Mar 31, 2018
INDEPENDENT AUDITOR''S REPORT
TO THE MEMBERS OF FERRO ALLOYS CORPORATION LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of FERRO ALLOYS CORPORATION LIMITED ("the Company"), which comprise the Balance Sheet as at March 31, 2018, and the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended and a summary of the significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Management is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India.
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 standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
In conducting 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 of the standalone financial statements 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 standalone financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone 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 standalone 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 standalone financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, including the Ind AS, of the state of affairs of the Company as at March 31, 2018, and its profit, total comprehensive income, the changes in equity and its cash flows for the year ended on that date.
Emphasis of Matter
a. As per Note 39(A)(b) to the Financial Statements, that the Corporate Guarantee extended by the Company along with Facor Alloys Limited to the bankers (consortium) of Facor Steels Limited for Rs. 142.40 Crores has been invoked to the extent of Rs. 33.82 Crores. The Company has not made any provision for the invoked amount, as the same is being contested.
b. As per Note 39(A)(c) to the Financial Statements, the Corporate Guarantee given by the company for its subsidiary Facor Power Limited to Rural Electrification Corporation Limited (REC) has been invoked amounting to Rs. 510.98 Crores and interest thereon as on 31st March, 2018 for which, the Company is contesting.
c. As per Note 39(A)(a) of the Financial Statements, the Revisional Authority, DDM has issued a demand notices for Rs. 200.56 Crores (with respect to Ostapal mine toward compensation for excess mining during the period from 2000-01 to 2006-07) and Rs. 0.55 crores (being the price towards compensation u/s 21 (5) of MMDR Act, 1957 for production without/ in excess of the environmental clearance for the period from 2000-01 to 2010-11) in respect of Kathpal Mine. The revisional authority, Ministry of Mines New Delhi vide order dtd 10.05.2018 has ordered stay of the aforesaid demands till the next date of hearing.
d. As per Note 39(A)(a) of the Financial Statements, a demand of Rs. 63.27 Crores (including penalty of Rs. 31.63 Crores) has been raised by Commissioner, GST & Central Excise, Bhubaneswar vide its order dated 31st October, 2017, levying service tax in respect of Corporate Guarantee issued by the Company to Financial Institutions/Banks for the Loans/facilities sanctioned in favour of its subsidiary. The same is not provided for as the Company is contesting the same.
e. As per Note 39(A)(a) of the financial Statements, a demand of Rs. 28.38 Crores has been raised by The Commissioner, GST & Central Excise, Bhubaneshwar vide its order dated 15.05.2018 related to availment and transfer of Service Tax for the period from April, 2013 to June, 2017, which liability, the Company is contesting.
Our opinion is not modified in respect of the above matters Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit 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 including Other Comprehensive Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act.
e) On the basis of the written representations received from the directors as on 31st March, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018 from being appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, 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 standalone financial statements.
ii. There are no material foreseeable losses, on long-term contracts including derivative contracts.
iii. There have been no delays in transferring amounts, required to be transferred to the Investor Education and Protection Fund by the Company;
2. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government in terms of Section 143(11) of the Act, we give in "Annexure A" a statement on the matters specified in paragraphs 3 and 4 of the Order.
Abhay Upadhye |
|
Partner |
|
Membership No. 049354 |
|
For and on behalf of |
|
K.K. MANKESHWAR & CO. |
|
Place : Noida |
Chartered Accountants |
Date : 29th May, 2018 |
FRN:106009W |
ANNEXURE ''A'' TO THE INDEPENDENT AUDITOR''S REPORT
(Referred to in paragraph 2 under ''Report on Other Legal and Regulatory Requirements'' section of our report to the Members of FERRO ALLOYS CORPORATION LIMITED of even date)
We report that,
i. In respect of the Company''s fixed assets:
(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of fixed assets. In our opinion, the periodicity of physical verification is reasonable having regard to the size of the company and the nature of its asset.
(c) The title deeds of immovable properties are held in the name of the Company.
ii. Physical verification of Inventory has been conducted at reasonable intervals by the Management. No material discrepancies were noticed.
iii. According to the information and explanations given to us, the Company has not granted any unsecured loans to bodies corporate, covered in the register maintained under section 189 of the Companies Act, 2013.
iv. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Act in respect of grant of loans, making investments and providing guarantees and securities, as applicable.
v. The Company has not accepted deposits during the year and does not have any unclaimed deposits as at March 31, 2018 and therefore, the provisions of the clause 3 (v) of the Order are not applicable to the Company.
vi. The maintenance of cost records has been specified by the Central Government under section 148(1) of the Companies Act, 2013 for the business activities carried out by the Company and we are of the opinion that prima facie such accounts and records have been made and maintained.
vii. According to the information and explanations given to us, in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employees'' State Insurance, Income Tax, Sales Tax, Service Tax, Goods and Service Tax, Value Added Tax, Customs Duty, Excise Duty, Cess and other material statutory dues applicable to it with the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident Fund, Employees'' State Insurance, Income Tax, Sales Tax, Service Tax, Value Added Tax, Goods and Service Tax, Customs Duty, Excise Duty, Cess and other material statutory dues in arrears as at March 31, 2018 for a period of more than six months from the date they became payable.
(c) Details of dues of Income Tax, Sales Tax, Service Tax, Excise Duty and Value Added Tax which have not been deposited as at March 31, 2018 on account of dispute are given below:
Nature of dues |
Rs.in Lakhs (Net of Payment) |
Forums where the dispute is pending |
Period |
Custom Duty |
10.16 |
Deputy Commissioner of Customs, Paradip; |
1990-91,2000-01; |
137.84 |
Asst. Commissioner of Central Excise, Customs 8 Sen/ice tax, Balasore; |
1981-82, 1982-83, 1985-86, 1988-89, 1989-90, 1990-91, 1996-97, 1997-98, 1999-00, 2000-01, 2001-02; |
|
64.96 |
Commissioner of Customs(Appeals), Kolkata |
1983-84 |
|
61.18 |
Hon''ble High Court, Odisha; |
1995-96,1997-98; |
|
8.15 |
Joint Secretary(Review), CBEC, New Delhi; |
1994-95; |
|
Central Excise & Service tax |
75.87 |
Assistant Commissioner Of Central Excise, Customs 8 Service Tax , Balasore; |
2013-1482014-15; |
6089.72 |
Commissioner Of Central Excise, Customs 8 Service Tax , Bhubneshwar; |
2009-10,2010-11,2011-12,2013-14,2014-15; |
|
3513.47 |
Commissioner, GST 8 Central Excise, Bhubneshwar. |
2015-16,2013 to 2018. |
|
2.20 |
Assistant Commissioner Of Central Excise Customs 8 Service Tax Balasore; |
1981 |
|
22.88 |
Assistant Commissioner Of Central Excise, Customs 8 Service Tax Appelate Tribunal, West Zonal Bench, Humbai; |
2001-02, 2002-03; |
|
1190.47 |
Customs Excise 8 Service Tax Appellate Tribunal, Kolkata; |
2007-08, 2008-09; |
|
79.88 |
Commissioner (Appeals) Central Excise Customs 8 Service tax Bhubneshwar; |
2005-06,2007-08,2008-09, 2009-10; |
|
85.11 |
Joint Commissioner Central Excise Customs 8 Service tax, Bhubneshwar |
2011-12,2012-13,2013-14. |
|
Sales Tax |
25.08 |
Addl. Commissioner Of Sales Tax, Central Zone, Cuttack |
1980-81 , 1981-82, 2005-06, 2006-07, 2000-01 , 2003-04; |
10.69 |
Sales tax tribunal, Cuttack; |
2005-06,2006-07, 2007-08; |
|
9.49 |
Addl. Commissioner, Cuttack; |
1999-00,2005-06, |
|
525.36 |
Joint Commissioner Commercial Taxes, Balasore. |
2006-07,2007-08,2016-17. |
viii. The Company has not defaulted in repayment of loan or borrowing to financial institutions, banks, government or dues to debenture holders.
ix. The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) or term loans during the year and hence reporting under clause 3 (ix) of the Order is not applicable to the Company.
x. To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company or no material fraud on the Company by its officers or employees has been noticed or reported during the year.
xi. In our opinion and according to the information and explanations given to us, the Company has paid/provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
xii. The Company is not a Nidhi Company and hence reporting under clause 3 (xii) of the Order is not applicable to the Company.
xiii. In our opinion and according to the information and explanations given to us, the Company is in compliance with Section 177 and 188 of the Companies Act, 2013 where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the standalone financial statements as required by the applicable accounting standards.
xiv. During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly paid convertible debentures and hence reporting under clause 3 (xiv) of the Order is not applicable to the Company.
xv. In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its Directors or persons connected to its directors and hence provisions of section 192 of the Companies Act, 2013 are not applicable to the Company.
xvi. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
Abhay Upadhye |
|
Partner |
|
Membership No. 049354 |
|
For and on behalf of |
|
K.K. MANKESHWAR & CO. |
|
Place : Noida |
Chartered Accountants |
Date : 29th May, 2018 |
FRN: 106009W |
ANNEXURE "B" TO THE INDEPENDENT AUDITOR''S REPORT
(Referred to in paragraph 1(f) under ''Report on Other Legal and Regulatory Requirements'' section of our report to the Members of FERRO ALLOYS CORPORATION LIMITED of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of FERRO ALLOYS CORPORATION LIMITED ("the Company") as of March 31, 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Management of the Company is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditor''s Responsibility
Our responsibility is to express an opinion on the internal financial controls over financial reporting of the Company based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. 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.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
Abhay Upadhye |
|
Partner |
|
Membership No. 049354 |
|
For and on behalf of |
|
K.K. MANKESHWAR & CO. |
|
Place : Noida |
Chartered Accountants |
Date : 29th May, 2018 |
FRN: 106009W |
Mar 31, 2016
TO THE MEMBERS OF FERRO ALLOYS CORPORATION LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Ferro Alloys Corporation Limited (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2016 the Statement of Profit and Loss, the Cash Flow Statement for the year ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies(Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10)of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2016 and its loss 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, 2016 (âthe Orderâ) issued by the Central Government of India in terms of Section 143 (11) of the Act, we give in the Annexure ''A'', a statement on the matters specified in the paragraph 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the directors as on 31st March, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With reference to the adequacy of internal financial controls over financial reporting of the Company and the operating effectiveness of such control, refer our separate report in Annexure- âB''.
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our knowledge and belief and according to the information and explanations given to us.
i. the Company has disclosed the impact of pending litigations on its financial position in its 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.
The Annexure referred to in our report to the members of Ferro Alloys Corporation Limited (âthe Company''), on the Standalone Financial Statements for the year ended 31st March, 2016.
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 title deeds of immovable properties are held in the name of the Company.
ii) Physical verification of inventory has been conducted at reasonable intervals by the Management. No material discrepancies were noticed on physical verification.
iii) The Company has not granted any loans, secured or unsecured to companies, firms or other parties listed in the register maintained under section 189 of the Companies Act, 2013.
iv) In our opinion and according to information and explanations given to us, the Company has not given any loan, made any investment, given any guarantee, or provided any security covered under section 185 and 186 of the Act during the year.
v) The Company has not accepted any deposits from the public.
vi) The Central Government has specified maintenance of cost records under sub-section 1 of Section 148 of the Act and are of the opinion that prima facie such accounts and records have been made and maintained.
vii) (a) According to the information and explanations given to us, the Company is regular in depositing undisputed statutory
dues including provident fund, employees'' state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues with the appropriate authorities.
(b) According to the information and explanations given to us, the following dues of Sales tax, entry tax, duty of customs and duty of excise have not been deposited by the Company on account of disputes:-
Nature of dues |
Rs, /Lacs |
FORUM WHERE THE DISPUTE IS PENDING |
PERIOD |
CUSTOMS DUTY |
10.16 |
Dy. Commissioner of Customs, Paradip |
1990-91 & 2000-01 |
1.13 |
Customs Excise & Service Tax Appellate Tribunal, Kolkata |
1999-2000 & 2000-01 |
|
137.84 |
Asst. Commissioner Central Excise, Customs & Service Tax, Balasore. |
1981-82, 1982-83, 1985-86, 1988-89, 1989-90, 1990-91, 1996-97, 1997-98, 1999-2000,2000-01,2001-02 |
|
81.94 |
Commissioner of Central Excise, Customs & Service Tax, Bhubaneswar |
1997-98 to 2001-02 |
|
64.96 |
Commissioner of Customs (Appeals), Kolkata |
1983-84 |
|
61.18 |
Honâble High Court, Odisha |
1995-96 & 1997-98 |
|
8.15 |
Jt. Secretary (Review) MOF, GOI, CBEC, Delhi |
1994-95 |
|
EXCISE DUTY |
2.20 |
Asst. Commissioner Central Excise, Customs & Service Tax, Balasore |
1981 |
22.88 |
Central Excise and Service Tax Appellate Tribunal, West Zone Bench, Mumbai |
2001-02 & 2002-03 |
|
1190.47 |
Customs Excise & Service Tax Appellate Tribunal, Kolkata |
2007-08 & 2008-09 |
|
83.58 |
Commissioner (Appeal) Central Excise Customs & Service Tax, Bhubaneswar |
2005-06, 2007-08, 2008-09 & 2009-10 |
|
46.02 |
Addl. Commsr., Central Excise Customs & Service Tax, Bhubaneswar-II |
2011-12, 2012-13 & 2013-14 |
|
2540.60 |
Commissioner Central Excise Customs & Service Tax, Bhubaneswar-II |
2009-10, 2010-11, 2011-12 & 2012-13 |
|
SALES TAX |
25.08 |
Additional Commissioner Sales Tax, Cuttack |
1980-81,1981-82, 2005-06 & 2006-07 |
10.69 |
Sales Tax Tribunal, Cuttack |
2000-01 & 2003-04 |
|
9.49 |
Addl. Commissioner of Sales Tax, Cuttack |
2005-06, 2006-07, 2007-08 |
|
832.78 |
Commissioner of Sales Tax, Central Zone, Cuttack |
2007-08 |
|
527.75 |
Joint Commissioner Commercial Taxes, Balasore |
1999-2000, 2005-06, 2006-07, 2007-08 |
|
79.87 |
Joint Commissioner Commercial Taxes, Bhubaneswar |
2012-13 & 2013-14 |
|
ENTRY TAX |
231.83 |
Additional Commissioner of Sales Tax, Central Zone, Cuttack |
2007-08 |
viii) The Company has not defaulted in repayment of loan or borrowing to financial institutions, banks, government or dues to debenture holders.
ix) The Company has not raised money by way of initial public offer or further public offer (including debt instrument) or term loan during the year.
x) Based upon the audit procedure performed and information and explanations given by the management, we report that no fraud by the Company or any fraud on the Company by its officers or employees has been noticed or reported during the year.
xi) The Company has paid or provided managerial remuneration in accordance with the requisite approvals mandated by the provision of section 197 read with Schedule V to the Act.
xii) To the best of our knowledge and according to the information and explanations given to us, the Company is not a Nidhi Company.
xiii) To the best of our knowledge and according to the information and explanations given to us, the transactions with the related parties are in compliance with section 177 and 188 of the Act, where applicable, and the details of such transactions have been disclosed in the financial statements, as required by the applicable accounting standards.
xiv) The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
xv) To the best of our knowledge and according to the information and explanations given to us, the Company has not entered into non-cash transaction with directors or persons connected with them.
xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
Report on the Internal Financial controls under clause (I) of Sub-section 3 of Section 143 of the Companies Act, 2013
We have audited the internal financial controls over financial reporting of Ferro Alloys CorporationLimited (âthe Companyâ) as of March 31, 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143 (10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects. Our audit involves performing procedures to obtain audit evidence about the adequacy of internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. 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. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March, 2016, based on internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For SALVE & Co.
Chartered Accountants
(Firm''s Registration No.109003W)
C.A. K.P. SAHASRABUDHE
Place: Noida, UP Partner
Date :27th May, 2016 (Membership No.007021)
Mar 31, 2015
We have audited the accompanying standalone financial statements of
Ferro Alloys Corporation 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 policiesand other explanatory information.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with
respect to the preparation of these standalone financialstatements 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 standalone
financial statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made 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 forour audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st 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 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 standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on 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 Rule11 the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our knowledge and belief
and according to the informations and explanations given to us:
i. the Company has disclosed the impact of pending litigations on its
financial position in its 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 has been no delay in transferring amounts, required to be
transferred, to the investor education and protection fund by the
Company during the year ended March 31,2015.
The Annexure referred to in our report to the members of Ferro Alloys
Corporation 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 werenoticed 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 relationto
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
physicalverification.
iii) The Company has not granted unsecured loans to 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) Wehave broadly reviewed the cost records maintained by the Company
pursuant to the Rules speciefied by the Central Government under
sub-section 1 of 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) The dues in respect of income tax or sales tax or wealth tax or
service tax or duty of customs or duty of excise or value added tax or
cess not deposited on account of any dispute amounts to Rs. 6241.98 lacs
and the same are pending before appropriate authorities as under:-
Nature of dues Rs. /Lacs FORUM WHERE THE DISPUTE IS PENDING
CUSTOMS DUTY 10.16 Dy. Commissioner of Customs, Paradip
1.13 Customs Excise & Service Tax Appellate
Tribunal, Kolkata
137.84 Asst. Commissioner, Central Excise,
Customs & Service Tax, Balasore
81.94 Commissioner of Central Excise, Customs
and Service Tax, Bhubaneswar
64.96 Commissioner of Customs (Appeals), Kolkata
61.18 Hon'ble High Court, Odisha
8.15 Jt. Secretary (Review) MOF, GOI, CBEC, Delhi
EXCISE DUTY 2.20 Asst. Commissioner, Central Excise, Customs &
Service Tax, Balasore
22.88 Central Excise & Service Tax Appellate
Tribunal, West Zone Bench, Mumbai
1190.47 Customs Excise and Service Tax Appellate
Tribunal, Kolkata
79.38 Commissioner (Appeal) Central Excise,
Customs & Service Tax, Bhubaneswar
46.02 Jt. Commissioner, Central Excise, Customs
& Service Tax, Bhubaneswar-1
1911.43 Commissioner, Central Excise, Customs &
Service Tax, Bhubaneswar-II
SALES TAX 25.08 Additional Commissioner, Sales Tax, Balasore
10.69 Sales Tax Tribunal, Cuttack
1191.61 Additional Commissioner of Sales Tax, Cuttack
832.78 Commssionr of Sales Tax, Central Zone, Cuttack
0.45 Asst. Commissioner, Commercial Taxes,
Balasore
ROYALTY 24.48 Dy. Director Mines, J.K. Road (Odisha)
38.82 Hon'ble High Court, Odisha
ENTRY TAX 231.83 Additional Commissioner of Sales Tax,
Central Zone, Cuttack
INTEREST 251.86 Hon'ble High Court, Odisha
DEMAND 16.64 Dy. Director Mines, J.K. Road (Odisha)
GRAND TOTAL 6,241.98
Nature of Dues PERIOD
CUSTOMS DUTY 1990-91 & 2000-01
1999- 2000 & 2000-01
1981-82, 1982-83, 1985-86, 1988-89, 1989-90,
1990-91,1996-97, 1997-98, 1999-00, 2000-01 & 2001-02
1997-98 to 2001-02 1983-84
1995-96, 1997-98
1994-95
EXCISE DUTY 1981
2001- 02 & 2002-03
2007- 08 & 2008-09
2005-06, 2007-08, 2008-09 & 2009-10
2011-12, 2012-13 & 2013-14
2009-10, 2010-11,2011-12 & 2012-13
SALES TAX 1980-81, 1981-82, 2005-06 & 2006-07
2000- 01 & 2003-04
1988-89, 1999-00, 2001-02, 2005-06, 2006-07,
2007-08, 2008- 09, 2009-10, 2010-11 & 2011-12
2007-08
1999-2000
ROYALTY 2002- 03, 2003-04, 2008-09 & 2009-10
2009- 10 & 2010-11
ENTRY TAX 2007-08
INTEREST 2007- 08
DEMAND 2008- 09 & 2009-10
(c) The amount required to be transferred to investor education and
protection fund has been transferred within the stipulated time in
accordance with the provisions of the Companies Act, 1956 and the rules
made thereunder.
(viii) The Company does not have any accumulated losses at the end of
the financial year and has not incurred cash losses in the financial
year and in the immediately preceding financial year.
(ix) The Company has not defaulted in repayment of dues to financial
institution or bank or debenture-holders.
(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 term loans raised by the Company have been applied for the
purpose for which the loans were obtained.
(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: Noida, UP Partner
Date : 30th May, 2015. (Membership No. 41472)
Mar 31, 2014
We have audited the accompanying financial statements of Ferro Alloys
Corporation Limited (''the Company'') which comprise the Balance Sheet as
at 31st March 2014, 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.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditors'' judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2014;
b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order"), 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.
INDEPENDENT AUDITORS'' REPORT
ANNEXURE TO AUDITORS'' REPORT:
The Annexure referred to in our report to the members of Ferro Alloys
Corporation Ltd. (''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
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) 1) The Company has not granted any loan to any of the companies,
firms or other parties covered in the Register maintained under Section
301 of the Act.
2) (a) The Company has taken unsecured loan of Rs. 769.71 lacs from two
companies covered in Register maintained under Section 301 of the Act.
The maximum amount outstanding during the year and the year end balance
(including interest) of such loan amounts to '' 773.30 lacs.
(b) In our opinion, the rate of interest and other terms and conditions
of such loan were not prima-facie prejudicial to the interest of the
Company.
(c) In respect of above loan the Company is regular in payment of
interest, whereever applicable and no amount is overdue.
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.
ANNEXURE TO AUDITORS'' REPORT:
b) The disputed statutory dues aggregating to Rs. 5194.00 lacs that
have not been deposited on account of disputed matters pending before
appropriate authorities are as under:-
Nature of dues Rs. /Lacs Forum where the dispute is pending
CUSTOMS DUTY 10.16 Dy. Commissioner of Customs, Paradip
DUTY 1.13 Customs Excise & Service
Tax Appellate Tribunal, Kolkata
137.84 Asst. Commissioner, Central
Excise, Customs & Service Tax,Balasore
81.94 Commissioner, Central Excise,
Customs and Service Tax,Bhubaneswar
64.96 Commissioner of Customs (Appeals),
Kolkata
61.18 Hon''ble High Court, Odisha
8.15 Jt. Secretary (Review)
MOF, GOI, CBEC, Delhi
EXCISE 2.20 Asst. Commissioner, Central
Excise, Customs & Service Tax,Balasore
DUTY 22.88 Central Excise & Service Tax
Appellate Tribunal, West ZoneBench,
Mumbai
1190.47 Customs Excise and Service Tax
Appellate Tribunal, Kolkata
79.38 Commissioner of Central Excise,
Customs & Service Tax, (Appeals)
Bhubaneswar
39.10 Jt. Commissioner, Central Excise,
Customs & Service Tax, Bhubaneswar-1
SALES TAX 25.08 Additional Commissioner, Sales
Tax,Balasore
0.45 Asst. Commissioner, Commercial
Taxes,Balasore
10.69 Sales Tax Tribunal, Cuttack
1,393.56 Additional Commissioner,
Sales Tax, Cuttack
832.78 Commssionr of Sales Tax Central
Zone, Cuttack
ROYALTY 128.71 Dy. Director Mines, J.K. Road (Odisha)
DEMAND 564.19 Director (Mines), Ministy of Mines,
New Delhi
38.82 Hon''ble High Court, Odisha
ENTRY TAX 231.83 Additional Commissioner of Sales Tax,
Central Zone, Cuttack
INTEREST 251.86 Hon''ble High Court, Odisha_
DEMAND 16.64 Dy. Director Mines, J.K. Road (Odisha)
TOTAL 5,194.00
Nature of dues Period to which the amount related
(various years covering the period)
CUSTOM DUTY 1990-91 & 2000-01
DUTY 1999-00 & 2000-01
1981-82, 1982-83, 1985-86, 1988-89, 1989-90,
1990-91, 1996-97, 1997-98, 1999-00,
2000-01 & 2001-02
1997-98 to 2001-02
1995-96, 1997-98
1994-95
EXCISE 1981
DUTY
2001-02 & 2002-03
2007-08 & 2008-09
2005-06, 2007-08, 2008-09 & 2009-10
2011-12, 2012-13
1980-81, 1981-82, 2005-06 & 2006-07
SALES TAX 1999-2000
2000-01 & 2003-04
1988-89, 1999-00, 2001-02, 2005-06, 2006-07,
2007-08,
2008-09, 2009-10, 2010-11 &
2011-12
2007-08
ROYALTY 2002-03, 2003-04, 2008-09 & 2009-10
2005-06
2009-10 & 2010-11
2007-08
2007-08
DEMAND 2008-09 & 2009-10
x) The Company has no accumulated losses as on 31st March 2014 and it
has not incurred cash losses during the financial year ended on that
date 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 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) The term loans raised during the year by the company have been
applied for the purpose for which the said 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.
viii) 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 year 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,
(Regn. No. 109003 W)
C. A. K. P. Sahasrabudhe
Place : Noida, UP Partner
Date : 29th May, 2014. Membership No. 7021
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Ferro Alloys
Corporation Limited (''the Company''), which comprise the Balance Sheet
as at 31st March, 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.
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 2
11 of the Companies Act, 1956 ("the ActÂ). 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 31stMarch,2013;
b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
OrderÂ),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 2 11 of the Companies Act, 1956; and
e. on the basis of written representations received from the directors
as on 31st March, 2013, and taken on record by the Board of Directors,
none of the directors is 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 AUDITOR''S REPORT:
The Annexure referred to in our report to the members of Ferro Alloys
Corporation Limited (''the Company'') for the year ended 31st March,
2013.
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
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) 1) The Company has not granted unsecured loan to any of the
companies, firms or other parties covered in the Register maintained
under Section 301 of the Act.
2) (a) The Company has taken unsecured loan of Rs. 1179.71 lacs from
two companies covered in Register maintained under Section 301 of the
Act. The maximum amount outstanding during the year and the year end
balance (including interest) of such loan amounts to Rs. 1183.61 lacs.
(b) In our opinion, the rate of interest and other terms and conditions
of such loan were not prima-facie prejudicial to the interest of the
Company.
(c) In respect of above loan the Company is regular in payment of
interest, wherever applicable and no amount is overdue.
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, 2013 for a period of more than 6 months from the date
they became payable.
x) The Company has no accumulated losses as on 31st March, 2013 and it
has not incurred cash losses during the financial year ended on that
date 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 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) The term loans raised during the year by the Company have been
applied for the purpose for which the said 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) 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 year 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,
(Regn.No.109003W)
C.A. K.P. SAHASRABUDHE,
Place: New Delhi Partner
Date: 27th May, 2013 Membership No. 7021
Mar 31, 2012
1. We have audited the attached Balance Sheet of Ferro Alloys
Corporation Limited as at 31st March, 2012, the Statement of Profit and
Loss 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.
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 mis-statements. 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.
3. As required by the Companies (Auditors' 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 annex hereto a statement on
the matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to above, we
report that :
(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, Statement of Profit and Loss 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, Statement of Profit and Loss
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 Statement of Profit and Loss, of the profit 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 3 of the Auditors' Report of even date to the
Members of Ferro Alloys Corporation 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) 1) During the year, the Company has not granted unsecured loan to
any of the companies, firms or other parties covered in the Register
maintained under Section 301 of the Act.
2) (a) During the year, Company has taken unsecured loan of Rs. 463.99
lacs from two companies covered in Register maintained under Section
301 of the Act. The maximum amount outstanding during the year and the
year end balance (including interest) of such loan amounts to Rs. 1183.60
lacs.
(b) In our opinion, the rate of interest and other terms and conditions
of such loan were not prima-facie prejudicial to the interest of the
Company.
(c) In respect of above loan the Company is regular in payment of
interest, whereever applicable and no amount is overdue.
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, 2012 for a period of more than 6 months from the date
they became payable.
b) The disputed statutory dues aggregating to Rs. 4,280.49 lacs that have
not been deposited on account of disputed matters pending before
appropriate authorities are as under:-
Nature of
dues Rs. /Lacs Forum where the
dispute is pending Period to which the
amount related (various
years covering the
period)
CUSTOMS
DUTY 10.16 Dy. Commissioner
of Customs, Paradip 1990-91 & 2000-01
DUTY 1.13 Commissioner
(Appeal) Central
Excise Customs &
Sales 1999-00 & 2000-01
Tax, Bhubaneswar
137.84 Asst. Commissioner
Central Excise &
Customs, Balasore 1981-82, 1982-83,
1985-86, 1988-89,
1989-90, 1990-91,
1996-97, 1997-98,
1999-00, 2000-01 &
2001-02
81.94 Commissioner Central
Excise, Customs and
Sales Tax, 1997-98 to 2001-02
Bhubaneswar
64.96 Commissioner of
Customs (Appeals),
Kolkata 1983-84
61.18 Hon'ble High Court,
Odisha 1995-96, 1997-98
8.15 Jt. Secretary
(Review) MOF, GOI,
CBEC, Delhi 1994-95
EXCISE DUTY 2.20 Asst. Commissioner
of Central Excise
& Service Tax, 1981
Balasore
22.88 Central Excise &
Service Tax
Appellate Tribunal,
West 2001-02 & 2002-03
Zone Bench, Mumbai
1240.47 Customs Excise and
Service Tax
Appellate Tribunal, 2007-08 & 2008-09
Kolkata
29.03 Commissioner of
Central Excise
Customs & Service
Tax, 2005-06, 2008-09 &
2009-10
(Appeals) Bhubaneswar
SALES TAX 25.08 Additional
Commissioner Sales
Tax, Balasore 1980-81, 1981-82,
2005-06 & 2006-07
0.45 Asst. Commissioner
Commercial Taxes,
Balasore 1999-2000
10.69 Sales Tax Tribunal,
Cuttack 2000-01 & 2003-04
536.79 Additional
Commissioner Sales
Tax, Cuttack 1988-89, 1999-00,
2001-02, 2005-06,
2006-07 & 2007-08
0.58 Asst. Commissioner
Commercial Taxes,
Bhadrak 2001-02
832.78 Commssionr of Sales
Tax Central Zone,
Cuttack 2007-08
ROYALTY 127.48 Dy. Director Mines,
J.K. Road (Odisha) 2002-03 & 2003-04
DEMAND
564.19 Director (Mines),
Ministy of Mines,
New Delhi 2005-06
38.82 Hon'ble High Court,
Odisha 2009-10 & 2010-11
ENTRY TAX 231.83 Additional
Commissioner of
Sales Tax, Central
Zone, 2007-08
Cuttack
INTEREST 251.86 Hon'ble High Court,
Odisha 2007-08
DEMAND
Total 4,280.49
x) The Company has no accumulated losses as on 31st March 2012 and it
has not incurred cash losses during the financial year ended on that
date 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 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) The term loans raised during the year by the company have been
applied for the purpose for which the said 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) 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 year 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,
(Regn. No. 109003 W)
Place : New Delhi CA K P Sahasrabudhe
Date : 28th July, 2012 Partner
Membership No. 7021
Mar 31, 2011
We have audited the attached Balance Sheet of Ferro Alloys Corporation
Limited 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
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. Those 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 subsection (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;
(ii) 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, subject to Note No. 14 of Schedule K, the Balance
Sheet, Profit and Loss Account and Cash Flow Statement dealt with by
this report comply with the Accounting Standards referred to in
Subsection (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 profit 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 Ferro Alloys Corporation Ltd. on the fi nancial 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) 1) During the year, the Company has not granted unsecured loan to
any of the companies, firms or other parties covered in the Register
maintained under Section 301 of the Act.
2) (a) During the year, Company has taken unsecured loan of Rs. 200.00
lacs from one company covered in Register maintained under Section 301
of the Act. The maximum amount involved and the year end balance
(including interest) of such loan amounts to Rs. 201.53 lacs.
(b) In our opinion, the rate of interest and other terms and conditions
of such loan were not primafacie prejudicial to the interest of the
Company.
(c) In respect of above loan the Company is regular in payment of
interest, whereever applicable and no amount of the principal is
overdue.
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) Maintenance of cost records have not been prescribed by the
Central Government under Section 209(1)(d) of the Companies Act, 1956.
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, 2011 for a period of more than 6 months from the date
they became payable.
b) The disputed statutory dues aggregating to Rs. 4,850.14 lacs that have
not been deposited on account of disputed matters pending before
appropriate authorities are as under:
x) The Company has no accumulated losses as on 31st March 2011 and it
has not incurred cash losses during the financial year ended on that
date 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 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) The term loans raised during the year by the company have been
applied for the purpose for which the said 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) 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 year 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 And Co.
Chartered Accountants
(Regn. No. 109003 W)
Place : New Delhi CA K.P. Sahasrabudhe
Date : 1st August, 2011. Partner
Membership No.7021
Mar 31, 2010
We have audited the attached Balance Sheet of Ferro Alloys Corporation
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. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material mis-statements. 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, subject to Note No. 14 of Schedule K, 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 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 profit 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.
Referred to in paragraph 2 of the Auditors Report of even date to the
Members of Ferro Alloys Corporation Ltd. on the financial 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) 1) During the year, the Company has not granted unsecured loan to
any of the companies covered in the Register maintained under Section
301 of the Act. Consequently clauses (iii) (b) to (iii)(d) of the
paragraph 4 of the Order are not applicable.
2) (a) During the year, Company has taken unsecured loan of Rs. 455.72
lacs from one company covered in Register maintained under Section 301
of the Act. The maximum amount involved and the year end balance
(including interest) aggregate to Rs. 630.72 lacs and Rs.516.38 lacs
respectively.
(b) In our opinion, the rate of interest and other terms and conditions
of such loans were not prima-facie prejudicial to the interest of the
Company.
(c) In respect of above loans the Company is regular in payment of
interest, whereever applicable and no amount of the principal is
overdue.
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) 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) Maintenance of cost records have not been prescribed by the
Central Government under Section 209(1 )(d) of the Companies Act, 1956.
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, 2010 for a period of more than 6 months from the date
they became payable.
b) The disputed statutory dues aggregating to Rs.2347.24 lacs that have
not been deposited on account of disputed matters pending before
appropriate authorities are as under:-
Nature of dues Rs. Forum where the dispute is pending
Lacs
CUSTOMS DUTY 11.29 Asst. Commissioner of Customs, Paradeep
137.84 Asst. Commissioner Central Excise
& Customs, Balasore
81.94 Commissioner of Central Excise
& Customs, Bhubaneswar
64.96 Commissioner of Customs(Appeals),
Kolkata
61.18 Honble High Court, Orissa 86.93 CEGAT
Eastern Bench, Kolkata EXCISE DUTY
2.20 Asst.Commissioner of Central Excise
& Service Tax, Balasore
2.39 Asst.Commissioner of Central Excise &
Customs, Bhubaneswar
22.88 Central Excise & Service Tax Appellate
Tribunal, West Zone Bench, Mumbai
8.15 Jt. Secretary(Review) MOF.GOI,
Delhi SALES TAX
502.71 Asst./Additional Commissioner
Sales Tax, Balasore
4.22 Sales Tax Tribunal, Cuttack SERVICE
TAX
417.02 Supdt.(Prev.)Central Excise Customs
& Service Tax, Bhubaneswar ROYALTY DEMAND
127.48 Dy.Director Mines J.K. Road
(Orissa) INTEREST DEMAND
564.19 Dy.Director Mines J.K. Road (Orissa)
251.86 Honble High Court, Orissa
TOTAL 2347.24
Nature of dues Period to which the amount related (various
years covering the period)
CUSTOMS DUTY 1990-91,1999-00 & 2000-01
1981-82,1982-83, 1985 86,1988-89,1989-90,1990-
91,1996-97,1997-98,1999-00,2000-01 &
2001-02
1997-98 to 2001-02
1983-84
1995-96 & 1997-98
1999-00 & 2000-01
EXCISE DUTY 1981
1981-82
2001-02 & 2002-03
1994-95
SALES TAX 1980-81,1981-82, 1988-89,
1999-00, 2001-02, 2005-
06 & 2006-07
200304
SERVICE TAX 2005-06 & 2006-07
ROYALTY DEMAND 2002-03 & 2003-04
INTEREST DEMAND 2005-06
2007-08
x) The Company has no accumulated losses as on 31st March 2010 and it
has not incurred cash losses during the financial year ended on that
date or 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 4(xiii)(a), (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 where of 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 year 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 And CO.
Chartered Accountants
(Regn. No. 109003 W)
Place : New Delhi CA K.P. Sahasrabudhe
Date : 24th July, 2010 Partner
Membership No. 7021