Mar 31, 2023
GODAWARI POWER & ISPAT LIMITED
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying standalone financial statements of GODAWARI POWER & ISPAT LIMITED (the âCompanyâ), which comprise the Balance Sheet as at March 31, 2023, 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 ended on that date and a summary of significant accounting policies and other explanatory information (hereinafter referred to as the âstandalone financial statementsâ).
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 Companies Act, 2013 (the âActâ) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, (âInd ASâ) and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2023 and its profit, total comprehensive income, changes in equity and its cash flows for the year ended on that date.
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (âSAâs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (âICAIâ) together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI''s Code of Ethics. 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.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined that there are no key audit matters to communicate in our report.
Information Other than the Standalone Financial Statements and Auditorâs Report Thereon
The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Management Discussion and Analysis, Board''s Report including Annexures to Board''s Report, Business Responsibility Report, Corporate Governance and Shareholder''s Information, but does not include the standalone financial statements and our auditor''s report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Managementâs Responsibilities for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of 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,
changes in equity and cash flows of the Company in accordance with the Ind AS 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.
In preparing the standalone financial statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Company''s financial reporting process.
Auditorâs Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial
statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the standalone financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and here applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2020 (the âOrderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. 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 Flows 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 Ind AS specified under Section 133 of the Act.
e) On the basis of the written representations received from the directors as on March 31, 2023 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2023 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 âAnnexure Bâ. 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 the requirements of section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
h) 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. The Company did not have any long-term contracts including 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.
iv. (a) The Management has represented that,
to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in
any manner whatsoever by or on behalf of the Company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(b) The Management has represented, that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.
i) As stated in Note 37 to the standalone financial statements
(a) The final dividend proposed in the previous year, declared and paid by the Company during the year is in accordance with Section 123 of the Act, as applicable.
(b) As the company has not paid and declared any interim dividend during the year and upto the date of our report, therefore, this clause is not applicable.
(c) The Board of Directors of the Company have proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The amount of dividend proposed is in accordance with section 123 of the Act, as applicable.
j) As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable for the Company only w.e.f. April 1,2023, reporting under this clause is not applicable.
For Singhi & Co.
(ICAI Firm Regn.302049E)
Chartered Accountants
Sanjay Kumar Dewangan
Partner
Membership number: 409524
Raipur, 20th May, 2023
UDIN: 23409524BGUNAI6543
Mar 31, 2022
GODAWARI POWER & ISPAT LIMITED
Report on the Audit of the Standalone FinancialStatementsOpinion
We have audited the accompanying standalone financial statements of GODAWARI POWER & ISPAT LIMITED (the âCompanyâ), which comprise the Balance Sheet as at March 31, 2022, 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 ended on that date and a summary of significant accounting policies and other explanatory information (hereinafter referred to as the âstandalone financial statementsâ).
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 Companies Act, 2013 (the âActâ) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, (âInd ASâ) and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2022 and its profit, total comprehensive income, changes in equity and its cash flows for the year ended on that date.
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (âSAâs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (âICAIâ) together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI''s Code of Ethics. 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.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These
matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined that there are no key audit matters to communicate in our report.
Information Other than the Financial Statements and Auditorâs Report Thereon
The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Management Discussion and Analysis, Board''s Report including Annexures to Board''s Report, Business Responsibility Report, Corporate Governance and Shareholder''s Information, but does not include the consolidated financial statements, standalone financial statements and our auditor''s report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Managementâs Responsibilities for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of 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, changes in equity and cash flows of the Company in accordance with the Ind AS 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.
In preparing the standalone financial statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Company''s financial reporting process.
Auditorâs Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
¦ Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
¦ Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
¦ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.
¦ Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
¦ Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the standalone financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because
the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2020 (the âOrderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. 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 Flows 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 Ind AS specified under Section 133 of the Act.
e) On the basis of the written representations received from the directors as on March 31, 2022 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2022 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 âAnnexure Bâ. 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 the requirements of section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
h) 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. The Company did not have any longterm contracts including 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.
iv. (a) The Management has represented
that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(b) The Management has represented, that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.
v. As stated in Note 37 to the standalone financial statements
(a) The final dividend proposed in the previous year, declared and paid by the Company during the year is in accordance with Section 123 of the Act, as applicable.
(b) The interim dividend declared and paid by the Company during the year and until the date of this report is in compliance with Section 123 of the Act.
(c) The Board of Directors of the Company have proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The amount of dividend proposed is in accordance with section 123 of the Act, as applicable.
For JDS & Co.
(Firm Regn. No.018400C)
Chartered Accountants
Sanjay Dewangan
Partner
Membership number: 409524
Raipur, 28th May, 2022
UDIN: 22409524AJUWSY3674
Mar 31, 2018
Report on the Standalone ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Godawari Power & Ispat Limited (âthe Companyâ), which comprise the balance sheet as at 31 March 2018, the statement of profit and loss (including other comprehensive income), the statement of cash flows and the statement of changes in equity for the year then ended and a summary of the significant accounting policies and other explanatory information (herein after referred to as âstandalone Ind AS financial statementsâ).
Managementâs Responsibility for the Standalone ind AS Financial Statements
The Companyâs 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 Ind AS 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 accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act read with relevant rules issued thereunder.
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 judgements 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 Ind AS 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 Ind AS 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 standalone Ind AS 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 Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS 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 Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS 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 Ind AS financial statements.
opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS 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 financial position of the Company as at 31 March, 2018, and its financial performance including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Report on other Legal and regulatory requirements
1. As required by the Companies (Auditorâs 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.
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 (including other comprehensive income), the statement of cash flows and the statement of changes in equity dealt with by this Report are in agreement with the books of account;
(d) in our opinion, the aforesaid standalone Ind AS financial statements comply with the Accounting Standards specified under Section 133 of the Act read with relevant rule issued thereunder;
(e) on the basis of the written representations received from the directors as on 31 March 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31 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 âAnnexure Bâ; and
(g) with respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. the Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements - Refer Note 29 to the standalone Ind AS financial statements;
ii. the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses; and
iii. there has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
(i) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) As explained to us, all major assets except certain low value items viz furniture & fixtures and office equipment have been physically verified by the management at reasonable intervals. According to the information and explanation given to us, no material discrepancies were notice.
(c) The title deeds of immovable properties, as disclosed in Note 3 on fixed assets to the financial statements, are held in the name of the Company except the immovable properties transferred on amalgamation of the erstwhile RR Ispat Limited and Hira Industries Limited held in their name.
(ii) As explained to us, the physical verification of inventories have been conducted at reasonable intervals by the management during the year. In our opinion, the frequency of the verification is reasonable. The discrepancies noticed on verification between the physical stocks and the book records were not material and have been properly dealt with in the books of account.
(iii) The company has granted unsecured loan to two companies covered in the register maintained under section 189 of the companies Act, 2013 during the year. According to the information and explanations given to us and based on the audit procedures conducted by us, we are of the opinion that:
(a) The terms & conditions of the grant of such loan are not prejudicial to the interest of the Company.
(b) As explained to us the principal amounts are repayable on demand, whereas the interest is payable annually at the discretion of the Company and the repayments or receipts are regular.
(c) Since the amount outstanding is not overdue, therefore, the provisions of clause 3 (iii)(c) of the Companies (Auditorâs Report) Order, 2016 are not applicable to the company.
(iv) In our opinion and according to the information & explanations given to us, the Company has compiled with the provisions of Section 186 of the Companies Act, 2013 in respect of the loans and investment made, and guarantees and security provided by it. The Company has not granted any loans and made any investments, or provided any guarantees or security to the parties covered under Section 185 of the Companies Act, 2013.
(v) In our opinion and according to the information and explanations given to us, the company has not accepted any deposits from public, in terms of the directives issued by the Reserve Bank of India and the provisions of Section 73 to 76 or any other relevant provisions of the Companies Act and rules framed thereunder; therefore the provisions of clause 3(v) of the Companies (Auditorâs Report) Order, 2016 are not applicable to the company.
(vi) We have broadly reviewed the books of account maintained by the company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013, in respect of Companyâs products to which the said rules are made applicable and are of the opinion that, prima facie, the prescribed accounts and records, have been made and maintained. We have, however, not made a detailed examination of the records.
(vii) (a) According to the information & explanations given to us, during the year the company is regular in depositing undisputed statutory dues including provident fund, employeesâ state insurance, income tax, sales tax, service tax, goods & services tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues with the appropriate authorities though there has been delay observed in some cases. Further, no undisputed amounts of statutory dues as stated above were in arrears as at 31st March 2018 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no dues of income tax, sales tax, service tax, goods & services tax, custom duty, excise duty, value added tax and cess which have not been deposited on account of any dispute except the following:
Name of Statute |
Nature of Dues |
Period |
Amount (Rs. in lacs) |
Forum where dispute is pending |
Central Excise Act,1944 |
Disallowance of Duty on Structural items (Cement) GPIL |
2008-09 to 2009-10 |
31.30 |
High Court of CG at Bilaspur. |
Central Excise Act,1944 |
Demand of Excise Duty on alleged clendestine removal of goods during December, 2011 |
Dec. 2011 |
28.20 |
CESTAT, NEW DELHI |
Service Tax |
Disallowance of Service Tax credit on Iron Ore not received after crushing |
2009-10 to 2010-11 |
4.18 |
Assistant Commissioner, Central Excise, Raipur |
Central Excise Act,1944 |
Disallowance of Duty on Structural items (Other than Cement) GPIL |
2008-09 to 2009-10 |
111.12 |
High Court of CG at Bilaspur. |
Central Excise Act,1944 |
Disallowance of Duty on Structural items GPIL |
Jan 12 to Dec 12 |
57.27 |
Assistant Commissioner, Central Excise, Raipur |
Service Tax |
Demand of Service Tax on recovery of Incidental charges HIL |
2005-06 to 2006-07 |
107.92 |
CESTAT, NEW DELHI |
Service Tax |
Disallowance of Cenvat Credit of Service Tax paid on Industrial & Commercial Construction Service |
April 11 to Nov 15 |
116.67 |
The Commissioner (Appeals) Raipur |
Service Tax |
Demand of Service Tax-Suppression of value- retention of Iron ore fines HIL |
2011-12 |
149.40 |
CESTAT, NEW DELHI |
Service Tax |
Disallowance of Cenvat Credit of Service Tax paid on Industrial & Commercial Construction Service |
Dec 15 to Aug 16 |
7.20 |
The Commissioner (Appeals) Raipur |
Customs Act, 1962 |
Demand of Customs duty on imported Coal due to classified as Bituminous Coal GPIL |
2012-13 |
10.00 |
CESTAT, HYDERABAD |
Central Excise Act,1944 |
Denial of Cenvat credit on Manpower Supply. GPIL |
July12 to Jan 16 |
56.63 |
Assistant Commissioner, Central Excise, Raipur |
Central Excise Act,1944 |
Demand of duty on related party transaction |
2004-05 |
3.12 |
CESTAT, NEW DELHI |
Service Tax |
Demand of ST on charges relating to ECB Loan availed -Penalty U/s 77& 78 |
2006-07 to 2011-12 |
239.57 |
CESTAT, NEW DELHI |
Central Excise Act,1944 |
Demand of alleged excess credit passed on by supplier |
April 11 to June 15 |
9.52 |
The Commissioner (Appeals) Raipur |
Central Excise Act,1944 |
Denial of Cenvat credit on various inputs (Steel items) |
April 08 to Feb 09 |
16.68 |
Commissioner Central Excise, Raipur. |
Central Excise Act, 1944 |
Denial of Cenvat credit on various inputs (Steel items) |
May 15 to Nov 15 |
1.06 |
The Commissioner (Appeals) Raipur |
Central Excise Act,1944 |
Denial of Cenvat credit on Capital goods |
2007-08 |
22.23 |
Addl. Commissioner Central Excise, Raipur |
C.G. Commercial Tax |
Non receipt of sales tax declaration form |
2011-12 |
13.92 |
Chhattisgarh Commercial Tax Tribunal, Raipur |
Chhatisgarh Upkar Adhiniyam 1981 |
Energy Development Cess |
May 2006 to Feb 2014 |
3279.08 |
Supreme Court |
(viii) Based on our audit procedures, and according to the information and explanations given to us, during the year, the company has not defaulted in repayment of loans or borrowings to any financial institution or bank or Government or debenture holders as at the balance sheet date.
(ix) The Company has not raised any moneys by way of initial public offer, further public offer (including debt instruments). According to the information and explanations given to us, and in our opinion, the term loans have been applied progressively for the purpose for which the loans were obtained.
(x) In our opinion and according to the information and explanations given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year. Therefore, the provisions of clause 3(x) of the Companies (Auditorâs Report) Order, 2016 are not applicable to the company.
(xi) The Company has provided for managerial remuneration during the year in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V of the Companies Act, 2013.
(xii) As the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it. Therefore, the provisions of clause 3(xii) of the Companies (Auditorâs Report) Order, 2016 are not applicable to the company.
(xiii) The Company has entered into transactions with related parties in compliance with the provisions of Section 177 and 188 of the Act. The details of such related party transactions have been disclosed in the financial statements as required under Accounting Standard (AS) 18, Related Party Disclosures specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(xiv) The company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Therefore, the provisions of clause 3(xiv) of the Companies (Auditorâs Report) Order, 2016 are not applicable to the company.
(xv) The Company has not entered into any non-cash transactions as referred in Section 192 of the Act with its directors or persons connected with him. Therefore, the provisions of clause 3(xv) of the Companies (Auditorâs Report) Order, 2016 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. Therefore, the provisions of clause 3(xvi) of the Companies (Auditorâs Report) Order, 2016 are not applicable to the company.
We have audited the internal financial controls over financial reporting of Godawari power & ispat Limited (âthe Companyâ) as of 31 March 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Managementâs responsibility for internal Financial Controls
The Companyâs 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 (âICAIâ). 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 companyâs 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 the Institute of Chartered Accountants of India. 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 auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS 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 Companyâs internal financial controls system over financial reporting.
Meaning of internal Financial Controls over Financial reporting
A companyâs 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 companyâs 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 companyâs 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 31 March 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.
For JDS & Co.
(ICAI Firm Regn. No.018400C)
Chartered Accountants
Sanjay Dewangan
Partner
Membership Number: 409524
Raipur, 2nd May, 2018
Mar 31, 2017
INDEPENDENT AUDITORS'' REPORT
To the Members of Godawari Power & Ispat Limited
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Godawari Power & Ispat Limited (''the Company''), which comprise the balance sheet as at 31 March 2017, the statement of profit and loss (including other comprehensive income), the statement of cash flows and the statement of changes in equity for the year then ended and a summary of the significant accounting policies and other explanatory information (herein after referred to as "standalone Ind AS financial statements").
Management''s Responsibility for the Standalone Ind AS 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 Ind AS 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 accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act read with relevant rules issued thereunder.
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 Ind AS 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 Ind AS 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 standalone Ind AS 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 Ind AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone Ind AS 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 Ind AS 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 Ind AS 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 Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS 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 financial position of the Company as at 31 March, 2017, and its financial performance including other comprehensive income, its cash flows and the changes in equity 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 ("the Order") 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,
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 (including other comprehensive income), the statement of cash flows and the statement of changes in equity dealt with by this Report are in agreement with the books of account;
(d) in our opinion, the aforesaid standalone Ind AS financial statements comply with the Accounting Standards specified under Section 133 of the Act read with relevant rule issued there under;
(e) on the basis of the written representations received from the directors as on 31 March 2017 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2017 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"; and
(g) with respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. the Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements - Refer Note 30 to the standalone Ind AS financial statements;
ii. the Company did not have any long-term contracts including 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; and
iv. the Company has provided requisite disclosures in its standalone Ind AS financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8 November, 2016 to 30 December, 2016 and these are in accordance with the books of accounts maintained by the Company. Refer Note 44 to the standalone Ind AS financial statements,
(i) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) As explained to us, all major assets except certain low value items viz furniture & fixtures and office equipment have been physically verified by the management at reasonable intervals, According to the information and explanation given to us, no material discrepancies were notice,
(c) The title deeds of immovable properties, as disclosed in Note 4 on fixed assets to the financial statements, are held in the name of the Company except the immovable properties transferred on amalgamation of the erstwhile RR Ispat Limited and Hira Industries Limited held in their name,
(ii) As explained to us, the physical verification of inventories have been conducted at reasonable intervals by the management during the year. In our opinion, the frequency of the verification is reasonable. The discrepancies noticed on verification between the physical stocks and the book records were not material and have been properly dealt with in the books of account,
(iii) The company has granted unsecured loan to one company covered in the register maintained under Section 189 of the Companies Act, 2013 during the year. According to the information and explanations given to us and based on the audit procedures conducted by us, we are of the opinion that:
(a) The terms & conditions of the grant of such loan are not prejudicial to the interest of the Company.
(b) As explained to us the principal amounts are repayable on demand, whereas the interest is payable annually at the discretion of the Company and the repayments or receipts are regular,
(c) Since the amount outstanding is not overdue, therefore, the provisions of clause 3 (iii)(c) of the Companies (Auditor''s Report) Order, 2016 are not applicable to the company.
Name of Statute |
Nature of Dues |
Period |
Amount (Rs, in lacs) |
Forum where dispute is pending |
Central Excise Act, 1944 |
Disallowance of Duty on Structural items GPIL |
2008-09 to 2009-10 |
31.00 |
High Court of CG at Bilaspur. |
Central Excise Act, 1944 |
Demand on account of Cenvat credit denial HIL |
2007-08 |
7.78 |
CESTAT, NEW DELHI |
Service Tax |
Demand of Service tax on value of retention quantity of Iron ore fines HIL |
2009-10 to 2010-11 |
75.99 |
CESTAT, NEW DELHI |
Service Tax |
Demand of Service Tax on recovery of Incidental charges HIL |
2005-06 to 2006-07 |
48.96 |
CESTAT, NEW DELHI |
Service Tax |
Demand of Service Tax-Suppression of value-retention of Iron ore fines HIL |
2011-12 |
57.30 |
CESTAT, NEW DELHI |
Customs Act, 1962 |
Demand of Customs duty on imported Coal due to classified as Bituminous Coal GPIL |
2012-13 |
10.00 |
CESTAT, HYDERABAD |
Central Excise Act, 1944 |
Denial of Cenvat credit on security services employed outside factory. GPIL |
2009-10 to 2013-14 |
4.80 |
CESTAT, NEW DELHI |
Customs Act, 1962 |
Finalization of Project Import - Pellet Plant |
NA |
33.64 |
CESTAT, HYDERABAD |
Service Tax |
Demand of ST on charges relating to ECB Loan availed -Penalty U/s 77& 78 |
2006-07 to 2011-12 |
119.88 |
CESTAT, BANGALORE |
(iv) In our opinion and according to the information & explanations given to us, the Company has compiled with the provisions of Section 186 of the Companies Act, 2013 in respect of the loans and investment made, and guarantees and security provided by it. The Company has not granted any loans and made any investments, or provided any guarantees or security to the parties covered under Section 185 of the Companies Act, 2013.
(v) In our opinion and according to the information and explanations given to us, the company has not accepted any deposits from public, in terms of the directives issued by the Reserve Bank of India and the provisions of Section 73 to 76 or any other relevant provisions of the Companies Act and rules framed there under; therefore the provisions of clause 3(v) of the Companies (Auditor''s Report) Order, 2016 are not applicable to the company,
(vi) We have broadly reviewed the books of account maintained by the company pursuant to the rules made by the Central Government for the maintenance of cost records under Section 148(1) of the Companies Act, 2013, in respect of Company''s products to which the said rules are made applicable and are of the opinion that, prima facie, the prescribed accounts and records, have been made and maintained. We have, however, not made a detailed examination of the records.
(vii) (a) According to the information & explanations given to
us, during the year 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 any other statutory dues with the appropriate authorities though there has been delay observed in some cases. Further, no undisputed amounts of statutory dues as stated above were in arrears as at 31st March 2017 for a period of more than six months from the date they became payable,
(b) According to the information and explanations given to us, there are no dues of income tax, sales tax, service tax, custom duty, excise duty, value added tax and cess which have not been deposited on account of any dispute except the following:
(viii) Based on our audit procedures, and according to the information and explanations given to us, during the year, the company has defaulted in repayment of loans, borrowings and dues to debenture holders from June'' 2016 to February'' 2017. However the loan, borrowings and debentures have been restructured/ rescheduled by the banks, financial institution & debenture holders and as on the balance sheet date there was no default exist,
Name of Statute |
Nature of Dues |
Period |
Amount (Rs, in lacs) |
Forum where dispute is pending |
Central Excise Act, 1944 |
Penalty u/s 76. CESTAT vide its Final Order No. A/53176/2017-SM(BR) dated 27.04.2017 remanded the matter to original adjudicating authority on deciding the quantum of penalty u/s 76. |
2006-07 & 2008-09 |
8.52 |
CESTAT, NEW DELHI |
Central Excise Act, 1944 |
Denial of Service Tax credit on air travel services, copy right services, architect service etc. |
July 2010 to Dec. 2014 |
7.79 |
The Commissioner (Appeals) Raipur. |
Central Excise Act |
Denial of benefit of captive consumption Note No. 67/95 on Oxygen Gas used for repair & maintenance. |
Oct 2014 to March 2015 |
0.39 |
The Commissioner (Appeals) Raipur |
Central Excise Act, 1944 |
Duty on Oxygen Gas. |
(April 2015 to Sept 2015) |
2.72 |
The Commissioner (Appeals), Raipur |
Service Tax |
Reversal of Service Tax Credit on Removal of Inputs (Butt Welding) as such. |
July, 2015 to March, 2016 |
0.08 |
Commissioner (Appeals), Central Excise, Customs & Service Tax, Raipur. |
Income Tax Act, 1961 |
Income Tax demand in respect of disallowance made |
A.Y. 2012-13 |
390.86 |
Commissioner of Income Tax (Appeals), Raipur |
Income Tax Act, 1961 |
Disallowance made in respect of erstwhile R.R. Ispat Limited |
A.Y. 2008-09 |
3.24 |
Commissioner of Income Tax (Appeals), Raipur |
C.G. Commercial Tax |
Non receipt of sales tax declaration form |
2011-12 |
16.56 |
Deputy Commissioner, (Appl) Commercial Taxes, Raipur |
Chhatisgarh Upkar Adhiniyam 1981 |
Energy Development Cess |
May 2006 to Feb 2014 |
3279.08 |
Supreme Court |
(ix) The Company has not raised any moneys by way of initial public offer, further public offer (including debt instruments). According to the information and explanations given to us, and in our opinion, the term loans have been applied progressively for the purpose for which the loans were obtained,
(x) In our opinion and according to the information and explanations given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year. Therefore, the provisions of clause 3(x) of the Companies (Auditor''s Report) Order, 2016 are not applicable to the company,
(xi) The Company has provided for managerial remuneration during the year in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V of the Companies Act, 2013,
(xii) As the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it. Therefore, the provisions of clause 3(xii) of the Companies (Auditor''s Report) Order, 2016 are not applicable to the company,
(xiii) The Company has entered into transactions with related parties in compliance with the provisions of Section 177 and 188 of the Act, The details of such related party transactions have been disclosed in the financial statements as required under Accounting Standard (AS) 18, Related Party Disclosures specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(xiv) During the year the company has made preferential allotment i.e, private placement of shares with due compliance of Section 42 of the Act and relevant SEBI Regulations. The private placement of shares have been made in accordance with the fulfillment of requirement of restructuring of borrowings made by the bankers and financial institutions.
(xv) The Company has not entered into any non-cash transactions as referred in Section 192 of the Act with its directors or persons connected with him. Therefore, the provisions of clause 3(xv) of the Companies (Auditor''s Report) Order, 2016 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. Therefore, the provisions of clause 3(xvi) of the Companies (Auditor''s Report) Order, 2016 are not applicable to the company.
We have audited the internal financial controls over financial reporting of Godawari Power & Ispat Limited ("the Company") as of 31 March 2017 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Management''s 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,
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s 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 "Guidance Note") 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 the Institute of Chartered Accountants of India. 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 judgment, including the assessment of the risks of material misstatement of the standalone Ind AS 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 31 March 2017, 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.
For OP Singhania & Co.
(ICAI Firm Regn. No.002172C)
Chartered Accountants
Sanjay Singhania
Partner
Membership number: 076961
Raipur, 30th May, 2017
Mar 31, 2015
We have audited the accompanying standalone financial statements of
Godawari Power & Ispat 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
significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act,2013 ("the Act") with respect to
the preparation 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.
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 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,
(i) in the case of the balance sheet, of the state of affairs of the
Company as at 31st March 2015;
(ii) in the case of the statement of profit and loss, of the profit for
the year ended on that date; and
(iii) in the case of the cash flow statement, of the cash flows for the
year ended on that date.
Emphasis of Matters
We draw attention to the following matters in the Notes to the
financial statements:
a) Note no.34 which describes the uncertainty related to investments in
Joint Venture Company where the allotted coal block has also been
cancelled. No impairment loss has been booked in anticipation that the
realizable value of the assets of the JV shall be more than the value
of investment of the company. Impact is presently not ascertainable and
as such cannot be commented upon by us.
Our opinion is not qualified in respect of these matters.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order"), issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order.
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 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 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 Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
(i) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 27 to the
financial statements.
(ii) In our opinion and according to the explanations given to us, the
company has not entered into any long- term contracts including
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..
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, the fixed assets have been physically verified
by the management at reasonable intervals, in phased verification
programme, which, in our opinion, is reasonable, looking to the size of
the company and the nature of its business. According to the
information and explanations given to us, no material discrepancies
were noticed on such verification
(ii) (a) As explained to us, inventories have been physically verified
during the year by the management. In our opinion, the frequency of the
verification is reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) On the basis of our examination of the inventory records of the
company, we are of the opinion that, the company is maintaining proper
records of inventory. The discrepancies noticed on verification between
the physical stocks and the book records were not material and have
been properly dealt with in the books of account.
(iii) (a) The company has granted unsecured loans to two companies
covered in the register maintained under section 189 of the companies
Act, 2013 during the year.
(b) As explained to us the principal amounts are repayable on demand,
whereas the interest is payable annually at the discretion of the
company.
(c) As explained to us, there was no overdue amount in respect of loan
granted to companies listed in the register maintained under Section
189 of the Companies Act,2013.
(iv) In our opinion and according to the information & explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and nature of its business
for the purchases of inventory and fixed assets and for the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
controls.
(v) In our opinion and according to the information and explanations
given to us the company has not accepted any deposits, in terms of the
directives issued by the Reserve Bank of India and the provisions of
sections 73 to 76 or any other relevant provisions of the Companies Act
and the rules framed there under.
(vi) We have broadly reviewed the books of account maintained by the
company pursuant to the rules made by the Central Government for the
maintenance of cost records under section 148(1) of the Companies
Act,2013, in respect of Company's products to which the said rules are
made applicable and are of the opinion that, prima facie, the
prescribed accounts and records, have been made and maintained. We
have, however, not made a detailed examination of the records.
(vii) (a) According to the information & explanations given to
us, during the year the company is regular in depositing 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. According to the information & explanations
given to us, no undisputed amounts of statutory dues as stated above
were in arrears as at 31st March 2015 for a period of more than six
months from the date they became
According to the information and explanations given to us, there are no
dues of income tax, sales tax, wealth tax, service tax, custom duty,
excise duty, value added tax and cess which have not been deposited on
account of any dispute except the cases given below:
Name of the Statute Nature of dues Period
Service Tax Disallowance of credit of Service
Tax paid on outward freight 2005-06
Central Excise
Act,1944 Duty on Iron Ore Fines & Coal
Fines 2008-09 to 2009-10
Central Excise
Act,1944 Disallowance of Duty on 2008-09 to 2009-10
Structural items
Central Excise
Act,1944 Demand on account of Cenvat
credit 2007-08
Central Excise
Act,1944 Demand of Duty on account of
Related Party transaction 2007-08 to 2008-09
Central Excise
Act,1944 Demand of Duty on account of
Related Party transaction 2006-07 to 2007-08
Service Tax Demand on account of Suppression
of value- retention of
Iron ore fines 2009-10 to 2010-11
Service Tax Demand on account of
reimbursement of transportation
charges & recovery of Incidental
charges 2005-06 to 2006-07
Customs Act, 1962 Demand of interest & imposition
of penalty for import of
Bituminous Coal under the guise
of Steam Coal 2012-13
Service Tax Demand on account of
Suppression of value- retention of
Iron ore fines 2011-12
Central Excise
Act,1944 Disallowance of Cenvat credit on
Steel items viz. Angles, Channels,
Beams, Rounds & Plates used in
Equipment Division 2012-13
Central Excise
Act,1944 Demand of Service tax credit
reversal on as such removal of
Iron Ore Fines 2012-13 to 2013-14
Customs Act, 1962 Demand of interest & imposition
of penalty for import of
Bituminous Coal under the guise
of Steam Coal 2012-13
Service Tax Demand on account of
Suppression of value- retention of
Iron ore fines 2011-12
Central Excise
Act,1944 Disallowance of Cenvat credit on
Steel items viz. Angles, Channels,
Beams, Rounds & Plates used in
Equipment Division 2012-13
Central Excise
Act,1944 Demand of Service tax credit
reversal on as such removal of
Iron Ore Fines 2012-13 to 2013-14
Central Excise
Act,1944 Disallowance of Cenvat credit on
Aluminium Sheets & Coils 2009-10 to 2013-14
Central Excise
Act,1944 Disallowance of Cenvat credit on
Authorised Service Station Service2011-12 to 2012-13
Central Excise
Act,1944 Disallowance of Cenvat credit on
Welding Electrodes 2013-14
Service Tax Disallowance of Service tax credit
on handling & loading, testing &
transportation of Iron Ore Fines
and credit on documents in name
of head office 2007-08 to 2010-11
Income Tax Act, 1961 Income Tax demand in respect of
disallowance made A.Y. 2012-13
Income Tax Act, 1961 Disallowance made in respect of A.Y. 2008-09
erstwhile R.R. Ispat Limited
Income Tax Act, 1961 Penalty in respect of erstwhile A.Y. 2008-09
Hira Industries Limited
C.G. Commercial Tax Commercial Tax 2002-03
Central Sales Tax Tax demand during extension of
sales tax exemption not allowed 2007-08
C.G. Commercial Ta Tax demand during extension of
sales tax exemption not allowed 2007-08
Chhatisgarh Upkar
Adhiniyam 1981 Energy Development Cess May 2006 to Feb
2014
Name of the Statute Amount Forum where dispute is
(Rs. in lacs) pending
Service Tax 18.34 Customs, Excise and Service Tax
Appellate Tribunal, New Delhi
Central Excise Act,1944 83.32 Customs, Excise and Service Tax
Appellate Tribunal, New Delhi
Central Excise Act,1944 129.43 Customs, Excise and Service Tax
Appellate Tribunal, New Delhi
Central Excise Act,1944 11.12 Customs, Excise and Service Tax
Appellate Tribunal, New Delhi
Central Excise Act,1944 63.81 Customs, Excise and Service Tax
Appellate Tribunal, New Delhi
Central Excise Act,1944 47.72 Customs, Excise and Service Tax
Appellate Tribunal, New Delhi
Service Tax 151.98 Customs, Excise and Service Tax
Appellate Tribunal, New Delhi
Service Tax 107.92 Customs, Excise and Service Tax
Appellate Tribunal, New Delhi
Customs Act, 1962 10.00 Customs, Excise and Service Tax
Appellate Tribunal, Bangalore
Service Tax 119.33 Customs, Excise and Service Tax
Appellate Tribunal, New Delhi
Central Excise Act,1944 62.83 The Commissioner (Appeals)
Central Excise, Customs &
Service Tax, Raipur
Central Excise Act,1944 0.24 The Commissioner (Appeals)
Central Excise, Customs &
Service Tax, Raipur
Customs Act, 1962 10.00 Customs, Excise and Service Tax
Appellate Tribunal, Bangalore
Service Tax 119.33 Customs, Excise and Service Tax
Appellate Tribunal, New Delhi
Central Excise Act,1944 62.83 The Commissioner (Appeals)
Central Excise, Customs &
Service Tax, Raipur
Central Excise Act,1944 0.24 The Commissioner (Appeals)
Central Excise, Customs &
Service Tax, Raipur
Central Excise Act,1944 6.22 The Commissioner (Appeals)
Central Excise, Customs &
Service Tax, Raipur
Central Excise Act,1944 2.45 The Commissioner (Appeals)
Central Excise, Customs &
Service Tax, Raipur
Central Excise Act,1944 1.24 The Commissioner (Appeals)
Central Excise, Customs &
Service Tax, Raipur
Service Tax 32.05 The Commissioner (Appeals)
Central Excise, Customs &
Service Tax, Raipur
Income Tax Act, 1961 390.86 Commissioner of Income Tax
(Appeals), Raipur
Income Tax Act, 1961 3.24 Commissioner of Income Tax
(Appeals), Raipur
Income Tax Act, 1961 0.10 Commissioner of Income Tax
(Appeals), Raipur
C.G. Commercial Tax 0.89 Deputy Commissioner, (Appl)
Commercial Taxes, Raipur
Central Sales Tax 14.07 Addl. Commissioner (Appl),
Commercial Taxes, Raipur
C.G. Commercial Tax 320.31 Addl. Commissioner (Appl),
Commercial Taxes, Raipur
Chhatisgarh Upkar 2804.79 Supreme Court
Adhiniyam 1981
(c) According to the information and explanations given to us, amounts
required to be transferred to investor education and protection fund in
accordance with the relevant provisions of the Companies Act, 1956 (1
of 1956) and rules made thereunder have been transferred to such fund
within time.
(viii) The company does not have any accumulated losses at the end of
the financial year. The company has not incurred cash losses during the
financial year and in the immediately preceding financial year.
(ix) Based on our audit procedures and according to the information and
explanations given to us, the company has not defaulted in repayment of
dues to the banks, financial institution and debenture holders.
(x) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from
banks or financial institutions. Accordingly the provisions of clause
3(x) of the Companies (Auditor's Report) Order, 2015 are not applicable
to the company.
(xi) In our opinion, the term loans have been applied progressively for
the purpose for which the loans were obtained.
(xii) Based on our audit procedure and according to the information and
explanations given to us, no fraud on or by the company has been
noticed or reported during the year. Therefore, the provisions of
clause (xii) of the Companies (Auditor's Report) Order, 2015 are not
applicable to the company.
For, OPSinghania & Co.
(ICAI Firm Regn.No.002172C)
Chartered Accountants
per Sanjay Singhania
Partner
Membership No.076961
Raipur, 16th May,2015
Mar 31, 2014
We have audited the accompanying financial statements of Godawari Power
& Ispat Limited ("the Company) which comprise the balance sheet as at
31 March 2014, 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 financia
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") read with the General Circular
15/2013 dtd. 13th September, 2013 of the Ministry of Corporate Affairs
in respect of Section 133 of the Companies Act,2013 and in accordance
with the accounting principles generally accepted in India This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error
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 ndia. 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
ncludes 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
(i) in the case of the balance sheet, of the state of affairs of the
Company as at 31 March 2014;
(ii) in the case of the statement of profit and loss, of the profit for
the year ended on that date; and
(iii) in the case of the cash flow statement, of the cash flows for the
year ended on that date
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order"), 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
subsection (3C) of section 211 of the Companies Act, 1956 read with the
General Circular 15/2013 dtd. 13th September,2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act, 2013;
and
e. on the basis of written representations received from the directors
as on 31 March 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 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
Re: Godawari Power & Ispat Limited
Referred to in para 1 of Report on Other Legal and Regulatory
Requirements of our report of even date.
(i) (a) The Company has maintained the proper records showing full
particulars including quantitative details and situation of fixed
assets
(b) As explained to us, the fixed assets have been physically verified
by the management at reasonable intervals, in phased verification
programme, which, in our opinion, is reasonable, looking to the size of
the company and the nature of its business. According to the
information and explanations given to us, no material discrepancies
were noticed on such verification
(c) The company has not disposed off any substantial part of its fixed
assets during the year so as to affect its going concern status
(ii) (a) As explained to us, inventories have been physically verified
during the year by the management. In our opinion, the frequency of the
verification is reasonable
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business
(c) On the basis of our examination of the inventory records of the
company, we are of the opinion that, the company is maintaining proper
records of inventory. The discrepancies noticed on verification between
the physical stocks and the book records were not material and have
been properly dealt with in the books of account
(iii) (a) The company has granted unsecured loans to two companies
covered in the register maintained under section 301 of the companies
Act, 1956. The maximum amount involved was Rs 2299.03 lacs and the
year-end balance of the loan granted to a company was Rs 484.29 lacs
(b) In our opinion, the terms & conditions on which loans have been
granted to the companies listed in the register maintained under
section 301 of the Companies Act 1956, are not prima facie prejudicial
to the interest of the company
(c) The receipt of the principal amount and interest wherever
applicable was regular
(d) There was no overdue amount of loans granted to companies listed in
the register maintained under section 301 of the Companies Act, 1956.
(e) The company has not taken any secured or unsecured loans during the
year from companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956, therefore, the
provisions of clause 4(iii) (e) to (g) of the Companies (Auditor''s
Report) Order,
2003 are not applicable to the company
(iv) In our opinion and according to the information & explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and nature of its business
for the purchase of inventory, fixed assets and for the sale of goods
and services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in nternal controls
(v) (a) According to the information & explanations given to us, we are
of the opinion that the transactions that need to be entered in the
register maintained under section 301 of the Companies Act, 1956 have
been so entered
(b) In our opinion and according to the information & explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of Rupees Five lacs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time
(vi) According to the information and explanations given to us, the
company has not accepted deposits from public during the year,
therefore, the provisions of clause 4(vi) of the Companies (Auditor''s
Report) Order, 2003 are not applicable to the company
(vii) In our opinion the company has an internal audit system
commensurate with the size and nature of its business
(viii) We have broadly reviewed the books of account maintained by the
company pursuant to the rules made by the Central Government for the
maintenance of cost records under section 209(1 )(d) of the Companies
Act,1956, in respect of Company''s products to which the said rules are
made applicable and are of the opinion that, prima facie, the
prescribed accounts and records, have been made and maintained. We
have, however, not made a detailed examination of the records
(ix) (a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education protection fund, employees'' state insurance, wealth
tax, service tax, income tax, sales tax, custom duty, excise duty, cess
and other materia statutory dues applicable to it. According to the
information & explanations given to us, no undisputed amounts of
statutory dues as stated above were in arrears as at 31st March 2014
for a period of more than six months from the date they became payable
(b) According to the information and explanations given to us, there
are no dues of income tax, sales tax, wealth tax,
Name of the Status Nature of Dues Year
Service Tax Disallowance of credit of Service 2005-06
Tax paid on outward freight
Central Excise Act, 1944 Duty on Iron Ore Fines & Coal 2008-09 to
Fines 2009-10
Central Excise Act, 1944 Disallowance of Duty on 2008-09 to
Structural items 2009-10
Central Excise Act,1944 Demand on account of Cenvat 2007-08
credit
Central Excise Act, 1944 Demand of Duty on account of 2007-08 to
Related Party transaction 2008-09
Central Excise Act, 1944 Demand of Duty on account of 2006-07 to
Related Party transaction 2007-08
Central Excise Act, 1944 Demand on account of Cenvat 2010-11
credit on Coal
Central Excise Act, 1944 Demand of Duty on account of 2011-12
Cenvat credit on steel items
Service Tax Demand on account of Suppression 2009-10 to
of value retention of 2010-11
Iron ore fines
Service Tax Demand on account of 2005-06 to
reimbursement of transportation 2006-07
charges & recovery of Incidental
charges
Custom Act,1962 Demand interest & imposition of 2012-13
penalty for import of Bituminous
Coal under the guise of Steam Coal
Income Tax Act, 1956 Income Tax demand in respect of AY.2011-12
disallowance made
Income Tax Act, 1956 Disallowance made in respect of AY.2008-09
erstwhile R. R. Ispat Limited
Income Tax Act, 1956 Penalty in respect of erstwhile AY.2008-09
Hira Industries Limited
Income Tax Act, 1956 Disallowance made in respect of AY.2010-11
erstwhile Hira Industries Limited
C.G. Commercial Tax Act Commercial Tax 2002-03
Central Sales Tax Tax demand during extension of 2007-08
sales tax exemption not allowed
C.G. Commercial Tax Act Tax demand during extension of 2007-08
sales tax exemption not allowed
Name of the Statue Amount Rs
in Crores
Service Tax 18.34 Customs, Excise and Service Tax
Appellate Tribunal, New Delhi
Central Excise Act, 1944 83.32 Customs, Excise and Service Tax
Appellate Tribunal, New Delhi
Central Excise Act, 1944 129.43 Customs, Excise and Service Tax
Appellate Tribunal, New Delhi
Central Excise Act, 1944 11.12 Customs, Excise and Service Tax
Appellate Tribunal, New Delhi
Central Excise Act, 1944 63.81 Customs, Excise and Service Tax
Appellate Tribunal, New Delhi
Central Excise Act, 1944 47.72 Customs, Excise and Service Tax
Appellate Tribunal, New Delhi
Central Excise Act, 1944 58.68 Customs, Excise and Service Tax
Appellate Tribunal, New Delhi
Central Excise Act, 1944 2.19 Customs, Excise and Service Tax
Appellate Tribunal, New Delhi
Service Tax 151.98 Customs, Excise and Service Tax
Appellate Tribunal, New Delhi
Service Tax 107.92 Customs, Excise and Service Tax
Appellate Tribunal, New Delhi
Custom Act,1962 10.00 Customs, Excise and Service Tax
Appellate Tribunal, Bangalore
Income Tax Act, 1956 18.09 Commissioner of Income Tax
(Appeals), Raipur
Income Tax Act, 1956 3.24 Commissioner of Income Tax
(Appeals), Raipur
Income Tax Act, 1956 0.10 Commissioner of Income Tax
(Appeals), Raipur
Income Tax Act, 1956 43.21 Commissioner of Income Tax
(Appeals), Raipur
C.G. Commercial Tax Act 0.89 Deputy Commissioner, (Appl)
Commercial Taxes, Raipur
Central Sales Tax 14.07 Addl.Commissioner (Appl),
Commercial Taxes, Raipur
C.G. Commercial Tax Act 320.31 Addl.Commissioner (Appl),
Commercial Taxes, Raipur
(x) The company does not have any accumulated losses and has not
ncurred cash losses during the financial year covered by our audit and
also 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 the
banks, financial institutions and debenture holders
(xii) In our opinion and according to the information and explanations
given to us, the company has not granted any loans & advances on the
basis of security by way of pledge of shares, debentures and other
securities
(xiii) In our opinion, the company is not a chit fund or a nidhi /
mutua benefit fund / society. Therefore, the provisions of clause
4(xiii) of the Companies (Auditor''s Report) Order, 2003 are not
applicable to the company
(xiv) In our opinion and according to information and explanations
given to us, the company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order,
2003 are not applicable to the company
(xv) In our opinion and according to the information and explanations
given to us, the terms and conditions on which the company has given
corporate guarantees to the bank for loans taken by other company are
not prima facie prejudicial to the interest of the company
(xvi) In our opinion, the term loans have been applied progressively
for the purpose for which the loans were obtained
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we
are of the opinion that, short-term funds have not been used for long
term investment
(xviii) According to the information and explanations given to us the
company has not made any preferential allotment of shares during the
year covered in the register maintained u/s.301 of the Companies
Act,1956, therefore, the provisions of clause 4(xviii) of the Companies
(Auditor''s Report) Order,2003 are not applicable to the company
(xix) According to the information and explanations given to us the
company has not issued any debentures during the year, therefore, the
provisions of clause 4(xix) of the Companies (Auditor''s Report)
Order,2003 are not applicable to the company
(xx) The company has not raised any money by public issue during the
year, therefore, the provisions of clause 4(xx) of the Companies
(Auditor''s Report) Order,2003 are not applicable to the company
(xxi) In our opinion and according to the information and explanations
given to us, no fraud on or by the company has been noticed or reported
during the year
For, OPSinghania & Co.
(ICAI Firm Regn.No.002172C)
Chartered Accountants
per Sanjay Singhania
Partner
Membership No.076961
Raipur, 24th May, 2014
Mar 31, 2013
Report on the fnancial statements
We have audited the accompanying fnancial statements of Godawari Power
& Ispat Limited ("the Company) which comprise the balance sheet as at
31 March 2013, the statement of proft and loss and the cash fow
statement for the year then ended and a summary of signifcant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these fnancial
statements that give a true and fair view of the fnancial position,
fnancial performance and cash fows 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 fnancial 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 fnancial
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 fnancial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the fnancial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the fnancial 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 fnancial 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 fnancial statements.
We believe that the audit evidence we have obtained is suffcient 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 fnancial 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:
(i) in the case of the balance sheet, of the state of affairs of the
Company as at 31 March 2013;
(ii) in the case of the statement of proft and loss, of the proft for
the year ended on that date; and
(iii) in the case of the cash fow statement, of the cash fows 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 specifed 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 Proft 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 Proft and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956; and
e. on the basis of written representations received from the directors
as on 31 March 2013, and taken on record by the Board of Directors,
none of the directors is disqualifed as on 31 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.
(i) (a) The Company has maintained the proper records showing full
particulars including quantitative details and situation of fxed
assets.
(b) As explained to us, the fxed assets have been physically verifed by
the management at reasonable intervals, in phased verifcation
programme, which, in our opinion, is reasonable, looking to the size of
the company and the nature of its business. According to the
information and explanations given to us, no material discrepancies
were noticed on such verifcation.
(c) The company has not disposed off any substantial part of its fxed
assets during the year so as to affect its going concern status.
(ii) (a) As explained to us, inventories have been physically verifed
during the year by the management. In our opinion, the frequency of the
verifcation is reasonable.
(b) The procedures of physical verifcation of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) On the basis of our examination of the inventory records of the
company, we are of the opinion that, the company is maintaining proper
records of inventory. The discrepancies noticed on verifcation between
the physical stocks and the book records were not material and have
been properly dealt with in the books of account.
(iii) (a) The company has granted unsecured loans to three companies
covered in the register maintained under section 301 of the companies
Act, 1956. The maximum amount involved was Rs.5603.00 lacs and the year-
end balance of the loan granted to a company was Rs.2263.12 lacs.
(b) In our opinion, the terms & conditions on which loans have been
granted to the companies listed in the register maintained under
section 301 of the Companies Act 1956, are not prima facie prejudicial
to the interest of the company.
(c) The receipt of the principal amount and interest wherever
applicable was regular.
(d) There was no overdue amount of loans granted to companies listed in
the register maintained under section 301 of the Companies Act, 1956.
(e) The company has taken unsecured loans from three companies covered
in the register maintained under section 301 of the Companies Act, 1956
during the year, maximum amount involved was Rs.4634.47 lacs and the year
end balance of the loan taken from companies was Rs.Nil.
(f) In our opinion, the terms & conditions on which loans have been
taken from the companies listed in the register maintained under
section 301 of the Companies Act 1956, are not prima facie prejudicial
to the interest of the company.
(g) The company was regular in repaying the amount as stipulated.
(iv) In our opinion and according to the information & explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and nature of its business
for the purchase of inventory, fxed assets and for the sale of goods
and services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal controls.
(v) (a) According to the information & explanations given to us, we are
of the opinion that the transactions that need to be entered in the
register maintained under section 301 of the Companies Act, 1956 have
been so entered.
(b) In our opinion and according to the information & explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of Rupees Five lacs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
(vi) According to the information and explanations given to us, the
company has not accepted deposits from public during the year,
therefore, the provisions of clause 4(vi) of the Companies (Auditor''s
Report) Order, 2003 are not applicable to the company.
(vii) In our opinion the company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
company pursuant to the rules made by the Central Government for the
maintenance of cost records under section 209(1)(d) of the Companies
Act,1956, in respect of Company''s products to which the said rules are
made applicable and are of the opinion that, prima facie, the
prescribed accounts and records, have been made and maintained. We
have, however, not made a detailed examination of the records.
(ix) (a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education protection fund, employees'' state insurance, wealth
tax, service tax, income tax, sales tax, custom duty, excise duty, cess
and other material statutory dues applicable to it. According to the
information & explanations given to us, no undisputed amounts of
statutory dues as stated above were in arrears as at 31st March 2013
for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there
are no dues of income tax, sales tax, wealth tax, service tax, custom
duty, excise duty and cess which have not been deposited on account of
any dispute except the following:
Name of the Statue Nature of Dues Year
Service Tax Disallowance of credit of Service 2005-06
Tax paid on outward freight
Central Excise Act,1944 Duty on Iron Ore Fines & Coal 2008-09 to
Fines 2009-10
Central Excise Act,1944 Disallowance of Duty on 2008-09 to
Structural items 2009-10
Central Excise Act,1944 Demand on account of Cenvat 2007-08
credit
Central Excise Act,1944 Demand on account of Cenvat 2008-09
credit
Central Excise Act,1944 Demand on account of Cenvat 2008-09
on Input Services
Central Excise Act,1944 Demand of Duty on account of 2007-08 to
Related Party transaction 2008-09
Central Excise Act,1944 Demand of Duty on account of 2006-07 to
Related Party transaction 2007-08
Service Tax Demand on account of credit on 2009-10 to
Vibrating Steel Spring Screen 2010-11
Central Excise Act,1944 Demand on account of Cenvat 2010-11
credit on Coal
Income Tax Act, 1956 Disallowance made in respect of 2008-09
erstwhile R.R. Ispat Limited
Income Tax Act, 1956 Penalty in respect of erstwhile 2008-09
Hira Industries Limited
Income Tax Act, 1956 Disallowance made in respect of 2010-11
erstwhile Hira Industries Limited
C.G. Commercial Tax Commercial Tax 2002-03
Act
Amount (Rs. Forum where dispute is pending
In lacs)
18.34 Customs, Excise and Service Tax
Appellate Tribunal, New Delhi
83.32 Customs, Excise and Service Tax
Appellate Tribunal, New Delhi
129.43 Customs, Excise and Service Tax
Appellate Tribunal, New Delhi
11.12 Customs, Excise and Service Tax
Appellate Tribunal, New Delhi
5.31 Customs, Excise and Service Tax
Appellate Tribunal, New Delhi
6.39 Customs, Excise and Service Tax
Appellate Tribunal, New Delhi
63.81 Customs, Excise and Service Tax
Appellate Tribunal, New Delhi
47.72 Customs, Excise and Service Tax
Appellate Tribunal, New Delhi
0.46 Customs, Excise and Service Tax
Appellate Tribunal, New Delhi
58.68 Customs, Excise and Service Tax
Appellate Tribunal, New Delhi
3.24 Commissioner of Income Tax
(Appeals),Raipur
0.10 Commissioner of Income Tax
(Appeals),Raipur
43.21 Commissioner of Income Tax
(Appeals),Raipur
1.46 Deputy Commissioner, (Appl)
Commercial Taxes, Raipur
Name of the Statue Nature of Dues Year
Central Sales Tax Demand of Central Sales Tax 2002-03
Central Sales Tax Tax demand during extension of 2007-08
sales tax exemption not allowed
C.G. Commercial Tax Tax demand during extension of 2007-08
Act sales tax exemption not allowed
Amount (Rs. Forum where dispute is pending
In lacs)
23.18 Deputy Commissioner, (Appl)
Commercial Taxes, Raipur
14.07 Addl.Commissioner (Appl),
Commercial Taxes, Raipur
320.31 Addl.Commissioner (Appl),
Commercial Taxes, Raipur
(x) The company does not have any accumulated losses and has not
incurred cash losses during the fnancial year covered by our audit and
also in the immediately preceding fnancial 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 the
banks, fnancial institutions and debenture holders.
(xii) In our opinion and according to the information and explanations
given to us, the company has not granted any loans & advances on the
basis of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion, the company is not a chit fund or a nidhi /
mutual beneft fund / society. Therefore, the provisions of clause
4(xiii) of the Companies (Auditor''s Report) Order, 2003 are not
applicable to the company.
(xiv) In our opinion and according to information and explanations
given to us, the company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order,
2003 are not applicable to the company.
(xv) In our opinion and according to the information and explanations
given to us, the terms and conditions on which the company has given
corporate guarantees to the bank for loans taken by other company are
not prima facie prejudicial to the interest of the company.
(xvi) In our opinion, the term loans have been applied progressively
for the purpose for which the loans were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we are of
the opinion that, short-term funds have not been used for long term
investment.
(xviii) According to the information and explanations given to us the
company has made preferential allotment of shares during the year
covered in the register maintained u/s.301 of the Companies Act,1956
and we are of the opinion that such allotments are not prejudicial to
the interest of the company.
(xix) The company has created securities/charges in respect of secured
debentures issued during the year.
(xx) The company has not raised any money by public issue during the
year, therefore, the provisions of clause 4(xx) of the Companies
(Auditor''s Report) Order,2003 are not applicable to the company .
(xxi) In our opinion and according to the information and explanations
given to us, no fraud on or by the company has been noticed or reported
during the year.
For, OPSinghania & Co.
(Firm Regn.No.002172C)
Chartered Accountants
per O.P.Singhania
Partner
Membership No.051909
Raipur, 28th May,2013
Mar 31, 2012
1. We have audited the attached balance sheet of Godawari Power &
Ispat Limited as at 31st March, 2012, the statement of profit and loss
and also the cash flow statement for the year ended on that date,
annexed thereto. These financial statements are the responsibility of
the Company's management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditors' Report) Order, 2003 (As
Amended) issued by the Central Government of India, in terms of sub
section (4A) of Section 227 of the Companies Act, 1956, we enclose in
the Annexure a statement on the matter specified in paragraphs 4 and 5
of the said order.
4. Further to our comment 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 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;
(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 written representations received from the directors
as on 31st March, 2012, and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March,
2012 from being appointed as a Director in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956.
(vi) In our opinion and to the best of our information and according to
the explanations given to us the said accounts read along with the notes
thereon, give the information required by the Companies Act, 1956 in
the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India:
(a) in the case of the balance sheet, of the state of the affairs of
the Company, as at 31st March, 2012;
(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.
Referred to in paragraph 3 of our report of even date,
(i) (a) The Company has maintained the proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, the fixed assets have been physically verified
by the management at reasonable intervals, in phased verification
programme, which, in our opinion, is reasonable, looking to the size of
the Company and the nature of its business. According to the
information and explanations given to us, no material discrepancies
were noticed on such verification.
(c) The Company has not disposed off any substantial part of its fixed
assets during the year so as to affect its going concern status.
(ii) (a) As explained to us, inventories have been physically verified
during the year by the management. In our opinion, the frequency of the
verification is reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) On the basis of our examination of the inventory records of the
Company, we are of the opinion that, the Company is maintaining proper
records of inventory. The discrepancies noticed on verification between
the physical stocks and the book records were not material and have
been properly dealt with in the books of account.
(iii) (a) The Company has granted unsecured loans to two companies
covered in the register maintained under section 301 of the companies
Act, 1956. The maximum amount involved was Rs. 125.00 lacs and the
year-end balance of the loan granted to a company was Rs. NIL.
(b) In our opinion, the terms & conditions on which loans have been
granted to the companies listed in the register maintained under
section 301 of the Companies Act 1956, are not prima facie prejudicial
to the interest of the Company.
(c) The receipt of the principal amount and interest wherever
applicable was regular.
(d) There was no overdue amount of loans granted to companies listed in
the register maintained under section 301 of the Companies Act, 1956.
(e) The Company has taken unsecured loans from five companies covered
in the register maintained under section 301 of the Companies Act, 1956
during the year, maximum amount involved was Rs. 3767.62 lacs and the
yearend balance of the loan taken from companies was Rs. 534.47 lacs.
(f) In our opinion, the terms & conditions on which loans have been
taken from the companies listed in the register maintained under
section 301 of the Companies Act 1956, are not prima facie prejudicial
to the interest of the Company.
(g) The Company was regular in repaying the amount as stipulated.
(iv) In our opinion and according to the information & explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and nature of its business
for the purchase of inventory, fixed assets and for the sale of goods
and services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal controls.
(v) (a) According to the information & explanations given to us,
we are of the opinion that the transactions that need to be entered in
the register maintained under section 301 of the Companies Act, 1956
have been so entered.
(b) In our opinion and according to the information & explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of Rupees Five lacs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
(vi) In our opinion and according to the information and explanations
given to us, the Company has compiled with the provisions of Section
58A and 58AA of the Companies Act,1956 and are any other relevant
provisions of the Act and the rules framed there under, directives
issued by RBI wherever applicable, with regard to the deposits accepted
during the year.
(vii) In our opinion the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under section 209(i)(d) of the Companies
Act,1956, in respect of Company's products to which they said rules are
made applicable and are of the opinion that, prima facie, the
prescribed accounts and records, have been made and maintained. We
have, however, not made a detailed examination of the records.
(ix) (a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education protection fund, employees' state insurance, wealth
tax, service tax, income tax, sales tax, custom duty, excise duty, cess
and other material statutory dues applicable to it. According to the
information & explanations given to us, no undisputed amounts of
statutory dues as stated above were in arrears as at 31st March, 2012
for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there
are no dues of income tax, sales tax, wealth tax, service tax, custom
duty, excise duty and cess which have not been deposited on account of
any dispute except the following:
Name of the Statute Nature of Dues Year
Disallowance of credit of 2005-06
Service Tax service tax
Paid on onward freight
Service Tax on ECB 2006-07 to
Service Tax Commission 2008-09
Demand on account of 2009-10 &
Service Tax vibrating steel spring screen 2010-11
Duty on Iron Ore Fines & Coal 2008-09 to
Central Excise Act Fines 2009-10
Disallowance of Duty on 2008-09 to
Central Excise Act Structural Items 2009-10
Demand on account of cenvat
Central Excise Act 2007-08
credit
Demand on account of cenvat
Central Excise Act 2008-09
credit
Demand on account of Cenvat
Central Excise Act 2008-09
on Input Services
Disallowance of Cenvat on
Central Excise Act 2008-09
Capital Goods
Demand of duty on account of 2007-08 to
Central Excise Act
Related Party transaction 2008-09
Demand of duty on account of 2006-07 to
Central Excise Act
Related Party transaction 2007-08
Demand on account of CENVAT 2007-08 to
Central Excise Act on input services 2009-10
Demand on account of CENVAT 2007-08 to
Central Excise Act on Welding Electrodes 2010-11
Demand of interest on delay
Central Excise Act 2007-08
payment of differential duty
Demand on account of CENVAT
Central Excise Act 2009-10
on input services
Demand on account of CENVAT 2007-08 &
2008-
Central Excise Act on input short receipt and 09
debit note raised
Disallowance of duty on
Central Excise Act 2010-11
structural items
Demand on account of CENVAT
Central Excise Act 2010-11
on Welding Electrodes
Income Tax Act Income Tax 2008-09
C.G. Commercial
Tax Act Commercial Tax 2002-03
Name of the Statute Amount
(Rs.In lacs) Forum where dispute is pending
Service Tax 18 34 Custom, Excise and Service Tax
Appellate Tribunal, New Delhi.
Service Tax Commissioner (Appeals), Central
Excise,
8.52 Raipur
Service Tax 0.46 Commissioner (Appeals), Central
Excise, Raipur
Central Excise Act 83.32 Custom, Excise and Service Tax
Appellate ' Tribunal, New Delhi.
Custom, Excise and Service Tax
Appellate
Central Excise Act 129.43 Tribunal, New Delhi.
Central Excise Act 11.12 Custom, Excise and Service Tax
Appellate Tribunal, New Delhi.
Central Excise Act Custom, Excise and Service Tax
Appellate
5.31 Tribunal, New Delhi.
Central Excise Act 6 39 Custom, Excise and Service Tax
Appellate ' Tribunal, New Delhi.
Central Excise Act 16 69 Custom, Excise and Service Tax
Appellate ' Tribunal, New Delhi.
Central Excise Act 63 81 Custom, Excise and Service Tax
Appellate ' Tribunal, New Delhi.
Central Excise Act 47.72 Custom, Excise and Service Tax
Appellate ' Tribunal, New Delhi.
Commissioner (Appeals), Central
Excise,
Central Excise Act 1.08 Raipur
Central Excise Act 3 22 Commissioner (Appeals), Central
Excise, Raipur
Commissioner (Appeals), Central
Excise,
Central Excise Act 1.08 Raipur
Central Excise Act 0.17 Commissioner (Appeals), Central
Excise, Raipur
Central Excise Act 0 85 Commissioner (Appeals), Central
Excise, Raipur
Commissioner (Appeals), Central
Excise,
Central Excise Tax 1.84 Raipur
Central Excise Act 2.78 Commissioner (Appeals), Central
Excise, Raipur
Commissioner of Income Tax
Income Tax Act 3.24 (Appeals),Raipur
C.G. Commercial
Tax Act 1.46 Deputy
Commissioner, (Appl) Commercial
Taxes, Raipur
Name of the Statute Nature of Dues Year
Central Sales Tax Demand of Central
Sales Tax 2002-03
Tax demand during
extension Central
Sales Tax of sales
tax exemption not 2007-08
allowed
Tax demand during
extension
C.G. Commercial
Tax Act of sales tax
exemption not 2007- 08
allowed
Name of the Statute Amount Forum where dispute is pending
(Rs. In lacs)
Central Sales Tax Deputy Commissioner, (Appl)
Commercial
23.18 Taxes, Raipur
Central Excise Tax 14.07 Addl. Commissioner (Appl),
Commercial ' Taxes, Raipur
C.G. Commercial
Tax Act 248.85 Addl. Commissioner (Appl),
Commercial Taxes, Raipur
(x) The Company does not have any accumulated losses and has not
incurred cash losses during the financial year covered by our audit and
also 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 the
banks, financial institutions and debenture holders.
(xii) In our opinion and according to the information and explanations
given to us, the Company has not granted any loans & advances on the
basis of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause
4(xiii) of the Companies (Auditor's Report) Order, 2003 are not
applicable to the Company.
(xiv) In our opinion and according to information and explanations
given to us, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor's Report) Order,
2003 are not applicable to the Company.
(xv) In our opinion and according to the information and explanations
given to us, the terms and conditions on which the Company has given
corporate guarantees to the bank for loans taken by other company are
not prima facie prejudicial to the interest of the Company.
(xvi) In our opinion, the term loans have been applied progressively
for the purpose for which the loans were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we are of
the opinion that, short-term funds have not been used for long term
investment.
(xviii) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to any
company, firms or other parties covered in the register maintained
under section 301 of the Act. Therefore, the provisions of clause
4(xviii) of the Companies (Auditor's Report) Order, 2003 are not
applicable to the Company.
(xix) The Company has created securities/charges in respect of secured
debentures issued except debenture application money received during
the year on which securities/charges created in the subsequent
financial year.
(xx) The Company has not raised any money by public issue during the
year, therefore, the provisions of clause 4(xx) of the Companies
(Auditor's Report) Order,2003 are not applicable to the Company .
(xxi) In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year. Therefore, the provisions of clause 4(xxi) of the
Companies (Auditor's Report) Order, 2003 are not applicable to the
Company.
For, O P Singhania & Co.
(Firm Regn.No.002172C)
Chartered Accountants
SANJAY SINGHANIA
Partner
Membership No.076961
Raipur, 22nd May, 2012
Mar 31, 2011
1. We have audited the attached balance sheet of Godawari Power &
Ispat Limited as at 31st March, 2011, the profit and loss account and
also the cash flow statement for the year ended on that date, annexed
thereto. These financial statements are the responsibility of the
company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
3. As required by the Companies (Auditors' Report) Order, 2003 (As
Amended) issued by the Central Government of India, in terms of sub
section (4A) of Section 227 of the Companies Act, 1956, we enclose in
the Annexurea statement on the matter specified in paragraphs 4 and 5
of the said order.
4. Further to our comment 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 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;
(iv) In our opinion, the balance sheet, profit and loss account and
cash flow statement dealt with by this report comply with the
Accounting standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956;
(v) On the basis of written representations received from the directors
as on 31st March 2011, and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March
2011 from being appointed as a Director in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956.
(vi) In our opinion and to the best of our information and according to
the explanations given to us the said accounts read alongwith the notes
thereon, give the information required by the Companies Act, 1956 in
the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India:
(a) in the case of the balance sheet, of the state of the affairs of
the Company, as at 31st March, 2011.
(b) in the case of the profit and loss account, of the profit for the
year ended on that date; and
(c) in the case of the cash flow statement, of the cash flows for the
year ended on that date.
Annexure Re: Godawari Power & Ispa: Limited
Referred to in paragraph 3 of our report of even date,
(i) (a) The Company has maintained the proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, the fixed assets have been physically verified
by the management at reasonable intervals, in phased verification
programme, which, in our opinion, is reasonable, looking to the size of
the company and the nature of its business. According to the
information and explanations given to us, no material discrepancies
were noticed on such verification.
(c) The company has not disposed off any substantial part of its fixed
assets during the year so as to affect its going concern status.
(ii) (a) As explained to us, inventories have been physically verified
during the year by the management. In our opinion, the frequency of the
verification is reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) On the basis of our examination of the inventory records of the
company, we are of the opinion that, the company is maintaining proper
records of inventory. The discrepancies noticed on verification between
the physical stocks and the book records were not material and have
been properly dealt with in the books of account.
(iii) (a) The company has granted unsecured loans to two companies
covered in the register maintained under section 301 of the companies
Act, 1956. The maximum amount involved was Rs. 110.11 lacs and the
year-end balance of the loan granted to a company was Rs. 11.88 lacs.
(b) In our opinion, the terms & conditions on which loans have been
granted to the companies listed in the register maintained under
section 301 of the Companies Act 1956, are not prima facie prejudicial
to the interest of the company.
(c) The receipt of the principal amount and interest wherever
applicable was regular.
(d) There was no overdue amount of loans granted to companies listed in
the register maintained under section 301 of the Companies Act, 1956.
(e) The company has taken unsecured loans from five companies covered
in the register maintained under section 301 of the Companies Act, 1956
during the year, maximum amount involved was Rs. 7047.28 lacs and the
year end balance of the loan taken from companies was Rs. 3617.89 lacs.
(f) In our opinion, the terms & conditions on which loans have been
taken from the companies listed in the register maintained under
section 301 of the Companies Act 1956, are not prima facie prejudicial
to the interest of the company.
(g) The company was regular in repaying the amount as stipulated.
(iv) In our opinion and according to the information & explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and nature of its business
for the purchase of inventory, fixed assets and for the sale of goods
and services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal controls.
(v) (a) According to the information & explanations given to us, we are
of the opinion that the transactions that need to be entered in the
register maintained under section 301 of the Companies Act, 1956 have
been so entered.
(b) In our opinion and according to the information & explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of Rupees Five lacs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
(vi) According to the information and explanations given to us, the
company has not accepted deposits from public during the year
therefore, the provisions of clause 4(vi) of the Companies (Auditor's
Report) Order, 2003 are not applicable to the company.
(vii) In our opinion the company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
company pursuant to the rules made by the Central Government for the
maintenance of cost records under section 209(i)(d) of the Companies
Act,1956, in respect of Company's products to which the said rules are
made applicable and are of the opinion that, prima facie, the
prescribed accounts and records, have been made and maintained. We
have, however, not made a detailed examination of the records.
(ix) (a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education protection fund, employees' state insurance, wealth
tax, service tax, income tax, sales tax, custom duty, excise duty, cess
and other material statutory dues applicable to it. According to the
information & explanations given to us, no undisputed amounts of
statutory dues as stated above were in arrears as at 31 st March 2011
for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there
are no dues of income tax, sales tax, wealth tax, service tax, custom
duty, excise duty and cess which have not been deposited on account of
any dispute except the following:
Name of the Amount Forum where
dispute is
Nature or Dues Year
(Rs. In
lacs) pending
Statue
service Tax Disallowance of
credit of 2005-06 18.34 Custom, Excise
and Service Tax
service tax Paid
on onward Appellate
Tribunal, New
Delhi.
freight
Service Tax Service Tax -
Demand on 2004-05 to 49.93 Custom, Excise
and Service Tax
GTOetc. 2006-07 Appellate
Tribunal, New
Delhi.
Central Excise
Act Duty on Iron
Ore Fines & 2008-09 to 83.32 Custom, Excise
and Service Tax
Coal Fines 2009-10 Appellate
Tribunal,
New Delhi.
Central Excise
Act Disallowance
of Duty on 2008-09 to 142.43 Custom, Excise
and Service Tax
Structural Items 2009-10 Appellate
Tribunal,
New Delhi.
Central Excise
Act Demand on account
of 2007-08 11.12 Custom, Excise
and Service Tax
cenvat credit Appellate
Tribunal,
New Delhi.
Central Excise
Act Demand on account
of 2008-09 7.59 Custom, Excise
and Service Tax
cenvat credit Appellate
Tribunal,
New Delhi.
Central Excise
Act Demand on account
of 2008-09 9.13 Custom, Excise
and Service Tax
Cenvat on Input
Services Appellate
Tribunal,
New Delhi.
Central Excise
Act Disallowance of
Cenvat on 2008-09 16.69 Custom, Excise
and Service Tax
Capital Goods Appellate
Tribunal,
New Delhi.
Central Excise
Act Demand of duty
on account 2007-08 to 63.81 Custom, Excise
and Service Tax
of Related
Party
transaction 2008-09 Appellate
Tribunal,
New Delhi.
Central Excise
Act Demand of duty
on account 2006-07 to 47.72 Custom, Excise
and Service Tax
of Related Party
transaction 2007-08 Appellate
Tribunal,
New Delhi.
Income Tax Act Income Tax A.Y.
2007-08 4.01 Commissioner
of Income Tax
(Appeals),Raipur
Income Tax Act Income Tax A.Y.
2008-09 25.25 Commissioner
of Income Tax
(Appeals),
Raipur
C G. Commercial Commercial Tax 2002-03 1.46 Deputy
Commissioner,
(Appl)
Tax Act Commercial
Taxes, Raipur
Central Sales
Tax Demand of Central
Sales Tax 2002-03 23.18 Deputy
Commissioner,
(Appl)
Commercial
Taxes, Raipur
(x) The company does no: have any accumulated losses and has not
incurred cash losses during the financial year covered by our audi: and
also 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 the
banks.
(xii) In our opinion and according to the information and explanations
given to us, the company has not granted any loans & advances on the
basis of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion, the company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause
4(xiii) of the Companies (Auditor's Report) Order, 2003 are not
applicable to the company.
(xiv) In our opinion and according to information and explanations
given to us, the company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor's Report) Order,
2003 are not applicable to the company.
(xv) In our opinion and according to the information and explanations
given to us, the terms and conditions on which the company has given
corporate guarantees to the bank for loans taken by other company are
not prima facie prejudicial to the interest of the company.
(xvi) In our opinion, the term loans have been applied progressively
for the purpose for which the loans were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we are of
the opinion that, short-term funds have not been used for long term
investment.
(xvi ii) According to the information and explanations given to us, the
company has not made any preferential allotment of shares to any
company, firms or other parties covered in the register maintained
under section 301 of the Act. Therefore, the provisions of clause
4(xviii) of the Companies (Auditor's Report) Order, 2003 are not
applicable to the company.
(xix) The company has created securities/charges in respect of secured
debentures issued.
(xx) The company has not raised any money by public issue during the
year, therefore, the provisions of clause 4(xx) of the Companies
(Auditor's Report) Order,2003 are not applicable to the company.
(xxi) In our opinion and according to the information and explanations
given to us, no fraud on or by the company has been noticed or reported
during the year. Therefore, the provisions of clause 4(xxi) of the
Companies (Auditor's Report) Order, 2003 are not applicable to the
company.
For OPSinghania & Co.
(Firm Regn.No.002172C)
Chartered Accountants
O.P.Singhania
Partner
Raipur, 22nd May,2011 Membership No.:051909
Mar 31, 2010
1. We have audited the attached balance sheet of Godawari Power &
Ispat Limited as at 31st March, 2010, the profit and loss account and
also the cash flow statement for the year ended on that date, annexed
thereto. These financial statements are the responsibility of the
companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 (As
Amended) issued by the Central Government of India, in terms of
subsection (4A) of Section 227 of the Companies Act, 1956, we enclose
in theAnnexurea statement on the matter specified in paragraphs 4 and 5
of the said order.
4. Further to our comment 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 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;
(iv) In our opinion, the balance sheet, profit and loss account and
cash flow statement dealt with by this report comply with the
Accounting standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956;
(v) On the basis of written representations received from the directors
as on 31st March 2010, and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March
2010 from being appointed as a Director in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956.
(vi) In our opinion and to the best of our information and according to
the explanations given to us the said accounts read alongwith the notes
thereon, give the information required by the Companies Act, 1956 in
the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India:
(a) in the case of the balance sheet, of the state of the affairs of
the Company, as at 31st March, 2010.
(b) in the case of the profit and loss account, of the profit for the
year ended on that date; and
(c) in the case of the cash flow statement, of the cash flows for the
year ended on that date.
ANNEXURE Re: Godawari Power & Ispat Limited Referred to in paragraph
3 of our report of even date, (i) (a) The Company has maintained the
proper records showing full particulars including quantitative details
and situation of fixed assets.
(b) As explained to us, the fixed assets have been physically verified
by the management at reasonable intervals, in phased verification
programme, which, in our opinion, is reasonable, looking to the size of
the company and the nature of its business. According to the
information and explanations given to us, no material discrepancies
were noticed on such verification.
(c) The company has not disposed off any substantial part of its fixed
assets during the year so as to affect its going concern status.
(ii) (a) As explained to us, inventories have been physically verified
during the year by the management. In our opinion, the frequency of the
verification is reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) On the basis of our examination of the inventory records of the
company, we are of the opinion that, the company is maintaining proper
records of inventory. The discrepancies noticed on verification between
the physical stocks and the book records were not material and have
been properly dealt with in the books of account.
(iii) (a) The company has not granted any secured or unsecured loans to
companies, firms or other parties covered in the register maintained
under section 301 of the companies Act, 1956. Therefore, the provisions
of clause 4(iii) (a) to (d) of the Companies (Auditors Report) Order,
2003 are not applicable to the company.
(e) The company has taken unsecured loans from a company covered in the
register maintained under section 301 of the Companies Act, 1956 during
the year, maximum amount involved was Rs.1000.00 lacs and the year end
balance of the loan taken from such party was NIL.
(f) In our opinion, the terms & conditions on which loans have been
taken from a company listed in the register maintained under section
301 of the Companies Act 1956, are not prima facie prejudicial to the
interest of the company.
(g) The company was regular in repaying the amount as stipulated.
(iv) In our opinion and according to the information & explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and nature of its business
for the purchase of inventory, fixed assets and for the saleof goods
and services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal controls.
(v) (a) According to the information & explanations given to us, we are
of the opinion that the transactions that need to be entered in the
register maintained under section 301 of the Companies Act, 1956 have
been so entered. (b) In our opinion and according to the information &
explanations given to us, the transactions made in pursuance of
contracts or arrangements entered in the register maintained under
section 301 of the Companies Act, 1956 and exceeding the value of
Rupees Five lacs in respect of any party during the year have been made
at prices which are reasonable having regard to prevailing market
prices at the relevant time.
(vi) According to the information and explanations given to us, the
company has not accepted deposits from public during the year
therefore, the provisions of clause 4(vi) of the Companies (Auditors
Report) Order, 2003 are not applicable to the company.
(vii) In our opinion the company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
company pursuant to the rules made by the Central Government for the
maintenance of cost records under section 209(i)(d) of the Companies
Act, 1956, in respect of Companys products to which the said rules are
made applicable and are of the opinion that, prima facie, the
prescribed accounts and records, have been made and maintained. We
have, however, not made a detailed examination of the records.
(ix) (a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education protection fund, employees state insurance, wealth
tax, service tax, income tax, sales tax, custom duty, excise duty, cess
and other material statutory dues applicable to it. According to the
information & explanations given to us, no undisputed amounts of
statutory dues as stated above were in arrears as at 31 st March 2010
for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there
are no dues of income tax, sales tax, wealth tax, service tax, custom
duty, excise duty and cess which have not been deposited on account of
any dispute except the following:
Name of the Nature of Dues Year
Statue
Service Tax Disallowance of credit of Service Tax 2005
paid on onward freight and credit taken
on the strength of TR6 Challan
Central Sales
Tax Direct Export not considered and 2005-06
imposed CST
Central Excise
Act Disallowance of Cenvat Credit on Input Oct,2004 to
July, 2008
Name of the Amount Forum where dispute is
Statue
(Rs. in lacs) pending
Service Tax 20.74 Custom, Excise and Service Tax
Appellate Tribunal, New Delhi.
Central Sales
Tax 3.24 Addl. Commissioner of
Commercial Tax (Appeal), Raipur
Central Excise
Act 495.44 Custom, Excise and Service Tax
Appellate Tribunal, New Delhi.
(x) The company does not have any accumulated losses and has not
incurred cash losses during the financial year covered by
our audit and also 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 the
banks.
(xii) In our opinion and according to the information and explanations
given to us, the company has not granted any loans & advances on the
basis of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion, the company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause
4(xiii) of the Companies (Auditors Report) Order, 2003 are not
applicable to the company.
(xiv) In our opinion and according to information and explanations
given to us, the company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors
Report) Order, 2003 are not applicable to the company.
(xv) In our opinion and according to the information and explanations
given to us, the terms and conditions on which the company has given
corporate guarantees to the bank for loans taken by other company are
not prima facie prejudicial to the interest of the company.
(xvi) In our opinion, the term loans have been applied progressively
for the purpose for which the loans were obtained.
(xvii) According to the information and explanations given to us and
on an overall examination of the balance sheet of the company,
we are of the opinion that, short-term funds have not been used for
long term investment.
(xviii) According to the information and explanations given to us,
the company has not made any preferential allotment of shares to any
company, firms or other parties covered in the register maintained
under section 301 of the Act. Therefore, the provisions of clause 4 of
the Companies (Auditors Report) Order, 2003 are not applicable to
the company.
(xix) The company has not issued any debentures during the year.
Therefore, the provisions of clause 4(xix) of the Companies
(Auditors Report) Order, 2003 are not applicable to the company.
(xx) The company has not raised any money by public issue during the
year, therefore, the provisions of clause 4(xx) of the Companies
(Auditors Report) Order,2003 are not applicable to the company .
(xxi) In our opinion and according to the information and explanations
given to us, no fraud on or by the company has been noticed or reported
during the year. Therefore, the provisions of clause 4(xxi) of the
Companies (Auditors Report) Order, 2003 are not applicable to the
company.
For, OP Singhania & Co.
(Firm Registration No.002172C)
Chartered Accountants
O.P.SINGHANIA
Partner
Membership No.: 51909
Mumbai, 30th May,2010