Home  »  Company  »  Vardhman Special St  »  Quotes  »  Auditor Report
Enter the first few characters of Company and click 'Go'

Auditor Report of Vardhman Special Steels Ltd.

Mar 31, 2015

We have audited the accompanying financial statements of Vardhman Special Steels Limited ("the Company"), which comprise the Balance Sheet as at March 31,2015, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements The Company's Board of Directors is responsible for the matters in section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the frauds and other irregularities; selection and application of appropriate accounting policies; making judgements and estimates that are reasonable and prudent; and design, implementation and maintenance of internal financial control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made 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 disclosures in the financial statements. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company's preparation of the financial statements that give true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Company's Directors, as well as evaluating the overall presentation of the financial statements.

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

Opinion

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 31,2015;

b) in the case of the Statement of Profit and Loss, of the loss 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, 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 prescribed in paragraphs 3 and 4 of the Order.

2. As required by section 143(3) of the Act, we report that:

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

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

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

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

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

f) With respect to the other matters included in the Auditor's Report and to the best of our information and according to the explanations given to us :

I. The Company does not have any pending litigations which would materially impact its financial position;

II. The Company did not have any long-term contracts including derivatives contracts for which there were any material foreseeable losses;

III. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

THE ANNEXURE REFERRED TO IN PARAGRAPH 1 OF THE OUR REPORT OF EVEN DATE TO THE MEMBERS OF VARDHMAN SPECIAL STEELS LIMITED ON THE ACCOUNTS OF THE COMPANY FOR THE YEAR ENDED 31ST MARCH, 2015.

On the basis of such checks as we considered appropriate and according to the information and explanation given to us during the course of our audit, we report that:

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

(b) As explained to us, Fixed Assets are verified by rotation every year. No discrepancies were observed in the Fixed Assets physically verified during the financial year.

2. (a) As explained to us, inventories have been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

(b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) In our opinion and on the basis of our examination of the records, the Company is generally maintaining proper records of its inventories. The discrepancies noticed on verification between the physical stocks and the book records were not material and have been adequately dealt with in books of accounts.

3. (a) According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has not granted any loans, secured or unsecured, to companies, firms or other parties listed in the register maintained under Section 189 of the Companies Act, 2013. Consequently, the provisions of clauses iii (a) and iii (b) of the order are not applicable to the Company.

4. In our opinion and according to the information and explanations given to us, there is generally an adequate internal control procedure commensurate with the size of the Company and the nature of its business, for the purchase of inventories & fixed assets and for sale of goods& services. Further, on the basis of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, we have neither come across nor have we been informed of any instance of major weaknesses in the aforesaid internal control procedures.

5. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits within the meaning of sections73 to 76 or any other relevant provisions of the Companies Act, 2013 and rules framed thereunder. We have been explained that no order has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal against the Company during the year.

6. We have broadly reviewed the books of account maintained by the Company pursuant to the Rules made by the Central Government for the maintenance of cost records under Section 148 (1) of the Companies Act, 2013 and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the said records with a view to determine whether they are accurate or complete.

7. (a) According to the records of the Company examined

by us and the information and explanations given to us, in our opinion, the company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, Employees' State Insurance, Income-Tax, Wealth Tax, Service Tax, Sales Tax, Custom Duty, Excise Duty, Value Added Tax, Cess and other statutory dues applicable to it. According to the records of the Company examined by us and the information and explanations given to us, in our opinion, no undisputed amounts payable in respect of provident fund, Employees' State Insurance, Income-Tax, Wealth Tax, Service Tax, Sales Tax, Custom Duty, Excise Duty, Value Added Tax, Cess and other statutory dues were outstanding, as at 31.03.2015 for a period of more than six months from the date they became payable.

(b) According to the records of the Company examined by us and the information and explanations given to us, in our opinion, there are no dues of income-tax / sales tax / wealth tax / service tax / customs duty / excise duty / Value Added Tax / cess which have not been deposited on account of any dispute, except the following:

S. Nature of dues (Rs.) Amount due (Rs) Forum where pending No

1 PUNJAB SALE TAX Basic& Penalty JOINT DIRECTOR, Rs. 186500 ENFORCEMENT, PATIALA

2. PUNJAB SALE TAX Basic & Penalty JOINT DIR Rs. 180000 ENFORCEMENT PATIALA

3. Punjab VAT Act, PENALTY AETC MOBILE WING, 2005 Rs. 595963 PATIALA

4. CENVAT - DENIAL Basic & Penalty CHIEF COMMISSIONER OF CENVAT Rs. 415723 Interest EXCISE, Rs.405723 CHANDIGARH

5. CENVAT - DENIAL Basic Rs. 45450 Interest CESTAT OF CENVAT Rs.45450

6. CENVAT - DENIAL Basic & Penalty ASSISTANT OF CENVAT Rs. 25394 COMMISSIONER, Interest LUDHIANA Rs.3428

7. CENVAT - DENIAL Basic Rs. 84910 Interest ASSISTANT OF CENVAT Rs.15283 COMMISSIONER, LUDHIANA

8. RULE 6 B OF Basic & Penalty COMMISSIONER VALUATION RULES- Rs. 2778084 APPEALS, CENTRAL EXCISE Interest CHANDIGARH Rs.1739042

9. DENIAL OF CENVAT Basic REMANDED BACK TO Rs. 133333 COMMISSIONER Interest Rs.133333 APPEALS BY CESTAT

10. DENIAL OF CENVAT Basic & Penalty ASSISTANT Rs. 26938 Interest COMMISSIONER Rs. 6667 LUDHIANA

11. DENIAL OF CENVAT Basic & Penalty ASSISTANT Rs. 145529 COMMISSIONER, Interest Rs. 13098 LUDHIANA

12. DENIAL OF CENVAT Basic & Penalty ASSISTANT Rs. 25756 COMMISSIONER, Interest Rs. 9030 LUDHIANA

13. DENIAL OF CENVAT Basic & Penalty ASSISTANT Rs. 7284 Interest COMMISSIONER, Rs.1639 LUDHIANA

14. Entry Tax Rs.8,50,00,000 Punjab & Haryana High Court

(c) According to the records of the Company examined by us and the information and explanations given to us, in our opinion, no amount was required to be transferred to investor education and protection fund in accordance with the relevant provisions of the Companies Act, 1956 (1 of 1956) and rules made thereunder.

8. The Company does not have any accumulated loss and has incurred cash loss during the financial year covered by our audit, however had incurred cash loss in the immediately preceding financial year.

9. Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that, the Company has not defaulted in repayment of dues to a financial institution or bank during the period. As the Company has not issued debentures, clause regarding default to debenture holders does not apply to the Company.

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

11. According to the records of the Company examined by us and the information and explanations given to us, term loans availed by the Company during the year have been utilized for the purpose they have been received.

12. 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, we have neither come across any instance of fraud on or by the Company, noticed or reported during the period, nor have we been informed of such case by the management.

For S. S. Kothari Mehta & Co. Chartered Accountants (Firm Regn. No. 022150N) (CA Dinesh K. Abrol) PLACE: GURGAON Partner DATE: 2nd MAY, 2015 Membership No.87899


Mar 31, 2014

We have audited the accompanying financial statements of Vardhman Special Steels Limited ("the Company"), which comprise the Balance Sheet as at 31st March 2014, and the Statement of Profit & Loss and Cash Flow Statement for the year ended on that date, 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 ("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.

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, but not for the purpose of expressing an opinion on the effectiveness of the Company''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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

Opinion

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

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 & Loss of the loss 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 ("the Order") issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

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

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

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

c) the Balance Sheet, Statement of Profit & 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 & 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 31st March, 2014 and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2014 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

f) Since the Central Government has not issued any notification as to the rate at which the cess is to be paid under section 441A of the Companies Act, 1956 nor has it issued any Rules under the said section, prescribing the manner in which such cess is to be paid, no cess is due and payable by the Company.

THE ANNEXURE REFERRED TO IN PARAGRAPH 1 OF THE OUR REPORT OF EVEN DATE TO THE MEMBERS OF VARDHMAN SPECIAL STEELS LIMITED ON THE ACCOUNTS OF THE COMPANY FOR THE YEAR ENDED 31st MARCH, 2014.

On the basis of such checks as we considered appropriate and according to the information and explanation given to us during the course of our audit, we report that:

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

(b) As explained to us, Fixed Assets are verified by rotation every year. No material discrepancies were observed in the Fixed Assets physically verified during the Financial Year.

(c) In our opinion and according to the information and explanations given to us, during the period, the Company has not disposed off substantial portion of fixed assets. Therefore, it has not affected the ability of Company to continue as going concern.

2. (a) As explained to us, inventories have been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

(b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) In our opinion and on the basis of our examination of the records, the Company is generally maintaining proper records of its inventories. The discrepancies noticed on verification between the physical stocks and the book records were not material and have been adequately dealt with in books of accounts.

3. (a) According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has not granted any loans, secured or unsecured, to companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956. Consequently, the provisions of clauses iii (b), iii(c) and iii (d) of the order are not applicable to the Company.

(e) According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has not taken loans from companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956. Thus sub clauses (f) & (g) are not applicable to the Company.

4. In our opinion and according to the information and explanations given to us, there is generally an adequate internal control procedure commensurate with the size of the Company and the nature of its business, for the purchase of inventories & fixed assets and payment for expenses & for sale of goods. Further, on the basis of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, we have neither come across nor have we been informed of any instance of major weaknesses in the aforesaid internal control procedures.

5. Based on the audit procedures applied by us and according to the information and explanations provided by the management, there are no transactions made in pursuance of contracts or arrangements that need to be entered into the register maintained under section 301. Thus sub clause (b) is not applicable to the Company.

6. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits within the meaning of section 58A, 58AA or any other relevant provisions of the Companies Act, 1956 and rules framed thereunder. We have been explained that no order has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal against the Company during the year.

7. As per information & explanations given by the management, the Company has an internal audit system commensurate with its size and the nature of its business.

8. We have broadly reviewed the books of account maintained by the Company pursuant to the Rules made by the Central Government for the maintenance of cost records under Section 209 (1) (d) of the Companies Act, 1956 and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the said records with a view to determine whether they are accurate or complete.

9. (a) According to the records of the Company examined by us and the information and explanations given to us, in our opinion, the Company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, Investor Education and Protection Fund, Employees'' State Insurance, Income-Tax, Wealth Tax, Service Tax, Sales Tax, Custom Duty, Excise Duty, Cess and other statutory dues applicable to it. According to the records of the Company examined by us and the information and explanations given to us, in our opinion, no undisputed amounts payable in respect of provident fund, Investor Education and Protection Fund, Employees'' State Insurance, Income-Tax, Wealth Tax, Service Tax, Sales Tax, Custom Duty, Excise Duty, Cess and other statutory dues were outstanding, as at 31.03.2014 for a period of more than six months from the date they became payable.

(b) According to the records of the Company examined by us and the information and explanations given to us, in our opinion, there are no dues of sale tax, income-tax / sales tax / wealth tax / service tax / customs duty / excise duty / cess which have not been deposited on account of any dispute, except the following:

S. Nature of dues Amount due (Rs.) Forum where pending No. 1. PUNJAB SALE TAX Basic & Penalty JOINT DIRECTOR, Rs.1,86,500 ENFORCEMENT, PATIALA

2. PUNJAB SALE TAX Basic & Penalty JOINT DIRECTOR Rs.1,80,000 ENFORCEMENT PATIALA

3 PUNJAB VAT ACT, 2005 Penalty AETC MOBILE WING, Rs. 5,95,963 PATIALA

4. CENVAT - DENIAL OF Basic & Penalty CHIEF CENVAT Rs.4,15,723 COMMISSIONER Interest Rs. EXCISE,CHANDIGARH 4,05,723 5. CENVAT - DENIAL OF Basic Rs.45,450 CESTAT CENVAT Interest Rs.45,450

6. CENVAT - DENIAL OF Basic & Penalty ASSISTANT CENVAT Rs.25,394 COMMISSIONER, Interest Rs.1,143 LUDHIANA

7. CENVAT - DENIAL OF Basic Rs.84,910 ASSISTANT CENVAT Interest Rs.7,642 COMMISSIONER, LUDHIANA

8. RULE 6 B OF VALUATION Basic & Penalty COMMISSIONER, RULES-CENTRAL EXCISE Rs.27,78,084 APPEALS Interest CHANDIGARH Rs.17,39,042

9. DENIAL OF CENVAT Basic & Penalty CESTAT Rs. 7,51,035 Interest Rs.7,41,035

10. DENIAL OF CENVAT Basic Rs.1,33,333 REMANDED BACK Interest Rs. 1,33,333 TO COMMISSIONER APPEALS BY CESTAT IN AUG''10

11. DENIAL OF CENVAT Basic & Penalty ASSISTANT Rs. 26,938 COMMISSIONER Interest Rs.4,243 LUDHIANA

12. DENIAL OF CENVAT Basic & Penalty ASSISTANT Rs. 25,756 COMMISSIONER, Interest Rs.6,622 LUDHIANA

13. DENIAL OF CENVAT Basic & Penalty ASSISTANT Rs. 7,284 COMMISSIONER,

Interest Rs. 983 LUDHIANA

10. The Company does not have any accumulated losses and has incurred cash loss during the Financial Year covered by our audit but not in the immediately preceding Financial Year.

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

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

13. According to the records of the Company examined by us and the information and explanations given to us, term loans availed by the Company during the year have been utilized for the purpose they have been received.

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

15. Based on the audit procedures performed and the information and explanations given to us by the management, we report that the Company has not made any preferential allotment of shares during the year.

16. The Company has not issued any debentures during the period covered by our audit report.

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

18. 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, we have neither come across any instance of fraud on or by the Company, noticed or reported during the period, nor have we been informed of such case by the management.

19. Matters specified in clauses xii, xiii, xiv & xviii, of paragraph 4 of the CARO 2003 do not appear to be applicable for the year under report.

For S. S. Kothari Mehta & Co. Chartered Accountants (Firm Regn. No. 022150N)

(CA Dinesh K. Abrol) PLACE: GURGAON Partner DATE: 17th MAY, 2014 Membership No.87899


Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying financial statements of Vardhman Special Steels Limited ("the Company"), which comprise the Balance Sheet as at 31st March, 2013, and the Statement of Profit and Loss and Cash Flow Statement for the year ended on that date 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 ("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.

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 qualified audit opinion.

Basis for Qualified Opinion

The Company''s liability in respect of ECB was restated as on 30th June, 2012 for determining quarterly results. However, as at the year end, it has not been restated, which constitutes a departure from the Accounting Standards referred to in sub- section (3C) of section 211 of the Act. The Company''s records indicate that had management restated the ECB as at the end of the year, this would have resulted in gain of an amount of Rs. 2.20 crore for the financial year. Accordingly, liability in respect of ECB would have decreased by Rs. 2.20 crore and profit before tax would have been increased by Rs. 2.20 crore.

Qualified Opinion

In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, 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, 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 ("the Order") issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

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

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

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

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

d) except for the matter described in the Basis for Qualified Opinion paragraph, in our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with the Accounting Standards referred to in sub-Section (3C) of Section 211 of the Companies Act, 1956;

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

f) Since the Central Government has not issued any notification as to the rate at which the cess is to be paid under section 441A of the Companies Act, 1956 nor has it issued any Rules under the said section, prescribing the manner in which such cess is to be paid, no cess is due and payable by the Company.

THE ANNEXURE REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF VARDHMAN SPECIAL STEELS LIMITED ON THE ACCOUNTS OF THE COMPANY FOR THE YEAR ENDED 31ST MARCH, 2013.

On the basis of such checks as we considered appropriate and according to the information and explanations given to us during the course of our audit, we report that:

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

(b) As explained to us, Fixed Assets are verified by rotation every year. No discrepancies were observed in the Fixed Assets physically verified during the financial year.

(c) In our opinion and according to the information and explanations given to us, during the year, the company has not disposed off substantial portion of fixed assets. Therefore, it has not affected the ability of Company to continue as going concern.

2. (a) As explained to us, inventories have been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

(b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

(c) In our opinion and on the basis of our examination of the records, the Company is generally maintaining proper records of its inventories. The discrepancies noticed on verification between the physical stocks and the book records were not material and have been adequately dealt with in books of accounts.

3. (a) According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has not granted any loans, secured or unsecured, to companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956. Consequently, the provisions of clauses iii (b), iii(c) and iii (d) of the order are not applicable to the Company.

(b) According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has not taken loans from companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956. Thus sub clauses (f) & (g) are not applicable to the company.

4. In our opinion and according to the information and explanations given to us, there is generally an adequate internal control procedure commensurate with the size of the company and the nature of its business, for the purchase of inventories & fixed assets and payment for expenses & for sale of goods. Further, on the basis of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, we have neither come across nor have we been informed of any instance of major weaknesses in the aforesaid internal control procedures.

5. Based on the audit procedures applied by us and according to the information and explanations provided by the management, there are no other transactions made in pursuance of contracts or arrangements that need to be entered into the register maintained under section 301.

6. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits within the meaning of section 58A, 58AA or any other relevant provisions of the Companies Act, 1956 and rules framed thereunder. We have been explained that no order has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any other tribunal against the Company during the year.

7. As per information & explanations given by the management, the Company has an internal audit system commensurate with its size and the nature of its business.

8. We have broadly reviewed the books of account maintained by the company pursuant to the Rules made by the Central Government for the maintenance of cost records under Section 209 (1) (d) of the Companies Act, 1956 and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the said records with a view to determine whether they are accurate or complete.

9. (a) According to the records of the Company examined by us and the information and explanations given to us, in our opinion, the company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employees'' state insurance, income-tax, wealth tax, service tax, sales tax, custom duty, excise duty, cess and other statutory dues applicable to it. According to the records of the Company examined by us and the information and explanations given to us, in our opinion, no undisputed amounts payable in respect of provident fund, employees'' state insurance, income-tax, wealth tax, service tax, sales tax, custom duty, excise duty, cess and other statutory dues were outstanding as at 31.03.2013 for a period of more than six months from the date they became payable.

(b) According to the records of the Company examined by us and the information and explanations given to us, in our opinion, there are no dues of income-tax / sales tax / wealth tax / service tax / customs duty / excise duty / cess which have not been deposited on account of any dispute, except the following:

S. Nature of dues Amount due (Rs.) Forum where pending No.

1. PUNJAB SALE TAX Basic & Penalty JOINT DIRECTOR, Rs. 1,86,500 ENFORCEMENT, PATIALA

2. PUNJAB SALE TAX Basic & Penalty JOINT DIRECTOR, Rs. 1,80,000 ENFORCEMENT, PATIALA

3. CENVAT - DENIAL Basic & Penalty CHIEF COMMISSIONER OF CENVAT Rs. 4,15,723 EXCISE,CHANDIGARH Interest Rs. 4,05,723

4. CENVAT - DENIAL Basic Rs. 45,450 CESTAT OF CENVAT Interest Rs. 45,450

5. RULE 6 B OF Basic & Penalty COMMISSIONER VALUATION RULES- Rs. 27,78,084 APPEALS, CENTRAL EXCISE Interest Rs. 17,39,042 CHANDIGARH

6. DENIAL OF CENVAT Basic & Penalty CESTAT Rs. 7,51,035 Interest Rs. 7,41,035

7. DENIAL OF CENVAT Basic & Penalty REMANDED BACK TO Rs. 1,33,333 COMMISSIONER Interest Rs.1,33,333 APPEALS BY CESTAT IN AUG''10

8. DENIAL OF CENVAT Basic & Penalty ASSISTANT Rs. 26,938 COMMISSIONER, Interest Rs. 1,820 LUDHIANA

9. DENIAL OF CENVAT Basic & Penalty ASSISTANT Rs. 4,87,766 COMMISSIONER, Interest Rs. 35,976 LUDHIANA

10. DENIAL OF CENVAT Basic & Penalty ASSISTANT Rs. 7,09,984 COMMISSIONER, Interest Rs. 1,16,545 LUDHIANA

11. DENIAL OF CENVAT Basic & Penalty ASSISTANT Rs. 26,756 COMMISSIONER, Interest Rs. 4,214 LUDHIANA

12 DENIAL OF CENVAT Basic & Penalty ASSISTANT Rs. 8,01,248 COMMISSIONER, Interest Rs. 95,160 LUDHIANA

13. DENIAL OF CENVAT Basic & Penalty ASSISTANT Rs. 7,284 COMMISSIONER, Interest Rs. 327 LUDHIANA

14. DENIAL OF CENVAT Basic & Penalty ASSISTANT Rs. 9,70,642 COMMISSIONER, Interest Rs. 1,68,655 LUDHIANA

10. The Company does not have any accumulated loss and has not incurred cash loss during the financial year covered by our audit and in the immediately preceding financial year.

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

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

13. According to the records of the Company examined by us and the information and explanations given to us, no term loans have been taken by the Company during the year.

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

15. Based on the audit procedures performed and the information and explanations given to us by the management, we report that the Company has not made any preferential allottment of shares during the year.

16. The company has not issued any debentures during the year covered by our audit report.

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

18. 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, we have neither come across any instance of fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the management.

19. The other provisions of the Order do not appear to be applicable for the year under report.

For S. S. Kothari Mehta & Co.

Chartered Accountants

(Firm Regn. No. 022150N)

(CA Dinesh K. Abrol)

Place : LUDHIANA Partner

Date : 10th May, 2013 Membership No.087899


Mar 31, 2012

We have audited the attached Balance Sheet of Vardhman Special Steels Limited, Ludhiana as at 31st March 2012, and also the Statement of Profit and Loss and 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.

1. We conducted our audit in accordance with the auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

2. As required 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, we enclose in the enclosed Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

3. Further to our comments in the Annexure referred to in Para 2 above, we report that:

(i) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit;

(ii) In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;

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

(iv) In our opinion, subject to compliance of Accounting Standard 11 regarding "The Effects of Changes in Foreign Exchange Rates applicable to footnote to Note 25 to Financial Statements," the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956;

(v) On the basis of written representations received from the directors, as on 31st March 2012 and taken on record by the Board of Directors, we report that none of the directors are disqualified as on 31st March 2012 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956;

(vi) In our opinion and to the best of our information and according to the explanations given to us, subject to footnote to Note 25 to Financial Statements, thereby understating profits for the year to the extent of Rs. 370 Lac and resulting into overstatement of liability to that extent, the said Balance Sheet and Statement of Profit and Loss read together with significant Accounting Policies and other 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 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.

ANNEXURE REFERRED TO IN PARAGRAPH 2 OF OUR REPORT OF EVEN DATE

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

2. Fixed Assets are verified by rotation every year. No discrepancies were observed in the Fixed assets physically verified during the financial year.

3. During the period, the Company has not disposed off substantial portion of fixed assets. Therefore, it has not affected the ability of Company to continue as a going concern.

4. The inventory of the Company has been physically verified during the period by the management. In our opinion, the frequency of verification is reasonable.

5. In our opinion and according to the informations and explanations given to us, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

6. On the basis of our examination of the records of inventory, we are of the opinion that the Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material and have been adequately dealt with in books of accounts.

7. We have been informed that there are no loans granted in pursuance of contracts or arrangements that need to be entered into the register maintained under section 301.

8. We have been informed that there are no loans taken in pursuance of contracts or arrangements that need to be entered into the register maintained under section 301.

9. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchases of inventory, fixed assets and with regard to the sale of goods and services. Further, on the basis of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, we have neither come across nor have we been informed of any instance of major weaknesses in the aforesaid internal control procedures.

10. We have been informed that there are no other transactions made in pursuance of contracts or arrangements that need to be entered into the register maintained under section 301.

11. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits within the meaning of section 58A, 58AA or any other relevant provisions of the Companies Act, 1956 and rules framed thereunder. We have been explained that no order has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any other tribunal against the Company during the period.

12. In our opinion, the Company has an internal audit system commensurate with the size and nature of its business.

13. We have broadly reviewed the books of account maintained by the Company pursuant to the Rules made by the Central Government for the maintenance of cost records under Section 209 (1) (d) of the Companies Act, 1956 and we are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the said records with a view to determine whether they are accurate or complete.

14. According to the records of the Company examined by us and the information and explanations given to us, in our opinion, the Company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employees' state insurance, income-tax, wealth tax, service tax, sales tax, custom duty, excise duty, cess and other statutory dues applicable to it.

15. According to the records of the Company examined by us and the information and explanations given to us, in our opinion, no undisputed amounts payable in respect of provident fund, employees' state insurance, income-tax, wealth tax, service tax, sales tax, custom duty, excise duty, cess and other statutory dues were outstanding, as at 31.03.2012 for a period of more than six months from the date they became payable.

16. According to the records of the Company examined by us and the information and explanations given to us, in our opinion, there are no dues of sale tax/ income-tax / wealth tax / service tax / customs duty / excise duty / cess which have not been deposited on account of any dispute, except the following:

S. Nature of dues Amount due (Rs.) Forum where pending No.

1. Punjab Sale Tax Basic 1,86,500 Joint Director, Enforcement, Patiala

2. Punjab Sale Tax Basic 1,80,000 Joint Director, Enforcement, Patiala

3. Excise - Denial Basic Rs. 4,15,723 Chief Commissioner of CENVAT Interest Rs.4,05,723 Excise, Chandigarh

4. Excise - Denial Basic Rs. 45,450 CESTAT of CENVAT Interest Rs.45,450

5. Excise - CREDIT Rs. 27,78,084 Commissioner Appeals, Interest Rs.17,39,042 Chandigarh

6. Excise - Denial Basic Rs.7,51,035 CESTAT of CENVAT Interest Rs.7,41,035

7. Excise - Denial Basic Rs.1,33,333 Remanded Back to of CENVAT Interest Rs.1,33,333 Commissioner Appeals By CESTAT

8. Excise - Denial Basic Rs. 5,44,993 Commissioner of CENVAT Penalty Rs.5,44,993 Appeals, Interest Rs. 2,14,742 Chandigarh

9. Excise - Denial Basic Rs. 33,69,378 Assistant of CENVAT Interest Rs.12,04,668 Commissioner, Ludhiana

10. Excise - Denial Basic Rs. 1,85,693 Assistant of CENVAT Interest Rs.1,49,848 Commissioner

11. Excise - Denial Basic Rs. 15,13,305 Assistant of CENVAT Interest Rs.1,57,467 Commissioner

12. Excise - Denial Basic Rs. 5,78,560 Assistant of CENVAT Interest Rs.49,075 Commissioner

17. The Company does not have accumulated losses as at the end of the financial period. The Company has not incurred any cash losses during the financial period covered by our audit.

18. Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that the Company has not defaulted in repayment of dues to any financial institution or bank during the period.

19. 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.

20. According to the records of the Company examined by us and the information and explanations given to us, term loans (ECB) taken by the Company during the period are being utilized for the purpose they have been received.

21. According to the information and explanations given to us and on the basis of an overall examination of the balance sheet of the Company, in our opinion, generally, there are no funds raised by the Company on short-term basis, which have been used for long- term investment.

22. The Company has not made any preferential allotment of shares during the period.

23. The Company has not issued any debentures during the period covered by our audit report.

24. The Company has not raised any money by way of public issue during the period covered by our audit report.

25. 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, we have neither come across any instance of fraud on or by the Company, noticed or reported during the period, nor have we been informed of such case by the management.

26. The other provisions of the Order do not appear to be applicable for the year under report.

For S. S. Kothari Mehta & Co.

Chartered Accountants

(Firm Regn. No. 022150N)

(CA Dinesh K. Abrol)

Place : GURGAON Partner

Date : 21st APRIL, 2012 Membership No.87899


Mar 31, 2011

We have audited the attached balance sheet of Vardhman Special Steels Limited, Ludhiana as at 31st March 2011, and also the Profit and Loss Account and the Cash Flow Statement for the period 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.

1. We conducted our audit in accordance with the auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

2. As required 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, we enclose in the enclosed Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

3. Further to our comments in the Annexure referred to in Para 2 above, we report that:

(i) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit;

(ii) In our opinion, proper books of account as required by law have been kept by the company so far as appears from our examination of those books;

(iii) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account;

(iv) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956;

(v) On the basis of written representations received from the directors, as on 31st March 2011 and taken on record by the Board of Directors, we report that none of the directors are disqualified as on 31st March 2011 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956;

(vi) In our opinion and to the best of our information and according to the explanations given to us, the said Balance Sheet and Profit & Loss Account read together with significant Accounting Policies and other 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 2011 ;

(b) in the case of the Profit and Loss Account, of the profit for the period ended on that date; and

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

ANNEXURE REFERRED TO IN PARAGRAPH 2 OF OUR REPORT OF EVEN DATE

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

2. Fixed Assets were physically verified during the period and the discrepancies observed, which were not material in nature, have been properly adjusted in the books of accounts.

3. During the period, the company has not disposed off substantial portion of fixed assets. Therefore, it has not affected the ability of Company to continue as going concern.

4. The inventory of the Company has been physically verified during the period by the management. In our opinion, the frequency of verification is reasonable.

5. In our opinion and according to the information's and explanations given to us, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

6. On the basis of our examination of the records of inventory, we are of the opinion that the company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material and have been adequately dealt with in books of accounts. 7. We have been informed that there are no loans granted in pursuance of contracts or arrangements that need to be entered into the register maintained under section 301.

8. We have been informed that there are no loans taken in pursuance of contracts or arrangements that need to be entered into the register maintained under section 301.

9. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business with regard to purchases of inventory, fixed assets and with regard to the sale of goods and services. Further, on the basis of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, we have neither come across nor have we been informed of any instance of major weaknesses in the aforesaid internal control procedures.

10. We have been informed that there are no other transactions made in pursuance of contracts or arrangements that need to be entered into the register maintained under section 301.

11. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits within the meaning of section 58A, 58AA or any other relevant provisions of the Companies Act, 1956 and rules framed there under. We have been explained that no order has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any other tribunal against the Company during the period.

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

13. We have broadly reviewed the books of account maintained by the company pursuant to the Rules made by the Central Government for the maintenance of cost records under Section 209 (1) (d) of the Companies Act, 1956 and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the said records with a view to determine whether they are accurate or complete.

14. According to the records of the Company examined by us and the information and explanations given to us, in our opinion, the company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employees' state insurance, income-tax, wealth tax, service tax, sales tax, custom duty, excise duty, cuss and other statutory dues applicable to it.

15. According to the records of the Company examined by us and the information and explanations given to us, in our opinion, no undisputed amounts payable in respect of provident fund, employees' state insurance, income-tax, wealth tax, service tax, sales tax, custom duty, excise duty, cuss and other statutory dues were outstanding, as at 31.03.2011 for a period of more than six months from the date they became payable.

16. According to the records of the Company examined by us and the information and explanations given to us, in our opinion, there are no dues of sale tax, income-tax/sales tax/wealth tax/service tax/ customs duty/excise duty/cuss which have not been deposited on account of any dispute, except the following:

S. Nature of dues Amount due (Rs.) Forum where pending No.

1. Punjab Sales Tax Basic Rs. 1,86,500 Joint Director, Enforcement, Patiala

2. Punjab Sales Tax Basic Rs. 1,80,000 Joint Director, Enforcement, Patiala

3. Punjab Sales Tax Basic Rs. 2,00,000 joint Director, Enforcement, Patiala 4. CENVAT - Denial Basic Rs. 4,15,723 Chief Commissioner of CENVAT Excise, CHD

5. CENVAT - Denial Basic Rs. 45,450 CESTAT of CENVAT

6. CENVAT Credit Rs. 27,78,084 Commissioner Appeals, CHD

7. CENVAT - Denial Basic Rs. 9,51,035 CESTAT of CENVAT

8. CENVAT - Denial Basic Rs. 1,33,333 Remanded back to of CENVAT Commissioner Appeals by CESTAT in Aug'10

9. CENVAT - Denial Basic Rs. 5,44,993 Commissioner of CENVAT Appeals, Chandigarh

10. CENVAT - Denial Basic Rs. 33,69,378 Assistant Commissiner, of CENVAT Ludhiana

17. The company does not have accumulated losses as at the end of the financial period. The company has not incurred any cash losses during the financial period covered by our audit. This is the first financial year of the Company.

18. Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that the company has not defaulted in repayment of dues to any financial institution or bank during the period.

19. According to the information and explanations given to us, the company has not given any guarantee for loans taken by others from bank or financial institutions.

20. According to the records of the Company examined by us and the information and explanations given to us, no term loans have been taken by the Company during the period.

21. According to the information and explanations given to us and on the basis of an overall examination of the balance sheet of the Company, in our opinion, generally, there are no funds raised by the Company on short-term basis, which have been used for long- term investment.

22. The company has not made any preferential allotment of shares during the period.

23. The company has not issued any debentures during the period covered by our audit report.

24. The Company has not raised any money by way of public issue during the period covered by our audit report.

25. 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, we have neither come across any instance of fraud on or by the Company, noticed or reported during the period, nor have we been informed of such case by the management.

26. The other provisions of the Order do not appear to be applicable for the period under report.

For S. S. Kothari Mehta & Co.

Chartered Accountants

(Firm Regn. No. 022150N)

Place : New Delhi (CA Dinesh K. Abrol)

Date : 271h April, 2011 Partner

Membership No.87899

 
Subscribe now to get personal finance updates in your inbox!