Mar 31, 2023
Maithan Alloys Limited
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying Standalone Financial Statements of Maithan Alloys Limited ("the Company"), which comprise the Balance sheet as at March 31, 2023, the Statement of Profit and Loss, (including the Statement of Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and notes to the Standalone 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 Financial Statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India, of the state of affairs (financial position) of the Company as at March 31, 2023, its profit (financial performance including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the Standalone Financial Statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Standalone Financial Statements'' section of our report. We are independent of the Company in accordance with the ''Code of Ethics ''issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the Standalone Financial Statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI''s Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Standalone Financial Statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Standalone Financial Statements of the current period. These matters were addressed in the context of our audit of the Standalone Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matter described below to be the key audit matter to be communicated in our report.
Descriptions of the Key Audit Matter |
How our audit addressed the Key Audit Matter |
Revenue Recognition (Refer Note No. 3 and 33 and of the Standalone Financial Statement): Revenue from the sale of goods (hereinafter referred to as "Revenue") is recognised when the Company performs its obligation to its customers and the amount of revenue can be measured reliably and recovery of the consideration is probable. The timing of such revenue recognition in case of sale of goods is when the control over the same is transferred to the customer. The timing of revenue recognition is relevant to the reported performance of the Company. The management considers revenue as a key measure for evaluation of performance. There is a risk of revenue being recorded before control is transferred. We determine this to be key audit matter to our audit report due to quantum of amount involved. |
Our audit procedures included the following: ¦ Assessed the Company''s revenue recognition accounting policies in line with Ind AS 115 ("Revenue from Contracts with Customers") and tested thereof. ¦ Evaluated the design, implementation and operating effectiveness of Company''s controls in respect of revenue recognition. ¦ Tested the effectiveness of such controls over revenue cut off at year-end. ¦ On a sample basis, tested supporting documentation for sales transactions recorded during the year which included sales invoices, customer contracts and shipping documents. ¦ Performed analytical review procedures on revenue recognised during the year to identify any unusual and/or material variances ¦ Tested selected samples of revenue transactions recorded before and after the financial year end date to determine whether the revenue has been recognised in the appropriate financial period. ¦ Evaluated the appropriateness and adequacy of disclosures in the financial statements in respect of revenue recognition with the applicable standards. Based on above procedures, we concluded that the revenue has been recognised and measured as per IND AS 115. |
Inventory Management (Refer Note No. 3 and 12 and of the Standalone Financial Statement): The carrying value of inventory as at 31 March 2023 is ''272.44 crores. The inventory is valued at the lower of cost and net realizable value. We considered the value of inventory as a key audit matter given the relative size of its balance in the financial statements and significant judgment involved in comparison of net realizable value with cost to arrive at valuation of inventory. |
Our audit procedures included the following: ¦ We understood and tested the design and operating effectiveness of controls as established by the management in determination of net realizable value of inventory. ¦ Assessing the appropriateness of Company''s accounting policy for valuation of stock-in-trade and compliance of the policy with the requirements of the prevailing Indian accounting standards. ¦ We considered various factors including the actual selling price prevailing around and subsequent to the year-end. ¦ Compared the cost of the finished goods with the estimated net realizable value and checked if the finished goods were recorded at net realizable value where the cost was higher than the net realizable value. ¦ Further, for the purpose of determination of physical quantity of the inventory as at the year end, physical |
Descriptions of the Key Audit Matter |
How our audit addressed the Key Audit Matter |
verification was done by the management of the Company along with independent third party and we have relied upon their report. Based on the above procedures performed, the management''s determination of the net realizable value of the inventory as at the year end and comparison with cost for valuation of inventory is considered to be reasonable. |
|
Investment (Refer Note No. 3,9 and 14 of the Standalone Financial Statement): The company holds Current and Non-Current Investments amounting to ''862.45 crores and '' 5.11crores respectively which represents 28.65% of total assets as at March 31, 2023. The Investments comprise of mutual funds, debentures, and equity shares. The investments being financial instruments needs to be appropriately designated at fair value through profit or loss, fair value through other comprehensive income (not to be recycled) or at amortized cost. Further, these financial instruments need to be valued and classified as Level 1, 2 or 3 financial instruments as per the fair value hierarchy. This was an area of focus for our audit and the area where significant audit effort was directed. |
Our audit procedures included the following: ¦ We understood, assessed and tested the design and operating effectiveness of key controls surrounding fair valuation of investments. ¦ We have obtained demat account holding statement / confirmations, Mutual fund statements to verify the existence and ownership of the company''s Investment portfolio. ¦ We have verified on sample basis the fair valuation of all Investments held as at March 31, 2023 to the Net Assets Value provided by the respective Mutual funds, market value of debenture and equity shares from source data and tested the arithmetical accuracy of the calculation of valuation of investments. ¦ Assessed disclosures in financial statements in respect of investment. Based on the audit procedures performed, we are satisfied with valuation and existence of current and non-current investment. |
We have determined that there are no other key audit matters to communicate in our report
Information Other than the Standalone Financial Statements and Auditor''s Report Thereon
The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Annual report but does not include the standalone financial statements and our auditor''s report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether such other information is materially inconsistent with the
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.
Responsibilities of Management and Board of Directors for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these Standalone Financial Statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act read with the
Companies (Indian Accounting Standards) Rules, 2015, as amended. 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 the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the Standalone Financial Statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Those Board of Directors are also responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the Standalone Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Standalone Financial Statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
¦ Identify and assess the risks of material
misstatement of the Standalone Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
¦ Obtain an understanding of internal 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 in place and the operating effectiveness of such controls.
¦ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
¦ Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the Standalone Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
¦ Evaluate the overall presentation, structure, and content of the Standalone Financial Statements, including the disclosures, and whether the Standalone Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the Standalone Financial Statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Standalone Financial Statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the Standalone
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Standalone Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Other Matters
The comparative financial information of the Company for the year ended March 31, 2022 included in these standalone financial statements have been audited by the predecessor auditor. The report of the predecessor auditor on the comparative financial information dated May 30, 2022 expressed an unmodified opinion.
Our opinion on the standalone financial statements is not modified in respect of this matter on the comparative financial information
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2020 ("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 matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143 (3) of the Act, based on our audit, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
(c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the 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, the aforesaid Standalone Financial Statements comply with the Accounting Standards specified under Section 133 of the Act, read with companies (Indian Accounting Standards) Rules, 2015, as amended;
(e) On the basis of the written representations received from the directors as on March 31, 2023 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2023 from being appointed as a director in terms of Section 164(2) of the Act;
(f) With respect to the adequacy of the internal financial controls with reference to Standalone Financial Statements of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls with reference to Standalone Financial Statements.
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with the requirement of section 197(16) of the Act, as amended,
In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid/provided by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
(h) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:
I. The Company has disclosed the impact of pending litigations on its financial position in its Standalone Financial Statements - Note 56 and 44(i) to the Standalone Financial Statements.
II. The Company did not have any longterm contracts including derivative contracts for which there were any material foreseeable losses as on March 31, 2023.
III. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
IV. (a) The management has represented
to us that, to the best of its knowledge and belief, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other person(s) or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(b) The management has represented to us that, to the best of its knowledge and belief, no funds have been received by the company from any person(s) or enti''ty(ies), including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the company shall,
whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries and
(c) Based on our audit procedures that are considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause
(i) and (ii) of Rule 11(e) as provided under paragraph 2(h) (iv)(a) &(b) above, contain any material misstatement.
V. (a) The dividend paid by the Company
during the year in respect of the dividend declared for the previous year is in accordance with section 123 of the Act to the extent applies to payment of dividend.
(b) The Board of Directors of the Company has proposed dividend for the year, which is subject to the approval of the Members at the ensuing Annual general Meeting. The amount of dividend proposed is in accordance with section 123 of the Act, as applicable.
VI. Proviso to Rule 3(1) of the Companies (Accounts) Rules 2014 for maintaining books of account using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Company with effect from April 1, 2023, and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is not applicable for the financial year ended M arch 31, 2023.
For Singhi & Co.
Chartered Accountants Firm Registration Number: 302049E
(Shrenik Mehta)
Partner
Membership Number: 063769 UDIN:23063769BGYRKG3704
Mar 31, 2021
To the Members of Maithan Alloys Limited
Report on the Audit of the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Maithan Alloys Limited (the âCompanyâ), which comprise the Standalone Balance Sheet as at 31 March 2021, and the Standalone Statement of Profit and Loss (including Other Comprehensive Income), Standalone Statement of Changes in Equity and Standalone Statement of Cash Flows for the year then ended, and notes to the standalone financial statements, including a summary of significant accounting policies and other explanatory information (hereinafter referred to as âthe Standalone Financial Statementsâ).
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (âthe Actâ) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, (âInd ASâ) and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2021, and the profit and other comprehensive income, changes in equity and its cash flows for the year ended on that date.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the
Act. Our responsibilities under those Standards are further described in the Auditorâs Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute ofChartered Accountants of India together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules thereunder, 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 opinion.
We draw your attention to Note 50 to the standalone financial statement which explains the uncertainties and the managementâs assessment of the financial impact due to the lock-downs and other restrictions and conditions related to the COVID-19 pandemic situation, for which a definitive assessment of the impact in the subsequent period is highly dependent upon circumstances as they evolve. Our opinion is not modified in respect of this matter.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report:
Sl. No. |
Key Audit Matters |
Auditorâs Response |
1 |
Revenue Recognition (Refer note 3(l) the significant accounting policies of Standalone Financial Statements). Revenue is recognized when the control of the underlying products has been transferred to customer along with the satisfaction of the Companyâs performance obligation under a contract with customer. There is a significant risk of misstatement due to risk related to inappropriate recognition of the revenue and hence we considered the Revenue as a key audit matter given its relative size in the financial statements and significant judgment involved in the consideration of factors in determination of selling prices such as fluctuation of raw materials prices in the market. |
Our audit procedures, considering the significant risk of misstatement related to revenue recognition, included amongst other: ⢠Obtaining an understanding and assessing the design, implementation and operating effectiveness of the Companyâs key internal controls over the revenue recognition process. ⢠Examination of significant contracts entered into close to year end to ensure revenue recognition is made in correct period. ⢠Testing a sample of contracts from various revenue streams by agreeing information back to contracts and proof of delivery as appropriate and ensure revenue recognition policy is in accordance with principles of Ind AS 115. Our testing as described above showed that revenue has been recorded in accordance with the terms of underlying contracts and accounting policy in this area. |
2 |
Inventories The carrying value of inventory as at 31 March 2021 is ''348.51 Crore. The inventory is valued at the lower of cost and net realizable value. We considered the value of inventory as a key audit matter given the relative size of its balance in the financial statements and significant judgment involved in comparison of net realizable value with cost to arrive at valuation of inventory. Refer Note No. 9 to the standalone financial statements. |
Principal Audit Procedures ⢠We understood and tested the design and operating effectiveness of controls as established by the management in determination of net realizable value of inventory. ⢠Assessing the appropriateness of Companyâs accounting policy for valuation of stock-in- trade and compliance of the policy with the requirements of the prevailing Indian accounting standards ⢠We considered various factors including the actual selling price prevailing around and subsequent to the year-end. ⢠Compared the cost of the finished goods with the estimated net realizable value and checked if the finished goods were recorded at net realizable value where the cost was higher than the net realizable value. ⢠Further, for the purpose of determination of physical quantity of the inventory as at the year end, physical verification was done by the management of the Company and we have relied upon their report. ⢠Based on the above procedures performed, the managementâs determination of the net realizable value of the inventory as at the year end and comparison with cost for valuation of inventory is considered to be reasonable. |
Information Other than the Standalone Financial Statements and Auditorâs Report Thereon
The Companyâs management and Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Companyâs annual report, but does not include the standalone financial statements and our auditorâs report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements
The Companyâs management and Board of Directors are responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the state of affairs, profit/loss (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 Indian Accounting Standards specified under section 133 of the Act, read with relevant rules issued thereunder.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate implementation and maintenance of accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal
financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management and Board of Directorâs are responsible for assessing the Companyâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the companyâs financial reporting process.
Auditorâs Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorâs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section I43(3)(i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness ofmanagementâs 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 Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditorâs report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditorâs report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by âthe Companies (Auditorâs Report) Order, 2016â, issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the âAnnexure Aâ statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination ofthose books;
(c) The Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive Income), Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the books of account;
(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards
specified under Section 133 of the Act, read with relevant rules issued thereunder;
(e) On the basis of the written representations received from the directors as on 31 March 2021 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2021 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 with reference to financial statements ofthe Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure
Bâ;
(g) With respect to the other matters to be included in the Auditors 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 as at 31 March 2021 on its financial position in its standalone financial statements - Refer Note 45A to the Standalone Financial Statements.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company during the year ended 31 March 2021.
3. With respect to the other matters to be included in the Auditorâs Report in accordance with the requirements of section 197(16) of the Act:
In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
For M Choudhury & Co.
Chartered Accountants Firm Registration No. 302186E
D Choudhury
Partner
Place: Kolkata Membership No. 052066
Date: 05 May 2021 UDIN: 21052066AAAABT3780
Mar 31, 2018
Report on the Standalone Ind AS Financial Statements
1. We have audited the accompanying standalone Ind AS financial statements of Maithan Alloys Limited (the âCompanyâ), which comprise the Balance Sheet as at 31 March 2018, the Statement of Profit and Loss, the Statement of Cash Flows and the Statement of Changes in Equity for the year then ended and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as âthe Standalone Ind AS financial statementsâ).
Managementâs Responsibility for the Standalone Financial Statements
2. The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of âthe Companies Act, 2013â (the âActâ) with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act, read with relevant rules issued thereunder.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
3. Our responsibility is to express an opinion on these standalone Ind AS 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. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone financial statements are free from material misstatement.
6. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgement, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
7. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
8. In our opinion, and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the Ind AS, of the state of affairs (financial position) of the Company as at 31 March 2018, and its profit (financial performance including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Other Matters
9. The comparative financial information of the Company for the year ended 31 March 2017 and the transition date opening Balance Sheet as at 1 April 2016 included in these standalone Ind AS financial statements, are based on the previously issued statutory financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006 audited by the predecessor auditor D.K. Chhajer & Co. whose report for the year ended 31 March 2017 and 31 March 2016 dated 9 May 2017 and 14 May 2016 respectively expressed an unmodified opinion on those standalone financial statements, as adjusted for the differences in the accounting principles adopted by the Company on transition to Ind AS, which have been audited by us.
Report on Other Legal and Regulatory Requirements
10. As required by âthe Companies (Auditorâs Report) Order, 2016 (âthe Orderâ); issued by the Central Government of India in terms of Sub-Section (11) of Section 143 of the Act, we give in the âAnnexure Aâ, a statement on the matters specified in paragraphs 3 and 4 of the Order.
11. 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 (including other comprehensive income), the Statement of Cash Flows and the Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;
d) in our opinion, the aforesaid standalone Ind AS financial statements dealt with by this report comply with the Accounting Standards specified under Section 133 of the Act, read with relevant rules issued thereunder;
(e) On the basis of written representations received from the directors as on 31 March 2018 and taken on record by the Board of Directors, none of the directors are disqualified as on 31 March 2018 from being appointed as a director in terms of Section 164(2) of the Act;
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ;
(g) With respect to the other matters to be included in the Auditorsâ 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 disclosed the impact of pending litigations on its financial position in its standalone financial statements- Refer Note 44 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 forseeable losses;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended 31 March 2018.
i. (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The fixed assets of the Company have been physically verified by the Management at reasonable intervals and no material discrepancies have been noticed on such verification.
(c) According to the information and explanations 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.
ii. The physical verification of inventory has been conducted at reasonable intervals by the Management and no material discrepancies were noticed on such verification.
iii. The Company has not granted any loans, secured or unsecured, to companies, limited liability partnership firm, firms or other parties covered in the register maintained under Section 189 of the Act. Therefore, the provisions of Clause 3(iii)(a), (b) and (c) of the Order are not applicable to the Company.
iv. The Company has neither granted any loan nor provided any guarantee or security, hence the provisions of Section 185 of the Act are not applicable to the Company. In our opinion and according to the informations and explanations given to us, with respect to the investments made, the Company has complied with the provisions of Section 186 of the Act
v. The Company has not accepted any deposits from the public within the meaning of Sections 73 to 76 of the Act and the rules framed there under. Therefore, the provision of clause 3(v) of the order is not applicable on the Company.
vi. Pursuant to the rules made by the Central Government of India, the Company is required to maintain Cost Records as specified under Section 148(1) of the Act in respect of its products. We have broadly reviewed the same, and are of the opinion that, prima facie, such accounts and records have been so made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.
vii. (a) The Company is generally regular in depositing the undisputed statutory dues, including Provident Fund, Employeesâ State Insurance, Income tax, Sales tax, Service tax, Goods and Service tax, Customs Duty, Excise duty, Value Added Tax, cess and other material statutory dues, as applicable, with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31 March, 2018 for a period of more than six months from the date of becoming payable.
(b) The particulars of dues of Service tax, Excise duty, cess, etc, which have not been deposited as at 31 March, 2018 on account of dispute, are given as follows:
Name of the statute |
Nature of dues |
Amount (Rs.) |
Period to which the amount relates |
Forum where the dispute is pending |
The Central Excise Act, 1944 |
Excise Duty & Service Tax |
10,45,052 |
2006-07 |
CESTAT, Kolkata |
The Central Excise Act, 1944 |
Excise Duty & Service Tax |
44,97,245 |
2007-08 |
Addl. Commissioner, Bolpur |
The Central Excise Act, 1944 |
Excise Duty & Service Tax |
2008-09 |
CESTAT, Kolkata |
CESTAT, Kolkata |
The Central Excise Act, 1944 |
Excise Duty & Service Tax |
4,98,473 |
2008-09 |
Commissioner (Appeal), Kolkata |
The Central Excise Act, 1944 |
Excise Duty & Service Tax |
10,90,780 |
2008-09 |
Assistant Commissioner, Asansol |
The Central Excise Act, 1944 |
Excise Duty & Service Tax |
42,84,911 |
2009-10 |
CESTAT, Kolkata |
The Central Excise Act, 1944 |
Excise Duty & Service Tax |
4,45,698 |
2009-10 |
CESTAT, Kolkata |
The Central Excise Act, 1944 |
Excise Duty & Service Tax |
3,39,190 |
2009-10 |
CESTAT, Kolkata |
The Central Excise Act, 1944 |
Excise Duty & Service Tax |
27,13,055 |
2009-10 |
CESTAT, Kolkata |
The Central Excise Act, 1944 |
Excise Duty & Service Tax |
1,14,215 |
2009-10 |
CESTAT, Kolkata |
The Central Excise Act, 1944 |
Excise Duty & Service Tax |
98,051 |
2010-11 |
CESTAT, Kolkata |
The Central Excise Act, 1944 |
Excise Duty &Service Tax |
70,54,065 |
2012-13 |
CESTAT, Kolkata |
The Central Excise Act, 1944 |
Excise Duty & Service Tax |
6,60,880 |
2013-14 |
Addl. Commissioner, Bolpur |
The Central Excise Act, 1944 |
Excise Duty & Service Tax |
10,61,626 |
2013-14 |
Addl. Commissioner, Bolpur |
The Central Excise Act, 1944 |
Excise Duty & Service Tax |
5,83,411 |
2013-14 |
Addl. Commissioner, Bolpur |
The Central Excise Act, 1944 |
Excise Duty & Service Tax |
2,00,606 |
2013-14 |
Assistant Commissioner, Asansol |
The Central Excise Act, 1944 |
Excise Duty & Service Tax |
3,71,057 |
2013-14 |
Assistant Commissioner, Asansol |
The Central Excise Act, 1944 |
Excise Duty & Service Tax |
1,15,006 |
2014-15 |
Assistant Commissioner, Asansol |
The Central Excise Act, 1944 |
Excise Duty & Service Tax |
31,51,800 |
2013-14 |
Addl. Commissioner, Bolpur |
The Central Excise Act, 1944 |
Excise Duty & Service Tax |
60,15,000 |
2014-15 |
Commissioner, Bolpur |
The Central Excise Act, 1944 |
Excise Duty & Service Tax |
56,864 |
2016-17 |
Assistant Commissioner, Bolpur |
The Central Excise Act, 1944 |
Excise Duty & Service Tax |
23,857 |
2016-17 |
Assistant Commissioner, Bolpur |
The Central Excise Act, 1944 |
Excise Duty & Service Tax |
50,90,935 |
2016-17 |
Joint Commissioner, Bolpur |
Finance Act, 1994 |
Service Tax |
11,62,272 |
2017-18 |
Commissioner, Siliguri |
Finance Act, 1994 |
Service Tax |
5,57,442 |
2017-18 |
Commissioner, Siliguri |
Finance Act, 1994 |
Service Tax |
8,15,040 |
2017-18 |
Assistant Commissioner, Asansol |
viii. The Company has not defaulted in repayment of loans or borrowings to any financial institution or banks at the Balance Sheet date. The Company has neither issued any debentures nor has taken any loans or borrowings from the Government as at the Balance Sheet date.
ix. The Company has not raised any money by way of initial public offer/ further public offer (including debt instruments)/term loans during the year. Accordingly, the provisions of clause 3(ix) of the Order are not applicable to the Company.
x. 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.
xi. The managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V of Act.
xii. As the Company is not a Nidhi Company, the provisions of clause 3(xii) of the Order is not applicable.
xiii. The Company has entered into transactions with related parties in compliance with the provisions of Section 177 and 188 of the Act. The details of such related party transactions have been disclosed in the standalone Ind AS financial statements as required by the applicable accounting standards.
xiv. No money was raised through preferential allotment/private placements of shares/ fully/ partly convertible debentures during the year under review, hence, the provisions of clause 3(xiv) of the Order is not applicable to the Company.
xv. According to the information and explanations given to us and on the basis of our examination of the records, the Company has not entered into any non-cash transactions with its directors or person connected with them. Accordingly, clause 3(xv) of the Order is not applicable to the Company.
xvi. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly the provision of clause 3(xvi) are not applicable to the Company.
We have audited the internal financial controls over financial reporting of Maithan Alloys Limited (âthe Companyâ) as at 31 March, 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (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 Companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records and the timely preparation of reliable financial information, as required under the Companies Act, 2013 (âthe Actâ).
Auditorâs Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of standalone Ind AS 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 unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the standalone Ind AS financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management, override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the ICAI.
For M Choudhury & Co.
Chartered Accountants
FRN 302186E
D Choudhury
Place: Kolkata Partner
Date: 30 April 2018 Membership No. 052066
Mar 31, 2017
To the members of
Maithan Alloys Limited
Report on the Standalone Financial Statements
1. We have audited the accompanying standalone financial statements of Maithan Alloys Limited (the "Company"), which comprise the Balance Sheet as at 31st March
2017, 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.
Managementâs Responsibility for the Standalone Financial
Statements
2. The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of ''the Companies Act, 2013â of India (the "Act") with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorsâ Responsibility
3. Our responsibility is to express an opinion on these standalone 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 there under.
5. 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 financial statements are free from material misstatement.
6. 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 auditorâs judgment, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone 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 standalone financial statements.
Opinion
8. In our opinion, and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March 2017;
(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 (Auditorsâ Report) Order, 2016â 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 matters specified in paragraphs 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 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, 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 accompanying standalone financial statements dealt with by this report 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 31st March 2017 and taken on record by the Board of Directors, none of the directors is disqualified as on 31st 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 Auditorsâ 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 disclosed the impact of pending litigations on its financial position in its standalone financial statements- Refer Note 32.01(a) to the Standalone financial statements;
ii. The Company has made provision as at 31st March 2017, as required under the applicable law or accounting standards for material foreseeable losses on long-term contracts including derivative contracts;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended 31st March 2017;
iv. The Company has provided requisite disclosures in its financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016, on the basis of information available with the company. Based on audit procedures, and relying on managementâs representations, we report that disclosures are in accordance with the books of accounts maintained by the Company- Refer Note 18.01 to the Standalone financial statements.
i. (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The fixed assets of the Company have been physically verified by the Management at reasonable intervals and no material discrepancies have been noticed on such verification.
(c) According to the information and explanations 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.
ii. The physical verification of inventory has been conducted at reasonable intervals by the Management and no material discrepancies were noticed on such verification.
iii. The Company has not granted any loans, secured or unsecured, to companies, limited liability partnership firm, firms or other parties covered in the register maintained under Section 189 of the Act. Therefore, the provisions of Clause 3(iii)[(a), (b) and (c)] of the said Order are not applicable to the Company.
iv. The Company has neither granted any loan, provided any guarantee or security, nor purchased any investments so the provisions of Clause 3(iv) of the order is not applicable to the Company.
v. The Company has not accepted any deposits from the public within the meaning of Sections 73 to 76 of the Act and the rules framed there under. Therefore, the provision of clause 3(v) of the order is not applicable on the company.
Name of the statute |
Nature of dues |
Amount ('') |
Period to which the amount relates |
Forum where the dispute is pending |
The Central Excise Act, 1944 |
Excise Duty & Service Tax |
1,045,052 |
2006-07 |
CESTAT, Kolkata |
The Central Excise Act, 1944 |
Excise Duty & Service Tax |
4,497,245 |
2007-08 |
CESTAT, Kolkata |
The Central Excise Act, 1944 |
Excise Duty & Service Tax |
1,236,512 |
2008-09 |
CESTAT, Kolkata |
vi. Pursuant to the rules made by the Central Government of India, the Company is required to maintain Cost Records as specified under Sec 148(1) of the act in respect of its products.
vii. We have broadly reviewed the same, and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.
viii. (a) The Company is generally regular in depositing
the undisputed statutory dues, including provident fund, employeesâ state insurance, income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues, as applicable, with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31st March 2017 for a period of more than six months from the date of becoming payable.
(b) According to the information and explanations given to us and the records of the Company examined by us, there are no dues of income-tax, sales-tax, service-tax, duty of customs, duty of excise, value added tax, which have not been deposited on account of any dispute. The particulars of dues of income-tax, sales-tax, service-tax, duty of customs, duty of excise, value added tax as at 31st March 2017 which have not been deposited on account of dispute, are as follows:
viii. The Company has not defaulted in repayment of loans or borrowings to any financial institution or banks at the balance sheet date.
Name of the statute |
Nature of dues |
Amount ('') |
Period to which the amount relates |
Forum where the dispute is pending |
The Central Excise Act, 1944 |
Excise Duty & Service Tax |
498,473 |
2008-09 |
Commissioner (Appeal), Kolkata |
The Central Excise Act, 1944 |
Excise Duty & Service Tax |
1,090,780 |
2008-09 |
Assistant Commissioner, Asansol |
The Central Excise Act, 1944 |
Excise Duty & Service Tax |
4,284,911 |
2009-10 |
CESTAT, Kolkata |
The Central Excise Act, 1944 |
Excise Duty & Service Tax |
445,698 |
2009-10 |
CESTAT, Kolkata |
The Central Excise Act, 1944 |
Excise Duty & Service Tax |
339,190 |
2009-10 |
CESTAT, Kolkata |
The Central Excise Act, 1944 |
Excise Duty & Service Tax |
2,713,055 |
2009-10 |
CESTAT, Kolkata |
The Central Excise Act, 1944 |
Excise Duty & Service Tax |
114,215 |
2009-10 |
CESTAT, Kolkata |
The Central Excise Act, 1944 |
Excise Duty & Service Tax |
98,051 |
2010-11 |
CESTAT, Kolkata |
The Central Excise Act, 1944 |
Excise Duty & Service Tax |
7,054,065 |
2012-13 |
CESTAT, Kolkata |
The Central Excise Act, 1944 |
Excise Duty & Service Tax |
660,880 |
2013-14 |
Addl. Commissioner, Bolpur |
The Central Excise Act, 1944 |
Excise Duty & Service Tax |
1,061,626 |
2013-14 |
Addl. Commissioner, Bolpur |
The Central Sales Tax (Meghalaya Amendment) Rule, 1973 |
Central Sales Tax |
65,697,583 |
2013-14 |
Shilong High Court |
The Central Excise Act, 1944 |
Excise Duty & Service Tax |
583,411 |
2013-14 |
Addl. Commissioner, Bolpur |
The Central Excise Act, 1944 |
Excise Duty & Service Tax |
200,606 |
2013-14 |
Assistant Commissioner, Asansol |
The Central Excise Act, 1944 |
Excise Duty & Service Tax |
371,057 |
2013-14 |
Assistant Commissioner, Asansol |
The Central Excise Act, 1944 |
Excise Duty & Service Tax |
115,006 |
2014-15 |
Assistant Commissioner, Asansol |
The Central Excise Act, 1944 |
Excise Duty & Service Tax |
3,151,800 |
2013-14 |
Addl. Commissioner, Bolpur |
The Central Excise Act, 1944 |
Excise Duty & Service Tax |
6,015,000 |
2014-15 |
Commissioner, Bolpur |
The Central Excise Act, 1944 |
Excise Duty & Service Tax |
56,864 |
2016-17 |
Assistant Commissioner, Bolpur |
The Central Excise Act, 1944 |
Excise Duty & Service Tax |
23,857 |
2016-17 |
Assistant Commissioner, Bolpur |
The Central Excise Act, 1944 |
Excise Duty & Service Tax |
5,090,935 |
2016-17 |
Joint Commissioner, Bolpur |
ix. The Company has not raised any money by way of initial public offer/further public offer (including debt instruments)/term loans. Accordingly, the provisions of clause 3(ix) of the Order are not applicable to the Company.
x. 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.
xi. The managerial remuneration has been paid/provided in accordance with the requisite approvals mandated by the provisions of sec 197 read with Schedule V of the Companies Act, 2013.
xii. As the Company is not a Nidhi Company, the provisions of clause 3(xii) of the Order is not applicable.
xiii. The Company has entered into transactions with related parties in compliance with the provisions of Sec 177 and 188 of the act. The details of such related party transactions have been disclosed in the standalone financial statement as required by the applicable accounting standards.
xiv. No money was raised through preferential allotment/ private placements of shares/fully/partly convertible debentures during the year under review, hence, the provisions of clause 3(xiv) of the said order is not applicable to the Company.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Maithan Alloys Limited ("the Company") as at 31st March 2017 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 Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of
xv. The Company has not entered into any non-cash transactions with its directors or person connected with him. Accordingly, clause 3(xv) of the Order are not applicable to the Company.
xvi. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Accordingly the provision of clause 3(xvi) are not applicable to the Company.
Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2)provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March 2017, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For D K Chhajer & Co.
Chartered Accountants
Firm Registration No. 304138E
Dilip Kumar Saha
Place: Kalyaneshwari Partner
Date: 9th May, 2017 Membership No. 014464
Mar 31, 2015
1. We have audited the accompanying standalone financial statements of
MAITHAN ALLOYS LIMITED (the "Company"), which comprise the Balance
Sheet as at 31st March 2015, the Statement of Profit and Loss and the
Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information,
which we have signed under reference to this report.
Management's Responsibility for the Standalone Financial Statements
2. The Company's Board of Directors is responsible for the matters
stated in Section 134(5) of 'the Companies Act, 2013' of India (the
"Act") with respect to the preparation of these standalone financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also
includes maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation
and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
standalone financial statements that give a true and fair view and are
free from material misstatement, whether due to fraud or error.
Auditors' Responsibility
3. Our responsibility is to express an opinion on these standalone
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. Those Standards require that
we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the standalone financial
statements are free from material misstatement.
6. An audit involves performing procedures to obtain audit evidence
about the amounts and the disclosures in the standalone financial
statements. The procedures selected depend on the auditor's judgment,
including the assessment of the risks of material misstatement of the
standalone financial statements, whether due to fraud or error. In
making those risk assessments, the auditor considers internal financial
control relevant to the Company's preparation of the standalone
financial statements that give a true and fair view in order to design
audit procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on whether the Company has in place
an adequate internal financial controls system over financial reporting
and the operating effectiveness of such controls. An audit also includes
evaluating the appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the Company's
Directors, as well as evaluating the overall presentation of the
standalone financial statements.
7. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the
standalone financial statements.
Opinion
8. In our opinion, and to the best of our information and according to
the explanations given to us, the accompanying standalone financial
statements give the information required by the Act in the manner so
required and give a true and fair view in conformity with the accounting
principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 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 paragraphs 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
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, 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 accompanying standalone financial statements
dealt with by this report 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 31st March 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March 2015, from being
appointed as a director in terms of Section 164(2) of the Act;
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its standalone financial statements - Refer Note
32 to the standalone financial statements;
ii. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long-term contracts including derivative contracts;
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
Annexure to Independent Auditors' Report
Referred to in paragraph 9 of the Independent Auditors' Report of even
date to the members of MAITHAN ALLOYS LIMITED on the Standalone
financial statements for the year ended 31st March, 2015
i. (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation, of fixed
assets.
(b) The fixed assets of the Company have been physically verified by the
Management during the year and no material discrepancies have been
noticed on such verification. In our opinion, the frequency of
verification is reasonable.
ii. (a) The inventory excluding stocks with third parties has been
physically verified by the Management during the year. In respect of
inventory lying with third parties, these have substantially been
confirmed by them. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion, the procedures of physical verification of inventory
followed by the Management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
iii. (a) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under Section 189 of the Act. Therefore, the provisions of Clause
3(iii)[(b) and (c)] of the said Order are not applicable to the Company.
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.
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 Sections 73 to 76 of the Act and the rules framed there
under.
vi. We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under sub-section (1) of Section 148 of the Act, and are of
the opinion that, prima facie, the prescribed accounts and records have
been made and maintained. We have not, however, made a detailed
examination of the 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 generally regular in depositing the undisputed statutory dues,
including provident fund, investor education and protection fund,
employees' state insurance, income tax, sales tax, wealth tax, service
tax, duty of customs, duty of excise, value added tax, cess and other
material statutory dues, as applicable, with the appropriate
authorities.
(b) According to the information and explanations given to us and the
records of the Company examined by us, there are no dues of income-tax,
sales-tax, wealth-tax, duty of customs, value added tax, cess which
have not been deposited on account of any dispute. The particulars of
dues of service-tax and duty of excise as at 31st March, 2015 which
have not been deposited on account of a dispute, are as follows:
Name oF the statute Nature of dues Amount
(in Rs.)
The Central Excise Act, 1944 Excise Duty & Service Tax 1,045,052
The Central Excise Act, 1944 Excise Duty & Service Tax 4,497,245
The Central Excise Act, 1944 Excise Duty & Service Tax 1,236,512
The Central Excise Act, 1944 Excise Duty & Service Tax 498,473
The Central Excise Act, 1944 Excise Duty & Service Tax 1,090,780
The Central Excise Act, 1944 Excise Duty & Service Tax 4,284,911
The Central Excise Act, 1944 Excise Duty & Service Tax 784,888
The Central Excise Act, 1944 Excise Duty & Service Tax 14,137,531
The Central Excise Act, 1944 Excise Duty & Service Tax 2,713,055
The Central Excise Act, 1944 Excise Duty & Service Tax 114,215
The Central Excise Act, 1944 Excise Duty & Service Tax 98,051
The Central Excise Act, 1944 Excise Duty & Service Tax 2,013,061
The Central Excise Act, 1944 Excise Duty & Service Tax 3,237,711
The Central Excise Act, 1944 Excise Duty & Service Tax 7,054,065
The Central Excise Act, 1944 Excise Duty & Service Tax 946,802
The Central Excise Act, 1944 Excise Duty & Service Tax 660,880
The Central Excise Act, 1944 Excise Duty & Service Tax 1,061,626
The Central Excise Act, 1944 Excise Duty & Service Tax 583,411
The Central Excise Act, 1944 Excise Duty & Service Tax 200,606
The Central Excise Act, 1944 Excise Duty & Service Tax 370,146
The Central Excise Act, 1944 Excise Duty & Service Tax 371,057
The Central Excise Act, 1944 Excise Duty & Service Tax 115,006
Name oF the statute Period to which the Forum where the
amount relates dispute is pending
The Central Excise Act, 1944 2006-07 Joint Commissioner,
Bolpur
The Central Excise Act, 1944 2007-08 CESTAT, Kolkata
The Central Excise Act, 1944 2008-09 Joint Commissioner,
Bolpur
The Central Excise Act, 1944 2008-09 Commissioner
(Appeal), Kolkata
The Central Excise Act, 1944 2008-09 Assistant
Commissioner, Asansol
The Central Excise Act, 1944 2009-10 Joint Commissioner,
Bolpur
The Central Excise Act, 1944 2009-10 Assistant
Commissioner, Asansol
The Central Excise Act, 1944 2009-10 Commissioner
(Appeal), Bolpur
The Central Excise Act, 1944 2009-10 Addl. Commissioner,
Bolpur
The Central Excise Act, 1944 2009-10 Commissioner
(Appeal), Bolpur
The Central Excise Act, 1944 2010-11 Commissioner
(Appeal), Bolpur
The Central Excise Act, 1944 2012-13 Addl. Commissioner,
Bolpur
The Central Excise Act, 1944 2012-13 Addl. Commissioner,
Bolpur
The Central Excise Act, 1944 2012-13 Commissioner, Bolpur
The Central Excise Act, 1944 2013-14 Addl. Commissioner,
Bolpur
The Central Excise Act, 1944 2013-14 Addl. Commissioner,
Bolpur
The Central Excise Act, 1944 2013-14 Addl. Commissioner,
Bolpur
The Central Excise Act, 1944 2013-14 Addl. Commissioner,
Bolpur
The Central Excise Act, 1944 2013-14 Assistant
Commissioner, Asansol
The Central Excise Act, 1944 2013-14 Assistant
Commissioner, Asansol
The Central Excise Act, 1944 2013-14 Assistant
Commissioner, Asansol
The Central Excise Act, 1944 2014-15 Assistant
Commissioner, Asansol
(c) 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 transferring to investor education and protection
fund in accordance with the relevant provisions of the Companies Act,
1956 and rules made there under, with the appropriate authorities.
viii. The Company has no 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. According to the records of the Company examined by us and the
information and explanation given to us, the Company has not defaulted
in repayment of dues to any bank as at the balance sheet date.
x. In our opinion, and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company for loans taken by others from banks during the year, are not
prejudicial to the interest of the Company.
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 D K Chhajer & Co.
Chartered Accountants
Firm Registration No. 304138E
Manoj Kumar Roongta
Partner
Membership No. 057761
Place : Kalyaneshwari
Date : 26th May, 2015
Mar 31, 2014
1. We have audited the accompanying financial statements of Maithan
Alloys Limited (the "Company"), which comprise the Balance Sheet as at
March 31 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, which we have
signed under reference to this report.
Management''s Responsibility for the Financial Statements
2. 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 and cash flows of the Company
in accordance with the Accounting Standards referred to in sub-section
(3C) of section 211 of ''the Companies Act, 1956'' of India (the "Act").
This responsibility includes the design, implementation and maintenance
of internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditors'' Responsibility
3. 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 and other applicable authoritative
pronouncements issued by the Institute of Chartered Accountants of
India. Those Standards require thatwe comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free from material misstatement.
4. An audit involves performing procedures to obtain audit evidence,
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditors'' judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditors consider internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity''s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by Management, as well
as evaluating the overall presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
6. In our opinion, and to the best of our information and according to
the explanations given to us, the accompanying financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2014
(b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
7. As required by ''the Companies (Auditor''s Report) Order, 2003'', as
amended by ''the Companies (Auditor''s Report) (Amendment) Order, 2004'',
issued by the Central Government of India in terms of sub-section (4A)
of section 227 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 paragraphs 4 and 5 of the Order.
8. 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 dealt with by this report comply with the
Accounting Standards referred to in sub- section (3C) of section 211 of
the Act,
(e) On the basis of written representations received from the directors
as on March 31 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Act
Annexure to Independent Auditors'' Report
Referred to in paragraph [7] of the Independent Auditors'' Report of
even date to the members of MAITHAN ALLOYS LIMITED on the financial
statements as of and for the year ended 31st March 2014
(a) The Company is maintaining proper records showing full particulars,
including quantitative details and situation, of fixed assets.
(b) The fixed assets of the Company have been physically verified by
the Management during the year and no material discrepancies have been
noticed on such verification. In our opinion, the frequency of
verification is reasonable.
(c) In our opinion, the Company has not disposed off, a substantial
part of fixed assets during the year and the going concern status of
the company is not affected
i. (a) The inventory excluding stocks with third parties has been
physically verified by the Management during the year. In respect of
inventory lying with third parties, these have substantially been
confirmed by them. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion, the procedures of physical verification of nventory
followed by the Management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material
iii. The Company has not granted/taken any loans, secured or unsecured,
to/from companies, firms or other parties covered in the register
maintained under Section 301 of the Act. Therefore, the provisions of
Clause 4(iii) [(b), (c), (d), (f) and (g)] of the said Order are not
applicable to the Company.
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. (a) According to the information and explanations given to us, we
are of the opinion that the particulars of all contracts or
arrangements that need to be entered into the register maintained under
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 such contracts or
arrangements and exceeding the value of Rupees Five Lakhs in respect of
any party during the year 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 from the public within
the meaning of Sections 58A and 58AA of the Act and the rules framed
there under.
vii. In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
viii. We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of sub-section (1) of Section 209 of the
Act, and are of the opinion that, prima facie, the prescribed accounts
and records have been made and maintained. We have not, however, made a
detailed examination of the records with a view to determine whether
they are accurate or complete.
ix. (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, nvestor education and protection fund, employees'' state
nsurance, income tax, sales tax, wealth tax, service tax, customs duty,
excise duty and other material statutory dues, as applicable, with the
appropriate authorities.
(b) According to the information and explanations given to us and the
records of the Company examined by us, there are no dues of income-tax,
sales-tax, wealth-tax, and customs duty which have not been deposited
on account of any dispute. The particulars of dues of service tax and
excise duty as at 31st March 2014 which have not been deposited on
account of a dispute, are as follows
Name of the statute Nature of dues Amount Period to
which the
(Rs. in lacs) amount
relates
The Central Excise
Act, 1944 Excise Duty & Service Tax 10.45 2006-07
The Central Excise
Act, 1944 Excise Duty & Service Tax 12.37 2008-09
The Central Excise
Act, 1944 Excise Duty & Service Tax 42.85 2009-10
The Central Excise
Act, 1944 Excise Duty & Service Tax 4.98 2008-09
The Central Excise
Act, 1944 Excise Duty & Service Tax 10.91 2008-09
The Central Excise
Act, 1944 Excise Duty & Service Tax 7.85 2009-10
The Central Excise
Act, 1944 Excise Duty & Service Tax 141.38 2009-10
The Central Excise
Act, 1944 Excise Duty & Service Tax 44.97 2007-08
The Central Excise
Act, 1944 Excise Duty & Service Tax 27.13 2009-10
The Central Excise
Act, 1944 Excise Duty & Service Tax 20.13 2012-13
The Central Excise
Act, 1944 Excise Duty & Service Tax 32.38 2012-13
The Central Excise
Act, 1944 Excise Duty & Service Tax 5.56 2013-14
The Central Excise
Act, 1944 Excise Duty & Service Tax 9.46 2013-14
The Central Excise
Act, 1944 Excise Duty & Service Tax 14.45 2013-14
The Central Excise
Act, 1944 Excise Duty & Service Tax 6.60 2013-14
The Central Excise
Act, 1944 Excise Duty & Service Tax 10.61 2013-14
Name of the Statute Forum where the dispute is pending
The Central Excise Act, 1944 Joint Commissioner, Bolpur
The Central Excise Act, 1944 Joint Commissioner, Bolpur
The Central Excise Act, 1944 Joint Commissioner, Bolpur
The Central Excise Act, 1944 Commissioner (Appeal), Kolkata
The Central Excise Act, 1944 Assistant Commissioner, Asansol
The Central Excise Act, 1944 Assistant Commissioner, Asansol
The Central Excise Act, 1944 Commissioner (Appeal), Bolpur
The Central Excise Act, 1944 CESTAT, Kolkata
The Central Excise Act, 1944 Addl. Commissioner, Bolpur
The Central Excise Act, 1944 Addl. Commissioner, Bolpur
The Central Excise Act, 1944 Addl. Commissioner, Bolpur
The Central Excise Act, 1944 Addl. Commissioner, Bolpur
The Central Excise Act, 1944 Addl. Commissioner, Bolpur
The Central Excise Act, 1944 Addl. Commissioner, Bolpur
The Central Excise Act, 1944 Addl. Commissioner, Bolpur
The Central Excise Act, 1944 Addl. Commissioner, Bolpur
x. The Company has no 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.
xi. According to the records of the Company examined by us and the
information and explanation given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holders as at the balance sheet date.
xii. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Therefore, the provisions of Clause 4(xii) of the Order are not
applicable to the Company.
xiii. As the provisions of any special statute applicable to chit fund/
nidhi/ mutual benefit fund/ societies are not applicable to the
Company, the provisions of Clause 4(xiii) of the Order are not
applicable to the Company.
xiv. The Company has maintained proper records of the transactions and
contracts in respect of dealing or trading in shares, securities,
debentures and other investments and timely entries have been made
therein. All shares, securities, debentures and other investments have
been held by the Company in its own name.
xv. The Company has given guarantees for loans taken by others from
banks and financial institutions. According to the information and
explanation given to us, we are of the opinion that the terms and
conditions thereof are not prima facie prejudicial to the interest of
the Company.
xvi. The Company has not raised any term loans. Accordingly, the
provisions of Clause 4(xvi) of the Order are not applicable to the
Company.
xvii. According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that the no funds raised on short-term basis have been used for
long-term investment.
xviii. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act during the year. Accordingly, the provisions of Clause
4(xviii) of the Order are not applicable to the Company.
xix. The Company has not issued any debentures during the year and does
not have any debentures outstanding as at the beginning of the year and
at the year end. Accordingly, the provisions of Clause 4(xix) of the
Order are not applicable to the Company.
xx. The Company has not raised any money by public issues during the
year. Accordingly, the provisions of Clause 4(xx) of the Order are not
applicable to the Company.
xxi. 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 D. K. Chhajer & Co.
Chartered Accountants
FRN-304138E
Niraj K. Jhunjhunwala
Place: Kalyaneshwari Partner
Date: 27 May 2014 M. NO-F057170
Mar 31, 2013
REPORT ON FINANCIAL STATEMENTS
We have audited the accompanying financial statements of MAITHAN ALLOYS
LIMITED, which comprises the Balance Sheet as at March 31, 2013, 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
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
AUDITOR''S RESPONSIBILITY
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
OPINION
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a. In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
b. In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c. In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements:
1. As required by the Companies (Auditor''s Report) Order, 2003 (As
amended) issued by the Central Government of India in terms of
Sub-Section (4A) of Section 227 of the Companies Act, 1956, we enclose
in the Annexure a statement on the matters specified in paragraphs 4
and 5 of the said 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
i) In respect of Fixed Assets:
(a) The Company has maintained proper records showing full particulars
including quantitative details and situation of its fixed assets.
(b) All fixed assets were physically verified by the management during
the year. We have been informed that no material discrepancies were
noticed on such physical verification.
(c) The fixed assets disposed off during the year are not substantial
and hence, it has not affected the going concern status of the company.
ii) In respect of inventories:
(a) The management has conducted physical verification of inventory at
reasonable intervals during the year.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
iii) In respect of the loans, secured or unsecured, granted or taken by
the Company to / from companies, firm or other parties covered in the
register maintained under Section 301 of the Companies Act,1956:
(a) The Company has neither granted nor taken any loans, secured or
unsecured, to / from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
Consequently, clauses (iii)(b), (iii)(c), (iii)(d), (iii)(f) and
(iii)(g) of the Order are not applicable.
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 with regard
to purchase of inventory and fixed assets and for the sale of goods.
During the course of our audit, no major weakness has been noticed in
the internal controls in respect of these areas.
v) In respect of the contracts or arrangements referred to in Section
301 of the Companies Act,1956:
(a) According to the information and explanation given to us by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in Section 301 of the Companies Act, 1956 have
been entered in the register required to be maintained under that
section;
(b) In our opinion and according to the information and explanations
given to us, transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time where such
market prices are available.
vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits from public hence
the provisions of Section 58A, 58AA or any other relevant provisions of
the Companies Act 1956 are not applicable to the company.
vii) In our opinion and according to the information and explanations
given to us, the Company has an adequate internal audit system
commensurate with the size of the Company and the nature of its
business.
viii) We have broadly reviewed the cost records maintained by the
company pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government for the maintenance of cost
records under Section 209(1)(d) of the Companies act, 1956 and we 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.
ix) (a) According to the records of the Company, the Company is regular
in depositing undisputed statutory dues including Provident Fund,
Investor Education and Protection Fund, Employees'' State Insurance,
Income tax, Wealth Tax, Sales tax, Service-tax, Customs duty, Excise
Duty, Cess and other material statutory dues applicable to it with the
appropriate authorities, thus, no amounts were outstanding, at the year
end for a period of more than six months from the date they became
payable.
(b) According to the information and explanations given to us, details
of dues of Sales Tax, Income Tax, Custom Duty, Wealth Tax, Excise Duty,
Service Tax and Cess which have not been deposited on account of any
dispute are given below:
Financial
year to
which the
Particulars Forum where
dispute is pending Amount (Rs. in lacs)
matter
pertains
Excise Duty &
Service Tax 2006-07 Joint Commissioner,
Bolpur 10.45
Excise Duty &
Service Tax 2007-08 CESTAT, Kolkata 44.97
Excise Duty &
Service Tax 2008-09 Joint Commissioner,
Bolpur 12.37
Excise Duty &
Service Tax 2008-09 Assistant Commissioner,
Asansol 10.91
Excise Duty &
Service Tax 2008-09 Commissioner (Appeal),
Kolkata 4.98
Excise Duty &
Service Tax 2009-10 Joint Commissioner, Bolpur 42.85
Excise Duty &
Service Tax 2009-10 Assistant Commissioner,
Asansol 7.85
Excise Duty &
Service Tax 2009-10 Commissioner (Appeal),
Bolpur 141.38
Excise Duty &
Service Tax 2009-10 Addl. Commissioner, Bolpur 27.13
Excise Duty &
Service Tax 2012-13 Addl. Commissioner, Bolpur 20.13
x) The Company does not have any accumulated losses at the end of the
financial year and it has not incurred any cash losses in the current
and immediately preceding financial year.
xi) In our opinion and according to information and explanation given
to us, the Company has not defaulted in repayment of dues to a
financial institution or bank or debenture holders.
xii) 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.
xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit society. Therefore, the provisions of clause 4(xiii) of the
Order are not applicable to the Company.
xiv) The Company has maintained proper records of the transactions in
respect of dealing or trading in shares and timely entries have been
made therein. All shares acquired by the company were held in its own
name.
xv) The Company has given Guarantee to Banks for Loans taken by its
subsidiary Company. In our opinion and according to the information and
explanation given to us, the terms of the said Guarantee is not prima
facie prejudicial to the interest of the Company.
xvi) In our opinion and according to the information and explanation
given to us no term loan was obtained during the year. Accordingly, the
provisions of clause 4(xvi) of the Order are not applicable to the
Company.
xvii) According to the information and explanations given to us and on
the basis of the overall examination of the balance sheet of the
Company, we report that no funds raised on short-term basis have been
used for long-term investment.
xviii) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares during the
year under review.
xix) In our opinion and according to the information and explanations
given to us, the Company has not issued any secured debentures during
the year. Accordingly, the provisions of clause 4(xix) of the Order are
not applicable to the Company.
xx) During the year, the Company has not made any public issue and
therefore the question of disclosing the end use of money raised by
public issue does not arise.
xxi) As per the information and explanation given to us no fraud on or
by the Company has been noticed or reported during the year under
report.
For D. K. CHHAJER & CO.
Chartered Accountants
FRN - 304138E
Niraj K Jhunjhunwala
Place: Kalyaneshwari Partner
Date: 24th May, 2013 M. No- 057170
Mar 31, 2012
1. We have audited the attached Balance Sheet of MAITHAN ALLOYS
LIMITED as at 31st March, 2012, the Statement of Profit and Loss and
also the Cash Flow statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by 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 (Auditor's Report) Order, 2003 as
amended by the Companies (Auditor's Report) (Amendment) Order, 2004,
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 of the Company as we considered
appropriate and according to the information and explanations given to
us, 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 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 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 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 written representations received from the directors
as on 31st March, 2012, and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March,
2012 from being appointed as a director in terms of Clause (g) of
Sub-section (1) of Section 274 of the Companies Act, 1956;
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 the
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 principles
generally accepted in India :
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
b) in the case of Statement of Profit and Loss, of the Profit for the
year ended on that date; and
c) in the case of the 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 the members of Maithan Alloys Limited
i) In respect of fixed assets:
(a) The Company has maintained proper records showing full particulars
including quantitative details and situation of its fixed assets.
(b) All fixed assets were physically verified by the management during
the year. We have been informed that no material discrepancies were
noticed on such physical verification.
(c) The fixed assets disposed of during the year are not substantial
and hence, it has not affected the going concern status of the company.
ii) In respect of inventories:
(a) The management has conducted physical verification of inventory at
reasonable intervals during the year.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
iii) The Company has neither granted nor taken any loans, secured or
unsecured, to/ from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
Consequently, clauses (iii)(b), (iii)(c), (iii)(d), (iii)(f) and
(iii)(g) of the Order are not applicable.
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 with regard
to purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, no major weakness has been
noticed in the internal controls in respect of these areas.
v) In respect of the contracts or arrangements referred to in Section
301 of the Companies Act,1956: (a) According to the information and
explanation given to us by the management, we are of the opinion that
the particulars of contracts or arrangements referred to in Section 301
of the Companies Act, 1956 have been entered in the register required
to be maintained under that section;
(b) In our opinion and according to the information and explanations
given to us, transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time where such
market prices are available.
vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits from public hence
the provisions of Section 58A, 58AA or any other relevant provisions of
the Companies Act 1956 are not applicable to the company.
vii) In our opinion and according to the information and explanations
given to us, the Company has an adequate internal audit system
commensurate with the size of the Company and the nature of its
business.
viii) We have been informed that the Central Government has not
prescribed the maintenance of cost records by the Company under Section
209 (1) (d) of the Companies Act, 1956.
ix) a) According to the records of the Company, the Company is
generally regular in depositing undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Employees'
State Insurance, Income Tax, Sales Tax, Service Tax, Custom Duty,
Excise Duty, Cess and other material statutory dues applicable to it
with the appropriate authorities.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax,
service tax, sales tax, custom duty and excise duty were outstanding,
at the year end for a period of more than six months from the date they
became payable.
c) According to the information and explanations given to us, details
of dues of Sales Tax, Income Tax, Custom Duty, Wealth Tax, Excise Duty,
Service Tax and Cess which have not been deposited on account of any
dispute are given below:
Particulars Financial years
to which Forum where dispute Amount
the matter
pertains is pending (Rs. in
lacs)
Excise Duty &
Service Tax 2006-07 Joint Commissioner, Bolpur 10.45
Excise Duty &
Service Tax 2008-09 Joint Commissioner, Bolpur 12.37
Excise Duty &
Service Tax 2008-09 Assistant Commissioner,
Asansol 10.91
Excise Duty &
Service Tax 2008-09 Commissioner (Appeal),
Kolkata 4.98
Excise Duty &
Service Tax 2009-10 Joint Commissioner, Bolpur 42.85
Excise Duty &
Service Tax 2009-10 Assistant Commissioner, Asansol 7.85
Excise Duty &
Service Tax 2009-10 Commissioner (Appeal), Bolpur 141.38
Excise Duty &
Service Tax 2007-08 CESTAT, Kolkata 44.97
Excise Duty &
Service Tax 2009-10 Addl. Commissioner, Bolpur 27.13
x) The Company has no accumulated losses at the end of the financial
year and it has not incurred any cash losses in the current and
immediately preceding financial year.
xi) In our opinion and according to information and explanation given
to us, the Company has not defaulted in repayment of dues to a
financial institution or bank or debenture holders.
xii) 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.
xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit society. Therefore, the provisions of clause 4(xiii) of the
Order are not applicable to the Company.
xiv) The Company has maintained proper records of the transactions in
respect of dealing or trading in shares and timely entries have been
made therein. All shares acquired by the company were held in its own
name.
xv) The Company has given Guarantee to Banks for Loans taken by its
subsidiary Company. In our opinion and according to the information and
explanation given to us, the terms of the said Guarantee is not prima
facie prejudicial to the interest of the Company.
xvi) In our opinion and according to the information and explanation
given to us the term loans were applied for the purpose for which the
loans were obtained.
xvii) According to the information and explanations given to us and on
the basis of the overall examination of the balance sheet of the
Company, we report that no funds raised on short-term basis have been
used for long-term investment.
xviii) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares during the
year under review.
xix) In our opinion and according to the information and explanations
given to us, the Company has not issued any secured debentures during
the year. Accordingly, the provisions of clause 4(xix) of the Order are
not applicable to the Company.
xx) During the year, the Company has not made any public issue and
therefore the question of disclosing the end use of money raised by
public issue does not arise.
xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the course of our audit.
For D. K. Chhajer & Co.
Chartered Accountants
Niraj K. Jhunjhunwala
Partner
Kalyaneshwari
M. No- F057170
Dated: 29th June, 2012 Firm Reg. No. 304138E
Mar 31, 2011
1. We have audited the attached Balance Sheet of MAITHAN ALLOYS
LIMITED as at 31st March, 2011, the Profit and Loss Account and also
the Cash Flow statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
CompanyÃs 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 misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by 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 (AuditorÃs Report) Order, 2003 as
amended by the Companies (AuditorÃs Report) (Amendment) Order, 2004,
ssued by the Central Government of India in terms of Sub-section (4A)
of Section 227 of ÃThe Companies Act, 1956Ã (the ÃAct) 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 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 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 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 Profit and Loss Account 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 Profit and Loss Account and
the 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 written representations received from the directors
as on 31st March, 2011, and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March,
2011 from being appointed as a director in terms of Clause (g) of
Sub-section (1) of Section 274 of the Companies Act, 1956;
f. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India :
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011;
b) in the case of the Profit and Loss Account, of the Profit for the
year ended on that date; and
c) in the case of the Cash Flow statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORSÃ REPORT
Referred to in paragraph (3) of our report of even date to the members
of Maithan Alloys Limited
i) In respect of fixed assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of its fixed assets.
b) All fixed assets were physically verified by the management during
the year. We have been informed that no material discrepancies were
noticed on such physical verification.
c) The fixed assets disposed of during the year are not substantial and
hence, it has not affected the going concern status of the Company.
ii) In respect of inventories:
a) The management has conducted physical verification of inventory at
reasonable intervals during the year.
b) In our opinion, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
iii) a) During the year, the Company has granted unsecured loan to a
Company covered in the register maintained under Section 301 of the
Companies Act, 1956. The maximum amount outstanding during the year was
Rs.3.00 crore and the year end balance was nil.
b) In our opinion the rate of interest and other terms and conditions
of the loans are not prima facie prejudicial to the interest of the
Company.
c) In respect of aforesaid loan, there is no stipulation as to
repayment thereof.
d) In our opinion and according to the information and explanation
given to us there is no overdue amount outstanding in respect of the
said loan.
e) During the year, the Company has taken unsecured loan from a Company
covered in the register maintained under Section 301 of the Companies
Act, 1956. The maximum amount outstanding during the year was Rs.11.00
Crores and the year end balance was nil.
f) In our opinion and according to the information and explanation
given to us, the rate o interest and other terms and condition of the
above loan are not prima facia prejudicial to the interest of the
Company.
g) In respect of aforesaid loan, there is no stipulation as to
repayment thereof.
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 with regard
to purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, no major weakness has been
noticed in the internal controls in respect of these areas.
v) In respect of the contracts or arrangements referred to in Section
301 of the Companies Act, 1956:
a) According to the information and explanation given to us by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in Section 301 of the Companies Act, 1956 have
been entered in the register required to be maintained under that
section;
b) In our opinion and according to the information and explanations
given to us, transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time where such
market prices are available.
vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits from public hence
the provisions of Section 58A, 58AA or any other relevant provisions of
the Companies Act, 1956 are not applicable to the Company.
vii) In our opinion and according to the information and explanations
given to us, the Company has an adequate internal audit system
commensurate with the size of the Company and the nature of its
business.
viii) We have been informed that the Central Government has not
prescribed the maintenance of cost records by the Company under Section
209 (1) (d) of the Companies Act, 1956.
ix) a) According to the records of the Company, the Company is
generally regular in depositing undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, EmployeesÃ
State Insurance, Income Tax, Sales Tax, Service Tax, Custom Duty,
Excise Duty, Cess and other material statutory dues applicable to it
with the appropriate authorities.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax,
service tax, sales tax, custom duty and excise duty were outstanding,
at the year end for a period of more than six months from the date they
became payable.
c) According to the information and explanations given to us, details
of dues of Sales Tax, Income Tax, Custom Duty, Wealth Tax, Excise Duty,
Service Tax and Cess which have not been deposited on account of any
dispute are given below:
Particulars Financial years Forum where Amount
years to which dispute is (Rs.
the matter pending in lacs)
pertains
Excise Duty &
Service Tax 2006-07 Joint Commiss
ioner, Bolpur 10.45
Excise Duty &
Service Tax 2008-09 Joint Commiss
ioner, Bolpur 12.37
Excise Duty &
Service Tax 2008-09 Assistant Com
missioner,
Asansol 10.91
Excise Duty &
Service Tax 2008-09 Commissioner
(Appeal),
Kolkata 4.98
Excise Duty &
Service Tax 2009-10 Joint Commiss
ioner, Bolpur 42.85
Excise Duty &
Service Tax 2009-10 Assistant Com
missioner,
Asansol 7.85
Excise Duty &
Service Tax 2009-10 Commissioner
(Appeal),
Bolpur 141.38
Excise Duty &
Service Tax 2007-08 CESTAT,
Kolkata 44.97
Excise Duty &
Service Tax 2009-10 Addl. Commis
sioner, Bolpur 27.13
x) The Company has no accumulated losses at the end of the financial
year and it has not incurred any cash losses in the current and
immediately preceding financial year.
xi) In our opinion and according to information and explanation given
to us, the Company has not defaulted in repayment of dues to a
financial institution or bank or debenture holders.
xii) 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.
xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit society. Therefore, the provisions of clause 4(xiii) of the
Order are not applicable to the Company.
xiv) The Company has maintained proper records of the transactions in
respect of dealing or trading in shares and timely entries have been
made therein. All shares acquired by the Company were held in its own
name.
xv) The Company has given Guarantee to Banks for Loans taken by its
subsidiary Company. In our opinion and according to the information and
explanation given to us, the terms of the said Guarantee is not prima
facie prejudicial to the interest of the Company.
xvi) In our opinion and according to the information and explanation
given to us the term loans were applied for the purpose for which the
loans were obtained.
xvii) According to the information and explanations given to us
and on the basis of the overall examination of the balance sheet of the
Company, we report that no funds raised on short-term basis have been
used for long-term investment.
xviii) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares during the
year under review.
xix) In our opinion and according to the information and explanations
given to us, the Company has not issued any secured debentures during
the year. Accordingly, the provisions of clause 4(xix) of the Order are
not applicable to the Company.
xx) During the year, the Company has not made any public issue and
therefore the question of disclosing the end use of money raised by
public issue does not arise.
xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the course of our audit.
For D. K. Chhajer & Co.
Chartered Accountants
Niraj K. Jhunjhunwala
Partner
M. No- F057170
Firm Reg. No. 304138E
Place: Kalyaneshwari
Dated: 15 June 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of MAITHAN ALLOYS
LIMITED as at 31 March 2010 and also the Profit and Loss Account and
the Cash Flow statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by 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 the Companies (Auditors Report) (Amendment) Order, 2004,
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 of the Company as we considered
appropriate and according to the information and explanations given to
us, 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 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 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 Profit and Loss Account 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 Profit and Loss Account and
the 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 written representations received from the
directors, as on 31 March 2010, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31 March 2010 from being appointed as a director in terms of Clause (g)
of Sub-section (1) of Section 274 of the Companies Act, 1956;
f. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India :
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 March 2010;
b) in the case of the Profit and Loss Account, of the Profit for the
year ended on that date; and
c) in the case of the Cash Flow statement, of the cash flows for the
year ended on that date.
Annexure to the Auditors Report
Referred to in paragraph (3) of our report of even date to the members
of Maithan Alloys Limited
i) In respect of fixed assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of its Fixed Assets.
b) All fixed assets were physically verified by the management during
the year. We have been informed that no material discrepancies were
noticed on such physical verification.
c) The Fixed Assets disposed of during the year are not substantial and
hence, it has not affected the going concern status of the Company.
ii) In respect of inventories:
a) The management has conducted physical verification of inventory at
reasonable intervals during the year.
b) In our opinion, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
iii) a) During the year, the Company has not granted any loans, secured
or unsecured to Companies, Firms or other parties covered in the
register maintained under Section 301 of the Companies Act,
1956.Accordingly, the clauses (iii) (b), (iii) (c), (iii) (d) are not
applicable.
b) During the year, the Company has taken unsecured loans from a
Company covered in the register maintained under Section 301 of the
Companies Act, 1956. The maximum amount involved during the year was
Rs.10.88 crores and the year end balance was Rs. 10.88 crores.
c) In our opinion and according to the information and explanation
given to us, the rate of interest and other terms and condition of the
above loan are not prima facie prejudicial to the interest of the
Company.
d) In respect of aforesaid loan, there is no stipulation as to
repayment thereof.
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 with regard to purchase of inventory and fixed assets and for
the sale of goods and services. During the course of our audit, no
major weakness has been noticed in the internal controls in respect of
these areas.
v) In respect of the contracts or arrangements referred to in Section
301 of the Companies Act, 1956:
a) According to the information and explanation given to us by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in Section 301 of the Companies Act, 1956 have
been entered in the register required to be maintained under that
section;
b) In our opinion and according to the information and explanations
given to us, transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time where such
market prices are available.
vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits from public hence
the provisions of Section 58A, 58AA or any other relevant provisions of
the Companies Act 1956 are not applicable to the Company.
vii) In our opinion and according to the information and explanations
given to us, the Company has an adequate internal audit system
commensurate with the size of the Company and the nature of its
business.
viii) We have been informed that the Central Government has not
prescribed the maintenance of cost records by the Company under Section
209 (1) (d) of the Companies Act, 1956.
ix) a) According to the records of the Company, the Company is
generally regular in depositing undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Employees
State Insurance, Income Tax, Sales Tax, Service Tax, Custom Duty,
Excise Duty, Cess and other material statutory dues applicable to it
with the appropriate authorities.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of
income tax, wealth tax, service tax, sales tax, custom duty and excise
duty were outstanding, at the year end for a period of more than six
months from the date they became payable. c) According to the
information and explanations given to us, details of dues of sales tax,
income tax, custom duty, wealth tax, excise duty, service tax and cess
which have not been deposited on account of any dispute are given
below.
Excise Duty & Service Tax 2006-07 Joint Commissioner, Bolpur 10.45
Excise Duty & Service Tax 2008-09 Joint Commissioner, Bolpur 12.37
Excise Duty & Service Tax 2008-09 Assistant Commissioner,
Asansol 10.91
Excise Duty & Service Tax 2008-09 Commissioner (Appeal),
Kolkata 4.98
Excise Duty & Service Tax 2009-10 Joint Commissioner,Bolpur 42.85
Excise Duty & Service Tax 2009-10 Assistant Commissioner,
Asansol 7.85
Excise Duty & Service Tax 2009-10 Commissioner (Appeal),
Bolpur 141.38
x) The Company has no accumulated losses at the end of the financial
year and it has not incurred any cash losses in the current and
immediately preceding financial year.
xi) In our opinion and according to information and explanation given
to us, the Company has not defaulted in repayment of dues to a
financial institution or bank or debenture holders.
xii) 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.
xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit society. Therefore, the provisions of clause 4(xiii) of the
Order are not applicable to the Company.
xiv) The Company has maintained proper records of the transactions in
respect of dealing or trading in shares and timely entries have been
made therein. All shares acquired by the Company were held in its own
name.
xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
xvi) In our opinion and according to the information and explanation
given to us the term loans were applied for the purpose for which the
loans were obtained.
xvii) According to the information and explanations given to us and on
the basis of the overall examination of the
balance sheet of the Company, we report that no funds raised on
short-term basis have been used for long-term investment.
xviii) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares during the
year under review.
xix) In our opinion and according to the information and explanations
given to us, the Company has not issued any secured debentures during
the year. Accordingly, the provisions of clause 4(xix) of the Order are
not applicable to the Company.
xx) During the year, the Company has not made any public issue and
therefore the question of disclosing the end use of money raised by
public issue does not arise.
xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the course of our audit.
For D. K. Chhajer & Co.
Chartered Accountants
Niraj K. Jhunjhunwala
Place: Kalyaneshwari Partner
Dated: 21 June 2010 M. No- F057170
Firm Reg. No.304138E
Mar 31, 2009
1. We have audited the attached Balance Sheet of MAITHAN ALLOYS
LIMITED as at 31st March, 2009 and also the Profit and Loss Account and
the Cash Flow statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by 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 the Companies (Auditors Report) (Amendment) Order, 2004,
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 of the Company as we considered
appropriate and according to the information and explanations given to
us, 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 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 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, Profit and Loss Account and Cash Flow statement
dealt with by this report are in agreement with the books of account;
d. In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow statement dealt with by this report comply with the accounting
standards referred to in Sub- section (3C) of Section 211 of the
Companies Act, 1956.
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 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 give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India :
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2009;
b) in the case of Profit and Loss Account, of the profit for the year
ended on that date; and
c) in the case of Cash Flow statement, of 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 the members
of Maithan Alloys Limited
(i) In respect of fixed assets:
(a) The Company has maintained proper records showing full particulars
including quantitative details and situation of its Fixed Assets.
(b) All fixed assets were physically verified by the management during
the year. We have been informed that no material discrepancies were
noticed on such physical verification.
(c) Substantial part of fixed assets has not been disposed of during
the year, which will affect its status as going concern.
(ii) In respect of inventories:
(a) The management has conducted physical verification of inventory at
reasonable intervals during the year.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation of the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
(iii) The Company has neither granted nor taken any loans, secured or
unsecured, to/from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
Consequently, clauses (iii) (b), (iii) (c), (iii) (d), (iii) (f) and
(iii) (g) of the Order are not applicable
(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.
During the course of our audit, no major weakness has been noticed in
the internal controls in respect of these areas.
(v) In respect of the contracts or arrangements referred to in Section
301 of the Companies Act, 1956:
(a) In our opinion and according to information and explanations given
to us, we are of the opinion that the particulars of contracts or
arrangements referred to in Section 301 of the Companies Act, 1956 have
been entered in the register required to be maintained under that
section;
(b) In our opinion and according to the information and explanations
given to us, transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time where such
market prices are available.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits from public hence
the provisions of Section 58A, 58AA or any other relevant provisions of
the Companies Act 1956 are not applicable to the company.
(vii) In our opinion and according to the information and explanations
given to us, the Company has an adequate internal audit system
commensurate with the size of the Company and the nature of its
business.
(viii) We have been informed that the Central Government has not
prescribed the maintenance of cost records by the Company under Section
209 (1) (d) of the Companies Act, 1956.
(ix) According to the records of the Company, the Company is generally
regular in depositing undisputed statutory dues including provident
fund, investor education and protection fund, employees state
insurance, income tax, sales tax, service-tax, custom duty, excise
duty, cess and other material statutory dues applicable to it with the
appropriate authorities. According to the information and explanations
given to us, no undisputed amounts payable in respect of income tax,
wealth tax, service tax, sales tax, custom duty and excise duty were
outstanding, at the year end for a period of more than six months from
the date they became payable.
According to the information and explanations given to us, details of
dues of sales tax, income tax, custom duty, wealth tax, excise duty,
service tax and cess which have not been deposited on account of any
dispute are given below:
Particulars Financial years to Forum where dispute Amount
which the matter is pending (Rs. in lacs)
pertains
Excise Duty & 2006-07 Joint Commissioner, Bolpur 10.45
Service Tax
Excise Duty & 2008-09 Joint Commissioner, Bolpur 12.37
Service Tax
Excise Duty & 2008-09 Assistant Commissioner, 10.91
Service Tax Asansol
Excise Duty & 2008-09 Commissioner (Appeal), 4.98
Service Tax Kolkata
(x) The Company has no accumulated losses at the end of the financial
year and it has not incurred any cash losses in the current and
immediately preceding financial year.
(xi) In our opinion and according to information and explanation given
to us, the Company has not defaulted in repayment of dues to a
financial institution or bank or debenture holders.
(xii) 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.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit society. Therefore, the provisions of clause 4(xiii) of the
Order are not applicable to the Company.
(xiv) The Company has maintained proper records of the transactions in
respect of dealing or trading in shares and timely entries have been
made therein. All shares acquired by the company were held in its own
name.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
(xvi) Based on information and explanations given to us, term loans
were applied for the purpose for which the loans were obtained.
(xvii) According to the information and explanations given to us and on
the basis of the overall examination of the balance sheet of the
Company, we report that no funds raised on short-term basis have been
used for long-term investment.
(xviii) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares during the
year under review.
(xix) In our opinion and according to the information and explanations
given to us, the Company has not issued any secured debentures during
the year. Accordingly, the provisions of clause 4(xix) of the Order are
not applicable to the Company.
(xx) During the year covered by our Audit report, the Company has not
raised any monies by public issues.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and
fair view of the financial statements and as per the information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the course of our
audit.
For D. K. CHHAJER & CO.
Chartered Accountants
Niraj K. Jhunjhunwala
Partner
M. No- F057170
Kalyaneshwari
Dated: 4th June, 2009.