) The Company has not granted any loans secured or unsecured to
companies, firms or other parties covered in the Register maintained
under Section 189 of the Companies Act, 2013 ('the Act').
iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory and fixed assets and for the sale of goods and
services and during the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system.
v) The Company has not accepted any deposits from the public.
vi) We have broadly reviewed the cost records maintained by the company
pursuant to Company's (Cost Records and Audit) Rules 2014 read with
Company's (Cost Records and Audit) Amendment Rules, 2014 prescribed by
the Central Government under Section 148 of the Companies Act, 2013 and
are of the opinion that prima facie, the prescribed cost records have
been maintained. We have, however, not made a detailed examination of
the cost records with a view to determine whether they are accurate or
complete.
vii) (a) According to the information and explanations given to us, the
Company is regular in depositing the undisputed statutory dues including
provident fund, employees' state insurance, income-tax, sales-tax,
wealth tax, service tax, duty of customs, duty of excise, value added
tax, cess and any other statutory dues with the appropriate authorities.
(b) On the basis of our examination of the documents and records, there
are no dues of Sales Tax, Income Tax, Wealth Tax, Service Tax, Excise
Duty, Value Added Tax, Customs Duty and Cess which have not been
deposited on account of any dispute except the following:
Nature of Rs./ Forum where the Period to
dues Lacs dispute is pending which the amount
related (various Years
covering
the period)
Excise Duty 30.67 Hon'ble High court Mumbai. Jan' 96 to
Feb' 2000
Excise Duty 185.41 To be filed before Hon'ble Sep' 01 to
High court Mumbai. Nov' 03
(c) According to the information and explanations given to us no amount
was required to be transferred to the investor education and protection
fund in accordance with the relevant provisions of the Companies Act,
1956 (1 of 1956) and rules there).
viii) The accumulated losses at the end of the financial year are more
than 100% of its net worth and company has incurred cash losses during
the current and also in the immediate preceding financial year.
ix) In our opinion and according to the information and explanations
given to us, and keeping in view the Master Restructuring Agreement
executed on 30th March,2013 there is no default in repayment of the
dues of Financial Institutions, Bankers or Debenture holders except in
case of cash credit facility availed from Consortium Banks. The amount
of Rs.3664.30 Lakhs shown under short term borrowings have been
classified by the Bankers as Non Performing Assets during the year
under review.
x) The Company has not given any guarantee for loans taken by others
from bank or financial institution, the terms and conditions whereof
are prejudicial to the interest of the Company.
xi) The Company has not taken any term loans during the year.
Accordingly the provisions of clause 3 (xi) of the order are not
applicable to the Company.
xii) According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the year.
For SALVE & Co.
Chartered Accountants
(Firm's Registration No.109003W)
C.A. S.D. PARANJPE
Place : Nagpur Partner
Date : 29th May, 2015 (Membership No. 41472)
Mar 31, 2014
We have audited the accompanying financial statements of Facor Steels
Limited (''the Company''), which comprise the Balance Sheet as at 31st
March, 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.
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 ("the Act"). 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 31st March, 2014;
b) in the case of the Statement of Profit and Loss, of the loss 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.
Emphasis of Matter
Without qualifying our opinion, we draw our attention to Note 1 (b) of
the financial statement. The company''s operating results has been
materially affected due to various factors and as on 31st March, 2014
the company''s accumulated losses has fully eroded the net worth of the
company. The appropriateness of the going concern assumption is
dependent on the company''s ability to establish consistent profitable
operations as well as raising adequate finance to meet it short term
and long term obligations. Based on the mitigation factors discussed in
the said note, management believes going concern assumption is
appropriate and no adjustment have been made in the financial statement
for the year ended 31st March, 2014.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order"), as amended, 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; and
e. on the basis of written representations received from the directors
as on 31st March, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 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.
Annexure to the Auditor''s Report:
The Annexure referred to in our report to the members of Facor Steels
Limited (''the Company'') for the year ended 31st March, 2014.
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 fixed assets have been physically verified by the Management
at reasonable intervals and no material discrepancies were noticed on
such verification.
c) The Company has not disposed off any major part of fixed assets
during the year.
ii) a) Physical verification of inventory has been conducted at
reasonableintervals by the Management.
b) In our opinion, the procedures of physical verification of inventory
followed by the Management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed by the Management on physical
verification.
iii) 1) (a) The Company has not granted any loans, secured or
unsecured, to the Companies, firms and other parties
covered in the Register maintained under Section 301 of the Companies
Act, 1956, and therefore Clauses (iii) (b), (iii) (c) and (iii) (d) of
the said Order are not applicable.
(e) The Company has taken unsecured loans from three companies covered
in the Register maintained under Section 301 of the Act. The maximum
amount involved and the year end balance (including interest) of such
loan aggregate to '' 918.62 lacs and '' 918.62 lacs respectively.
(f) In our opinion, the rate of interest and other terms and conditions
of such loans are not prima-facie prejudicial to the interest of the
Company.
(g) In respect of the aforesaid loan, the interest payable is '' 3.37
lacs.
iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services and during the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system.
v) a) According to the information and explanations given to us, based
on the disclosure of interest made by the directors of
the Company, transactions that need to be entered into register in
pursuance of Sections 301 of the Companies Act, 1956 have been so
entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained u/s 301 of the
Companies Act, 1956 have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
vi) The Company has not accepted any fixed deposits from the public
within the meaning of Sections 58A, 58AA or any other relevant
provisions of the Companies (Acceptance of Deposit) Rules 1975.
vii) In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
viii) We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under section 209(1)(d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
ix) (a) 1) According to the records examined by us, the Company is
regular in depositing the undisputed statutory dues,
including Provident Fund, Employees State Insurance, Income Tax, Sales
Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty and Cess, with
the appropriate authorities. No amounts are outstanding for transfer to
the Investors Education and Protection Fund under Section 205C of the
Companies Act, 1956.
2) According to the information and explanations given to us, no
undisputed amount payable in respect of Income Tax, Wealth Tax, Service
Tax, Sales Tax, Customs Duty, Excise Duty and Cess were in arrears as
at 31st March, 2014 for a period of more than 6 months from the date
they became payable.
(b) On the basis of our examination of the documents and records, there
are no dues of Sales Tax, Income Tax, Wealth Tax, Service Tax, Excise
Duty, Customs Duty and Cess which have not been deposited on account of
any dispute except the following:
Nature of dues Rs/ Lacs Forum where the dispute is pending
Excise Duty 30.67 Hon''ble High court Mumbai.
Excise Duty 185.41 To be filed before Hon''ble High court
Mumbai.
Nature of dues Period to which the amount re lated
(various years covering the period)
Excise Duty Jan'' 96 to Feb'' 2000
Excise Duty Sep'' 01 to Nov'' 03
x) The accumulated losses at the end of the financial year are more
than 50% of its net worth and company has incurred cash losses during
the current and also in the immediate preceding financial year.
xi) In our opinion and according to the information and explanations
given to us, and keeping in view the Master Restructuring Agreement
executed on 30th March,2013 there is no default in repayment of the
dues of Financial Institutions,Bankers or Debenture holders.
xii) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii) The provisions of any special statute applicable to chit
fund/nidhi/mutual benefit fund/societies are not applicable to the
Company and, therefore, Clauses 4(xiii)(a), (xiii) (b), (xiii) (c) and
(xiii) (d) of the said Order are not applicable.
xiv) The Company is not dealing in or trading in shares, securities,
debentures and other investments.
xv) The Company has not given any guarantee for loans taken by others
from banks or financial institutions, the terms and conditions whereof
are prejudicial to the interest of the Company.
xvi) Based on information and explanation given to us by the Management
Term loans were applied for the purpose for which the loans were
obtained.
xvii) On the basis of an overall examination of the Balance Sheet of
the Company, in our opinion, the funds raised on short term basis have
not been used for long term investment.
xviii) During the year covered by our audit report, the Company has not
issued any secured debentures
xix) The Company has not raised any money by public issues during the
year.
xx) According to the information and explanations given to us, no fraud
on or by the Company was noticed or reported during the year.
For Salve & Co.
Chartered Accountants,
(Regn. No. 109003W)
C. A. S.D. Paranjpe
Place : Nagpur Partner
Date : 22nd May, 2014 Membership No. 41472
Mar 31, 2013
1. The accompanying abridged financial statements of Facor Steels
Limited (the "Company") comprise the abridged Balance Sheet as at March
31, 2013, the abridged Statement of Profit and Loss and abridged Cash
Flow Statement for the year then ended together with the related notes,
which we have signed under reference to this report.
2. These abridged financial statements are derived from the statutory
audited financial statements of the Company for the year ended March
31, 2013 prepared by the Company'' s Management in accordance with the
Accounting Standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956 (the "Act"), covered by our attached report
dated May 29, 2013 to the Members of the Company pursuant to section
227 of the Act, in which we have expressed an unqualified audit
opinion. Those financial statements and the abridged financial
statements do not reflect the effects of events that have occurred
subsequent to the date of our report on those financial statements.
3. The abridged financial statements do not contain all the
disclosures required by the Accounting Standards referred to in
sub-section (3C) of section 211 of the Act and Schedule VI to the Act,
applied in the preparation and presentation of the audited financial
statements of the Company. Reading the abridged financial statements,
therefore, is not a substitute for reading the audited financial
statements of the Company.
Management'' s Responsibility for the Abridged Financial Statements
4. The Company'' s Management is responsible for the preparation of the
abridged financial statements in accordance with Rule 7A of the
Companies (Central Government'' s) General Rules and Forms, 1956 read
with Companies (Central Government'' s) General Rules and Forms
(Amendment) Rules, 2012 (the "Rules") which are derived from the
audited financial statements for the year ended March 31, 2013 prepared
in accordance with Accounting Standards referred to in sub-section (3C)
of section 211 of the Act and Schedule VI to the Act. The Company'' s
Management (including Directors) are ultimately responsible for the
designing, implementing and maintaining internal control relevant to
the preparation and presentation of the abridged financial statements
that are consistent with the audited financial statements and are free
from material misstatement, whether due to fraud or error; and also
includes appropriate interpretation and application of the relevant
provisions of the Rules and the Act.
5. The Company'' s Management (including Directors) are also responsible
for ensuring that the Company complies with the requirements of the
Rules.
Auditors'' Responsibility
6. Our responsibility is to express an opinion on the abridged
financial statements based on our procedures, which were conducted in
accordance with Standard on Auditing (SA) 810, '' Engagements to Report
on Summary Financial Statements'' , issued by the Institute of Chartered
Accountants of India.
Opinion
7. In our opinion, the accompanying abridged financial statements, are
consistent, in all material respects, with the audited statutory
financial statements of the Company as at and for the year ended March
31, 2013 prepared in accordance with Schedule VI to the Act, covered by
our attached report dated May 29, 2013 to the Members of the Company
pursuant to section 227 of the Act, in accordance with the Rules.
For SALVE & CO.
Chartered Accountants,
(Regn.No.109003W)
Place: Nagpur C.A. S.D.PARANJPE,
Date: 29th May, 2013 Partner
Membership No.41472
Mar 31, 2012
We have audited the attached Balance Sheet of "Facor Steels Limited" as
at 31st March, 2012, the Profit and Loss Account and the Cash Flow
Statement for the year ended on that date both 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.
1. We conducted our audit in accordance with the auditing standards
generally accepted in India. These Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. 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 presentation of the
financial statements. We believe that our audit provides a reasonable
basis for our opinion.
2. As required by the Companies (Auditors' Report) Order, 2003 as
amended by the Companies (Auditors' Report) (Amendment) Order, 2004,
(together 'the order') issued by the Central Government of India in
terms of sub-section (4A) of Section 227 of the Companies Act, 1956, we
annex hereto a statement on the matters specified in paragraphs 4 and 5
of the said order.
3. Further to our comments in the Annexure referred to above, 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 it appears from our examination of
those books;
(iii) The Balance Sheet, Profit and Loss Account and Cash Flow
statement dealt with by this report are in agreement with the books of
account of the Company;
(iv) In our opinion, the Balance Sheet, Profit and Loss Account and
Cash Flow Statement dealt with by 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 the written representations received from the
Directors as on 31st March, 2012 and taken on record by the Board of
Directors, 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 financial statements together
with the notes thereon and attached thereto 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 31st March,2012;
(b) in the case of Profit and Loss Account, of the loss for the year
ended on that date; and
(c) in the case of Cash Flow Statement, of cash flows for the year
ended on that date.
ANNEXURE TO AUDITORS' REPORT:
Referred to in paragraph 2 of the Auditors' Report of even date to the
Members of FACOR Steels Ltd on the financial statements for the year
ended 31St March, 2012.
i) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) All the fixed assets have been physically verified by the Management
at reasonable intervals and no material discrepancies were noticed on
such verification.
c) The Company has not disposed off any major part of fixed assets
during the year.
ii) a) Physical verification of inventory has been conducted at
reasonable intervals by the Management.
b) In our opinion, the procedures of physical verification of inventory
followed by the Management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed by the Management on physical
verification.
iii) a) The Company has not granted any loans, secured or unsecured, to
the Companies, firms and other parties covered in the Register
maintained under Section 301 of the Companies Act, 1956, and therefore
Clauses (iii) (b), (iii) (c) and (iii) (d) of the said Order are not
applicable.
e) The Company has taken unsecured loans from nine companies covered in
the Register maintained under Section 301 of the Act. The maximum
amount involved and the year end balance (including interest) of such
loan aggregate to Rs.1784.75 lacs and Rs. 781.37 lacs respectively.
f) In our opinion, the rate of interest and other terms and conditions
of such loans are not prima-facie prejudicial to the interest of the
Company.
g) In respect of the aforesaid loan, the interest and principal amounts
are repayable after 31st March 2014 and carries 0% interest effective
from 1st August 2009.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services and during the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system.
v) There were no contracts or arrangements referred to in Section 301
of the Act (except loans reported under paragraph (iii) (e) above) that
needed to be entered in the Register required to be maintained under
that section and therefore Clause (v)(b) of the said Order is not
applicable.
vi) The Company has not accepted any fixed deposits from the public
within the meaning of Sections 58A, 58AA or any other relevant
provisions of the Companies (Acceptance of Deposit) Rules 1975.
vii) In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
viii) The Company has made and maintained the cost records, as
prescribed by the Central Government under Section 209(1)(d) of the
Companies Act, 1956, in respect of the Company's products to which the
said rules are made applicable. We have not, however, made a detailed
examination of the records.
ix) a) 1) According to the records examined by us, the Company is
generally regular in depositing the undisputed statutory dues,
including Provident Fund, Employees State Insurance, Income Tax, Sales
Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty and Cess, with
The appropriate authorities. No amounts are outstanding for transfer
to the Investors Education and Protection Fund under Section 205C of
the Companies Act, 1956.
2) According to the information and explanations given to us, no
undisputed amount payable in respect of Income Tax, Wealth Tax, Service
Tax, Sales Tax, Customs Duty, Excise Duty and Cess were in arrears as
at 31st March, 2012 for a period of more than 6 months from the date
they became payable.
b) On the basis of our examination of the documents and records, there
are no dues of Sales Tax, Income Tax, Wealth Tax, Service Tax, Excise
Duty, Customs Duty and Cess which have not been deposited on account of
any dispute except the following:
Nature of dues Rs./Lacs Forum where the
dispute is pending Period to which the
amount related
(various Years
covering the period)
Excise Duty 30.67 Customs, Excise &
Service Tax
Appellate Jan' 96 to Feb' 2000
Tribunal West
Zonal Bench Mumbai.
Excise Duty 185.41 Customs, Excise &
Service Tax
Appellate Sep' 01 to Nov' 03
Tribunal West
Zonal Bench Mumbai.
x) The accumulated losses at the end of the financial year are less
than 50% of its net worth and company has incurred cash losses during
the financial year. However the Company has not incurred cash losses in
the immediate preceding financial year.
xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institutions & banks except in the case of PLR-4% Funded
Interest Term Loan a sum of Rs. 47.79 lacs due in the month of March'
2012 was paid in June' 2012.
xii) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii) The provisions of any special statute applicable to chit
fund/nidhi/mutual benefit fund/societies are not applicable to the
Company and, therefore, Clauses (xiii)(a), (xiii) (b), (xiii) (c) and
(xiii) (d) of the said Order are not applicable.
xiv) The Company is not dealing in or trading in shares, securities,
debentures and other investments.
xv) The Company has not given any guarantee for loans taken by others
from banks or financial institutions, the terms and conditions whereof
are prejudicial to the interest of the Company.
xvi) The company has not raised any term loan during the year.
xvii) On the basis of an overall examination of the Balance Sheet of
the Company, in our opinion, the funds raised on short-term basis have
not been used for long term investment.
xviii) During the period Company has made Preferential allotment of
1000000 5% Redeemable Cumulative Preference shares of Rs. 100/- each to
company covered in the Register maintained under Section 301 of the
Act. In our opinion, Prices at which shares have been issued is not
prejudicial to the interest of the Company.
xix) During the period covered by our audit report, the Company has not
issued any secured debentures.
xx) The Company has not raised any money by public issues during the
year.
xxi) According to the information and explanations given to us, no
fraud on or by the Company was noticed or reported during the year.
For SALVE & CO,
Chartered Accountants,
( Registration No 109003W)
C.A. S.D. PARANJPE,
Place : NAGPUR Partner
Date : 14th August, 2012 Membership No.41472
Mar 31, 2011
We have audited the attached Balance Sheet of ÃFacor Steels Limitedà as
at 31ST March, 2011, the Profit and Loss Account and the Cash Flow
Statement for the year ended on that date both annexed thereto. These
financial statements are the responsibility of the CompanyÃs
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
1.We conducted our audit in accordance with the auditing standards
generally accepted in India. These Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. 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 presentation of the
financial statements. We believe that our audit provides a reasonable
basis for our opinion.
2.As required by the Companies (Auditorsà Report) Order, 2003 as
amended by the Companies (Auditorsà Report) (Amendment) Order, 2004,
(together Ãthe orderÃ) issued by the Central Government of India in
terms of sub-section (4A) of Section 227 of the Companies Act, 1956, we
annex hereto a statement on the matters specified in paragraphs 4 and 5
of the said Order.
3.Further to our comments in the Annexure referred to above, 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 it appears from our examination of
those books;
(iii) The Balance Sheet, Profit and Loss Account and Cash Flow
statement dealt with by this report are in agreement with the books of
account of the Company;
(iv) In our opinion, the Balance Sheet, Profit and Loss Account and
Cash Flow statement dealt with by 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 the written representations received from the
Directors as on 31st March, 2011 and taken on record by the Board of
Directors, 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 financial statements together
with the notes thereon and attached thereto 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 31ST March,2011;
(b) in the case of Profit and Loss Account, of the loss for the year
ended on that date; and
(c) in the case of Cash Flow Statement, of cash flows for the year
ended on that date.
ANNEXURE TO AUDITORS'REPORT:
Referred to in paragraph 2 of the Auditorsà Report of even date to the
Members of FACOR Steels Ltd on the financial statements for the year
ended 31St March, 2011.
i) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) All the fixed assets have been physically verified by the Management
at reasonable intervals and no material discrepancies were noticed on
such verification.
c) The Company has not disposed off any major part of fixed assets
during the year.
ii) a) Physical verification of inventory has been conducted at
reasonable intervals by the Management.
b) In our opinion, the procedures of physical verification of inventory
followed by the Management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed by the Management on physical
verification.
iii) a) The Company has not granted any loans, secured or unsecured, to
the Companies, firms and other parties covered in the Register
maintained under Section 301 of the Companies Act, 1956, and therefore
Clauses (iii) (b), (iii) (c) and (iii) (d) of the said Order are not
applicable.
b) 1) The Company has taken unsecured loans from nine companies covered
in the Register maintained under Section 301 of the Act. The maximum
amount involved and the year end balance (including interest) of such
loan aggregate to Rs.3096.88 lacs and Rs. 1784.75 lacs respectively.
2) In our opinion, the rate of interest and other terms and conditions
of such loans are not prima-facie prejudicial to the interest of the
Company.
3) In respect of the aforesaid loan, the interest and principal amounts
are repayable on demand and there is no repayment schedule.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services and during the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system.
v) There were no contracts or arrangements referred to in Section 301
of the Act (except loans reported under paragraph (iii)(2) (a) above)
that needed to be entered in the Register required to be maintained
under that section and therefore Clause (v)(b) of the said Order is not
applicable.
vi) The Company has not accepted any fixed deposits from the public
within the meaning of Sections 58A, 58AA or any other relevant
provisions of the Companies (Acceptance of Deposit) Rules 1975.
vii) In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
viii) The Company has made and maintained the cost records, as
prescribed by the Central Government under Section 209(1)(d) of the
Companies Act, 1956, in respect of the Company's products to which the
said rules are made applicable. We have not, however, made a detailed
examination of the records.
ix) a) 1) According to the records examined by us, the Company is
generally regular in depositing the undisputed statutory dues,
including Provident Fund, Employees State Insurance, Income Tax, Sales
Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty and Cess, with
the appropriate authorities. No amounts are outstanding for transfer to
the Investors Education and protection Fund under Section 205C of the
Companies Act, 1956.
2) According to the information and explanations given to us, no
undisputed amount payable in respect of Income Tax, Wealth Tax, Service
Tax, Sales Tax, Customs Duty, Excise Duty and Cess were in arrears as
at 31ST March, 2011 for a period of more than 6 months from the date
they became payable.
b) On the basis of our examination of the documents and records, there
are no dues of Sales Tax, Income Tax, Wealth Tax, Service Tax, Excise
Duty, Customs Duty and Cess which have not been deposited on account of
any dispute except the following:
Nature of Rs./Lacs Forum where the dispute is Period to which
dues pending the amount related
(various Years
covering the
period)
Excise 30.67 Customs, Excise & Service Jan' 96 to Feb'
Duty Tax Appellate Tribunal West 2000
Zonal Bench Mumbai.
Excise 185.41 Customs, Excise & Service Sep' 01 to Nov' 03
Duty Tax Appellate Tribunal
West Zonal Bench Mumbai.
x) The accumulated losses at the end of the financial year are less
than 50% of its net worth and company has not incurred cash losses
during the financial year. However the Company has incurred cash losses
in the immediately preceding financial year.
xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institutions, banks or debenture holders.
xii) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii) The provisions of any special statute applicable to chit
fund/nidhi/mutual benefit fund/societies are not applicable to the
Company and, therefore, Clauses (xiii)(a), (xiii) (b), (xiii) (c) and
(xiii) (d) of the said Order are not applicable.
xiv) The Company is not dealing in or trading in shares, securities,
debentures and other investments.
xv) The Company has not given any guarantee for loans taken by others
from banks or financial institutions, the terms and conditions whereof
are prejudicial to the interest of the Company.
xvi) The company has not raised any term loan during the year.
xvii) On the basis of an overall examination of the Balance Sheet of
the Company, in our opinion, the funds raised on short-term basis have
not been used for long term investment.
xviii) During the Period Company has made Preferential allotment of
15,00,000 5% Redeemable Cumulative Preference Shares of Rs.100/- each
to Company covered in the register maintained under section 301 of the
Act. In our opinion, prices at which shares have been issued is not
prejudicial to the interest of the Company.
xix) During the period covered by our audit report, the Company has not
issued any secured debentures.
xx) The Company has not raised any money by public issues during the
year.
xxi) According to the information and explanations given to us, no
fraud on or by the Company was noticed or reported during the year.
For SALVE & CO,
Chartered Accountants,
(Registration No 109003W)
C.A. S.D. PARANJPE,
Partner
Membership No.41472
Place : NAGPUR
Date : 29th July, 2011
Mar 31, 2010
We have audited the attached Balance Sheet of "Facor Steels Limited" as
at 31ST March, 2010, the Profit and Loss Account and the Cash Flow
Statement for the year ended on that date both 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.
1. We conducted our audit in accordance with the auditing standards
generally accepted in India. These Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. 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 presentation of the
financial statements. We believe that our audit provides a reasonable
basis for our opinion.
2. As required by the Companies (Auditors Report) Order, 2003 as
amended by the Companies (Auditors Report) (Amendment) Order, 2004,
(together Ãthe order) issued by the Central Government of India in
terms of sub-section (4A) of Section 227 of the Companies Act, 1956, we
annex hereto a statement on the matters specified in paragraphs 4 and 5
of the said Order.
3. Further to our comments in the Annexure referred to above, 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 it appears from our examination of
those books;
(iii) The Balance Sheet, Profit and Loss Account and Cash Flow
statement dealt with by this report are in agreement with the books of
account of the Company;
(iv) In our opinion, the Balance Sheet, Profit and Loss Account and
Cash Flow statement dealt with by 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 the written representations received from the
Directors as on 31st March, 2010 and taken on record by the Board of
Directors, 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;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements together
with the notes thereon and attached thereto (specially Note No. 15)
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 31ST March,2010;
(b) in the case of Profit and Loss Account, of the loss for the year
ended on that date; and
(c) in the case of Cash Flow Statement, of cash flows for the year
ended on that date.
ANNEXURE TO AUDITORS REPORT
Referred to in paragraph 2 of the Auditors Report of even date to the
Members of FACOR Steels Ltd on the fi nancial statements for the year
ended 31st March, 2010.
i) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) All the fixed assets have been physically verified by the Management
at reasonable intervals and no material discrepancies were noticed on
such verification.
c) The Company has not disposed off any major part of fixed assets
during the year.
ii) a) Physical verification of inventory has been conducted at
reasonable intervals by the Management.
b) In our opinion, the procedures of physical verification of inventory
followed by the Management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed by the Management on physical
verification.
iii) a) The Company has not granted any loans, secured or unsecured, to
the Companies, firms and other parties covered in the Register
maintained under Section 301 of the Companies Act, 1956, and therefore
Clauses (iii) (b), (iii) (c) and (iii) (d) of the said Order are not
applicable.
b) 1) The Company has taken unsecured loans from nine companies covered
in the Register maintained under Section 301 of the Act. The maximum
amount involved and the year end balance (including interest) of such
loan aggregate to Rs.3419.02 lacs and Rs. 3096.88 lacs respectively.
2) In our opinion, the rate of interest and other terms and conditions
of such loans are not prima-facie prejudicial to the interest of the
Company.
3) In respect of the aforesaid loan, the interest and principal amounts
are repayable on demand and there is no repayment schedule.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services and during the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system.
v) There were no contracts or arrangements referred to in Section 301
of the Act (except loans reported under paragraph (iii)(2) (a) above)
that needed to be entered in the Register required to be maintained
under that section and therefore Clause (v)(b) of the said Order is not
applicable.
vi) The Company has not accepted any fixed deposits from the public
within the meaning of Sections 58A, 58AA or any other relevant
provisions of the Companies (Acceptance of Deposit) Rules 1975.
vii) In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
viii) The Company has made and maintained the cost records, as
prescribed by the Central Government under Section 209(1)(d) of the
Companies Act, 1956, in respect of the Companys products to which the
said rules are made applicable. We have not, however, made a detailed
examination of the records.
ix) a) 1) According to the records examined by us, the Company is
generally regular in depositing the undisputed statutory dues,
including Provident Fund, Employees State Insurance, Income Tax, Sales
Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty and Cess, with
the appropriate authorities. No amounts are outstanding for transfer to
the Investors Education and protection Fund under Section 205C of the
Companies Act, 1956.
2) According to the information and explanations given to us, no
undisputed amount payable in respect of Income Tax, Wealth Tax, Service
Tax, Sales Tax, Customs Duty, Excise Duty and Cess were in arrears as
at 31ST March, 2010 for a period of more than 6 months from the date
they became payable.
b) On the basis of our examination of the documents and records, there
are no dues of Sales Tax, Income Tax, Wealth Tax, Service Tax, Excise
Duty, Customs Duty and Cess which have not been deposited on account of
any dispute except the following:
Nature of
dues Rs./ Lacs Forum where the dispute
is pending Period to which the
amount related
(various Years
covering the period)
Excise
Duty 30.62 Customs, Excise &
Service Tax Appellate Jan 96 to Feb 2000
Tribunal West Zonal
Bench Mumbai.
Excise
Duty 185.41 Customs, Excise &
Service Tax Appellate Sep 01 to Nov 03
Tribunal West Zonal
Bench Mumbai.
x) The accumulated losses at the end of the financial year are less
than 50% of its net worth and company has incurred cash losses during
the financial year and in the immediately preceding financial year.
xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institutions, banks or debenture holders.
xii) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii) The provisions of any special statute applicable to chit
fund/nidhi/mutual benefit fund/societies are not applicable to the
Company and, therefore, Clauses (xiii)(a), (xiii) (b), (xiii) (c) and
(xiii) (d) of the said Order are not applicable.
xiv) The Company is not dealing in or trading in shares, securities,
debentures and other investments.
xv) The Company has not given any guarantee for loans taken by others
from banks or financial institutions, the terms and conditions whereof
are prejudicial to the interest of the Company.
xvi) The company has not raised any term loan during the year.
xvii) On the basis of an overall examination of the Balance Sheet of
the Company, in our opinion, the funds raised on short-term basis have
not been used for long term investment.
xviii) The Company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under Section
301 of the Companies Act, 1956 during the year.
xix) During the period covered by our audit report, the Company has not
issued any secured debentures.
xx) The Company has not raised any money by public issues during the
year.
xxi) According to the information and explanations given to us, no
fraud on or by the Company was noticed or reported during the year.
For SALVE & CO,
Chartered Accountants,
(Registration No 109003W)
Place : NAGPUR C.A. S.D. PARANJPE,
Date : 26th July, 2010 Partner
Membership No.41472.
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