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Auditor Report of India Steel Works Ltd.

Mar 31, 2021

INDIA STEEL WORKS LIMITED

Report on the Audit of the Standalone Ind AS Financial Statements Opinion

We have audited the standalone Ind AS Financial Statements of INDIA STEEL WORKS LIMITED which comprise the Balance Sheet as of March 31,2021, the Statement of Profit & Loss including Statement of Other Comprehensive Income, Cash Flow Statement and Statement of Changes in Equity for the year then ended and notes to the standalone Ind AS financial statements, including a summary of significant accounting policies and other explanatory information.

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 Companies Act, 2013 (“Act”) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2021, and its LOSS, other comprehensive expenses, changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the 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 together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act, 2013 and the Rules there under, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. 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.

Emphasis of the Matter

a. In absence of information of investee company, we are unable to determine the fair value of the investments as on reporting date. Hence the same are carried at cost and no provision for diminution, if any in value of such investments in made.

b. No effect is given in respect of settlement deed with the creditor resulting into possible reduction in liability to the extent of Rs.77.04 crores, after taking credit of Rs.11.83 crores on the basis of the payment made before the review of the said financial results.

c. In the absence of uncertainties of making profit in immediate future the company has decided not to create Asset/ Liability on account of Deferred Tax.

d. Inventories have been bifurcated into current and non-current assets amounting to Rs.33.91 crores and Rs.202.77 crores respectively depending on the expected realization/ consumption of the same.

e. The impairment in value of non-moving inventories amounting to Rs.22.48 crores is derived based on the physical verification and technical evaluation done by an independent valuer.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Going Concern

Our audit procedures included

As of 31 March 2021, the Company’s current liabilities exceed its current assets. Also, company is continuously incurring losses. The directors of the Company have formed a judgement that the going concern basis is appropriate in preparing the financial statements.

Going through the business planning process and assessing the design, implementation, and operating effectiveness of management’s key internal controls over the assessment of going concern, including the preparation of cash flow forecasts.

As of 31 March 2021, the Company’s current liabilities exceed its current assets. Also, company is continuously incurring

Going through the business planning process and assessing the design, implementation, and operating effectiveness of

Going Concern

Our audit procedures included

losses. The directors of the Company have formed a judgement that the going concern basis is appropriate in preparing the financial statements.

management’s key internal controls over the assessment of going concern, including the preparation of cash flow forecasts.

The directors of the Company made their assessment of going concern by preparing a cash flow forecast in which some key; assumptions were applied. These key assumptions included forecasts of sales volumes, average selling prices, raw material costs and the availability of banking and other financing facilities.

Evaluating the key assumptions in the cash flow forecasts (including future revenue, gross profit, operating expenses and capital expenditure) with reference to historical production information, current performance, internal investment and production plans, and market and other external available information,

We identified going concern as a key audit matter because a significant degree of management judgement is involved in making this assessment and in forecasting the future cash flows of the Company which are inherently uncertain and because the management judgement and _ inherently uncertainties and because the management judgement and _ inherent uncertainties could have significant impact on the basis of preparation of the financial statements and could be subject to management bias.

Considering the accuracy and reliability of cash flow forecasts made by management in prior years by comparing them with the current year’s results.

We also checked if any waivers were obtained from the financial institutions from which borrowings are made.

Based on our procedures we noted that the key assumptions used in the forecasts were within a reasonable range of our expectations.

Revenue Recognition

Our audit procedures to assess the recognition of revenue included the following:

The Company’s revenue is derived from the sale of steel products.

The Company recognizes revenue when the control is transferred to the customer. The terms set out in the Company’s sales contracts relating to goods acceptance by customers are varied. Accordingly, the terms and conditions of sales contracts may affect the timing of recognition of sales to customers as each sales contract could have different terms relating to customer acceptance of the goods sold.

Evaluating the design, implementation, and operating effectiveness of key internal controls over the existence, accuracy and timing of revenue recognition.

Performed substantive test of details over revenue recognized throughout the period by selecting a sample of transactions to ensure that the samples selected meet the revenue recognition criteria and are appropriately recorded;

We identified the recognition of revenue as a key audit matter because revenue is one of the key performance indicators of the Company and is, therefore, subject to an inherent risk of misstatement to meet targets or expectations and because errors in the recognition of revenue could have a material impact on the Company.

Tested sample transactions around the period end to end sure they were recorded in the correct period; and tested journal entries posted to revenue accounts focusing on unusual or irregular items, if any.

Contingent Liabilities (Note No. 35) Evaluation of uncertain tax positions

Our audit procedures include the following substantive procedures:

The Company operates in multiple jurisdictions and is subject to periodic challenges by local tax authorities on account of tax matters during the normal course of business including transfer pricing and indirect tax matters. These involve significant management judgment to determine the possible outcome of the uncertain tax positions, consequently having an impact on related accounting and disclosures in the

Obtained understanding of key uncertain tax positions and,

We -

• Read and analyzed select key correspondences external legal opinions / consultations by management for key uncertain tax positions.

• Discussed with appropriate senior management and

Going Concern

Our audit procedures included

standalone financial statements. Refer Note 35 to the standalone financial statements.

evaluated management’ s underlying key assumptions in estimating the tax provisions and • Assessed management’ s estimate of the possible outcome of the disputed cases.

Other Information

The Company’s Board of Directors is responsible for the other information. The other information comprises the Board’s report including annexure to Board’s report but does not include the Standalone Ind AS Financial Statements and our auditor’s report thereon.

Our opinion on the Standalone Ind AS financial statements does not cover-the other information and we do note express any form of assurance conclusion thereon.

In connection with our audit of the Standalone Ind AS 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 Ind AS financial statements, or our knowledge obtained in the 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.

Management’s Responsibility for the Standalone Ind AS Financial Statements

These Standalone Financial Results have been prepared on the basis of the annual Standalone Financial Statements. The Company''s Board of Directors are responsible for the preparation and presentation of these Standalone Financial Results that give a true and fair view of the net profit and other comprehensive income and other financial information of the Company and the balance sheet and the statement of cash flows in accordance with the recognition and measurement principles laid down in the Indian Accounting Standards prescribed under Section 133 of the Act read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 and Regulation 52 of the Listing Regulations. The Board of Directors of the Company are responsible for 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 the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring 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, which have been used for the purpose of preparation of the Standalone Financial Results by the Directors of the Company, as aforesaid.

In preparing the Standalone Financial Results, the Board of Directors of the Company are responsible for assessing the ability of the Company to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors of the Company are responsible for overseeing the financial reporting process of the Company.

Auditor’s Responsibilities for the Audit of the Standalone Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the Standalone Financial Results 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 Results.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

1. Identify and assess the risks of material misstatement of the Standalone Financial Results, 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.

2. Obtain an understanding of internal 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 with reference to Standalone Financial Statements in place and the operating effectiveness of such controls.

3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.

4. Conclude on the appropriateness of the Board of Directors’ 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 Results 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.

5. Evaluate the overall presentation, structure and content of the Standalone Financial Results including the disclosures, and whether the Standalone Financial Results represent the underlying transactions and events in a manner that achieves fair presentation.

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.

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 Companies Act, 2013, we give in the ‘Annexure -A’ a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

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 & Loss including the Statement of Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this report are in agreement with the books of account.

d) In our opinion and to the best of our information and according to the explanation given to us, the aforesaid standalone Ind AS financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as on year ended March 31,2021

e) On the basis of the written representations received from the directors as on 31st March, 2021 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2021from 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 with reference to these standalone Ind AS financial statements and the operating effectiveness of such controls, refer to our separate Report in “Annexure B” to this report:

g) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11of 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 Ind AS financial statements Refer Note 35 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 to the Investor Education and Protection Fund by the Company.

3. In our opinion, the managerial remuneration for the year ended 31 March 2021 has been paid / provided by the Company to its directors in accordance with the provisions of section 197 read with Schedule V to the Act; The Ministry of Corporate Affairs has not prescribed other details under section 197 (16) which are required to be commented by us.

For Laxmikant Kabra & Co LLP Chartered Accountants Firm Reg. No.: 117183W/ W100736

Place: Thane CA Laxmikant Kabra

Date: 20th August 2021 Partner

Membership No.: 101839 UDIN: 21101839AAAAGQ5105


Mar 31, 2018

1. Report on the standalone Financial Statements

We have audited the accompanying standalone financial statements of INDIA STEEL WORKS LIMITED ("the Company"), which comprise the Balance Sheet as at 31 March 2018, the Statement of Profit and Loss (Other Comprehensive Income) the Cash Flow statement and the statement of change in equity for the year then ended, and a summary of the significant accounting policies and other explanatory information in which is incorporated the unaudited financial statement of overseas branch.

2. 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 INDAS 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 accounting principles generally accepted in India, including the Accounting Standards specified (INDAS) specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act; for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of standalone INDAS the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

3. Auditor''s Responsibility

Our responsibility is to express an opinion on these standalone financial statements based on our audit.

We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone INDAS financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial controls relevant to the Company''s preparation of the standalone INDAS 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 INDAS financial statements.

4. Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone INDAS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2018, its PROFIT including other comprehensive income, changes in equity and its cash flows for the year ended on that date.

5. Emphasis of Matters

The unaudited financial statement of overseas branch included in the financial statement, which constitute the total current assets of Rs. 253,306,897/- and net assets of Rs. 3,074,497/- as at 31st March 2018, total revenue of Rs. 2,750,604,192/-, net Loss of Rs. 18,006,537/- and net cash flow amounting to Rs. 932,280/- for the period ended on that date, as considered in the financial statement.

6. 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 exercise of powers conferred by sub-section (11) of Section 143 of the Act, we give in the "Annexure A" a statement on the on the matters specified in para 3 and 4 of the said 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 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 it appears from our examination of those books;

c. The report on the unaudited account of overseas branch U/s 143(8) of the Act has been properly dealt by us in preparing this report. Our opinion on the financial statements is not modified in respect of unaudited report.

d. The Balance Sheet, the Statement of Profit and Loss, statement of change in equity and the Cash Flow Statement dealt with by this report are in agreement with the books of account;

e. in our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;

f. on the basis of the written representations received from the directors as at 31 March 2018 and taken on record by the Board of Directors, none of the directors is disqualified as at 31 March 2018 from being appointed as a director in terms of Section 164(2) of the Act;

g. 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"

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, 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 litigation on its financial position in its standalone financial statement Refer Note No. 33A to the financial statement.

ii. the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses; and

iii. there are no amounts which are required to be transferred to the Investor Education and Protection Fund by the Company.

Annexure A to the Independent Auditors Report

ANNEXURE A REFFERRED TO IN INDEPENDENT AUDITORS'' REPORT TO THE MEMBER OF THE COMPANY ON THE FINANCIAL STATEMENT FOR THE PERIOD ENDED 31 MARCH,2018

We Report That -

1. a. The Company has maintained proper records, showing full particulars including quantitative details and situation of fixed asset.

b. As explained to us the Company has a phased program for physical verification of the fixed asset of the company to cover all locations. In our opinion, the frequency of verification is reasonable, considering the size of the Company. No material discrepancies were noticed on such verification carried on during the year, as compared with the available records.

c. According to the information and explanation given to us and on the basis of our examination of the records of the Company, the title deeds of immovable''s and movable properties are held in the name of the company except certain motor vehicles having carrying value of Rs. 11 lakhs as at 31/03/2018, is held in the name of directors of company''s behalf.

2. The inventory have been physically verified by the management, except those lying with third parties at reasonable intervals during the year. No material discrepancies were noticed on physical verification of inventories as compared to book records.

3. According to the information and explanation given to us, the Company''s has not granted any loans secured or unsecured during the period to companies firms or other parties covered in the register maintained under section 189 of the companies Act 2013. Accordingly the provision of clause 3(iii) Of the order are not applicable to the company.

4. In our opinion and according to the information and explanation given to us, the company has complied the provisions of section 185 and 186 of the Companies Act 2013 to the extend applicable with respect to the loans & investment made.

5. The company has not accepted any deposit from the public in accordance with the provisions of section 73 to76 of the Act or any other relevant provisions of the Act and rules framed there under.

6. According to the information and explanation given to us, cost records were maintain by the company pursuant to the order of the Central Government under Section 148(1) of the Act.

7. a. According to and on the basis of our examination of the records the company is generally regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income Tax, Sales Tax, Custom Duty, Cess, Excise Duty, Service Tax, Value added tax, and other material statutory dues during the year with the appropriate authorities. According to the records of the company and information and explanations given to us there were no arrears of outstanding statutory dues as at 31st March 2018 for a period of more than six months from the date they became payable.

b. According to the records of the Company and information and explanations given to us the following are the particulars of disputed amounts payable in respect of Sales tax and Central Sales Tax and other statutory dues as at the last day of the period ending 31st March, 2018 -

Name of Status

Nature of dues

Amount (In Lakhs)

Period to which the amount relates

Forum where the dispute is pending

Sales Tax Act

Sales Tax

11.24

F.Y.-2002/2003

Sales Tax Officer

Central Excise Act

Excise

53.53

F.Y.-2012/2013

DGCI

Central Excise Act

Excise

406.30

F.Y.-2012/2013

FTWL

Central Excise Act

Excise

37.99

F.Y.-2005/2006

Comm. of Cen Excise

Central Excise Act

Excise

9.64

F.Y.-2012/2013

Addl. Com of Cen. Excise

8. Based on our audit procedures and on the basis of information and explanations given by the management, we are of the opinion that the Company has not defaulted in the repayment of dues to banks and governments. The company did not have any outstanding dues to debenture holders during the year.

9. The company has not raised any money by way of public issue or further public offer during the year or in the recent past. Based on the information and explanations given to us by the management.

10. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of fraud on or by the Company, its officers or employees, noticed or reported during the period, nor have been informed of such case by the management.

11. According to the information and explanation given to us and based on our examination of the books and records of the Company, we are the opinion that the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with schedule V to the Company Act.

12. In our opinion, the company is not a Nidhi Companies, Therefore, provision of clause 3(xii) of the Order are not applicable to the Company.

13. According to the information and explanation given to us and based on our examination of the records, all the transactions with related parties are in compliance with section 177 and 188 of the Companies Act, 2013 and all the details have been disclosed in the financial statement as per Accounting Standard in Note No. 41 to the Financial Statement.

14. According to the information and explanation given to us and based on our examination of the records, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debenture during the year under review.

15. According to the information and explanation given to us and based on our examination of the records of the Company has not entered into any non-cash transactions prescribed U/s 192 of the Act the year with directors or persons connected with them during the year.

16. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.

Annexure - B to the Auditors Report

ANNEXURE TO THE INDEPENDENT AUDITOR''S REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTS OF INDIA STEEL WORKS LIMITED

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)

To the Members of India Steel Works Limited

We have audited the internal financial controls over financial reporting of India Steel Works Limited ("the Company") as of March 31, 2018, in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

Management''s Responsibility for Internal Financial Controls

The 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 the 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.

Auditor''s 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 as specified 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 judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the internal financial controls system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 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 and on behalf of –

Thanawala & Company

Chartered Accountants

Firm Reg. No. 110948W

[ CA V.K. Thanawala ]

Place: Mumbai Proprietor

Date : 28th May 2018 Membership No. 15632


Mar 31, 2017

1. Report on the standalone Financial Statements

We have audited the accompanying financial statements of INDIA STEEL WORKS LIMITED ("the Company"), which comprise the Balance Sheet as at 31 March 2017, the Statement of Profit and Loss and Cash Flow statement, for the year then ended, and a summary of the significant accounting policies and other explanatory information in which is incorporated the unaudited financial statement of overseas branch.

2. 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 flow 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 (as amended). This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act; safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

3. Auditor''s Responsibility

Our responsibility is to express an opinion on these standalone financial statements based on our audit.

We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial controls relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances.

An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.

4. Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2017, its profit and its cash flows for the year ended on that date.

5. Other matters

The unaudited financial statement of branch included in the financial statement, which constitute the total current assets of Rs.2,61,23,488/- and net assets of Rs.71,32,246/- as at 31st March 2017, total revenue of Rs.2,98,87,47,983/, net profit of Rs.7,42,323/- and net cash flow amounting to Rs.25,01,739/- for the period ended on that date, as considered in the financial statement.

6. 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 sub-section (11) of Section 143 of the Act, we give in the "Annexure A" a statement on the on the matters specified in para 3 and 4 of the said 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 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 it appears from our examination of those books;

c. The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this report are in agreement with the books of account;

d. in our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;

e. on the basis of the written representations received from the directors as at 31 March 2017 and taken on record by the Board of Directors, none of the directors is disqualified as at 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"

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 litigation on its financial position in its financial statement Refer Note 29(ii) to the financial statement.

ii. the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses; and

iii. there were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

iv. The company has disclosed in the financial statements as to holding as well as dealings in Specified Bank Notes during the period from 08 November 2016 to 30 December 2016 and these are in accordance with the books of account maintained by the company. (Refer Note No 32 to the financial statement.)

ANNEXURE A REFFERRED TO IN INDEPENDENT AUDITORS'' REPORT TO THE MEMBER OF THE COMPANY ON THE FINANCIAL STATEMENT FOR THE PERIOD ENDED 31 MARCH,2017,

We Report That -

1. a. The Company has maintained proper records, showing full particulars including quantitative details and situation of fixed asset.

b. As explained to us the Company has a phased program for physical verification of the fixed asset of the company to cover all locations. In our opinion, the frequency of verification is reasonable, considering the size of the Company. No material discrepancies were noticed on such verification carried on during the year, as compared with the available records.

c. According to the information and explanation given to us and on the basis of our examination of the records of the Company the title deeds of immovable properties are held in the name of the company.

2. The inventory have been physically verified by the management, except those lying with third parties at reasonable intervals during the year. No material discrepancies were noticed on physical verification of inventories as compared to book records.

3. According to the information and explanation given to us, the Company''s has not granted any loans secured or unsecured during the period to companies firms or other parties covered in the register maintained under section 189 of the companies Act 2013. Accordingly the provision of clause 3(iii) Of the order are not applicable to the company.

4. In our opinion and according to the information and explanation given to us, the company has complied the provisions of section 185 and 186 of the Companies Act 2013 to the extend applicable with respect to the loans & investment made.

5. The company has not accepted any deposit from the public in accordance with the provisions of section 73 to76 of the Act or any other relevant provisions of the Act and rules framed there under.

6. We have broadly reviewed the cost records maintained by the company pursuant to the Order of the Central Government under Section 148(1) of the Act and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained, We are, however, not required to make a detailed examination of the records with a view to determine whether they are accurate or complete.

7. a. According to and on the basis of our examination of the records, the company is generally regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income Tax, Sales Tax, Custom Duty, Cess, Excise Duty, Service Tax, Value added tax, and other material statutory dues during the year with the appropriate authorities. According to the records of the company and information and explanations given to us there were no arrears of outstanding statutory dues as at 31st March 2017 for a period of more than six months from the date they became payable.

b. According to the records of the Company and information and explanations given to us the following are the particulars of disputed amounts payable in respect of Sales tax and Central Sales Tax and other statutory dues as at the last day of the period ending 31st March, 2017 -

Name of Status

Nature of dues

Amount (In Lakhs)

Period to which the amount relates

Forum where the dispute is pending

Sales Tax Act

Sales Tax

11.24

F.Y.- 2002 / 2003

Sales Tax Officer

Central Excise Act

Excise

53.53

F.Y.-2012 / 2013

DGCI

Central Excise Act

Excise

406.30

F.Y.-2012 / 2013

FTWL

Central Excise Act

Excise

37.99

F.Y.-2005 / 2006

Comm. of Central Excise

Central Excise Act

Excise

9.64

F.Y.-2012 / 2013

Addl. Com of Central Excise

8. Based on our audit procedures and on the basis of information and explanations given by the management, we are of the opinion that the Company has not defaulted in the repayment of dues to banks and governments. The company did not have any outstanding dues to debenture holders during the year.

9. The company has not raised any money by way of public issue or further public offer during the year or in the recent past. Based on the information and explanations given to us by the management.

10. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of fraud on or by the Company, its officers or employees, noticed or reported during the period, nor have been informed of such case by the management.

11. According to the information and explanation given to us and based on our examination of the books and records of the Company, we are the opinion that the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with schedule V to the Company Act.

12. In our opinion, the company is not a Nidhi Companies, Therefore, provision of clause 3(xii) of the Order are not applicable to the Company.

13. According to the information and explanation given to us and based on our examination of the records, all the transactions with related parties are in compliance with section 177 and 188 of the Companies Act, 2013 and all the details have been disclosed in the financial statement as per Accounting Standard in Note No -30 to the Financial Statement.

14. According to the information and explanation given to us and based on our examination of the records, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debenture during the year under review.

15. According to the information and explanation given to us and based on our examination of the records of the Company has not entered into any non-cash transactions prescribed U/s 192 of the Act the year with directors or persons connected with them during the year.

16. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.

For and on behalf of –

Thanawala & Company

Chartered Accountants

Firm Reg. No. 110948W

[V.K. Thanawala]

Place: Mumbai Proprietor

Date : 30th May 2017 Membership No. 15632


Mar 31, 2016

INDEPENDENT AUDITOR’S REPORT

Independent Auditor’s Report

To the Members of INDIA STEEL WORKS LIMITED

1. Report on the Financial Statements

We have audited the a accompanying financial statements of INDIA STEEL WORKS LIMITED ("the Company"), which comprise the Balance Sheet as at 31, March 2016 the Statement of Profit and Loss, the Cash Flow statement for the period then ended and a summary of the significant accounting policies and other explanatory information.

2. Management’s Responsibility for the Financial Statements

The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation and presentation of these financial statements, that give a true and fair view of the financial position, financial performance and cash flow 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 (as amended). This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act; safeguarding the assets of the Company; 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.

3. Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit.

We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial controls relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.

4. Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March 2016 and its profit for the year ended on that date.

5. 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 sub-section (11) of Section 143 of the Act, we give in the Annexure A attached here to our comments, on the matters specified in para 3 and 4 of the order,

2. As required by sub Section 3 of section 143 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 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 it appears from our examination of those books;

c. The Balance Sheet, the Statement of Profit and Loss and the Cash Flow statement dealt with by this report are in agreement with the books of account;

d. in our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;

e. on the basis of the written representations received from the directors as at 31 March 2016 and taken on record by the Board of Directors, none of the directors is disqualified as at 31 March 2016 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 the financial statement -refer Note No 32 to the financial statement;

ii. the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses; and

iii. there were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

THE ANNEXURE A REFEREED TO IN INDEPENDENT AUDITORS’ REPORT TO THE MEMBER OF THE COMPANY ON THE FINANCIAL STATEMENT FOR THE PERIOD ENDED 31 MARCH,2016, WE REPORT THAT:

1. a. The Company has maintained proper records, showing full particulars including quantitative details and situation of fixed asset.

b. As explained to us the Company has a phased program for physical verification of the fixed asset of the company to cover all locations. In our opinion, the frequency of verification is reasonable, considering the size of the Company. No material discrepancies were noticed on such verification carried on during the year, as compared with the available records.

c. According to the information and explanation given to us and on the basis of our examination of the records of the Company the title deeds of immovable properties are held in the name of the company.

2. The inventory of finished goods, raw materials, components, stores and spare parts except those lying with third parties, and in transit, has been physically verified by the management at regular intervals, which we consider to be reasonable. No material discrepancies were noticed on physical verification of inventories as compared to book records.

3. According to the information and explanation given to us, the Company''s has not granted any loans, secured or unsecured, to companies, firms, limited liability partnership or other parties listed in the register maintained under section 189 of the companies Act 2013 and hence sub clause (a)(b)(c) are not applicable.

4. According to the information and explanation given to us, the company has complied the provisions of section 185 and 186 of the Companies Act 2013 with respect to the loans & investment made.

5. The company has not accepted any deposit from public.

6. We have broadly reviewed the books of account maintained by the company pursuant to the Rules made by the Central Government of India, maintenance of cost records has been prescribed under sub-section (1) of section 148 of the Companies Act, 2013 and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained.

7. a. According to the records of the Company and information and explanations given to us, Provident Fund, Employees State Insurance, Income Tax, Sales Tax, Custom Duty, Cess, Excise Duty, Service Tax, Value added tax, and other material statutory dues have been deposited regularly during the period with the appropriate authorities. According to the records of the Company and information and explanations given to us there were no arrears of outstanding statutory dues as at 31st March, 2016 for a period of more than six months from the date they became payable.

b. According to the records of the Company and information and explanations given to us the followings are the particulars of disputed amount payable in respect of, Income tax, Sales tax, Custom Duty, Excise Duty and Entry tax and other statutory dues as at the last day of the period ending 31st March,2016 are as follow -

Name of Status

Nature of dues

Amount (Rs.In Lakhs)

Period to which the amount relates

Forum where the dispute is pending

Income Tax Act

Income Tax

2.37

F.Y.- 2011 / 2012

CIT (Appeals)

Sales Tax Act

Sales Tax

11.24

F.Y.- 2002 / 2003

Sales Tax Officer

Sales Tax Act

Sales Tax

148.28

F.Y.- 2008 / 2009

Dy Comm of VAT

Central Excise Act

Excise

9.46

F.Y.- 2012 / 2013

Addl Comm.of Central Excise

Central Excise Act

Excise

4.3

F.Y.- 2004 / 2005

Comm.of Central Excise

Income Tax Act

Income Tax

5.14

F.Y.- 2008 / 2009

CIT (Appeals)

Central Excise Act

Excise

40.98

F.Y.- 2003 / 2004

CEGAT

Central Excise Act

Excise

38

F.Y.- 2005 / 2006

Comm.of Central Excise

Central Excise Act

Excise

53.53

F.Y.- 2012 / 2013

DGCI

Central Excise Act

SAD

406

F.Y.- 2012 / 2013

FTWL

8. Based on our audit procedures and on the basis of information and explanations given by the management, we are of the opinion that the Company has not defaulted in the repayment of dues to financial institutions, banks, governments or debenture holders. The company did not have any outstanding dues to debenture holders during the year.

9. In our opinion and according to the information and explanation given to us, the term loan have been applied for the purpose for which they were raised. The company has not raised any money by way of initial public offer or further public offer (including debt instruments) during the year.

10. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of fraud on or by the Company, its officers or employees, noticed or reported during the period, nor have been informed of such case by the management.

11. According to the information and explanation given to us and based on our examination of the books and records of the Company, we are the opinion that the managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provisions of section 197 read with schedule V to the Company Act.

12. According to the information and explanation given to us, the provisions of any Special Statute applicable to Nidhi Companies are not applicable to the Company, the provisions of this clause are not applicable to the Company.

13. According to the information and explanation given to us and based on our examination of the records, all the transactions with related parties are in compliance with section 177 and 188 of the Companies Act, 2013 and all the details have been disclosed in the financial statement as per Accounting Standard-18.

14. According to the information and explanation given to us and based on our examination of the records, the Company has not made preferential allotment or private placement of shares or fully or partly convertible debenture during the year.

15. According to the information and explanation given to us and based on our examination of the records of the Company has not entered into any non-cash transactions during the period with directors or persons connected with him.

16. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.

For and on behalf of -

Thanawala & Company

Chartered Accountants

Firm Reg. No. 110948W

[V.K. Thanawala ]

Place : Mumbai Proprietor

Date :25/05/2016 Membership No. 15632


Mar 31, 2015

1. We have audited the accompanying financial statements of India Steel Works Limited, which comprise the Balance Sheet as on March 31, 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 Financial Statements

2. The Company's Board of Directors is responsible for the matters in section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the 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 internal financial control, 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

3. Our responsibility is to express an opinion on these financial statements based on our audit.

4. 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.

5. We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act and other applicable authorities pronouncements, issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements 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.

6. 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 financial control relevant to the Company's preparation of the financial statements that give true and fair view 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 Company's Directors, as well as evaluating the overall presentation of the financial statements.

7. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.

Opinion

8. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements, give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India;

a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31,2015;

b) in the case of the Statement of Profit and Loss, of the profit for the year ended on that date; and

c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

Report on other Legal and Regulatory Requirements

9. As required by the Companies (Auditor's Report) Order, 2015, issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act (hereinafter referred to as the 'Order"), and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure a statement on the matters specified in paragraph 3 and 4 of the Order.

10. 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, the 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 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 written representations received from the directors as on 31 March, 2015, taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 2015, from being appointed as a director in terms of Section 164(2) of the Act.

f) 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 knowledge and belief and according to the information and explanations given to us-

i. The Company has disclose the impact of pending litigatition on its financial position in its financial statements.

ii. The Company does not have any long-term contracts including derivatives 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, the question of delay of transferring funds does not arise.

Annexure to Independent Auditors' Report

Referred to in paragraph 9 of the Independent Auditors' Report of even date to the members of India Steel Works Limited on the standalone financial statements as of and for the year ended March 31, 2015

i. (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation, of fixed assets.

(b) The fixed assets are physically verified by the Management according to a phased programme designed to cover all the items over a period of three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets, pursuance to the programme, a portion of the fixed assets has been physically verified by the Management during the year and no material discrepancies have been noticed on such verification.

ii. (a) As explained to us, inventories have been physically verified during the year by the management at reasonable intervals.

(b) In our opinion and according to the information and explanations given to us, 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) In our opinion and on the basis of our examination of the records, the Company is generally maintaining proper records of its inventories. No major material discrepancy was noticed on physical verification of stocks by the management as compared to book records.

iii. (a) The Company has granted unsecured loans, to two companies covered in the register maintained under Section 189 of the Act. The Company has not granted any secured/unsecured loans to firms or other parties covered in the register maintained under Section 189 of the Act.

(b) In respect of the aforesaid loans, there is no overdue amount more than Rupees One Lac at the year end.

iv. In our opinion, and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods and services. Further, on the basis of our examination of the books and records of the Company, and according to the information and explanations given to us, we have neither come across, nor have been informed of, any continuing failure to correct major weaknesses in the aforesaid internal control system.

v. The Company has not accepted any deposits from the public within the meaning of Sections73 to 76 of the Act and the rules framed there under to the extent notified.

vi. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records & Audit ) Rules 2014 as amended and prescribed by the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013 and are of the opinion that, prima facie, the prescribed cost records have been made and maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

vii. (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is regular in depositing the undisputed statutory dues, including provident fund, employees' state insurance, income tax, sales tax, wealth tax, service tax, duty of customs, duty of excise, value added tax except property tax of Rs. 28.19 lacs and of Rs. 11.32 lacs out standing for more than Six months as on 31st March, 2015.

(b) According to the information and explanations given to us and the records of the Company examined by us, the particulars of dues of income tax, sales tax, wealth tax and service tax as at March 31,2015 which have not been deposited on account of a dispute, are as follows:

Status Amount (Rs. in Lakhs) Period to which the amount relates

Income Tax Act 2.37 F.Y. - 2011/2012

Sales Tax Act 11.24 F.Y. - 2002/2003

Sales Tax Act 148.28 F.Y. - 2008/2009

Excise Duty 9.64 F.Y. - 2012/2013

Excise Duty 4.30 F.Y. - 2004/2005

Excise Duty 40.98 F.Y. - 2003/2004

Excise Duty 38.00 F.Y. - 2005/2006

Excise Duty 296.91 F.Y. - 2012/2013

Excise Duty 1.91 F.Y. - 2008/2009

Status Forum where the dispute is pending

Income Tax Act CIT (Appeals)

Sales Tax Act Sales Tax Officer

Sales Tax Act Deputy Comm. Of Vat

Excise Duty Addl. Comm. Of Central Excise

Excise Duty Comm. Of Central Excise

Excise Duty CEGAT

Excise Duty Comm. Of Central Excise

Excise Duty DGCI

Excise Duty Comm. Of Central Excise

(c) According to information & explanation given to us there are no amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

viii. The Company has accumulated losses as at the end of the financial year and it has not incurred any cash losses in the financial year ended on that date or in the immediately preceding financial year.

ix. The Company has not defaulted in repayment of dues to any financial institution or bank nor has it issued any debentures as at the balance sheet date. The provisions of Clause 3(ix) of the Order are not applicable to the Company.

x. In our opinion, and according to the information and explanations given to us, the company has not given any guarantees for loans taken by others from banks or financial institutions during the year.

xi. The Company has not raised any term loans, Accordingly, the provisions of Clause 3(xi) of the Order are not applicable to the Company.

xii. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of material fraud on or by the Company, noticed or reported during the year, nor have we been informed of any such case by the Management,

For and on behalf of - Thanawala& Company Chartered Accountants Firm Reg. No. 110948W

[ V.K. Thanawala ] Place : Mumbai Proprietor Dated : 30/5/2015 Membership No. 15632


Mar 31, 2014

We have audited the accompanying financial statements of INDIA STEEL WORKS LIMITED, which comprise the Balance Sheet as at March 31st, 2014, and the Statement of profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

The Company''s Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance of the Company in accordance with the Accounting Standards notifed under the Companies Act, 1956 (the Act) (which continue to be applicable in respect of Section 133 of the Companies Act, 2013 in term of General Circular 15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs) 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.

AUDITORS'' RESPONSIBILITY

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Financial Statements. The procedures selected depend on the 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, but not for the purpose of expressing an opinion on the effectiveness of the Company''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is 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 aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31st, 2014;

b) in the case of the Statement of profit and Loss Account, of the LOSS of the Company for the year ended on that date; and

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

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1) As required by the Companies (Auditor''s Report) Order, 2003 ("the Order") issued by the Central Government of India in terms of Section 227(4A) 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, the Statement of profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.

d) in our opinion, the Balance Sheet, the Statement of profit and Loss, and the Cash Flow Statement comply with the Accounting Standards notifed under the Act (which continue to be applicable in respect of Section 133 of the Companies Act, 2013 in terms of General Circulars 15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs)

e) on the basis of written representations received from the directors as on March 31st, 2014, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31st, 2014, from being appointed as a director in terms of Section 274(1)(g) of the Act. ANNEXURE TO INDEPENDENT AUDITORS REPORT Referred to in paragraph 1 under the heading of "Report on Other Legal and Regulatory Requirements" of our report of even date

1. In regard to Fixed Assets -

(a) The company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets.

(b) As explained to us, fixed assets have been physically verifed by the management at reasonable intervals; no material discrepancies were noticed on such verifcation.

(c) In our opinion the company has not disposed off major part of its Fixed Assets during the year.

2. In regard to inventories -

(a) The inventories (Excluding stock with 3rd party and materials transits) have been physically verifed during the year by the management at reasonable intervals.

(b) In our opinion and according to the information and explanations given to us, 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) In our opinion and on the basis of our examination of the records, the Company is generally maintaining proper records of its inventories. No major material discrepancy was noticed on physical verifcation of stocks by the management as compared to book records.

3. (a) The Company has not granted any loans, secured, unsecured loans to the companies, firm or other parties covered in the register maintained under section 301 of the Act. Therefore the provision of clause 4(iii)(b),(c) and (d) of the saidorder are not applicable to the company.

(b) The Company has taken interest free loans from 1 party covered in the register maintained under Section 301 of the Companies Act, 1956. The total amount of such loans received and outstanding as of 31st March 2014 is Rs. 9,55,287/-.

(c) The Company has taken interest free loans as such the terms and conditions on which these loans are taken are not prejudicial to the interest of the Company.

(d) There is no predetermined schedule of repayment of principal;

4. In our opinion and according to the information and explanations given to us, there is generally an adequate internal control procedure commensurate with the size of the company and the nature of its business, for the purchase of inventories & fixed assets and payment for expenses & for sale of goods. During the course of our audit, no major instance of continuing failure to correct any weaknesses in the internal controls has been noticed.

5. (a) The transactions made in pursuance of contracts of arrangements, that need to be entered into the register maintained under Section 301 of the Companies Act, 1956 have been recorded in the register;

(b) In our opinion and according to the information and explanations given to us, these transactions 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 each party during the year have been made at prices which are prima facie reasonable having regard to the prevailing market prices at the relevant time.

6. The Company has not accepted any deposit from the public and consequently the provision of Section 58A and 58AA of the Companies Act, 1956 and the Companies [Acceptance of Deposits] Rules, 1975 are not applicable.

7. In our opinion, the internal audit functions carried out during the year by firm of Chartered Accountants appointed by the Management have been commensurate with the size of the Company and the nature of its business.

8. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Accounting Record) Rules, 2011 prescribed by the Central Government under section 209(1)(d) of the Companies Act, 1956 and are of the opinion that, prima facie, the prescribed cost records have been maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

9. (a) The Company has been generally regular in depositing undisputed dues of Provident Fund, Employees State Insurance, Income Tax, Profession Tax, except Property Tax of Rs.30,78,171/- & Cess of Rs.11,32,598/- outstanding for more than six months, as at 31st March 2014.

(b) Details of dues of Sales Tax, Excise Duty & Service Tax which have not been deposited as on 31st March 2014 on account of disputes are given below

Nature of Dues Amount in Rs. In Lacs Period for which dispute relates Forum where dispute is pending

Sales Tax 11.24 FY 2002-03 Sales Tax Officer

Sales Tax 163.28 FY 2008-09 Deputy Comm. Of Vat

Excise Duty 9.64 FY 2012-13 Addl. Comm of Central Excise

Excise Duty 4.30 FY 2004-05 Comm of Central Excise

Excise Duty 40.98 FY 2003-04 CEGAT

Excise Duty 38.00 FY 2005-06 Comm of Central Excise

10. The Company has accumulated losses on 31/03/2014 and has incurred cash loss during the financial year under review but not incurred cash loss in the immediately preceding financial year.

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

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

13. The Company is not a chit fund or a nidhi /mutual benefit fund/society. Therefore, the provision of this clause of the Companies (Auditor''s Report) Order, 2003 (as amended) is not applicable to the Company.

14. The Company is not dealing or trading in shares, securities, debentures or other investments and hence the requirements of Para 4(xiv) are not applicable to the Company.

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

16. Based on our audit procedures and on the information given by the management, we report that the company has not raised any term loans during the year.

17. Based on the information and explanations given to us and on an overall examination of the Balance Sheet of the Company as at 31st March, 2014, we report that no funds raised on short-term basis have been used for long-term investment by the Company.

18. Based on the audit procedures performed and the information and explanations given to us by the management, we report that the Company has made preferential allotment of shares during the year to the parties and companies covered in the Register maintained under Section 301 of the Companies Act 1956..

19. The Company has no outstanding debentures during the period under audit.

20. The Company has not raised any money by public issue during the year.

21. Based on the audit procedures performed and the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the year, nor have we been informed of such case by the management.

For and on behalf of – Thanawala & Company

Chartered Accountants

Firm Reg. No. 110948W

Place : Mumbai

Dated : 28th May, 2014 [ V.K. Thanawala ]

Proprirtor Membership No. 15632


Mar 31, 2013

We have audited the accompanying financial statements of INDIA STEEL WORKS LIMITED, which comprise the Balance Sheet as at March 31, 2013, and the Statement of Profit and Loss and Cash Flow statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act"). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

a. in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2013; and

b) in the case of the Profit and Loss Account, of the LOSS for the year ended on that date;

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

1. As required by the Companies (Auditor''s Report) Order, 2003 ("the Order") issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. As required by section 227(3) of the Act, we report that:

a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b) in our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books

c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account.

d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956;

e) on the basis of written representations received from the directors as on March 31, 2013, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2013, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

Annexure to independent Auditors'' Report

Referred to in paragraph 1 under the heading of "Report on Other Legal and Regulatory Requirements" of our report of even date

1. In regard to Fixed Assets -

a. The company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets.

(b) As explained to us, fixed assets have been physically verified by the management at reasonable intervals; no material discrepancies were noticed on such verification.

(c) In our opinion the company has not disposed off major part of its Fixed Assets during the year.

2. In regard to inventories -

(a) The inventories (Excluding stock with 3rd party and materials transits) have been physically verified during the year by the management at reasonable intervals.

(b) In our opinion and according to the information and explanations given to us, 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) In our opinion and on the basis of our examination of the records, the Company is generally maintaining proper records of its inventories. No major material discrepancy was noticed on physical verification of stocks by the management as compared to book records.

3. (a) The Company has not granted any loans, secured, unsecured loans to the companies, firm or other parties covered in the register maintained under section 301 of the Act. Therefore the provision of clause 4(iii)(b),(c) and (d) of the said order are not applicable to the company.

(b) The Company has taken interest free loans from 12 parties covered in the register maintained under Section 301 of the Companies Act, 1956. The total amount of such loans received and outstanding as of 31st March 2013 is Rs.69,93,07,829/-.

(c) The Company has taken interest free loans as such the terms and conditions on which these loans are taken are not prejudicial to the interest of the Company.

(d) There is no predetermined schedule of repayment of principal;

4. In our opinion and according to the information and explanations given to us, there is generally an adequate internal control procedure commensurate with the size of the company and the nature of its business, for the purchase of inventories & fixed assets and payment for expenses & for sale of goods. During the course of our audit, no major instance of continuing failure to correct any weaknesses in the internal controls has been noticed.

5. (a) The transactions made in pursuance of contracts of arrangements, that need to be entered into the register maintained under Section 301 of the Companies Act, 1956 have been recorded in the register;

(b) In our opinion and according to the information and explanations given to us, these transactions 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 each party during the year have been made at prices which are prima facie reasonable having regard to the prevailing market prices at the relevant time.

6. The Company has not accepted any deposit from the public and consequently the provision of Section 58A and 58AA of the Companies Act, 1956 and the Companies [Acceptance of Deposits] Rules, 1975 are not applicable.

7. In our opinion, the internal audit functions carried out during the year by firm of Chartered Accountants appointed by the Management have been commensurate with the size of the Company and the nature of its business.

8. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Accounting Record) Rules, 2011 prescribed by the Central Government under section 209(1)(d) of the Companies Act, 1956 and are of the opinion that, prima facie, the prescribed cost records have been maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

9. (a) The Company has been generally regular in depositing undisputed dues of Provident Fund, Employees State Insurance, Income Tax, Profession Tax, except Property Tax of Rs.58,58,009/- & Cess of Rs.11,32,598/- outstanding for more than six months, as at 31st March 2013.

(b) Details of dues of Sales Tax, Excise Duty & Service Tax which have not been deposited as on 31st March 2013 on account of disputes are agiven below

Period for Forum where dispute Nature of Dues Amount in Rs. which dispute relates is pending

Sales Tax 11.24 lacs FY 2002-03 Sales Tax Officer

Sales Tax 18.83 lacs FY 2003-04 JC (Appeals) Sales Tax

Excise Duty 9.64 lacs FY 2012-13 Addl. Comm of Central Excise

Excise Duty 33.53 lacs FY 2005-06 ESTAT

Excise Duty 5.94 lacs FY 2007-08 Comm of Central Excise

Excise Duty 4.29 lacs FY 2004-05 Comm of Central Excise

Excise Duty 40.98 lacs FY 2003-04 CEGAT

Excise Duty 37.99 lacs FY 2005-06 Comm of Central Excise

Service Tax 1.91 lacs FY 2008-09 Comm of Central Excise

10. The accumulated losses of the Company exceeded fifty percent of its net worth of the end of the financial year. The Company has not incurred cash loss during the financial year under review and in the year immediately preceding the financial year.

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

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

13. The Company is not a chit fund or a nidhi /mutual benefit fund/society. Therefore, the provision of this clause of the Companies (Auditor''s Report) Order, 2003 (as amended) is not applicable to the Company.

14. The Company is not dealing or trading in shares, securities, debentures or other investments and hence the requirements of Para 4(xiv) are not applicable to the Company.

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

16. Based on our audit procedures and on the information given by the management, we report that the company has not raised any term loans during the year.

17. Based on the information and explanations given to us and on an overall examination of the Balance Sheet of the Company as at 31st March, 2013, we report that no funds raised on short-term basis have been used for long-term investment by the Company.

18. Based on the audit procedures performed and the information and explanations given to us by the management, we report that the Company has not made preferential allotment of shares during the year to the parties and companies covered in the Register maintained under Section 301 of the Companies Act 1956..

19. The Company has no outstanding debentures during the period under audit.

20. The Company has not raised any money by public issue during the year.

21. Based on the audit procedures performed and the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the year, nor have we been informed of such case by the management.

For and on behalf of –

THANAWALA & COMPANY

Chartered Accountants

Firm Reg. No. 110948W

Place : Mumbai, [V.K. Thanawala]

Dated : 30th May, 2013 Proprietor

Membership No. 15632


Mar 31, 2012

1. We have audited the attached Balance Sheet of M/s INDIA STEEL WORKS LIMITED (Formerly known as ISIBARS LIMITED), as at 31st March, 2012 and also the statement of Profit & Loss Account for the year ended on that date annexed thereto and the cash flow statement for the year ended on that date. 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 have conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosure in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies [ Auditors Report ) Order, 2003 as amended by companies (Auditors'' Report) (Amendment) Order 2004, (together the 'Order'), issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956 ('the Act'), and on the basis of such checks of the books and records as we considered necessary and appropriate and according to the information and explanations given to us during the course of the audit, we enclose in the Annexure, a statement on the matters specified in paragraphs 4 and 5 of the said Order.

4 Further to our comments in the Annexure referred to above :-

a. We have obtained all the information and explanations which are 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 these books;

c. The company's Balance Sheet, Statement of Profit and Loss and Cash flow statement dealt with by this report are in agreement with the books of accounts.

d. In our opinion, the Balance Sheet, Statement of Profit & 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.

e. On the basis of declarations made by the Directors as on 31st March 2012, none of the directors are, as at 31st March 2012 prima facie disqualified from being appointed as a Director under clause (g) of sub-section (I) of section 274 of the companies Act, 1956.

f. In our opinion and to the best of our information and according to the explanations given to us, the said account, subject to points mentioned in above, read together significant accounting policies and other notes there on, give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view.

i. In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2012; and

ii. in the case of the Statement of Profit & Loss, of the LOSS for the year ended on that date.

iii. in the case of the cash flow statement, of the cash flows of the company for the year ended on that date.



ANNEXURE TO THE AUDITORS' REPORT

Referred to in paragraph 3 of Auditors' Report of even date to the members of INDIA STEEL WORKS LTD on the financial statements for the year ended 31st March 2012.

1 a. The Company has maintained records of fixed assets upto 31st March 2001, however quantitative details in respect of assets added afterwards are under compilation.

b. The Company has a regular programme of physical verification of its fixed assets which in our opinion is reasonable having regard to the size of the company and the nature of its assets. In accordance with this programme, certain fixed assets were physically verified by management during the year.

c. During the year, in our opinion, substantial part of the fixed assets has not been disposed off by the Company.

2. a. The inventories (excluding stock with third parties and materials in transit) have been physically verified by the management during the year, at reasonable intervals;

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

c. The Company has maintained proper records of inventories and discrepancies noticed on physical verification of inventories as compared to book records were not material and have been properly dealt with in the books of accounts.

3. a. The Company has granted unsecured loans to parties covered under section 301 of the Act. The loans have been advanced to 7 parties amounting to Rs. 91.72 Lacs.

b. The Loans advanced by the Company are interest free loans and as such are prejudicial to the interest of the Company;

c. There is no prescribed stipulation for repayment of principal and interest;

d. The Company has taken interest free loans from 13 parties covered in the register maintained under Section 301 of the Companies Act, 1956. The total amount of such loans received and outstanding as of 31st March 2012 was Rs. 4160.57 Lacs-.

e. The Company has taken interest free loans as such the terms and conditions on which these loans are taken are not prejudicial to the interest of the Company.

f. There is no predetermined schedule of repayment of principal;

4. There are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchase of inventories, fixed assets and for the sale of goods.

5. a. On the basis of the audit procedures performed by us and according to the information and explanations given to us on our enquiries on this behalf and the records produced to us for our verification, the transactions required to be entered into the register in pursuance of section 301 of the Companies Act, 1956 have been so entered.

b. In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts/arrangements entered in the Register maintained under Section 301 of the Companies Act 1956 & exceeding the value of Rs 5 Lakhs in respect of some of the items purchased and Labour charges paid are of special nature and suitable alternative sources do not exist for obtaining comparable quotations. There is adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of inventories and fixed assets and for the sale of goods and services and we have not observed any continuing failure to correct major weaknesses in such internal control system.

6. The Company has not accepted any deposit from the public and consequently the provision of Section 58A and 58AA of the Companies Act, 1956 and the Companies [Acceptance of Deposits] Rules, 1975 are not applicable.

7. In our opinion the company has an internal audit system commensurate with the size and nature of its business

8. We have broadly reviewed the Books of Accounts 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, and are of 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 with a view to determine whether they are accurate.

9 a. The Company has been generally regular in depositing undisputed dues of Provident fund, Employees State Insurance, Income Tax, Profession Tax, except Property Tax of Rs. 63.45 Lacs, Cess of Rs. 7.75 Lacs & VAT payable of Rs. 76.07 Lacs outstanding for more than six months, as at 31st March 2012.

b. Details of dues of Sales Tax, Excise Duty & Service Tax which have not been deposited as on 31st March 2012 on account of disputes are given below

Nature of Amount in Period for Forum where dispute Dues Rs. Lacs which dispute dispute is pending relates

Sales Tax 11.24 FY 2002-03 Asstt Comm of Sales Tax

Excise Duty 33.53 FY 2005-06 ESTAT

Excise Duty 5.94 FY 2007-08 Comm of Central Excise

Excise Duty 4.30 FY 2004-05 Comm of Central Excise

Excise Duty 40.98 FY 2003-04 CEGAT

Excise Duty 38.00 FY 2005-06 Comm of Central Excise

Service Tax 1.91 FY 2008-09 Comm of Central Excise

10. The accumulated losses of the Company exceeded fifty percent of its net worth at the end of the financial year. The Company has not incurred cash loss during the financial year under review and in the year immediately preceding the financial year.

11. In our opinion and according to the Information and explanations given to us, the company had delayed in repayment of dues to financial institutions during the financial year, but as on 31st March 2012 there is no overdue.

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

13. The provisions of any Special Statute applicable to Chit Fund, Nidhi or Mutual Benefit Fund / Societies are not applicable to the Company.

14. The Company is not dealing or trading in shares, securities, debentures or other investments and hence the requirements of Para 4(xiv) are not applicable to the Company.

15. According to the information and explanations given to us. the Company has not given any guarantee for loans taken by others from banks and financial institutions.

16. In our opinion and according to the information and explanations given to us, the Company has not raised any term loan during the year.

17. According to the information and explanations given to us and on an overall examination of the Balance Sheet and cash flow statement of the company, we report that no funds raised on short-term basis have been used for long-term investment.

18. The Company has not made preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Companies Act, 1956 during the year.

19. The Company has not raised any monies by way of public issue during the year.

20. On the basis of our examination 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 and on behalf of -

THANAWALA & COMPANY

Chartered Accountants

FirmREg. No 110948W ( V.K. Thanawala )

Proprietor

Membership No. 1563

Place : Mumbai

Dated: 29/05/2012


Mar 31, 2011

1. We have audited the attached Balance Sheet of M/s INDIA STEEL WORKS LIMITED (Formerly known as ISIBARS LIMITED), as at 31st March, 2011 and also the Profit & Loss Account for the year ended on that date annexed thereto and the cash flow statement for the year ended on that date. 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 have conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosure in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies [ Auditors Report ] Order, 2003 as amended by companies (Auditors' Report)(Amendment) Order 2004, (together the 'Order'), issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956 ['the Act'], and on the basis of such checks of the books and records as we considered necessary and appropriate and according to the information and explanations given to us during the course of the audit, we enclose in the Annexure, a statement on the matters specified in paragraphs 4 and 5 of the said Order.

4. Further to our comments in the Annexure referred to above :- 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 these books;

c. The company's Balance Sheet, Profit and Loss Account and Cash flow statement dealt with by this report are in agreement with the books of accounts.

d. In our opinion, the Balance Sheet, Profit & 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.

e. On the basis of declarations made by the Directors as on 31st March 2011, none of the directors are, as at 31st March 2011 prima facie disqualified from being appointed as a Director under clause (g) of sub-section (I) of section 274 of the companies Act, 1956.

f. In our opinion and to the best of our information and according to the explanations given to us, the said account, subject to points mentioned in above, read together significant accounting policies and other notes there on, give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view.

i. in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2011; and

ii. in the case of the Profit & Loss Account, of the LOSS for the year ended on that date.

iii. in the case of the cash flow statement, of the cash flows of the company for the year ended on that date.

Annexure to the Auditors' Report

Referred to in paragraph 3 of Auditors' Report of even date to the members of INDIA STEEL WORKS LTD on the financial statements for the year ended 31st March 2011.

1. a. The Company has maintained records of fixed assets upto 31st March 2001, however quantitative details in respect of assets added afterwards are under compilation.

b. The Company has a regular programme of physical verification of its fixed assets which in our opinion is reasonable having regard to the size of the company and the nature of its assets. In accordance with this programme, certain fixed assets were physically verified by management during the year.

c. During the year, in our opinion, substantial part of the fixed assets has not been disposed off by the Company.

2. a. The inventories (excluding stock with third parties and materials in transit) have been physically verified by the management during the year, at reasonable intervals;

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

c. The Company has maintained proper records of inventories and discrepancies noticed on physical verification of inventories as compared to book records were not material and have been properly dealt with in the books of accounts.

3. a. The Company has granted unsecured loans to parties covered under section 301 of the Act. The loans have been advanced to 10 parties amounting to Rs.2,78,12,747/-

b. The Loans advanced by the Company are interest free loans and as such are prejudicial to the interest of the Company;

c. There is no prescribed stipulation for repayment of principal and interest;

d. The Company has taken interest free loans from 11 parties covered in the register maintained under Section 301 of the Companies Act, 1956. The total amount of such loans received and outstanding as of 31st March 2011 was Rs. 3,23,58,781/-. There is no prescribed stipulation of repayment of loan and hence there are no overdue amounts more than Rs. 1,00,000/-.

e. The Company has taken interest free loans as such the terms and conditions on which these loans are taken are not prejudicial to the interest of the Company.

f. There is no predetermined schedule of repayment of principal;

4. There are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchase of inventories, fixed assets and for the sale of goods.

5. a. On the basis of the audit procedures performed by us and according to the information and explanations given to us on our enquiries on this behalf and the records produced to us for our verification, the transactions required to be entered into the register in pursuance of section 301 of the Companies Act, 1956 have been so entered.

b. In our opinion and according to the information and explanations given to us, having regard to the explanation that some of the items purchased and Labour charges paid are of special nature and suitable alternative sources do not exist for obtaining comparable quotations, there is adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of inventories and fixed assets and for the sale of goods and services and we have not observed any continuing failure to correct major weaknesses in such internal control system.

6. The Company has not accepted any deposit from the public and consequently the provision of Section 58A and 58AA of the Companies Act, 1956 and the Companies [Acceptance of Deposits] Rules, 1975 are not applicable.

7. In our opinion the company has an internal audit system commensurate with the size and nature of its business

8. We have broadly reviewed the Books of Accounts 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, and are of 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 with a view to determine whether they are accurate.

9. a. The Company has been generally regular in depositing undisputed dues of Provident Fund, Employees State Insurance, Income Tax, Profession Tax, except Property Tax of Rs. 31,26,766/- and cess of Rs 3,08,330/- outstanding for more than six months, as at 31st March 2011.

b. Details of dues of Sales Tax, & Excise Duty which have not been deposited as on 31st March 2011 on account of disputes are given below

Period for Forum where dispute Nature of Dues Amount in Rs. which dispute relates is pending

Sales Tax 1,124,091 FY 2002-03 Sales Tax Officer

Excise Duty 594,066 FY 2007-08 Comm of Central Excise

Excise Duty 429,981 FY 2004-05 Comm of Central Excise

Excise Duty 381,436 FY 2008-09 Comm of Central Excise

Excise Duty 1,144,736 FY 2007-08 Comm of Central Excise

Excise Duty 3,353,452 FY 2005-06 ESTAT

Excise Duty 4,098,380 FY 2003-04 CEGAT

Excise Duty 300,000 FY 1999-00 HIGH COURT

Excise Duty 3,799,928 FY 2005-06 Comm of Central Excise

10. The accumulated losses of the Company exceeded fifty percent of its net worth at the end of the financial. The Company has not incurred cash loss during the financial year under review but had incurred cash loss in the year immediately preceding the financial year.

11. In our opinion and according to the information and explanations given to us, the company was delayed in repayment of dues to financial institutions during the financial year.

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

13. The provisions of any Special Statute applicable to Chit Fund, Nidhi or Mutual Benefit Fund / Societies are not applicable to the Company.

14. The Company is not dealing or trading in shares, securities, debentures or other investments and hence the requirements of Para 4(xiv) are not applicable to the Company.

15. According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks and financial institutions.

16. In our opinion and according to the information and explanations given to us, the Company has not raised any term loan during the year.

17. According to the information and explanations given to us and on an overall examination of the Balance Sheet and cash flow statement of the company, we report that no funds raised on short-term basis have been used for long-term investment.

18. The Company has made preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Companies Act, 1956 during the year.

19. The Company has not raised any money by way of public issue during the year.

20. On the basis of our examination 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 and on behalf of –

THANAWALA & COMPANY

Chartered Accountants

Firm REg. No 110948W

Place : Mumbai [V.K. Thanawala]

Dated : 05/09/2011 Proprietor

Membership No. 15632


Mar 31, 2010

1. We have audited the attached Balance Sheet of M/s INDIA STEEL WORKS LIMITED (Formerly known as ISIBARS LIMITED), as at 31st March, 2010 and also the Profit & Loss Account for the year ended on that date annexed thereto and the cash flow statement for the year ended on that date. 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 have conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financidl statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosure in the-financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors Report) Order, 2003 as amended by companies (Auditors Report)(Amendment) Order 2004, (together the Order), issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956 (the Act), and on the basis of such checks of the books and records as we considered necessary and appropriate and according to the information and explanations given to us during the course of the audit, we enclose in the Annexure, a statement on the matters specified in paragraphs 4 and 5 of the said Order.

4. Further to our comments in the Annexure referred to above :-

a. Balances in the accounts of receivables, loans and deposits, advances, debtors pending confirmation and reconciliation, the extent of possible loss on account of non recovery is not possible to ascertain at present with reasonable accuracy, which may affect revenue, these have been considered as per the books of accounts. Similarly, balances in the accounts of Sundry Creditors, other liabilities, secured and unsecured lenders are subject to confirmation, reconciliation and adjustments, if any, which may affect revenue, are therefore as per the books of accounts. Subject to the above, 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 these books;

c. The companys Balance Sheet, Profit and Loss Account and Cash flow, statement dealt with by this report are in agreement with the books of accounts.

d. In our opinion, the Balance Sheet, Profit & 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.

e. On the basis of declarations made by the Directors as on 31st March 2010, none of the directors are, as at 31st March 2010 prima facie disqualified from being appointed as a Director under clause (g) of sub-section (I) of section 274 of the companies Act, 1956.

f. In our opinion and to the best of our information and according to the explanations given to us, the said account, subject to points mentioned in above, read together significant accounting policies and other notes there on, give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view.

i. in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2010; and

ii. in the case of the Profit & Loss Account, of the LOSS for the year ended on that date.

iii. in the case of the cash flow statement, of the cash flows of the company for the year ended on that date.

Annexure to the Auditors Report

Referred to in paragraph 3 of Auditors Report of even date to the members of INDIA STEEL WORKS LTD on the financial statements for the year ended 31st March 2010.

1. a. The Company has maintained records of fixed assets upto 31st March 2001. however quantitative details in respect of assets added afterwards are under compilation.

b. The Company has a regular programme of physical verification of its fixed assets which in our opinion is reasonable having regard to the size of the company and the nature of its assets. In accordance with this programme, certain fixed assets were physically verified by management during the year.

c. During the year, in our opinion, substantial part of the fixed assets has not been disposed off by the Company.

2. a. The inventories (excluding stock with third parties and materials in transit) have been physically verified by the management during the year, at reasonable intervals;

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

a The Company has maintained proper records of inventories and discrepancies noticed on physical verification of inventories as compared to book records were not material and have been property dealt with in the books of accounts.

3. a. The Company has granted unsecured loans to parties covered under section 301 of the Act. The loans have been advanced to 11 parties amounting to Rs.2,83,03,588/-

b. The Loans advanced by the Company are interest free loans and as such are prejudicial to the Interest of the Company;

c. There is no prescribed stipulation for repayment of principal and interest;

d. The Company has taken interest free loans from 10 parties covered in the register maintained under Section 301 of the Companies Act, 1956. The total amount of such loans received and outstanding as of 31st March 2010 was Rs. 2,61,38,430/-. There is no prescribed stipulation of repayment of loan and hence there are no overdue amounts more than Rs. 1,00,000/-.

e. The Company has taken interest free loans as such the terms and conditions on which these loans are taken are not prejudicial to the interest of the Company.

f. There is no predetermined schedule of repayment of principal;

4. There are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchase of inventories, fixed assets and for the sale of goods.

5. a. On the basis of the audit procedures performed by us and according to the information.and explanations given to us on our enquiries on this behalf and the records produced to us for our verification, the transactions required to be entered into the register in pursuance of section 301 of the Companies Act, 1956 have been so entered.

b. In our opinion and according to the information and explanations given to us, having regard to the explanation that some of the items purchased and Labour charges paid are of special nature and suitable alternative sources do not exist for obtaining comparable quotations, there is adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of inventories and fixed assets and for the sale of goods and services and we have not observed any continuing failure to correct major weaknesses in such internal control system.

6. The Company has not accepted any deposit from the public and consequently the provision of Section 58A and 58AA of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 are not applicable. .

7. We have broadly reviewed the Books of Accounts 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, and are of 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 with a view to determine whether they are accurate.

8. a. The Company has not been regular in depositing undisputed dues of Provident Fund, Employees State Insurance, Income Tax, Profession Tax, Property Tax and Cess.

b. The undisputed dues outstanding for more than six months, as at 31st March 2010, from the date they became payable are as under -

Provident Fund 87.46,934

Property Tax 28.07.554

Cess 55.697

ESIC * 1.80.201

VAT Payable 9.62,914

Details of dues of Sales Tax, & Excise Duty which have not been deposited as on 31st March 2010 on account of disputes are given below

Nature of Dues Amount in Rs. Prior for Which Forum where dispute

The dispute

relates is pending

Sales Tax - 11.24.091/- F.Y. 2002-03 Sales Tax Officer

Excise Duty 33.53.452/- F.Y. 2005-06 CESTAT

Excise Duty 83,09.987/- F.Y. 2005-06 Comm. Of Central

Excise(A)

Excise Duty 40,98,380/- F.Y. 2003-04 Comm. Of Central

Excise

9. The accumulated losses of the Company exceeded fifty percent of its net worth at the end of the financial. The Company has incurred cash loss during the financial year under review and in the year immediately preceding the financial year.

10. In our opinion and according to the information and explanations given to us. the company has not defaulted in repayment of dues to financial institutions banks or debenture holders.

11. The Company has not granted any loans or advances on the basis of security by way of pledge of shares, debentures or other securities.

12. The provisions of any Special Statute applicable to Chit Fund, Nidhi or Mutual Benefit Fund / Societies are not applicable to the Company.

13. The Company is not dealing or trading in shares, securities, debentures or other investments and hence the requirements of Para 4(xiv) are not applicable to the Company.

14. According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks and financial institutions.

15. In our opinion and according to the information and explanations given to us. the Company has not raised any term loan during the year.

16. According to the information and explanations given to us and on an overall examination of the Balance Sheet and cash flow statement of the company, we report that no funds raised on short-term basis have been used for long-term investment.

17. The Company has made preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Companies Act, 1956 during the year.

18. The Company has not raised any money by way of public issue during the year.

19. On the basis of our examination 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 and on behalf of -

THANAWAlAi & COMPANY

Chartered Accountants

Place : Mumbai, ( V.K. Thanawala )

Dated : September 6, 2010 Proprietor

Membership No. 15632

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