Mar 31, 2014
We have audited the accompanying financial statements of Inertia Steel
Limited ("the Company"''), which comprise the Balance Sheet as at 31st
March 2014 and the Statement of Profit & 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
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting principles generally accepted in India, including,
Accounting Standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956 (''the Act") read with general circular 15/2013
dated 13th September, 2013 of the ministry of corporate affairs in
respect of section 133 of the Companies Act, 2013. 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 sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India: -
i. In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2014;
ii. In the case of the Statement of Profit & Loss , of the profit for
the year ended on that date; and
iii. In the case of the Cash Flow Statement, of the Cash Flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2, As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion, proper books of account, as required by law, have
been kept by the Company, so far as appears from our examination of
those books;
c. the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
sub section (3C) of section 211 of the Companies Act, 1956;
e. On the basis of written representations received from the directors
as on 31st March, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2014, from
being appointed as a director in terms of clause (g) of sub-section (1)
of section 274 of the Companies Act 1956.
ANNEXURE TO INDEPENDENT AUDITORS'' REPORT
(Referred to in paragraph 1 of our report on other legal and regulatory
requirements of even date)
As required by the Companies (Auditor''s Report) Order, 2003 issued by
Central Government of India in terms of Section 227 (4A) of the
Companies Act 1956, and on the basis of such checks as we considered
appropriate, we further report that:-
i. The Company does not have any Fixed Assets, hence clause 4(1) of
the Companies Auditor''s Report) Order, 2003 is not applicable to the
Company.
ii. The Company does not have any Inventory, hence clause 4(h) of the
Companies Auditor''s Report) Order, 2003 is not applicable to the
Company.
iii. (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company
has not granted any loans, secured or unsecured, to companies, firms or
other parties listed in the register maintained under Section 301 of
the Companies Act, 1956.
(b) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
taken loans from one party listed in the register maintained under
Section 301 of the Companies Act, 1956 in respect of which maximum
amount involved during the year was Rs. 0.19 lacs and the year end
balance was Rs. Nil lacs..
iv. During the year the Company has neither purchased any fixed assets
or inventory nor sold any goods. Hence the provisions of clause 4(iv)
of the Companies (Auditor''s Report) Order, 2003 is not applicable to
the Company.
v. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements, that needed to be entered in the register maintained
under section 301 of the Companies Act, 1956 have been so entered.
In our opinion all these transactions have been made at prices which
are reasonable having regard to prevailing market prices at reasonable
time.
vi. According to the information and explanations given to us, the
Company has not accepted any deposits from the public and hence
directives issued by the Reserve Bank of India and the provisions of
sections 58A and 58AA of the Companies Act, 1956 and the rules framed
there under are not applicable for the year under audit.
vii. The paid up capital of the company was less than Rs.50.00 lacs as
at the commencement of the financial year and average annual turnover
for the period was not in excess of Rs. 5.00 Crores, hence the internal
audit system is not applicable to the company.
viii. According to the information and explanations given to us, the
maintenance of cost records is not applicable to the company.
ix. According to the information and explanations given to us in
respect of statutory dues:
(a) The company has generally been regular in depositing undisputed
statutory dues, including Income tax, Sales tax, Wealth tax, Service
tax, and any other statutory dues with the appropriate authorities
during the year.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of such statutory dues were
outstanding as at 31 st March, 2014 for a period of more than six
months from the date they became payable.
x. The Company has accumulated losses at the end of the financial year.
The Company has not incurred cash losses during the financial year
covered by the audit. The Company has incurred cash loss in the
immediately preceding financial year.
xi. The Company has not borrowed any money from financial institution
or bank or debenture holders. Therefore, the provisions of clause 4(xi)
of the Companies (Auditor''s Report) Order, 2003 are not applicable to
the Company.
xii. In our opinion and according to the explanations given to us and
based on the information available, no loans and advances have been
granted by the Company on the basis of security by way of pledge of
shares, debentures and other securities.
xiii. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore the provisions of clause 4 (xiii) of
the Companies (Auditor''s Report) Order, 2003 is not applicable to the
Company.
xiv. In our opinion and according to the information and explanations
given to us, the Company is not a dealer or trader in shares,
securities & other investments.
xv. According to the information and explanations given to us, the
Company has not given any corporate guarantees for loan taken by others
from a banks or financial institutions.
xvi. According to the information and explanations given to us, the
Company has not obtained any term loans during the year.
xvii. On the basis of review of utilization of funds, which is based on
overall examination of the balance sheet of the Company as at 31st
March, 2014, related information''s as made available to us and as
represented to us, by the management, we are of the opinion, that no
funds raised on short term basis have been utilized for long term
purposes.
xviii. During the year, the Company has not made any preferential
allotment of shares to the parties and companies covered in the
register maintained under Section 301 of the Companies Act, 1956.
xix. The Company has not issued any debentures and hence provisions of
clause 4 (xix) of the Companies (Auditor''s Report) Order, 2003 are not
applicable to the Company.
xx. During the year covered by our report the company has not raised
any money by public issue.
xxi. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the company
was noticed or reported during the course of our audit.
For Kaloti & Lathiya
Chartered Accountants
(Registration No. : LQ4589W)
Sanjeev N. Bajaj
Membership No.-107678
Place: Mumbai
Dated: 29.05.2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Inertia Steel
Limited ("the Company ), which comprise the Balance Sheet as at 31st
March 2013 and the Statement of Profit & 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
Management is responsible for the preparation of these financial
statements that give a true and tair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting principles generally accepted in India, including;
section 211 of the Companies Art, 1956 ( the Act ). This responsibility
includes the design, implementation and maintenance of nterna 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
A uditors'' 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 audho
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 sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India; -
i. In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2013;
ii. In the case of the Statement of Profit & Loss , of the profit for
the year ended on that date; and iii. In the case of the Cash Flow
Statement, of the Cash Flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion, proper books of account, as required by law, have
been kept by the Company, so far as appears from our examination of
those books;
c. the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
sub section (3C) of section 211 of the Companies Act, 1956;
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.
ANNFXURE TO IMPENDENT AimiTORS'' REPORT
(Referred to in paragraph 1 of our report on other legal and regulatory
requirements of even date)
As required by the Companies (Auditor''s Report) Order, 2003 issued
by^Central GoveZent of India in te''rrns of Section 227 (4A) of the
Compares Act 19 6, and on the basis of such checks as we considered
appropriate, we further report tnat-
i The Company does not have any Fixed Assets, hence clause 4(1) of the
Companies Auditor''s Report) Order, 2003 is not applicable to the
Company.
ii The Company does not have any Inventory, hence clause 4(ii) of the
Companies Auditor''s Report) Order, 2003 is not applicable to the
Company.
iii (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company
has not gmnted any loans secured or unsecured, to companies, firms or
other parties listed in the register maintained under Section 301 of
the Companies Act, 1956.
(b) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
taken loans from one party listed in the register maintained under
Section 301 of the Companies Act 1956 in respect of which maximum
amount involved during the year was Rs. 0.19 lacs and the year end
balance was Rs.0.19 lacs..
iv In our opinion and according to the information and explanations
given to us there is an adequate internal control system commensurate
with the size oi the Company and the nature of its business for the
purchase of inventory, fixed assets and also for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system.
In our opinion and according to the information and explanations given
to us, the '' transactions made in pursuance of contracts or
arrangements, that needed to be entered in the register maintained
under section 301 of the Companies Act, 1956 have been so entered.
In our opinion all these transactions have been made at prices which
are reasonable having regard to prevailing market prices at reasonable
time.
vi According to the information and explanations given to us, the
vii The paid up capital of the company was less than Rs.50.00 lacs as
at the «ncement of the financial year and average annual turnover for
the period waTnoUn excess of Rs. 5.00 Crores, hence the internal audit
system is not applicable to the company.
viii. According to the information and explanations given to us, the
maintenance of cost records is not applicable to the company.
ix. According to the information and explanations given to us in
respect of statutory dues:
(a) The company has generally been regular in depositing undisputed
slatutory dues, including Income tax, Sales tax, Wealth tax, Service
tax, and any other statutory dues with the appropriate authorities
during the year except in few cases.
(b) According to the information and explanations given to us no
undisputed amounts payfble in respect of such statutory dues were
outstanding as a^J March, 2013 for a period of more than six months
from the date they became payable.
x The Company has accumulated losses at the end of the financial year.
The Comply has not incurred cash losses during the financial year
covered by the audTt The Company has incurred cash loss in the
immediately preceding financial year.
xi Based on our audit procedures and information and explanations given
by the moment, we are of the opinion that as on 31st March, 2013 the
Company has not defaulted in repayment of dues to banks and financial
institutions.
xii In our opinion and according to the explanations given to us and
based on the Nation" arable, no loaL and advances have been granted by
the Company of security by way of pledge of shares, debentures and
other securities.
xiii. In our opinion, the Company is not a chit fund or fund/society.
Therefore the provisions of clause 4 (xm) of the Companies (Auditor''s
Report) Order, 2003 is not applicable to the Company. institutions.
According to the information and explanations given to ns, the Company
has not obtained any term loans during the year. been utilized for
long term purposes. of the Companies Act, 1956. Company.
During the year covered by our report the company has not raised any
money by public issue. Â Tn the best of our knowledge and belief and
according to the information and XXL LptaalTons givlto us, nofraud on
or by the comply was nouced or reported during the course of our audit.
For Kaloti & Lathiya
Chartered Accountants
(Registration No. : 104589W)
SanjeevN.Bajaj
Membership No. -107678
Place: Mumbai
Dated: 30.05.2013
Mar 31, 2011
1 We have audited the Balance Sheet of M/s INTERTIA STEEL LIMITED as on
31st march ,2011 and also the profit & loss Account and cash flow
statement of the company for the year ended on that date annexed
there to. these financial statement are the responsibility of the
company's management. Our responsibility is to excess as opinion on
these financial statements based on our audit.
2 We conducted our audit in accordance with auditing standards
generally accepted 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. As audit
including examining. on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An Audit also includes
assessing the accounting principals used and significant estimates made
by the management, as well as evaluating the overall the financial
statements presentation .We believe that our audit provides a reasonable
basis for our opinion.
3 As require by the companies (Auditor's Report) order,2003 issued by
the Central Government of the India in terms of sub section (4A) of
section 227(4A) of the companies Act,1956, we give in the annexure
hereto, a statement on the matters specified in paragraphs 4 and 5 of
the said order ,to the extent applicable to the company.
4 Further to our comments in the annexure referred to in paragraph 3
above, we report that
a We have obtain 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 of accounts, as required by law, have been kept
by the company, so far as appears from our examination of such books;
c The Balance Sheet, Profit & Loss Account and cash Cash Flow Statements
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 Cash
Flow Statements dealt with by this report are in compliance with the
Accounting standards referred to in sub-section (3c) of Section 211 of
the Companies Act 1956.
e On the basis of written representations received from the
Directors, as on 31st March 2011, and taken on record by the board of
Directors, we report that none of the Directors of the company is
disqualified as on 31st March 2011 from being appointed as a directors
in terms of clause (g) of sub-section 274 of the Companies Act, 1956.
f In our opinion and to the best of our information and according to
the explanation given to us, the said accounts read With significant
accoutln9 policies and notes thereon given the information required by
the Companies Act 1956,in the manner so required and give a true and
fair view in the conformity with the accounting policies generally
accepted in India.
i In the case of the Balance Sheet, of the state of affairs of the
company as on 31st March ,2011 and
ii In the case of the Profit & Loss Account, of the profit of the
company for the year ended on that date.
ii In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
On the basis of the such checks of the books and records of the company
as we considered appropriate and in terms of information and
explanations given to us, we state that
i) The company does not have any Fixed Assets, hence clause 4(1) of the
companies (Auditor's Report) Order,2003 is not applicable to the
company,
ii) The company does not any Inventory, hence clause 4(ii) of the
companies (Auditor's Report) Order,2003 is not applicable to the
company.
iii) The company has not granted any unsecured loan during the year to
the company covered in the register maintained under section 301 of the
Companies Act, 1956
In our opinion and according to the information and explanation given to
us, As explained to us, the rates of interest and other terms and
conditions of such loans given by the company, are prima facie are not
prejudicial to the interest of the company.
As no tenure of repayments is fixed. It is not possible to express
opinion whether the payment of principal is regular.
The company has taken reasonable steps for recovery of principal and
interest.
The company has not taken any loan, secured or unsecured from
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act,1956 during the year.
Accordingly sub-clauses (e),(f),(g) of clause (iii) of this order are
not applicable.
iv) In our opinion and according to the information and explanation
given to us, there to us, there is adequate internal control procedure
commensurate with the size of the company and nature of its business
for the purchase of inventory and for the sale of goods and
services. Further, on the basis of our examinations of the books of
accounts and according to the information and explanations given to us,
we come across major weaknesses in the aforesaid internal control
system.
v) According to the information and explanation given to us, we are of
the opinion that the particulars of contracts or arrangements referred
to in section 301 of the Act have been so entered in the register
required to be maintained under that section.
In our opinion, all these transaction have been made at price which are
reasonable having regard to the prevailing market prices at the
relevant time.
vi) The company has not accepted during the year from the public within
the meaning of section 58A.58AA or any other relevant provisions of the
companies Act, 1956 and rules framed there under.
vii) The paid up capital of the company was less than Rs.25 Lacs as at
the commencement of the financial year and average annual turnover for
the period was not in excess of Rs.2 Crores, hence the internal audit
system is not applicable to the company.
viii) According to the information and explanation given to us, the
maintenance of cost records has been prescribed by the central
government under clause (d) of sub-section (1) of section 209 of the
Companies Act, 1956 for the company.
ix) According to the information and explanation given to us, and the
records of the company examined by us, in our opinion, the company is
generally regular in depositing the undisputed statutory dues and any
other statutory dues except income tax applicable, with the appropriate
authorities.
x) According to information and explanations given to us and the
records of the company examined by us, in our opinion there are no
undisputed statutory dues outstanding as on 31st March,2011 for the
period exceeding six months from the date they become payable.
According to the information and explanations given to us, there are no
dues of Income Tax pending in dispute.
xi) The company has no accumulated losses as on March 31,2011 and it
has not incurred any cash losses during the financial year or in the
financial year immediately preceding to this financial year.
xii) According to the records of the company examined by us and the
information and explanations given to us, the company has not defaulted
in repayment of dues to any financial institution or bank as on balance
sheet date.
xiii) In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4(Xiii) of the
companies (Auditor's Report) Order,2003 is not applicable to the
company.
xiv) In our opinion ,the company is not a dealer or trader in
shares, securities, debentures and other investments.
xv) During the year the company has not granted any loans & advances on
the basis of security by way of pledge of shares, debentures and other
securities.
xvi) in our opinion and according to the information and explanations
given to us the company has not given corporate guarantee for loans
taken by others from bank or financial institutions.
xvii) According to the records of the company examined by us and the
information and explanation given to us, the company has not obtained
any term any loan during the year, hence, hence, the question of
applicable of the same does not arise.
xviii) According to the information and explanations given to us and on
overall examinations of the balance sheet of the company, we report
that no funds raised on short term basis have been used for long term
investment.
xix) During the year the company has not made any preferential allotment
of shares to parties and companies in the register maintained under
section 301 of the companies Act,1956.
xx) During the year company has not issued any debentures nor has
created securities in respect of debentures.
xxi) During the year covered by our report the company has not raised
any money by public issue.
xxii) During the course of information of the books and records of the
company, carried out with the generally accepted auditing practices in
India. and according to the information and expiations 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 been informed of
such case by management.
FOR KALOTI AND LATHIYA
Chartered Accountants
F.R.N 104589W
MUMBAI SANJEEV N BAJAJ
DATED : 05/05/2011 Partner
Membership No. 107678
Mar 31, 2010
1. We have audited the Balance Sheet of M/S INERTIA STEEL LIMITED as
on 31st March, 2010 and also the Profit & Loss. Account and Cash Flow
Statement of the company for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
companys management. Our responsibility Is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An Audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies!Auditorss Report) Order, 2003 issued
by the Central Government of India In terms of sub section (4A) of
section 227(4A) of the Companies Act, 1956, we give in the annexure
hereto, a statement on the matters specified in paragraphs 4 and 5 of
the said order, to the extent applicable to the company.
4. Further to our comments in the annexure referred to in paragraph 3
above, 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 of books of accounts, as required by law,
have been kept by the company, so far as appears from our examination
of such books;
c) The 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 are in compliance with the
Accounting Standards referred to In sub-section (3C) of Section 211 of
the Companies Act;1956;
e) On the basis of written representations received from the Directors,
as on 31st March 2009, and taken on record by the Board of Directors,
we report that none of the Directors of the company is disqualified as
on 31st March 2009 from being appointed as a director in terms of clause
(g) of sub-section (1) 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 accounts read together with
significant accounting policies and notes thereon give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting policies
generally accepted in India.
i. In the case of the Balance Sheet, of the state of affairs of the
company as on 31st March, 2010 and
ii. In the case of the Profit & Loss Account, of the profit of the
company for the year ended on that date.
iii. In case of Cash Flow Statement of the cash flows for the year
ended on that date.
ANNEXURE TO THE AUDITORS REPORT REFERRED TO IN PARAGRAPH 3 OF OUR
REPORT OF EVEN DATE TO MEMBERS OF INERTIA STEEL LIMITED ON THE ACCOUNTS
AS ON AND FOR THE YEAR ENDED ON 31* MARCH, 2010.
On the basis of the such checks of the books and records of the company
as we considered appropriate and in terms of information and
explanations given to us, we state that :-
i) The company does not have any Fixed Assets, hence clause 4(i) of the
companies (Auditors Report)Order, 2003 is not applicable to the
company.
ii) The company does not have any Inventory, hence clause 4(H) of the
companies (Auditors Report)Order, 2003 is not applicable to the
company.
iii) The company has not granted any unsecured loan during the year to
the company covered in the register maintained under section 301 of the
Companies Act, 19S6. in our opinion and according to the information
and explanations given to us, As explained to us, the rates of interest
and other terms and conditions of such loans given by the company, are
prima facie are not prejudicial to the interest of the company.
As no tenure of repayment is fixed, it is not possible to express
opinion whether the payment of principal is regular.
The company has taken reasonable steps for recovery of principal and
interest.
The company has not taken any loan, secured or unsecured from
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956 during the year.
Accordingly sub-clauses (e), (f), (g) of clause (iii) of this order are
not applicable.
iv) In our opinion and according to the information and explanation
given to us, there is adequate internal control procedure commensurate
with the size of the company and nature of its business for the
purchase of inventory and for the sale of goods and services. Further,
on the basis of our examinations of the books of accounts and according
to the information and explanations given to us, we have not come
across major weaknesses in the aforesaid internal control system.
v) According to the information and explanation given to us, we are of
the opinion that the particulars of contracts or arrangements referred
to in section 301 of the Act have been so entered in the register
required to be maintained under that section.
In our opinion, all these transactions have been made at prices which
are reasonable having regard to the prevailing market prices at the
relevant time.
vi) The company has not accepted any deposits during the year from the
public within the meaning of section 58A, 58AA or any other relevant
provisions of the Companies Act, 1956 and rules framed there-under.
vii) The paid up capital of the company was less than Rs.25 Lacs as at
the commencement of the financial year and average annual turnover for
the period was not in excess of Rs.2 Crores, hence the internal audit
system is not applicable to the company.
viii) According to information and explanation given to us, the
maintenance of cost records has not been prescribed by the central
government under clause (d) of sub-section (1) of section 209 of the
Companies Act, 1956 for the company.
ix) According to the information and explanations given to us and the
records of the company examined by us, in our opinion, the company is
generally regular in depositing the undisputed statutory dues and any
other statutory dues except income tax applicable, with the appropriate
authorities.
x) According to information and explanations given to us and the
records of the company examined by us, in our opinion, there are no
undisputed statutory dues outstanding as on 31st March, 2010 for a
period exceeding six months from the date they become payable.
According to the information and explanations given to us, there are no
dues of Income Tax pending in dispute.
xi) The company has no accumulated losses as on March 31, 2010 and it
has not incurred any cash losses during the financial year or in the
financial year immediately preceding to this financial year.
xii) According to the records of the company examined by us and the
information and explanations given to us, the company has not defaulted
in repayment of dues to any financial institution or bank as on balance
sheet date.
xiii) In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4
(Xiii) of the Companies (Audtiors Report) Order, 2003 is not
applicable to the company.
xiv) In our opinion, the company is not a dealer or trader in shares,
securities, debentures and other investments.
xv) During the year the company has not granted any loans & advances on
the basis of security by way of pledge of shares, debentures and other
securities.
xvi) In our opinion and according to the information and explanations
given to us the company has not given corporate guarantee for loans
taken by others from bank or financial institutions.
xvii) According to the records of the company examined by us and the
information and explanation given to us, the company has not obtained
any term loan during the year, hence, the question of application of
the same does not arise.
xviii) According to the information and explanations given to us and on
overall examinations of the balance sheet of the company, we report
that no funds raised on short term basis have been used for long term
investment.
xix) During the year the company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under section 301 of the companies Act, 1956.
xx) During the year the company has not issued any debentures nor has
created securities in respect of debentures.
xxi) During the year covered by our report the company has not raised
any money by public issue.
xxii) During the course of information of the books and records of the
company, carried out 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 been informed of
such case by management.
FOR M/S KALOTI AND LATHIYA
CHARTERED ACCOUNTANTS
(SANJEEEVN.BAJAJ)
PARTNER
Membership No.107678
MUMBAI
DATED: 1 st September, 2010 FRN 104589W