Mar 31, 2022
REPORT ON THE STANDALONE FINANCIAL STATEMENTS
Opinion
We have audited the accompanying standalone financial statements of M/s. Nelcast Limited (âthe Companyâ), which comprise the Balance Sheet as at 31st March 2022, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and Cash Flow Statement 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 (âthe Actâ) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, of the state of affairs of the Company as at 31st March 2022, the profit and total comprehensive income, changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
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 of Chartered Accountants of India (ICAI) together with the independent 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 ICAIâs Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our 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 financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Information other than the Standalone Financial Statements and Auditorâs Report thereon
The Companyâs Board of Directors is responsible for the other information. The other information comprises the information included in the Management Discussion and Analysis, Boardâs Report including Annexures to Boardâs Report, Business Responsibility Report, Corporate Governance Report and Shareholderâs information, 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 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.
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs 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, total 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. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the 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 is 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 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 Standards on Auditing, 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 financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.
> Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
> Conclude on the appropriateness of managementâs 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 standalone financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the standalone financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our 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 the Companies (Auditorâs Report) Order, 2020 (âthe Orderâ), issued by the Central Government of India in terms of Section 143(11) of the Act, we give in âAnnexure-Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss including other comprehensive income, Statement of Changes in Equity and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the directors as on 31st March, 2022 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2022 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure-Bâ.
(g) 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, as amended:
In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of Section 197 of the Act.
(h) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone 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.
iv. (a) The management has represented that, to the best of its knowledge and belief, no
funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other person or entity, including foreign entity (intermediaries), with the understanding directly or indirectly lend or invest in other persons or entityâs 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, that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity (funding parties), with the understanding whether recorded in writing or otherwise, that the company shall directly or indirectly lend or invest in other persons or entityâs 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.
(c) Based on the audit procedures that have been considered that are reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub clause (i) and (ii) of rule 11(e), as provided under (a) and (b) above, contain any material misstatement.
v. As noted in Note 13 to the standalone financial statements
(a) The final dividend proposed in the previous year, declared and paid by the Company during the year is in accordance with Section 123 of the Act, as applicable.
(b) The Company has not declared any interim dividend during the year.
(c) The Board of Directors of the Company have proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The amount of dividend proposed is in accordance with section 123 of the Act, as applicable.
Chartered Accountants
Firm Regn. No. 002270S
Partner
Membership No. 024344
Place : Chennai
Date : 23rd May 2022
UDIN: 22024344AJLXYY2179
Mar 31, 2018
REPORT ON THE STANDALONE IND AS FINANCIAL STATEMENTS
We have audited the accompanying standalone Ind AS financial statements of NELCAST LIMITED (âthe Companyâ), which comprise the Balance Sheet as at 31st March 2018, the Statement of Profit and Loss (including other comprehensive income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
MANAGEMENTâS RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance (including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the Companies (Indian Accounting Standard) 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 design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
AUDITORâS RESPONSIBILITY
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder. We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
OPINION
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March 2018, its profit (including other comprehensive income), cash flows and the changes in equity for the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ), as amended, issued by the Central Government of India in terms of section143(11) of the Act, we give in the âAnnexure Aâ a statement on the matters Specified in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act, 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 Cash Flow Statement and the Statement of Changes in Equity dealt with by this report are in agreement with the books of account;
d) in our opinion, the aforesaid standalone Ind AS financial statements comply with the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and Companies (Indian Accounting Standards) Rules, 2015 as amended;
e) on the basis of written representations received from the directors as on 31st March 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March 2018, from being appointed as a director in terms of Section 164(2) of the Act;
f) with respect to the adequacy of the Internal Financial Controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ to this report;
g) in our opinion and to the best of our information and according to the explanations given to us, we report as under with respect to other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements.
ii. The Company did not have any long term contracts including derivative contracts for which there were any foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
ANNEXURE A REFERRED TO IN OUR INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF THE COMPANY ON THE STANDALONE IND AS FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH 2018, WE REPORT THAT:
i. (a). The Company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets;
(b). The Company has a policy of physically verifying its Fixed assets once in a year which in our opinion reasonable having regard to the size of the Company and the nature of its business. During the year Fixed Assets have been verified by the management at the year end and no discrepancies were noticed on such verification.
(c). The title deeds of immovable properties are held in the name of the Company.
ii. According to information and explanations given to us, the management has conducted physical verification of inventory at reasonable intervals and no material discrepancies were noticed on physical verification during the year.
iii. 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 Companies Act, 2013.
iv. According to information and explanations given to us, the Company has complied with the provisions of Section 185 and 186 of the Companies Act, 2013 in respect of loans, investments, guarantees and security.
v. The Company has not accepted any deposits during the year.
vi. We have broadly reviewed the books of accounts maintained by the Company pursuant to the rules made by the Central Government under Section 148(1) oftheAct and are opinion that prima facie the prescribed accounts and cost records have been made and maintained.
vii. (a) According to the information and explanations given to us and on the basis of examination of
the records of the Company, the Company is regular in depositing undisputed statutory dues, including provident fund, employeesâ state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, goods and services tax, cess and any other statutory dues, as applicable, with the appropriate authorities and no dues were in arrears as at 31st March 2018 for a period of more than six months form the date they became payable.
(b). According to the records of the Company and on the basis of information and explanations given to us, there are no dues of income-tax, sales-tax, service tax, duty of customs, goods and services tax and which have not been deposited on account of any disputes. However, according to information and explanations given to us, the following dues of value added tax, and duty of excise have not been deposited by the Company on account of disputes:
Name of Statute |
Nature of Dues |
Amount Involved (Rs. in Lakhs) |
Period to which the Amount Relates |
Forum where Dispute is pending |
Central Excise Act, 1994 |
CENVAT-INPUTS |
51.23 |
2013-14 |
Commissioner, Appeals, Guntur |
Central Excise Act, 1944 |
CENVAT-INPUT SERVICES |
223.11 |
2009-10 to 2012-13 |
CESTAT |
Central Excise Act, 1944 |
CENVAT-INPUT SERVICES |
13.44 |
2014-15 |
Commissioner, Appeals, Guntur |
Central Excise Act, 1944 |
CENVAT-INPUTS |
9.47 |
2014-15 & 2015-16 |
Commissioner, Appeals, Vizag |
Central Excise Act, 1944 |
CENVAT-INPUT SERVICES |
33.53 |
2014-15 & 2015-16 |
Commissioner, Appeals, Vizag |
Central Excise Act, 1944 |
CENVAT-INPUTS |
1.39 |
2014-15 & 2015-16 |
Commissioner, Appeals, Vizag |
Central Excise Act, 1944 |
CENVAT-INPUTS |
0.51 |
2014-15 |
Commissioner, Appeals, Vizag |
Value Added Tax |
VAT |
1.77 |
2016-17 |
Commissioner, (Appeals) (CT) |
Central Excise Act, 1944 |
CENVAT-INPUT SERVICES |
28.57 |
Apr 10 to Jun 13 |
CESTAT |
Central Excise Act, 1944 |
CENVAT-INPUT SERVICES |
2.27 |
Sep 14 to Jul 15 |
Commissioner, Appeals,Chennai |
viii. The Company has not defaulted in repayment of loans or borrowing to a financial institution, bank, government or dues to debenture holders.
ix. The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) but the Company has availed a term loan from Bank during the year. The moneysâ raised by way of term loans and by way of public offer in earlier years were applied for the purpose for which those were raised.
x. We have not noticed or reported any fraud by the Company or any fraud on the Company by its officers/ employees during the year.
xi. The managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Companies Act, 2013.
xii. Clause xii of the Order is not applicable as the Company is not a Nidhi Company.
xiii. According to information and explanations given to us, all transactions with the related parties are in compliance with the provisions of sections 177 and 188ofthe CompaniesAct, 2013 where ever applicable and the details have been disclosed in the Standalone IndAS financial Statements etc., as required by the applicable accounting standards.
xiv. According to information and explanations given to us, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures as per the provisions of Section 42 of the Companies Act, 2013, during the year under review.
xv. According to information and explanations given to us, the Company has not entered in to any non-cash transactions with directors or persons connected with him and the provisions of section 192 of the Companies Act, 2013 have been complied with.
xvi. Clause xvi of the Order is not applicable as the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
ANNEXURE B TO THE INDEPENDENT AUDITORâS REPORT OF EVEN DATE ON THE STANDALONE IND AS FINANCIAL STATEMENTS OF NELCAST LIMITED
REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (I) OF SUB-SECTION 3 OF SECTION 143 OF THE COMPANIES ACT, 2013 (âTHE ACTâ)
We have audited the internal financial controls over financial reporting of Nelcast Limited (âthe Companyâ) as of 31st 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. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
AUDITORSâ RESPONSIBILITY
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by the ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
A Companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of standalone Ind AS 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 unauthorised 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 31st March 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India.
For K NAGARAJU & ASSOCIATES
Chartered Accountants
Firm Regn. No. 002270S
K. NAGARAJU
Partner
Membership No. 024344
Place : Chennai
Date : 18.05.2018
Mar 31, 2017
INDEPENDENT AUDITORSâ REPORT TO THE MEMBERS OF NELCAST LIMITED REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying standalone financial statements of NELCAST LIMITED (âthe Companyâ), which comprise the Balance Sheet as at 31st March 2017, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
MANAGEMENTâS RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
AUDITORâS RESPONSIBILITY
Our responsibility is to express an opinion on these standalone financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
OPINION
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March 2017, and its profit and its cash flows for the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditorâs Report) Order, 2017 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section143 of the Act, we give in the Annexure a statement on the matters Specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by section 143(3) of the Act, we report that:
a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
b) in our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c) the Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this report are in agreement with the books of account;
d) in our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules 2014;
e) on the basis of written representations received from the directors as on 31st March 2017 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) 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 financial controls over financial reporting criteria established by the Company.
g) in our opinion and to the best of our information and according to the explanations given to us, we report as under with respect to other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014:
i) The Company has disclosed the impact of pending litigations on its financial position in its financial statements.
ii) The Company did not have any long-term contracts including derivative contracts; as such the question of commenting on any material foreseeable losses thereon does not arise.
iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
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 and the said disclosures are in accordance with the books of accounts maintained by the Company.
THE ANNEXURE REFERRED TO IN OUR INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF THE COMPANY ON THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH 2017, WE REPORT THAT:
i. (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets;
(b) The Company has a policy of physically verifying its Fixed assets once in a year which in our opinion reasonable having regard to the size of the Company and the nature of its business. During the year Fixed Assets have been verified by the management at the year end and no discrepancies were noticed on such verification.
(c) The title deeds of immovable properties are held in the name of the Company.
ii. According to information and explanations given to us, the management has conducted physical verification of inventory at reasonable intervals and no material discrepancies were noticed on physical verification during the year.
iii. 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 Companies Act, 2013.
iv. According to information and explanations given to us, the Company has complied with the provisions of Section 185 and 186 of the Companies Act, 2013 in respect of loans, investments, guarantees and security.
v. The Company has not accepted any deposits during the year.
vi. We have broadly reviewed the books of accounts maintained by the Company pursuant to the rules made by the Central Government under Section 148(1) of the Act and are opinion that prima facie the prescribed accounts and cost records have been made and maintained.
vii. (a) According to the information and explanations given to us and on the basis of examination of the
records of the Company, the Company is regular in depositing 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 any other statutory dues, as applicable, with the appropriate authorities and no dues were in arrears as at 31st March 2017 for a period of more than six months from the date they became payable.
(b) According to the records of the Company and on the basis of information and explanations given to us, there are no dues of income-tax, service tax, duty of customs and which have not been deposited on account of any disputes. However, according to information and explanations given to us, the following dues of sales-tax, value added tax, and duty of excise have not been deposited by the Company on account of disputes:
Name of Statue |
Nature of Dues |
Amount Involved (Rs, in Lakhs) |
Period to which the Amount Relates |
Forum where Dispute is pending |
Central Excise Act, 1944 |
CENVAT-INPUTS |
51.23 |
2013-14 |
Commissioner, Appeals, Guntur |
Central Excise Act, 1944 |
CENVAT-INPUT SERVICES |
56.91 |
2013-14 |
CESTAT |
Central Excise Act, 1944 |
CENVAT-INPUT SERVICES |
223.11 |
2009-10 to 2012-13 |
CESTAT |
Central Excise Act, 1944 |
CENVAT-INPUTS |
0.42 |
2013-14 |
Commissioner, Appeals, Guntur |
Central Sales Tax |
CST |
23.90 |
2009-10 |
Assistant Commissioner, (CT) |
Value Added Tax |
VAT |
2.40 |
2009-10 |
Assistant Commissioner, (CT) |
Value Added Tax |
VAT |
1.76 |
2016-17 |
Commissioner, (Appeals) (CT) |
Central Excise Act, 1944 |
CENVAT-INPUTS |
6.48 |
2014-15 |
Commissioner, Appeals, Guntur |
Central Excise Act, 1944 |
CENVAT-INPUTS |
0.27 |
2013-14 |
Commissioner, Appeals, Guntur |
Central Excise Act, 1944 |
CENVAT-INPUTS |
0.51 |
2014-15 |
Commissioner, Appeals, Guntur |
Central Excise Act, 1944 |
CENVAT-INPUT SERVICES |
9.97 |
2014-15 |
CESTAT |
Central Excise Act, 1944 |
CENVAT-INPUTS |
4.58 |
2014-15 |
Commissioner, Appeals, Guntur |
Central Excise Act, 1944 |
CENVAT-INPUT SERVICES |
13.44 |
2014-15 |
Commissioner, Appeals, Guntur |
Central Excise Act, 1944 |
CENVAT-INPUTS |
9.47 |
2014-15 & 2015-16 |
Commissioner, Appeals, Guntur |
Central Excise Act, 1944 |
CENVAT-INPUT SERVICES |
33.53 |
2014-15 & 2015-16 |
Commissioner, Appeals, Guntur |
Central Excise Act, 1944 |
CENVAT-INPUTS |
1.39 |
2014-15 & 2015-16 |
Commissioner, Appeals, Guntur |
Central Excise Act, 1944 |
CENVAT-INPUT SERVICES |
58.44 |
2012-13 & 2013-14 |
CESTAT |
Central Excise Act, 1944 |
CENVAT-INPUT SERVICES |
20.48 |
2013-14 |
CESTAT |
Central Excise Act, 1944 |
CENVAT-INPUT SERVICES |
2.00 |
Oct 13 to Aug 14 |
Commissioner, Appeals, Chennai |
Central Excise Act, 1944 |
CENVAT-INPUT SERVICES |
28.57 |
Apr 10 to Jun 13 |
CESTAT |
Central Excise Act, 1944 |
CENVAT-INPUT SERVICES |
2.27 |
Sep 14 to Jul 15 |
Commissioner, Appeals, Chennai |
viii. The Company has not defaulted in repayment of loans or borrowing to a financial institution, bank, government or dues to debenture holders.
xi. The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) and term loans during the year. The moneysâ raised in earlier years by way of public offer and term loans were applied for the purpose for which those were raised.
x. We have not noticed or reported any fraud by the Company or any fraud on the Company by its officers/ employees during the year.
xi. The managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Companies Act, 2013.
xii. Clause xii of the Order is not applicable as the Company is not a Nidhi Company.
xiii. According to information and explanations given to us, all transactions with the related parties are in compliance with the provisions of sections 177 and 188 of the Companies Act, 2013 where ever applicable and the details have been disclosed in the Financial Statements etc., as required by the applicable accounting standards.
xiv. According to information and explanations given to us, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures as per the provisions of Section 42 of the Companies Act, 2013, during the year under review.
xv. According to information and explanations given to us, the Company has not entered in to any non-cash transactions with directors or persons connected with him and the provisions of section 192 of the Companies Act, 2013 have been complied with.
xvi. Clause xvi of the Order is not applicable as the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
ANNEXURE TO THE INDEPENDENT AUDITORâS REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OF NELCAST LIMITED REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (I) OF SUB-SECTION 3 OF SECTION 143 OF THE COMPANIES ACT, 2013 (âTHE ACTâ)
We have audited the internal financial controls over financial reporting of Nelcast Limited (âthe Companyâ) as of 31st March 2017 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
MANAGEMENTâS RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
The 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. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
AUDITORSâ RESPONSIBILITY
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by the 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 REDDY A V & CO
Chartered Accountants
A.V. REDDY
Partner
Membership No. 23983 Firm Regn. No. 003256S
Place : Chennai
Date : 24th May 2017
Mar 31, 2015
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying standalone financial statements of
Nelcast 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 the
significant accounting policies and other explanatory information.
MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Company's Board of Directors is responsible for the matters
stated in Section 134(5) of the Companies Act, 2013 ("the Act")
with respect to the preparation and presentation of these 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 financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
AUDITOR'S RESPONSIBILITY
Our responsibility is to express an opinion on these standalone
financial statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made thereunder. We conducted our
audit in accordance with the Standards on Auditing specified under
Section 143(10) of the Act. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place and 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 financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
OPINION
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, and its profit and its cash flows for the year
ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor's Report) Order, 2015
("the Order") issued by the Central Government of India in terms of
sub-section (11) of Section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order,
to the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
(a) we have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit;
(b) in our opinion proper books of account as required by law have been
kept by the company so far as it appears from our examination of those
books;
(c) the balance sheet, the statement of profit and loss, and the cash
flow statement dealt with by this report are in agreement with the
books of account;
(d) in our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(e) on the basis of written representations received from the directors
as on 31st March, 2015 taken on record by the Board of Directors, none
of the directors is disqualified as on 31st March, 2015, from being
appointed as a director in terms of Section 164(2) of the Act; and
(f) in our opinion and to the best of our information and according to
the explanations given to us, we report as under with respect to other
matters to be included in the Auditor's Report in accordance with
Rule 11 of the Companies (Audit and Auditors) Rules, 2014:
(i) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements.
(ii) The Company did not have any long-term contracts including
derivative contracts; as such the question of commenting on any
material foreseeable losses thereon does not arise.
(iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
The Annexure referred to in our independent auditors report to the
members of the Company on the standalone financial statements for the
year ended 31st March, 2015, we report that:
i. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of
fixed assets;
(b) The Company has a policy of physically verifying its fixed assets
once in a year which in our opinion reasonable having regard to the
size of the Company and the nature of its business. During the year
fixed assets have been verified by the management and no discrepancies
were noticed on such verification.
ii. (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 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 not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 189 of the Act.
iv. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory, 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, no major weaknesses have been noticed or
reported.
v. The Company has not accepted any deposits from the public.
vi. We have broadly reviewed the books of accounts maintained by the
Company pursuant to the rules made by the Central Government under
Section 148(1) of the Act and are opinion that prima facie the
prescribed accounts and cost records have been made and maintained.
vii. (a) According to the information and explanations given to us and
on the basis of examination of the records of the Company, the Company
is regular in depositing undisputed statutory dues, including provident
fund, employees' state insurance, income-tax, sales-tax, wealth tax,
service tax, duty of customs, duty of excise, value added tax, cess and
any other statutory dues, as applicable, with the appropriate
authorities in India.
According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, employee's
state insurance, income-tax, sales-tax, wealth tax, service tax, duty
of customs, duty of excise, cess and any other statutory dues were in
arrears as at 31st March, 2015 for a period of more than six months
form the date they became payable.
(b) According to the records of the Company and on the basis of
information and explanations given to us, there are no dues of
income-tax, wealth tax, service tax, duty of customs and cess which
have not been deposited on account of any disputes. However, according
to information and explanations given to us, the following dues of
sales-tax, value added tax, and duty of excise have not been deposited
by the Company on account of disputes:
Name of Statue Nature of Amount
Dues Involved
(Rs. In Lakhs)
Central Excise CENVAT-INPUTS 51.23
Act, 1944
Central Excise CENVAT-INPUT 56.91
Act, 1944 SERVICES
Central Excise CENVAT-INPUT 223.11
Act, 1944 SERVICES
Central Excise CENVAT-INPUTS 0.42
Act, 1944
Central Sales Tax CST 23.90
Value Added Tax VAT 2.40
Name of Statue Period to which Forum where
the Amount Dispute is
Relates pending
Central Excise 2012-13 Commissioner,
Act, 1944 Appeals, Guntur
Central Excise 2012-13 Commissioner,
Act, 1944 Appeals, Guntur
Central Excise 2009-10 to CESTAT,
Act, 1944 2012-13 Bangalore
Central Excise 2013-14 Commissioner,
Act, 1944
Appeals, Guntur
Central Sales Tax 2009-10 Appeal "Remanded", matter
pending with CTO, Gudur
Value Added Tax 2009-10 Appeal "Remanded", matter
pending with CTO, Gudur
(c) According to the information and explanations given to us the
amounts which were required to be transferred to the investor education
and protection fund in accordance with the relevant provisions of the
Act and rules made thereunder has been transferred to such fund within
time.
viii. The Company has no accumulated losses as at the end of the
financial year and has not incurred cash losses during the financial
year covered by our audit and in the immediately preceding financial
year.
ix. The Company has not defaulted in repayment of dues to the
financial institutions or banks or debenture holders.
x. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
Bankers or Financial Institutions.
xi. Based on the information and explanations given to us, term loans
were applied for the purpose for which the said loans were obtained.
xii. 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 to us, we report that no fraud
on or by the Company has been noticed or reported during the year.
For REDDY A V & CO
(Formerly J.B.REDDY & CO.,)
Chartered Accountants
A.V. REDDY
Partner
Membership No. 23983
Firm Regn. No. 003256S
Place: Chennai
Date : 29th May 2015
Mar 31, 2014
We have audited the accompanying financial statements of NELCAST
LIMITED ("the Company"), which comprise the Balance Sheet as at
31st March 2014, the Statement of Profit and Loss and the Statement of
Cash Flow for the year then ended and a summary of the significant
accounting policies and other explanatory information.
MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including
Accounting Standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal controls
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
AUDITORS'' RESPONSIBILITY
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers the internal controls 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 the accounting policies used and the reasonableness
of the accounting estimates made by the Management, as well as
evaluating the overall presentation of the financial statements. We
believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
OPINION
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2014;
(b) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date; and
(c) in the case of the Statement of Cash Flow, of the cash flows of the
Company for the year ended on that date.
(1) As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government in terms of sub-section (4A)
of section 227 of the Act, we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the Order.
(2) As required by sub-section (3) of section 227 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 purposes of our
audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, Statement of Profit and Loss and the Statement
of Cash Flow 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 Statement of Cash Flow comply with the Accounting Standards
referred to in sub-section (3C) of section 211 of the Act.
(e) On the basis of the written representations received from the
Directors as on 31st March 2014 taken on record by the Board of
Directors, none of the Directors is disqualified as on 31st March 2014
from being appointed as a Director in terms of clause (g) of
sub-section (1) of section 274 of the Act.
ANNEXURE REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING "REPORT ON OTHER
LEGAL AND REGULATORY REQUIREMENTS" OF OUR REPORT EVEN DATE
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of its fixed
assets.
(b) The Company has a policy of physically verifying its fixed assets
once in a year which in our opinion reasonable having regard to the
size of the Company and the nature of its business. During the year
fixed assets have been verified by the Management and no discrepancies
were noticed on such verification.
(c) There was no disposal of substantial fixed assets during the year.
(ii) (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 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) According to the information and explanations given to us, 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.
(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.
During the course of our audit no major weaknesses have been noticed in
the internal controls in these areas.
(v) (a) According to the information and explanations provided by the
Management, we are of the opinion that the transactions that need to be
entered into the register maintained under section 301 have been so
entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 have been made at prices, which are reasonable,
having regard to the prevailing market prices at the relevant time.
(vi) In respect of deposits accepted, in our opinion and according to
the information and explanations given to us, directives issued by the
Reserve Bank of India and the provisions of sections 58A and 58AA or
any other relevant provisions of the Act and the rules framed there
under, where applicable have been complied with.
(vii) In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
(viii) We have broadly reviewed the books of accounts maintained by the
Company pursuant to the rules made by the Central Government under
clause (d) of sub-section (1) of section 209 of the Companies Act, 1956
and are of the opinion that prima facie the prescribed accounts and
cost records have been made and maintained.
(ix) (a) According to the records provided to us, the Company is
regular in depositing undisputed statutory dues including Provident
Fund, Employees'' State Insurance, Income Tax, Wealth Tax, Sales Tax,
Customs Duty, Excise Duty, Service Tax, Cess and any other statutory
dues 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, Sales
Tax, Customs Duty, Excise Duty, Service Tax and Cess were in arrears as
at 31st March 2014 for a period of more than six months from the date
they became payable.
(c) According to the records of the Company and on the basis of
information and explanations given to us, there are no dues of Income
Tax, Wealth Tax, Sales Tax, Customs Duty, Excise Duty, Service Tax and
Cess which have not been deposited on account of any dispute.
(x) The Company has no accumulated losses and as at the end of the
financial year and has not incurred cash losses during the financial
year covered by our audit and in the immediately preceding financial
year.
(xi) Based on our audit procedures and as per the information and
explanations given by the Management, we are of the opinion that the
Company has not defaulted in repayment of dues to the Financial
Institutions or Banks or Debenture holders.
(xii) According to the information and explanations given to us based
on the documents and records produced before us, the Company has not
granted any loans or advance on the basis of security by the way of
pledge of shares, debentures or other securities.
(xiii) In our opinion, the Company is not a chit fund, or a
nidhi/mutual benefit fund/society. Therefore, the provisions of clause
4 (xiii) of the Order are not applicable.
(xiv) In our opinion and according to the information and explanations
given to us, the Company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4 (xiv) of the Order are not applicable to the
Company.
(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 the information and explanations given to us by the
Management, term loans were applied for the purpose for which the said
loans were obtained.
(xvii) According to the information and explanations given to us by the
Management and on 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) 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.
(xix) The Company did not have any outstanding debentures during the
year.
(xx) The Company has not raised any money by public issues during the
year.
(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 year.
For J.B. REDDY & CO.,
Chartered Accountants
A.V. REDDY
Partner
Place : Chennai Membership No. 23983
Date : 24th May 2014 Firm Regn. No. 003256S
Mar 31, 2011
1. We have audited the attached Balance Sheet of NELCAST LIMITED, as
at 31st March, 2011, the Profit & Loss Account and the Cash Flow
Statement of the Company for the year ended on that date annexed
thereto. These financial statements are responsibility of the Company
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 the management, as well as evaluating the overall financial
statement presentation. We believe that our Audit provides reasonable
basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of section 227 (4A) of the
Companies Act, 1956, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the annexure referred to above, we
report that:
(a) We have obtained all the information and explanation, which to the
best of our knowledge and belief, were necessary for the purposes of
our audit;
(b) In our opinion, proper books of account as required by law, have
been kept by the Company so far as appears from our examination of the
books of the Company;
(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 of
the Company;
(d) In our opinion, the Balance Sheet, Profit and Loss account and Cash
Flow Statement dealt with by this report comply with all the mandatory
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,
in our opinion, none of the Directors are disqualified from being
appointed as Director under Section 274(1)(g) of 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 with the notes on
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: -
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011;
(ii) in the case of the Profit and Loss Account, of the Profit of the
Company for the year ended on that date; and
(iii) in the case of Cash Flow Statement, of the Cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
(This is the Annexure referred to in our Report of even date)
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of its fixed
assets.
(b) All fixed assets have not been physically verified by the
Management during the year, but there is a regular programme of
verification which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its Assets. No material
discrepancies were noticed on such verification.
(c) There was no disposal of substantial fixed assets during the year.
(ii) (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 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.
(iv) In our opinion, there is an adequate internal control procedure
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. During the course of our audit no major weaknesses have
been noticed in the internal controls in these areas.
(v) (a) According to the information and explanations provided by the
management, we are of the opinion that the transactions that need to be
entered into the register maintained under Section 301 have been so
entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 have been made at prices, which are reasonable,
having regard to the prevailing market prices at the relevant time.
(vi) The Company has accepted deposits from the public. In our opinion,
the directives issued by the Reserve Bank of India and the provisions
of sections 58 A and 58 AA or any other relevant provisions of the Act
and the rules framed there under, where applicable have been complied
with.
(vii) In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
(viii) The Central Government has not prescribed the maintenance of
cost records by the Company under section 209(1)(d) of the Companies
Act, 1956 for any of its products.
(ix) (a) According to the records provided to us, the Company is
regular in depositing undisputed statutory dues including Provident
Fund, Employees State Insurance, Income-Tax, Sales Tax, Wealth Tax,
Custom Duty, Excise Duty, Service Tax, Cess and any other statutory
dues 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,
Sales-tax, Customs Duty, Excise Duty, Service Tax, and Cess were in
arrears as at 31st March, 2011 for a period of more than six months
from the date they became payable.
(c) According to the records of the Company and on the basis of
information and explanations given to us, there are no dues of
Sales-tax, Income-tax, Customs Duty, Wealth tax, Excise Duty, Service
Tax, Cess which have not been deposited on account of any dispute.
(x) The Company has no accumulated losses and as at the end of the
financial year and has not incurred cash losses during the financial
year covered by our audit and in the immediately preceding financial
year.
(xi) The Company has not defaulted in repayment of dues to the
Financial Institutions or Banks or Debenture holders.
(xii) The Company has not granted any loans or advance on the basis of
security by the way of pledge of shares, debentures or other
securities.
(xiii) In our opinion, the Company is not a chit fund, or a nidhi /
mutual benefit fund/society. Therefore, the provisions of clause 4
(xiii) of the Order are not applicable.
(xiv) In our opinion and according to the information and explanations
given to us, the Company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4 (xiv) of the Order are not applicable to the
Company.
(xv) The Company has not given any guarantee for loans taken by others
from Banks or Financial Institutions.
(xvi) In our opinion, term loans were applied for the purpose for which
the said loans were obtained.
(xvii) The funds raised on short-term basis have not been used for
long-term Investment and whereas part of long-term funds were used for
working capital requirement of the Company.
(xviii) The Company has not made, during the year, any preferential
allotment of shares to parties and companies covered in the Register
maintained under section 301 of the Companies Act, 1956.
(xix) The Company has not issued any debentures and hence creation of
Securities for debentures does not arise.
(xx) As per the checks carried out by us, no fraud on or by the Company
has been noticed or reported during the year under report.
For J.B.REDDY & CO.,
Chartered Accountants
A.V.REDDY
Partner.
Membership No. 23983
Firm Regn. No. 003256S
Mar 31, 2010
1. We have audited the attached Balance Sheet of NELCAST LIMITED, as
at 31 st March, 2010, the Profit & Loss Account and also the Cash Flow
Statement of the Company for the year ended on that date annexed
thereto. These financial statements are 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 the management, as well as evaluating the overall financial
statement presentation. We believe that our Audit provides reasonable
basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of section 227 (4A) of the
Companies Act, 1956, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the annexure referred to above, we
report that:
(a) We have obtained all the information and explanation, which to the
best of our knowledge and belief, were necessary for the purposes of
our audit;
(b) In our opinion, proper books of account as required by law, have
been kept by the Company so far as appears from our examination of the
books of the Company;
(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 of
the Company.
(d) In our opinion, the Balance Sheet, Profit and Loss account and Cash
Flow Statement dealt with by this report comply with all the mandatory
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, 2010 and taken on record by the Board of Directors,
in our opinion, none of the Directors are disqualified from being
appointed as Director under Section 274(1 )(g) of 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 with the notes on
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: -
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010;
(ii) in the case of the Profit and Loss Account, of the Profit of the
Company for the year ended on that date; and
(iii) in the case of Cash Flow Statement, of the Cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT (This is the Annexure referred to in
our Report of even date)
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of its fixed
assets.
(b) All fixed assets have not been physically verified by the
Management during the year, but there is a regular programme of
verification which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its Assets. No material
discrepancies were noticed on such verification.
(c) There was no disposal of substantial fixed assets during the year.
(ii) (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 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.
(iv) In our opinion, there is an adequate internal control procedure
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. During the course of our audit no major weaknesses have
been noticed in the internal controls in these areas.
(v) (a) According to the information and explanations provided by the
management, we are of the opinion that the transactions that need to be
entered into the register maintained under Section 301 have been so
entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 have been made at prices, which are reasonable,
having regard to the prevailing market prices at the relevant time.
(vi) The Company has accepted deposits from the public. In our opinion,
the directives issued by the Reserve Bank of India and the provisions
of sections 58 A and 58 AA or any other relevant provisions of the Act
and the rules framed there under, where applicable have been complied
with.
(vii) In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
(viii) The Central Government has not prescribed the maintenance of
cost records by the Company under section 209(1 )(d) of the Companies
Act, 1956 for any of its products.
(ix) (a) According to the records provided to us, the Company is
regular in depositing undisputed statutory dues including Provident
Fund, Employees State Insurance, Income-Tax, Sales Tax, Wealth Tax,
Custom Duty, Excise Duty, Service Tax, Cess and any other 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,
Sales-tax, Customs Duty, Excise Duty, Service Tax, and Cess were in
arrears as at 31st March, 2010 for a period of more than six months
from the date they became payable.
(c) According to the records of the Company and on the basis of
information and explanations given to us, there are no dues of
Sales-tax, Income-tax, Customs Duty, Wealth tax, Excise Duty, Service
Tax, Cess which have not been deposited on account of any dispute.
(x) The Company has no accumulated losses and as at the end of the
financial year and has not incurred cash losses during the financial
year covered by our audit and in the immediately preceding financial
year.
(xi) The Company has not defaulted in repayment of dues to the
Financial Institutions or Banks or Debenture holders.
(xii) The Company has not granted any loans or advance on the basis of
security by the way of pledge of shares, debentures or other
securities.
(xiii) In our opinion, the Company is not a chit fund, or a nidhi /
mutual benefit fund/society. Therefore, the provisions of clause 4
(xiii) of the Order are not applicable.
(xiv) In our opinion and according to the information and explanations
given to us, the Company is not dealing or trading in shares,
securities, debentures and other investments.
Accordingly, the provisions of clause 4 (xiv) of the Order are not
applicable to the Company.
(xv) The Company has not given any guarantee for loans taken by others
from Banks or Financial Institutions.
(xvi) In our opinion, term loans were applied for the purpose for which
the said loans were obtained.
(xvii) The funds raised on short-term basis have not been used for
long-term Investment and whereas part of long-term funds were used for
working capital requirement of the Company.
(xviii) The Company has not made, during the year, any preferential
allotment of shares to parties and companies covered in the Register
maintained under section 301 of the Companies Act, 1956.
(xix) The Company has not issued any debentures and hence creation of
Securities for debentures does not arise.
(xx) As per the checks carried out by us, no fraud on or by the Company
has been noticed or reported during the year under report.
ForJ.B.REDDY&CO.,
Chartered Accountants
A.V.REDDY
Partner.
Membership No. 23983
Firm Regn. No. 003256S