Mar 31, 2023
We have audited the accompanying standalone financial statements of APL APOLLO TUBES LIMITED ("the Company"), which comprise the Balance Sheet as at March 31, 2023, and the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Cash Flows and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31,2023, and its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor''s Responsibility for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI''s Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. We have determined that there are no key audit matters to communicate in our report.
Information Other than the Financial Statements and Auditor''s Report Thereon
The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Management Discussion and Analysis, Board''s report including Annexures to Board''s Report (hereinafter referred to as "Other Information"), but does not include the consolidated financial statements, standalone financial statements and our auditor''s report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Ind AS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial 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, Board of Directors are responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Company''s Board of Directors are also responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibility for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion
on whether the Company has adequate internal financial controls with reference to standalone financial statements in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.
Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the standalone 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 auditor''s report unless law or
regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
The comparative financial information of the Company as at and for the year ended March 31,2022 forming part of the standalone financial statements includes financial information of Apollo Tricoat Tubes Limited and Shri Lakshmi Metal Udyog Limited to give accounting effect of the merger (refer Note 47 of the standalone financial statements). The financial statements of Apollo Tricoat Tubes Limited as at and for the year ended March 31, 2022 was audited by other auditor and whose report dated May 06, 2022 expressed an unmodified opinion. Our report on the Statement is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit
we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Statement of Cash Flows and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
d) I n our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act.
e) On the basis of the written representations received from the directors as on March 31, 2023 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2023, from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls with reference to standalone financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure A". Our report expresses an unmodified opinion on the adequacy and operating
effectiveness of the Company''s internal financial controls with reference to standalone financial statements.
g) With respect to the other matters to be included in the Auditor''s Report in accordance with the 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 Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements (Refer Note 38(a) of the standalone financial statements).
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses. (Refer Note 38(b)(4) of the standalone financial statements).
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company (Refer Note 38(c) of the standalone financial statements).
iv. (a) The Management has represented that,
to the best of its knowledge and belief, other than as disclosed in the note 48(e) to the standalone financial statements, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any
guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(b) The Management has represented, that, to the best of its knowledge and belief, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities ("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 entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries (refer note 48(f) to the standalone financial statements).
(c) Based on the audit procedures performed that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.
v. As stated in note 48(m) 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 Board of Directors of the Company has proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend proposed is in accordance with section 123 of the Act, as applicable.
vi. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Company w.e.f. April 1, 2023, and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is not applicable for the financial year ended March 31, 2023.
2. As required by the Companies (Auditor''s Report) Order, 2020 ("the Order") issued by the Central Government in terms of Section 143(11) of the Act, we give in "Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the Order.
Chartered Accountants (Firm''s Registration No. 117366W/ W-100018)
(Partner) (Membership No. 87104) (UDIN: 23087104BGYKXN1197)
Mar 31, 2022
APL APOLLO TUBES LIMITEDREPORT ON THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTSOpinion
We have audited the accompanying standalone financial statements of APL Apollo Tubes Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2022, and the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Cash Flows and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2022, and its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing specified under section 143(10) of the Act (SAs). Our responsibilities under those Standards are further described in the Auditor''s Responsibility for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI''s Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. We have determined that there are no key audit matters to communicate in our report.
Information Other than the Financial Statements and Auditor''s Report Thereon
The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Management Discussion and Analysis, Board''s report including Annexures to Board''s Report (hereinafter referred to as "Other Information"), but does not include the standalone financial statements and our auditor''s report thereon. The Other Information is expected to be made available to us after the date of this auditor''s report.
⢠Our opinion on the standalone financial statements does not cover the other information and we will 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 identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
⢠When we read the Other Information, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance as required under SA 720 ''The Auditor''s responsibilities Relating to Other Information''.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Ind AS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial 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 Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibility for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls 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 the management.
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the standalone 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 auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our
audit we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Statement of Cash Flows and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act.
e) On the basis of the written representations received from the directors as on March 31, 2022 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 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 "Annexure A". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditor''s 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 Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements (Refer Note no 37(a) of the standalone financial statements).
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses. (Refer Note no 37(b)(5) of the standalone financial statements).
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company (Refer Note no 37(c) of the standalone financial statements).
iv. (a) The Management has represented that,
to the best of its knowledge and belief, other than as disclosed in the note 46(g) the standalone financial statements, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(b) The Management has represented, that, to the best of its knowledge and belief, as disclosed in the note 46(h) to the standalone financial statements, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities ("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 entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(c) Based on the audit procedures performed that have been considered reasonable and appropriate in the circumstances, nothing has come to our
notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.
v. As stated in note 46(i) to the standalone financial statements, the Board of Directors of the Company has proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend proposed is in accordance with section 123 of the Act, as applicable.
2. As required by the Companies (Auditor''s Report) Order, 2020 ("the Order") issued by the Central Government in terms of Section 143(11) of the Act, we give in "Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the Order.
Mar 31, 2021
TO THE MEMBERS OF
APL APOLLO TUBES LIMITED
report on the audit of the standalone financial statements
We have audited the accompanying standalone financial statements of APL Apollo Tubes Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2021, and the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Cash Flows and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2021, and its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing specified under section 143(10) of the Act (SAs). Our responsibilities under those Standards are further described in the Auditor''s Responsibility for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI''s Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. We have determined that there are no key audit matters to communicate in our report.
Information Other than the Financial Statements and Auditor''s Report Thereon
The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Management Discussion and Analysis, Board''s report including Annexures to Board''s Report, but does not include the standalone financial statements and our auditor''s report thereon. The Board''s report including annexures to the Board''s report is expected to made available to us after the date of this auditor''s report.
Our opinion on the standalone financial statements does not cover the other information and will 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 identified above when it becomes available and in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
When we read the Board''s report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance as required under SA 720 ''The Auditor''s responsibilities Relating to Other Information.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows
and changes in equity of the Company in accordance with the Ind AS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial 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 Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibility for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls 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 the management.
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the standalone 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 auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit
we report, that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Statement of Cash Flows and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act.
e) On the basis of the written representations received from the directors as on March 31,2021 taken on record by the Board of Directors, none of the directors is disqualified as on March 31,2021 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure A". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditor''s 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 Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements (Refer Note no 38(a) of the standalone financial statements).
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses (Refer Note no 38(b) (5) of the standalone financial statements).
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company (Refer Note no 38(c) of the standalone financial statements).
2. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government in terms of Section 143(11) of the Act, we give in "Annexure B"a statement on the matters specified in paragraphs 3 and 4 of the Order.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants (Firm''s Registration No. 117366W/W-100018)
(rashim TANDON)
(Partner)
Place: New Delhi (Membership No. 95540)
Date: June 03, 2021 (UDIN:21095540AAAABM8655)
Mar 31, 2018
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of APL APOLLO TUBES LIMITED (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, and 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 Standalone Ind AS 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 Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India,
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,
In conducting 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 and the Order issued under section 143(11) of the Act,
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 obtained by us 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 Ind AS and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2018, and its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date,
Emphasis of Matter
We draw attention to Note 46 of the Standalone Ind AS Financial Statements in respect of scheme of Amalgamation (âSchemeâ) approved by the Honâble National Company Law Tribunal, Principal Bench, New Delhi, The Company has applied the accounting treatment in accordance with the said scheme for accounting for amalgamation of Lloyds Line Pipes Limited (a subsidiary company) with APL Apollo Tubes Limited under Section 230 and 232 of Companies Act, 2013 with effect from the appointed date i.e. April 1, 2015.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act.
e) On the basis of the written representations received from the directors of the Company as on March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 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 Aâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls over financial reporting.
g) 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, as amended, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements; (Refer Note no 37(a) of the standalone Ind AS financial statements)
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses; (Refer Note no 37(b)(6) of the standalone Ind AS financial statements)
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company. (Refer Note no 37( c) of the standalone Ind AS financial statements)
2. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in âAnnexure Bâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
ANNEXURE A TO THE INDEPENDENT AUDITORâS REPORT
(Referred to in paragraph 1(f) under âReport on Other Legal and Regulatory Requirementsâsection of our report of even date)
Report on the Internal Financial Controls over financial reporting 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 APL APOLLO TUBES LIMITED (âthe Companyâ) as of March 31, 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 âthe 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 Indiaâ. 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.
AuditorsâResponsibility
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 Institute of Chartered Accountants of India 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. 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 judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the 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 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 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, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on âthe criteria for internal financial control over financial reporting 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 Indiaâ.
ANNEXURE B TO THE INDEPENDENT AUDITORSâREPORT
(Referred to in paragraph 2 under âReport on Other Legal and Regulatory Requirementsâsection of our report of even date)
i, In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets,
(b) The fixed assets were physically verified during the year by the Management in accordance with a programme of verification, which in our opinion provides for physical verification of all the fixed assets at reasonable intervals, According to the information and explanations given to us no material discrepancies were noticed on such verification,
(c) According to the information and explanations given to us and the records examined by us immovable properties of land and buildings whose title deeds / conveyance deeds / lease deeds have been pledged as security for loans are held in the name of the Company / erstwhile name of the Company based on the confirmations received by the Company from lenders / custodians, In respect of immovable properties of land and buildings that have been taken on lease and disclosed as part of prepaid lease payments in the standalone Ind AS financial statements, the lease agreements are in the name of the Company, where the Company is the lessee in the agreement except for the following:
Particulars of the land and building |
Gross Block as at March 31, 2018 (Rs. in crore) |
Net Block as at March 31, 2018 (Rs. in crore) |
Remarks |
Freehold land and building located at Murbad, Maharashtra admeasuring 37800 Sq, ft, |
1,47 |
1,25 |
The conveyance deed is in the name of Lloyds Line Pipes Limited, erstwhile Company that was merged with the Company under Section 230 and Section 232 of the Companies Act, 201 3 in terms of the approval of the Honorable National Company Law Tribunal, Principal bench, New Delhi |
In respect of immovable property of land that has been taken on long-term lease at Sikandarabad the same has been verified with certified true copy of the lease agreement as we are informed that the original lease agreement is in the possession of the lessor (i,e, Uttar Pradesh State Industrial Development Corporation),
ii, As explained to us, the inventories (other than goods in transit) were physically verified during the year by the Management at the reasonable intervals and no material discrepancies have been noticed on physical verification,
iii, According to the information and explanations given to us, the Company has granted unsecured loan to a company covered in the register maintained under section 189 of the Companies Act, 2013, in respect of which
a, The terms and conditions of the grant of such loans are, in our opinion, prima facie, not prejudicial to the Companyâs interest,
b, The schedule of repayment of principal and payment of interest has been stipulated and repayments or receipts of principal amounts and interest have been regular as per stipulations,
c, There are no overdue amount remaining outstanding as at year-end,
iv, In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of grant of loans, making investments and providing guarantees and securities, as applicable,
v, According to the information and explanations given to us, the Company has not accepted any deposit during the year, The Company does not have any unclaimed deposits and accordingly, the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 are not applicable to the Company,
vi, The maintenance of cost records has been specified by the Central Government under section 148(1) of the Companies Act, 2013, We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended prescribed by the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013, and are of the opinion that, prima facie, the prescribed cost records have been made and maintained We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
vii. According to the information and explanations given to us in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, EmployeesâState Insurance, Income-tax, Sales Tax, Service Tax, Goods and Services Tax, Custom Duty, Excise Duty, Value Added Tax and Cess with the appropriate authorities and there are no undisputed amounts payable in respect of these dues outstanding as at March 31, 2018 for a period of more than six months from the date they became payable other than following:
Name of Statute |
Nature of Dues |
Amount (Rs.in crore) |
Period to which the Amount Relates |
Due Date |
Date of subsequent payment |
Income Tax Act, 1961 |
Dividend Distribution tax |
-# |
2015-16 |
September 7, 2015 |
May 21, 2018 |
Income Tax Act, 1961 |
Dividend Distribution tax |
0.08 |
2016-17 |
October 8, 2016 |
May 21, 2018 |
#: Rs.18,344 being dividend distribution tax deposited subsequently.
(b) Details of dues of Income tax, Sales Tax and Excise Duty which have not been deposited as on March 31, 2018 on account of disputes are given below:
Name of Statute |
Nature of Dues |
Forum where Dispute is Pending |
Period to which the Amount Relates |
Amount (net of payment) (Rs. in crore) |
Amount paid under protest (Rs. in crore) |
Uttar Pradesh Value Added Tax Act 2008 |
Value Added Tax |
High Court of Allahabad |
2007-2008 |
0.61 |
- |
Value Added Tax |
Commercial Tax Tribunal, Ghaziabad |
2011-2012 |
2.55 |
- |
|
Value Added Tax |
Commercial Tax Tribunal, Ghaziabad |
2012-2013 |
1.24 |
0.13 |
|
Value Added Tax |
Additional Commissioner (Appeals), Commercial Tax |
2013-2014 |
1.98 |
- |
|
Value Added Tax |
Additional Commissioner (Appeals), Commercial Tax |
2016-2017 |
0.40 |
0.06 |
|
Tamilnadu Value Added Tax, 2006 |
Value Added Tax |
High Court of Chennai |
2010-11 and 2011-12 |
0.81 |
- |
Central Excise Act, |
Excise Duty |
High Court of Allahabad |
1996-1997 |
0.77 |
0.04 |
1944 |
Excise Duty |
CESTAT, Allahabad |
1999-2000 |
0.06 |
0.05 |
Excise Duty |
CESTAT, Allahabad |
2008-2013 |
5.07 |
1.00 |
|
Excise Duty |
Commissioner Appeals |
2014-15 and 2015-16 |
1.58 |
0.06 |
|
Excise Duty |
Additional Commissioner Appeals |
2015-16 |
0.24 |
0.01 |
|
Excise Duty |
Tribunal, Mumbai |
2006-07 and 2007-08 |
4.54 |
0.17 |
|
Finance Act, 1994 |
Service Tax |
CESTAT, Mumbai |
2005-2006 |
0.21 |
- |
Service Tax |
CESTAT, Mumbai |
2004-2005 and 20102011 |
0.71 |
||
Service Tax |
CESTAT, Mumbai |
2010-2011 and 20112012 |
0.02 |
||
Income Tax Act, 1961 |
Income Tax |
Commissioner of Income tax (Appeals) |
2016-2017 |
3.40 |
0.30 |
We have been informed that there are no other dues of Value Added Tax, Excise Duty, Service tax, Income Tax, Goods and Services Tax and Custom Duty which have not been deposited as on March 31, 2018 on account of disputes.
viii. In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to banks and dues to debenture holders. The Company has not obtained any loan or borrowings from government or financial institution.
ix. The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) or term loans and hence reporting under clause 3(ix) of the CARO 2016 Order is not applicable.
x. To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company by its officers or employees has been noticed or reported during the year.
xi. I n our opinion and according to the information and explanations given to us, the Company has paid / provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
xii. The Company is not a Nidhi Company and hence reporting under clause 3(xii) of the CARO 2016 Order is not applicable.
xiii. I n our opinion and according to the information and explanations given to us the Company is in compliance with Section 188 and 177 of the Companies Act, 2013, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the standalone Ind AS financial statements etc. as required by the applicable accounting standards.
xiv. During the year the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under clause 3(xiv) of the CARO 2016 Order is not applicable to the Company.
xv. In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its directors or persons connected with him and hence provisions of section 192 of the Companies Act, 2013 are not applicable.
xvi. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firmâs Registration No. 117366W/W-100018)
RASHIM TANDON
Ghaziabad Partner
May 25, 2018 (Membership No. 95540)
RT/AL/2018
Mar 31, 2017
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of APL APOLLO TUBES LIMITED (âthe Companyâ), which comprise the Balance Sheet as at 31 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 Standalone 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 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 prescribed 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 the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorsâ Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
In conducting 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 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 financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone financial statements.
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 31 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 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 prescribed under Section 133 of the Act, as applicable.
(e) On the basis of the written representations received from the directors as on 31 March, 2017and taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 2017 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Aâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls over financial reporting.
(g) 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 litigation on its financial position in its standalone financial statements; (Refer Note no. 28.1(i) of the standalone financial statements);
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses. (Refer Note no. 28.1 (ii) (f) of the standalone financial statements);
iii. There are no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company (Refer Note no. 28.1 (iii) of the standalone financial statements);
iv. The Company has provided requisite disclosures in the standalone financial statements as regards its holding and dealings in Specified Bank Notes as defined in the Notification S.O. 3407(E) dated the 08 November, 2016 of the Ministry of Finance, during the period from 08 November, 2016 to 30 December, 2016. Based on audit procedures performed and the representations provided to us by the management we report that the disclosures are in accordance with the books of accounts maintained by the Company and as produced to us by the management (Refer Note no. 32 of the standalone financial statements).
2. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in âAnnexure Bâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
ANNEXURE B TO THE INDEPENDENT AUDITORSâ REPORT
(Referred to in paragraph 2 under âReport on Other Legal and Regulatory Requirementsâ section of our report of even date)
i. In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) Some of the fixed assets were physically verified during the year by the Management in accordance with a programme of verification, which in our opinion provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanations given to us no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and the records examined by us, immovable properties of land and buildings whose title deeds/conveyance deeds/lease deeds have been pledged as security for loans are held in the name of the Company/ erstwhile name of the Company based on the confirmations received by the Company from lenders/ custodians. In respect of immovable properties of land and buildings that have been taken on lease and disclosed as fixed asset in the standalone financial statements, the lease agreements are in the name of the Company, where the Company is the lessee in the agreement.
In respect of immovable property of land that has been taken on long-term lease at Sikandarabad and disclosed as fixed asset in the standalone financial statements has been verified with certified true copy of the lease agreement as we are informed that the original lease agreement is in the possession of the lessor (i.e. Uttar Pradesh State Industrial Development Corporation).
ii. As explained to us, the inventories (other than stock lying with third parties and goods in transit) were physically verified during the year by the Management at the reasonable intervals and no material discrepancies have been 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 Companies Act, 2013.
iv. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of grant of loans, making investments and providing guarantees and securities, as applicable.
v. According to the information and explanations given to us, the Company has not accepted any deposit during the year. The Company does not have any unclaimed deposits and accordingly, the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 are not applicable to the Company.
vi. The maintenance of cost records has been specified by the Central Government under section 148(1) of the Companies Act, 2013. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended prescribed by the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013, and are of the opinion that, prima facie, the prescribed cost records have been made and maintained We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
vii. According to the information and explanations given to us in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employeesâ State Insurance, Income-tax, Sales Tax, Service Tax, Custom Duty, Excise Duty, Value Added Tax and Cess with the appropriate authorities and there are no undisputed amounts payable in respect of these dues outstanding as at 31 March, 2017 for a period of more than six months from the date they became payable.
(b) Details of dues of Income tax, Sales Tax and Excise Duty which have not been deposited as on 31 March, 2017 on account of disputes are given below:
Name of Statute |
Nature of Dues |
Forum where Dispute is Pending |
Period to which the Amount Relates |
Amount (net of payment) (Rs. in crore) |
Amount paid under protest (Rs. in crore) |
Uttar Pradesh Value Added Tax Act, 2008 |
Value Added Tax |
High Court of Allahabad |
2007-2008 |
0.61 |
|
Value Added Tax |
Commercial Tax Tribunal, Ghaziabad |
2008-2009 |
4.79 |
||
Value Added Tax |
Commercial Tax Tribunal, Ghaziabad |
2009-2010 |
2.08 |
||
Value Added Tax |
Commercial Tax Tribunal, Ghaziabad |
2010-2011 |
2.99 |
||
Value Added Tax |
Commercial Tax Tribunal, Ghaziabad |
2011-2012 |
2.55 |
||
Value Added Tax |
Additional Commissioner (Appeals), Commercial Tax |
2013-2014 |
1.98 |
||
Value Added Tax |
Additional Commissioner (Appeals), Commercial Tax |
2014-2015 |
0.22 |
0.02 |
|
Tamil Nadu Value Added Tax, 2006 |
Value Added Tax |
High Court of Chennai |
2010-11 and 2011-12 |
0.81 |
- |
Value Added Tax |
Assistant Commissioner (CT), Hosur |
2015-2016 |
114.38 |
||
Central Excise Act, 1944 |
Excise Duty |
High Court of Allahabad |
1996-1997 |
0.77 |
#0.04 |
Excise Duty |
CESTAT, Allahabad |
1999-2000 |
0.06 |
0.05 |
|
Excise Duty |
CESTAT, Allahabad |
2008-2013 |
5.07 |
1 |
|
Excise Duty |
CESTAT, Allahabad |
2011-2012 |
0.34 |
#0.04 |
|
Excise Duty |
Commissioner Appeals |
2011-2015 |
0.47 |
0.02 |
|
Finance Act, 1994 |
Service Tax |
Commissioner Service Tax |
2007-2008 |
0.05 |
0.05 |
Income Tax Act, 1961 |
Income Tax |
Commissioner of Income tax (Appeals) |
2012-2013 |
1.36 |
0.05 |
# Netted in books of accounts
We have been informed that there are no dues of Service Tax and Custom Duty which have not been deposited as on 31 March, 2017 on account of disputes.
viii. In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to banks and dues to debenture holders. The Company has not obtained any loan or borrowings from government or financial institution.
ix. The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) or term loans and hence reporting under clause (ix) of the Order is not applicable.
x. To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company by its officers or employees has been noticed or reported during the year.
xi. In our opinion and according to the information and explanations given to us, the Company has paid / provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
xii. The Company is not a Nidhi Company and hence reporting under clause (xii) of the Order is not applicable.
xiii. In our opinion and according to the information and explanations given to us the Company is in compliance with Section 188 and 177 of the Companies Act, 2013, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the standalone financial statements etc. as required by the applicable accounting standards.
xiv. During the year the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under clause (xiv) of the Order is not applicable to the Company.
xv. In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its directors or persons connected with him and hence provisions of section 192 of the Companies Act, 2013 are not applicable.
xvi. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firmâs Registration No. 117366W/W-100018)
RASHIM TANDON
Place Ghaziabad Partner
Date 20 May, 2017 (Membership No. 95540)
Mar 31, 2016
Report on the Consolidated Financial Statements
We have audited the accompanying consolidated financial statements of APL APOLLO TUBES LIMITED (hereinafter referred to as "the Holding Company") and its subsidiaries (the Holding Company and its subsidiaries together referred to "the Group"), comprising the Consolidated Balance Sheet as at 31 March, 2016, the Consolidated Statement of Profit and Loss and the Consolidated Cash Flow Statement for the year then ended and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as "the consolidated financial statements").
Management''s Responsibility for the Consolidated Financial Statements
The Holding Company''s Board of Directors is responsible for the preparation of these consolidated financial statements in terms of the requirements of the Companies Act, 2013 (hereinafter referred to as "the Act" ) that give a true and fair view of the consolidated financial position, consolidated financial performance and consolidated cash flows of the Group in accordance with the accounting principles generally accepted in India, including the Accounting Standards prescribed under Section 133 of the Act, as applicable. The respective Board of Directors of the companies included in the Group are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Group 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, which have been used for the purpose of preparation of the consolidated financial statements by the Directors of the Holding Company, as aforesaid.
Auditors'' Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. While conducting the 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 consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the consolidated financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Holding Company''s preparation of the consolidated 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 Holding Company''s Board of Directors, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence obtained by us and the audit evidence obtained by the other auditors in terms of their reports referred to in of the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the consolidated financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid consolidated 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 consolidated state of affairs of the Group as at
31 March, 2016, and their consolidated profit and their consolidated cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. 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 of the aforesaid consolidated financial statements.
(b) In our opinion, proper books of account as required by law relating to preparation of the aforesaid consolidated financial statements have been kept so far as it appears from our examination of those books and the reports of the other auditors.
(c) The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss, and the Consolidated Cash Flow Statement dealt with by this Report are in agreement with the relevant books of account maintained for the purpose of preparation of the consolidated financial statements.
(d) In our opinion, the aforesaid consolidated financial statements comply with the Accounting Standards prescribed under Section 133 of the Act, as applicable.
(e) On the basis of the written representations received from the directors of the Holding Companies and the subsidiary companies incorporated in India as on 31 March, 2016 and taken on record by the Board of Directors of the Holding Company and the subsidiary companies incorporated in India, none of the directors of the Holding Company and the subsidiary companies incorporated in India, are disqualified as on 31 March, 2016 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting and the operating effectiveness of such controls, refer to our Report in "Annexure A", which is based on the auditors'' reports of the Holding company and the subsidiary companies incorporated in India. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Holding company''s and the subsidiary''s companies incorporated in India, internal financial controls over financial reporting.
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Group has disclosed the impact of pending litigation on its financial position in its consolidated financial statements; (see note 28.l(i) of the consolidated financial statements)
ii. The Group did not have any material foreseeable losses on long-term contracts including derivative contracts, (see note 28.1.(ii)(d) of the consolidated financial statements)
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Holding Company. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the subsidiary companies (see note 28.1.(iii) of the consolidated financial statements)
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
In conjunction with our audit of consolidated financial statements of APL APOLLO TUBES LIMITED ("the Company") as of and for the year March 31, 2016, we have audited the internal financial controls over financial reporting of APL APOLLO TUBES LIMITED (hereinafter referred to as "the Holding Company") and its subsidiaries (the Holding Company and its subsidiaries together referred to "the Group") incorporated in India, as of that date.
Management''s Responsibility for Internal Financial Controls
The respective board of directors of the Holding company and its subsidiaries incorporated in India, are 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 company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by the Institute of Chartered Accountants of India 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. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s 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 Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with 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 company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us, the Holding company and its subsidiaries incorporated in India, have, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31,
2016, 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 DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm''s Registration No. 117366W/W-100018)
RASHIM TANDON
Partner
(Membership No. 95540)
Place: Ghaziabad
Dated: 30 May, 2016
Mar 31, 2015
1. We have audited the accompanying financial statements of M/s APL
Apollo Tubes Limited 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.
2. 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
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)
Rule, 2014. This responsibility also includes the 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 the frauds and other irregularities, selection and
application of appropriate accounting policies, making judgments and
estimates that are reasonable and prudent, and design, implementation
and maintenance of internal financial control that were operating
effectively for ensuring the accuracy and completeness of accounting
records , relevant to the preparation and fair presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
3. Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10) of the Act.Those Standards require that
we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the financial statements are
free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and 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 evidences we have obtained are 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 aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
i) In the case of the Balance Sheet, of the State of Affairs of the
Company as at March 31, 2015.
ii) In the case of the Profit & Loss Statement, of the Profit of the
Company for the year ended on that date.
iii) In the case of the Cash Flow Statement, of the Cash Flows for the
year ended on that date.
4. Report on Other Legal and Regulatory Requirements
As required by section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c) The Balance Sheet, the Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 1 33 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, 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 1 64(2) of the Act.
f) With respect to the other matters included in the Auditor''s Report
and to our 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 financial statements.
ii. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
Annexure to the Independent Auditors'' Report
Referred to in paragraph 3 and 4 of our report of even date
1. a) The company has maintained proper records
showing full particulars including quantitative details and situation
of fixed assets.
b) A substantial portion of the fixed assets has been physically
verified by the management during the period and in our opinion the
frequency of verification is reasonable having regard to the size of
the Company and the nature of its assets. No material discrepancies
were noticed on such physical verification.
2. a) The inventories have been physically verified during the period
by the management. In our opinion, the frequency of verification is
reasonable.
b) 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 according to the information and explanations
given to us, 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 properly dealt
with in the books of account.
3. a) The company has granted unsecured loan to its one wholly owned
subsidiary Company covered in the register maintained to under section
189 of the companies Act, 2013. The Maximum amount involved during the
year was Rs.330 Million(Rupees Three Hundred & Thirty Million Only) and
the year end balance of loan given to this Company was Rs.330 Million
(Previous year end balance of loan given to this company was Rs.330
Million)
b) The company is regular in receipt of the principal amounts as
stipulated and has been regular in the receipt of interest, if any.
c) There is no overdue amount of loans granted to companies, firms or
other parties covered in the register maintained under section 189 of
the companies Act, 2013.
4. 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. During the course of our audit, no major weakness
has been noticed in the internal controls system.
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 provisions of sections of 73 to 76 or any other relevant
provisions of the Companies Act, 2013 and the rules framed thereunder .
In our opinion and according to the information and explanations given
to us, no order h has been passed by the Company Law Board or the
National Company Law Tribunal or the Reserve Bank of India or any other
Tribunal against the company.
6. We have broadly reviewed the books of account relating to
materials, labor and other items of cost 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 we are of the opinion that prima facie the prescribed accounts and
record have been made and maintained. We have not made however a
detailed examination of the record with a view to determine whether
they are accurate or complete.
7. (a) According to the records of the company, the company is regular
in depositing with appropriate authorities undisputed statutory dues
including Provident Fund, Investor Education Protection Fund, Employees
State insurance, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise
Duty, Service Tax, Value Added Tax, Cess and other material statutory
dues applicable to it.
(b) According to the information and explanations given to us, no
undisputed amount payable in respect of Income Tax, Wealth Tax, Sales
Tax,Customs Duty and Excise Duty,Service Tax,Value Added Tax, Cess etc.
were outstanding as at March 31, 2015 for a period of more than six
months from the date they became payable.
(c) According to the information and explanation given to us and
records of the company examined by us, the particulars dues of Sales
Tax, Income Tax, Customs Duty, Wealth Tax, Excise Duty, Service Tax,
Value Added Tax, Cess which have not been deposited on account of any
dispute, are as per annexure below:
Name of the Nature of Dues Amount
Statue (Rs.million)
Central Excise Central Excise levied u/s 11A of Central 3.67
Act, 1944 Excise Act,1944.
Penalty u/s 11 AC of Central Excise 3 67
Rules,1944 read with Rule 9(2) & 173Q
of Central Excise Act, 1 944.
Recovery u/s 57 I (4) of Central Excise 0.35
Act,1944 of modvat credit availed and
utilized in contravention of the provisions
of Rule 57F(3) of Central Excise Rules,
1944.
Penalty u/s 11AC of Central Excise 0.35
Rules,1944 read with Rule 9(2) & 173Q
of Central Excise Rule,1944.
Central Excise duty levied u/s 11 A of 0.45
" Central Excise Act,1944.
Penalty u/s 11 AC of Central Excise 0.45
Act, 1 944.
Penalty under Rule 9(2) and 173Q of
Central Excise Rule,1944. 0.10
" Demand in Terms of section 1 1A on
Zinc Ash/Dross clearance. 1.08
Penalty under Rule 25 of Central Excise
Rules 2002 read with section 1 1AC of 0.03
Central Excise Act 1 944.
" Demand under Rule 6(3)(b) and Rule 0.31
6(3)[Explanation -II] of CCR rules ,2004
read with section1 1AB of C.E.Act 1944
" Recovery of Cenvat credit under Rule 14 3.03
of CCR,2004 read with section
11 A( 1 0)(4) of C.E.Act,1 944
Penalty under rule 15(2) of CCR,2004
read with Section 1 1 AC of C.E.Act, 3.03
1944
U P. Tax on The constitutional validity of U.P- Tax on 44.76
Entry of Goods Entry of Goods in to Local areas Act
in to local 2007 had been Challenged.
areas Act, 2007
Value Added Tax Reversal of Input tax credit on 6.14
Act- 2008 Consignment /Stock Transfer
Value Added Tax Difference in Rate of Tax on Steel 36.17
Act- 2008 Tubes & Pipes
Value Added Tax Reversal of Input tax credit on 11.71
Act-2008 Consignment /Stock Transfer/Sale to
SEZ Units
Value Added Tax Reversal of Input tax credit on 20.81
Act- 2008 Consignment /Stock Transfer/Sale to SEZ
Units
Central Excise Demand on exempted Trading service 1.9
Act 1944 value under rule 14 of CCR,2004 read
with Sec 11A of Central Excise Act, 1944
Penalty under Rule 15 of CCR,2004 read 1.9
with section 11AC of Central Excise
Act,1944
Value Added Reversal of Input Tax Credit on 29.45
Tax Act- 2008 Consignment/ Stock Transfer/ Sale to SEZ
units.
Against Statutory Declaration Forms 0.47
Value Added Tax Act- Reversal of Input 22.34
2008 Ag. Statutory Declaration Forms
1.58
Value Added Reversal of Input tax credit on 0.81
Tax Act- 2008 Consignment /Stock Transfer
Name of the Period to Authority where the
Statue which dues related dispute is pending for
decision
Central Excise 07.08.1996 Before the High Court
Act, 1944 Judicature of Allahabad
07.08 1996
07.08.1996
07.08.1996
16.08.1999 CESTAT New Delhi
,,
16.08.1999
16.08.1999
,,
July''08 to CESTAT, New Delhi
Mar''09
" May''08 to CESTAT, New Delhi
July''08
2008 to 2012 CESTAT, New Delhi
2008 to 2012
U P. Tax on Nov''08 to Before the Supreme Court of
Entry of Goods Mar''11 India
in to local
areas Act,2007
Value Added Tax Jan''08 to Before the High Court
2008 Mar''08 Judicature of Allahabad
Value Added Tax 30/09/2008 Commercial Tax Tribunal,
2008 to 15/01/2009 Ghaziabad
Value Added Tax Apr''08 Commercial Tax Tribunal,
2008 to Mar''09 Ghaziabad
Value Added Tax Apr''09 to Commercial Tax Tribuna|,
2008 Mar''10 Ghaziabad
Central Excise Apr''11 to CEST at, New Delhi
Act 1944 Mar''12
Value Added Apr''10 to Commercial Tax Tribunal,
2008 Mar''1 1 Ghaziabad
Value Added Apr''1 1 to Commercial Tax Tribuna|,
2008 Mar''12 Ghaziabad
Value Added 2010-11 and Before the High Court
2008 201 1-12 Judicature of Madras
(d) According to the information and explanation given to us and
records of the company examined by us, the company has transferred
amount to investor education and protection fund in accordance with the
relevant provisions of the Companies Act, 2013 and rules made there
under to such fund within time.
8. The company has no accumulated losses as at March 31, 2015 and has
not incurred any cash losses during the financial period covered by our
audit and in the immediately preceding financial period.
9. In our opinion and according to the information and explanations
given by the management, we are of the opinion that the company has not
defaulted in repayment of dues to a financial institution, bank or
debenture holders.
10. The company has given Corporate guarantee for loans taken from
bank or financial institutions. At the end of the year, the outstanding
liability by such companies to bank or financial institutions was Rs.
920.78 Million
11. In our opinion, the term loans have been applied for the purpose
for which they were raised.
12. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the company has been noticed or reported during the course of our
audit.
For VAPS & Co.
Chartered Accountants,
Firm Regn. No. 003612N
(P. K. Jain)
Partner
M.N. 082515
Place: Delhi
Date: May 09, 2015
Mar 31, 2014
(I) We have audited the accompanying financial statements of M/s APL
APOLLO TUBES LIMITED, which comprise the Balance Sheet as at March 31,
2014, and the Statement of Profit and Loss and Cash Flow Statement for
the year then ended, and a summary of significant accounting policies
and other explanatory information.
(II) 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") read with the General Circular
15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs
in respect of Section 133 of the Companies Act, 2013 and in accordance
with the accounting principles generally accepted in India. This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and fair presentation of
the financial statements that are free from material misstatement,
whether due to fraud or error.
(III) 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.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
i.) In so far as it relates to the Balance Sheet of the State of
Affairs of the Company as at March 31, 2014,
ii.) In the case of the Statement of Profit & Loss, 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 of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors'' Report) Order, 2003 (as
amended by the Amendment Order, 2004) issued by the Central Government
of India in terms of section 227(4A) of the Companies Act, 1956, we
give our comments on the matters specified in paragraphs 4 and 5 of the
said order to the extent as applicable to the Company in the Annexure
to this report.
2. As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b. In our opinion, proper Books of Account as required by law have
been kept by the Company so far as appears from our examination of
those Books.
c. The Balance Sheet, the Profit and Loss Statement and the Cash Flow
Statement dealt with by this report are in agreement with the Books of
Account.
d. In our opinion, the Balance Sheet, the Statement of Profit and
Loss, and the Cash Flow Statement comply with Accounting Standards
notified under the Act read with the General Circular 15/2013 dated
13th September, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013.
e. On the Basis of written representations received from the Directors,
as on March 31, 2014 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on March 31, 2014
from being appointed as a Director in terms of clause (g) of sub
section (1) of Section 274 of The Companies Act, 1956.
Annexure to The Independent Auditors'' Report Re: APL Apollo Tubes
Limited Referred to in paragraph 3 of our report of even date
1. a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) A substantial portion of the fixed assets has been physically
verified by the management during the year and in our opinion the
frequency of verification is reasonable having regard to the size of
the Company and the nature of its assets. No material discrepancies
were noticed on such physical verification.
c) Fixed assets disposed off during the year were not significant.
According to the information and explanations given to us, we are of
the opinion that the disposal of fixed assets has not affected the
going concern status of the Company.
2. a) The inventories (excluding stocks with the third
parties) have been physically verified during the year by the
management. In respect of inventory lying with the third parties, these
have substantially been confirmed by them. In our opinion, the
frequency of verification is reasonable.
b) 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 according to the information and explanations
given to us, the Company is maintaining proper records of inventory and
no material discrepancies were noticed on physical verifications.
3. a) The Company has granted unsecured loan to its
one wholly owned subsidiary Company covered in the register maintained
under Section 301 of the Companies Act, 1956. The Maximum amount
involved during the year was Rs. 330 Million (Rupees Three Hundred &
Thirty Million Only) and the year end balance of loan given to this
Company was Rs. 330 Million (Previous year end balance of loan given to
this company was Rs. 330 Million). In our opinion terms and conditions on
which loans have been given to companies, firms or other parties
covered in the register maintained under section 301 of the Companies
Act, 1956 are not, prima facie, prejudicial to the interest of the
Company.
b) The Company has not taken any unsecured loan from Companies, firms
or other parties covered in the register maintained under section 301
of the Companies Act, 1956.
c) The rate of interest and other terms and conditions of the
above-mentioned loans are not prima facie prejudicial to the interest
of the Company.
d) The repayment of principal and interest are as per the agreed terms.
4. 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. During the course of our audit, no major weakness
has been noticed in the internal controls system.
5. a) In our opinion and according to information and
explanatios given to us the transactions that needed to be entered in
the register maintained under section 301 of the Act have been entered
in the register
b) As per 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 and exceeding
the value of Rs. 500,000 in respect of each party during the year have
been made at price which appear reasonable as per information available
with 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 provisions of sections of 58A, 58AA or any other relevant
provisions of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rule 1975.
7. In our opinion the Company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account relating to
materials, labour and other items of cost 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 we are of the opinion that prima facie the prescribed
accounts and record have been made and maintained. We have not made
however a detailed examination of the record with a view to
determine whether they are accurate or complete.
9. (a) According to the records of the Company, the Company is regular
in depositing with appropriate authorities undisputed statutory dues
including Provident Fund, Investor Education Protection Fund, Employees
State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise
Duty, Service Tax, Cess and other material statutory dues applicable to
it.
(b) According to the information and explanations given to us, no
undisputed amount payable in respect of Income Tax, Wealth Tax, Sales
Tax, Customs Duty and Excise Duty, Service Tax, Cess etc. were
outstanding as at March 31, 2014 for a period of more than six months
from the date they became payable.
(c) According to the information and explanation given to us and
records of the Company examined by us, the particulars 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, are as
follows:
Name of the Nature of Dues Amount
Statue Rs Million
Central Excise Central Excise levied u/s 11A of Central 3.67
Act, 1944 Excise Act,1944.
Penalty u/s 11 AC of Central Excise 3.67
Rules,1944 read with Rule 9(2) & 173Q
of Central Excise Act,1944.
Recovery u/s 57 I (4) of Central Excise 0.35
Act,1944 of modvat credit availed and
utilized in contravention of the
provisions of Rule B7F(3) of Central
Excise Rules, 1944.
Penalty u/s 11AC of Central Excise 0.35
Rules,1944 read with Rule 9(2) & 173Q
of Central Excise Rule,1944.
Central Excise duty levied u/s 11 A of 0.45
Central Excise Act,1944.
Penalty u/s 11 AC of Central Excise : 0.45
Act,1944.
Penalty under Rule 9(2) and 173Q of 0.10
Central Excise Rule,1944.
Demand in Terms of section 11A on 1.08
Zinc Ash/Dross clearance.
Penalty under Rule 25 of Central Excise 0.03
Rules 2002 read with section 11AC of
Central Excise Act 1944.
U.P. Tax on The constitutional validity of U.P. Tax on 44.76
Entry of Entry of Goods in to Local areas Act
Goods in to 2007 had been Challenged.
Local areas
Act, 2007
Value Added Reversal of Input tax credit on 6.14
Tax Act 2008 Consignment /Stock Transfer
Value Added Difference in Rate of Tax on Steel Tubes 36.17
Tax Act 2008 & Pipes
Value Added Reversal of Input tax credit on 11.71
Tax Act 2008 Consignment /Stock Transfer/Sale to SEZ
Units
Value Added Reversal of Input tax credit on 20.81
Tax Act 2008 Consignment /Stock Transfer/Sale to SEZ :
Units
Central Excise Demand on exempted Trading service : 1.9
Act 1944 value under rule 14 of CCR,2004 read
with Sec 11A of Central Excise Act, 1944
Penalty under Rule IB of CCR.2004 read 1.9
with section 11AC of Central Excise Act,1944
Value Added Reversal of Input Tax Credit on 29.45
Tax Act 2008 Consignment/ Stock Transfer/ Sale to ;
SEZ units.
Against Statutory Declaration Forms 0.47
Value Added Reversal of Input - 22.34
Tax Act 2008
Ag. Statutory Declaration Forms 1.58
Name of the Period to Authority where the Dispute is
Statue Which dues Pending for Decision
Related
Central Excise 07.08.1996 Before the High Court
Act 1944 Judicature of Allahabad
07.08.1996 Before the High Court
Judicature of Allahabad
67.08.1996 Before the High Court
Judicature of Allahabad
07.08.1996 Before the Hjgh Court
Judicature of Allahabad
16.08.1999 CESTAT, New Delhi
16.08.1999 CESTAT, New Delhi
16.08.1999 CESTAT, New Delhi
July-08 to CESTAT, New Delhi
Mar-09
UP Tax on Entry Nov.-08 to Before the Supreme Court of
of Goods in to Mar.-ll
Local area Act
2007
Value Added Act Jan.-08 to Commercial Tax Tribunal,
2008 Mar.-08 Ghaziabad
Value Added Act 30/09/2008 Commercial Tax Tribunal,
2008 to 15/01/2009 Ghaziabad
Value Added Act April, 08 Commercial Tax Tribunal,
2008 to March, 09 Ghaziabad
Value Added Act April, 09 to Commercial Tax Tribunal,
2008 March, 10 Ghaziabad
Central Excise Apr 11 to Commissioner Appeals Centra
Act 1944 Mar 12 Excise & Service Tax, Noida
Value Added Act Apr 10 to Additional-Comm (Appelas)-
2008 Mar 11 Bulandshahr
Value Added Act Apr 11 to Additional-Comm (Appelas)-
Mar''12 Bulandshahr
10. The Company has no accumulated losses as at March 31, 2014 and has
not incurred any cash losses during the financial year covered by our
audit and in the immediately preceding financial year.
11. In our opinion and according to 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, bank or
debenture holders.
12. We have been informed that the Company has not granted loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities. Hence paragraph 4(XII) of the order is
not applicable.
13. In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund/society. Therefore, the provisions of clause 4 (xiii) of
the Companies (Auditor''s Report) Order, 2003 as amended 2004 are not
applicable to the Company.
14. The Company has maintained proper records of transactions and
contracts in respect of trading in securities, debentures and other
investment and timely entries have been made therein. All shares
(except the shares held in the name of nominees of the Company in
wholly owned subsidiaries), debentures and other investments have
been held by Company in its own name.
15. The Company has given corporate guarantee for securing working
capital facilities sanctioned by Banks to its Subsidiary Companies. In
our opinion, the terms and conditions on which the Company has given
said guarantees are not prejudicial to the interest of the Company.
16. In our opinion and according to information and explanations given
to us by the Company the term loans have been applied for the purpose
for which they were raised.
17. According to the information and explanations given to us and on
an 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.
18. According to the information and explanations given to us, the
Company has made allotment of 1,115,000 Equity Shares on preferential
basis (on conversion of equal number of share warrant already issued
entitling the warrant holder to get one equity share of Rs. 10 each for
each warrant) to parties and Companies covered in the register to be
maintained under section 301 of the Act and in our opinion, the
premium at which share have been issued is not prejudicial to the
interest of the Company.
19. During the period covered by our audit report, the Company has not
issued any debentures.
20. The Company has not raised any money from public issue and as such
question of end use of money raised by public issue does not arise.
21. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the course of our audit
for the year ended March 31, 2014.
for VAPS & Co.
Chartered Accountants,
Firm Regn. No. 003612N
Sd/-
(P. K. JAIN)
Partner
M.N. 082515
Place: Delhi
Date : May 30, 2014
Mar 31, 2013
(I) We have audited the accompanying financial statements of M/s APL
APOLLO TUBES LIMITED, which comprise the Balance Sheet as at March 31,
2013, and the Statement of Profit and Loss and Cash Flow Statement for
the year then ended, and a summary of significant accounting policies
and other explanatory information.
(II) 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 fair presentation of the financial statements
that are free from material misstatement, whether due to fraud or
error.
(III) 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.
i.) In so far as it relates to the Balance Sheet of the state of
affairs of the Company as at March 31, 2013,
ii.) In the case of the Statement of Profit & Loss, 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 of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors'' Report) Order, 2003 (as
amended by the Amendment Order, 2004) issued by the Central Government
of India in terms of section 227(4A) of the Companies Act, 1956, we
give our comments on the matters specified in paragraphs 4 and 5 of the
said order to the extent as applicable to the Company in the Annexure
to this report.
2. As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b. In our opinion, proper Books of Account as required by law have
been kept by the Company so far as appears from our examination of
those Books.
c. The Balance Sheet, the Profit and Loss Statement and the Cash Flow
Statement dealt with by this report are in agreement with the Books of
Account.
d. In our opinion, the Balance Sheet, the Profit and Loss Statement
and Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in Section 211 (3C) of the Companies
Act, 1956.
e. On the Basis of written representations received from the
Directors, as on March 31, 2013 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
March 31, 2013 from being appointed as a Director in terms of clause
(g) of sub section (1) of Section 274 of The Companies Act, 1956.
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.
Re: APL Apollo Tubes Limited
Referred to in paragraph 3 of our report of even date
1. a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) A substantial portion of the fixed assets has been physically
verified by the management during the year and in our opinion the
frequency of verification is reasonable having regard to the size of
the Company and the nature of its assets. No material discrepancies
were noticed on such physical verification.
c) Fixed assets disposed off during the year were not significant.
According to the information and explanations given to us, we are of
the opinion that the disposal of fixed assets has not affected the
going concern status of the Company.
2. a) The inventories (excluding stocks with the third parties) have
been physically verified during the year by the management. In respect
of inventory lying with the third parties, these have substantially
been confirmed by them. In our opinion, the frequency of verification
is reasonable.
b) 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 according to the information and explanations
given to us, the Company is maintaining proper records of inventory and
no material discrepancies were noticed on physical verifications.
3. a) The Company has granted unsecured loan to its wholly owned
subsidiary Company covered in the register maintained under Section 301
of the Companies Act, 1956. The Maximum amount involved during the year
wasRs.330 Million (RupeesThree Hundred &Thirty Million Only) and the
year end balance of loan given to this Company was Rs. 330 Million
(Rupees Three Hundred & Thirty Million Only). In our opinion terms and
conditions on which loans have been given to companies, firms or other
parties covered in the register maintained under section 301 of the
Companies Act, 1956 are not, prima facie, prejudicial to the interest
of the Company.
b) The Company has not taken any unsecured loan from Companies, firms
or other parties covered in the register maintained under section 301
of the Companies Act, 1956.
c) The rate of interest and other terms and conditions of the
above-mentioned loans are not prima facie prejudicial to the interest
of the Company.
d) The repayment of principal and interest are as per the agreed terms.
4. 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. During the course of our audit, no major weakness
has been noticed in the internal controls system.
5. a) In our opinion and according to information and explanations
given to us the transactions that needed to be entered in the register
maintained under section 301 of the Act have been entered in the
register
b) As per information and explanations given to us aforesaid
transactions have been made at price which are reasonable having regard
to the prevailing market price at the relevant time.
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 provisions of sections of 58A, 58AA or any other relevant
provisions of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rule 1975.
7. In our opinion the Company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account relating to
materials, labour and other items of cost 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 we are of the opinion that prima facie the prescribed
accounts and record have been made and maintained. We have not made
however a detailed examination of the record with a view to determine
whether they are accurate or complete.
9. (a) Accord ing to the records of the Company, the Company is
regular in depositing with appropriate authorities undisputed statutory
dues including Provident Fund, Investor Education Protection Fund,
Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom
Duty, Excise Duty, Service Tax, Cess and other material statutory dues
applicable to it.
(b) According to the information and explanations given to us, no
undisputed amount payable in respect of Income Tax, Wealth Tax, Sales
Tax, Customs Duty and Excise Duty, Service Tax, Cess etc. were
outstanding as at March 31, 2013 for a period of more than six months
from the date they became payable.
(c) According to the information and explanation given to us and
records of the Company examined by us, the particulars 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, are as
follows:
Name of the Amount
Nature of Dues
Statue (Rs. million)
Central Excise Central Excise levied u/s 11A
of Central 3.67
Act, 1944 Excise Act, 1944.
Central Excise Penalty u/s 11 AC of Central Excise
Act,1944 Rules,1944 read with Rule
9(2) & 173Q of 3.67
Central Excise Act,1944.
Central Excise Recovery u/s 57 I (4) of Central
Excise
Act, 1944 Act, 1944 of modvat credit
availed and utilized in
contravention of the provisions 0.35
of Rule 57F(3) of Central Excise
Rules, 1944.
Name of the Statute Authority where the
Period to which Dispute is Pending for
dues Related Decision
Central Excise Act 1944 Before the High Court
07.08.1996 Judicature of Allahabad
Central Excise Act 1944 Before the High Court
07.08.1996 Judicature of Allahabad
Central Excise Act 1944 Before the High Court
07.08.1996 Judicature of Allahabad
10. The Company has no accumulated losses as at March 31, 2013 and has
not incurred any cash losses during the financial year covered by our
audit and in the immediately preceding financial year.
11. In our opinion and according to 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, bank or
debenture holders.
12. We have been informed that the Company has not granted loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities. Hence paragraph 4(XII) of the order is
not applicable.
13. In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund/society. Therefore, the provisions of clause 4 (xiii) of
the Companies (Auditor''s Report) Order, 2003 as amended 2004 are not
applicable to the Company.
14. The Company has maintained proper records of transactions and
contracts in respect of trading insecurities, debentures and other
investment and timely entries have been made therein. All shares
(except the shares held in the name of nominees of the Company in
wholly owned subsidiaries), debentures and other investments have been
held by Company in its own name.
15. The Company has given corporate guarantee for securing working
capital facilities sanctioned by Banks to its Subsidiary Companies. In
our opinion, the terms and conditions on which the Company has given
said guarantees are not prejudicial to the interest of the Company.
16. In our opinion and according to information and explanations given
to us by the Company the term loans have been applied for the purpose
for which they were raised.
17. According to the information and explanations given to us and on
an 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.
18. According to the information and explanations given to us, the
Company has made allotment of 1,026,953 Equity Shares on preferential
basis ( on conversion of equal number share warrant already issued
entitling the warrant holder to get one equity share of Rs. 10 each for
each warrant) to parties and Companies covered in the register to be
maintained under section 301 of the Act and in our opinion , the
premium at which share have been issued is not prejudicial to the
interest of the Company.
19. During the period covered by our audit report, the Company has not
issued any debentures.
20. The Company has not raised any money from public issue and as such
question of end use of money raised by public issue does not arise.
21. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the course of our audit
for the year ended March 31, 2013.
for VAPS & Co.
Chartered Accountants,
Firm Regn. No. 003612 N
(P.K.JAIN)
Place: Delhi Partner
Date: May 30, 2013 M.N. 082515
Mar 31, 2012
1. We have audited the attached Balance Sheet of APL Apollo Tubes
Limited as at March 31, 2012, the Statement of Profit & Loss and Cash
Flow Statement for the year ended on that date annexed hereto. These
financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditors' Report) Order, 2003, as
amended by the Companies (Auditor's Report)(Amendment) Order, 2004,
issued by the Central Government of India in terms of sub- section (4A)
of Section 227 of the Companies Act, 1956 and on the basis of such
checks as we considered appropriate and according to the explanations
furnished to us during the course of our audit, we give in the Annexure
a statement specified in paragraph 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 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 accounts as required by law has been
kept by the Company so far as it appears from our examination of such
books.
(c) The Balance Sheet, the Statement of Profit & Loss and Cash Flow
Statement referred to in this report are in agreement with the books of
account.
(d) In our opinion the Balance Sheet, the Statement of Profit & Loss
and Cash Flow Statement are in compliance with the Accounting Standards
referred to in sub section (3c) of section 211 of the Companies Act,
1956.
(e) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements 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 so far as it relates to the Balance Sheet of the State of Affairs
of the Company as at March 31, 2012
ii) In the case of the Statement of Profit & Loss, 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 of the
Company for the year ended on that date
(f) Based on representation made by all the Directors of the Company to
the Board and the information and explanations as made available to us
by the Company, none of the directors of the Company prima- facie have
any disqualification as referred to in clause (g) of sub- section (1)
of Section 274 of the Companies Act, 1956.
-Annexure to the Auditors' Report
Re: APL Apollo Tubes Limited
Referred to in paragraph 3 of our report of even date
1. a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) A substantial portion of the fixed assets has been physically
verified by the management during the year and in our opinion the
frequency of verification is reasonable having regard to the size of
the Company and the nature of its assets. No material discrepancies
were noticed on such physical verification.
c) Fixed assets disposed off during the year were not significant.
According to the information and explanations given to us, we are of
the opinion that the disposal of fixed assets has not affected the
going concern status of the Company.
2. a) The inventories (excluding stocks with the third parties) have
been physically verified during the year by the management. In respect
of inventory lying with the third parties, these have substantially been
confirmed by them. In our opinion, the frequency of verification is
reasonable.
b) Tire 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 ts business.
c) In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of inventory and
no material discrepancies were noticed on physical verifications.
3. a) The Company has granted unsecured loan to its wholly owned
subsidiary Company covered in the register maintained under Section 301
of the Companies Act, 1956. The Maximum amount involved during the year
was Rs.250 Million (Rupees Two Hundred & Fifty Million Only) and the year
end balance of loan given to this Company was Rs.250 Million (Rupees Two
Hundred & Fifty Million Only). In our opinion terms and conditions on
which loans have been given to companies, firms or other parties
covered in the register maintained under section 301 of the Companies
Act, 1956 are not, prima facie, prejudicial to the interest of the
Company.
b) The Company has not taken any unsecured loan from Companies, firms
or other parties covered in the register maintained under section 301
of the Companies Act, 1956.
c) The rate of interest and other terms and conditions of the
above-mentioned loans are not prima facie prejudicial to the interest of
the Company.
d) The repayment of principal and interest are as per the agreed terms.
4. 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. During the course of our audit, no major weakness
has been noticed in the internal controls system.
5. a) In our opinion and according to information and explanations
given to us the transactions that needed to be entered in the register
maintained under section 301 of the Act have been entered in the
register
b) As per information and explanations given to us aforesaid
transactions have been made at price which are reasonable having regard
to the prevailing market price at the relevant time.
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 provisions of sections of 58A, 58AA or any other relevant
provisions of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rule 1975.
7. In our opinion the Company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account relating to
materials, labour and other items of cost 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 we are of the opinion that prima facie the prescribed
accounts and record have been made and maintained. We have not made
however a detailed examination of the record with a view to determine
whether they are accurate or complete.
9. (a) According to the records of the Company, the Company is regular
in depositing with appropriate authorities undisputed statutory dues
including Provident Fund, Investor Education Protection Fund, Employees
State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise
Duty, Service Tax, Cess and other material statutory dues applicable to
it.
(b) According to the information and explanations given to us, no
undisputed amount payable in respect of Income Tax, Wealth Tax, Sales
Tax, Customs Duty and Excise Duty, Service Tax, Cess etc. were
outstanding as at March 31, 2012 for a period of more than six months
from the date they became payable.
(c) According to the information and explanation given to us and
records of the Company examined by us, the particulars 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, are as
follows:
Name of the Nature of Dues Amount Period to
which Authority
where the
Dispute
Statue (Rs.
million) dues
Related is Pending
for Decision
Central
Excise Central Excise
levied u/s 11A
of Central 3.67 07.08.1996 Before the
High Court
Act, 1944 Excise Act,1944 Judicature of
Allahabad
Penalty u/s 11 AC of
Central Excise
Rules, 1944 read 3.67 07.08.1996 Before the
High Court
with Rule 9(2) & 173Q
of Central Excise Act,
1944. Judicature
of Allahabad
Recovery u/s 57 I (4)
of Central Excise
Act,1944 of modvat 0.35 07.08.1996 Before the
High Court
credit availed and
utilized in
contravention of the Judicature
of Allahabad
provisions of Rule 57F
(3) of Central
Excise Rules, 1944.
Penalty u/s 11AC of
Central Excise Rules,
1944 read 0.35 07.08.1996 Before the
High Court
with Rule 9(2) & 173Q
of Central Excise Rule,
1944. Judicature
of Allahabad
Central Excise duty
levied u/s 11 A of
Central Excise
Act, 1944. 0.45 15.08.1999 CESTAT,
New Delhi
Penalty u/s 11 AC
of Central Excise
Act, 1944. 0.45 15.08.1999 CESTAT,
New Delhi
Penalty under Rule 9
(2) and 173Q of
Central Excise
Rule, 1944. 0.10 15.08.1999 CESTAT,
New Delhi
Demand in Terms of
section 11A on Zinc
Ash/Dross clearance. 1.08 July-08 to CESTAT,
New Delhi
Penalty under Rule 25
of Central Excise
Rules 2002 read with 0.03 Mar-09
section 11AC of Central
Excise Act, 1944.
U.P. Tax on
Entry
of Goods The constitutional
validity of U.P. Tax
on Entry of
Goods in to 44.76 Nov.-08 to Before the
Supreme
in to Local
areas
Act, 2007 Local areas Act, 2007
had been Challenged Mar-11 Court of
India
Value
Added Tax Reversal of Input tax
credit on
Consignment /Stock 6.14 Jan.-08 to Commercial
Tax Tribunal,
Act-2008 Transfer Mar.-08 Ghaziabad
Value
Added Tax Reversal of Input tax
credit on Consignment
/Stock Transfer 17.03 April-10 to Commercial
Tax Tribunal,
Act-2008 (Provisional
Assessment) Sept-10 Ghaziabad
10. The Company has no accumulated losses as at March 31, 2012 and has
not incurred any cash losses during the financial year covered by our
audit and in the immediately preceding financial year.
11. In our opinion and according to 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, bank or
debenture holders.
12. We have been informed that the Company has not granted loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities. Hence paragraph 4(XII) of the order s
not applicable.
13. In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund/society therefore the provisions of clause 4 (xiii) of the
Companies (Auditor's Report) Order, 2003 as amended 2004 are not
applicable to the Company.
14. The Company has maintained proper records of transactions and
contracts in respect of trading in securities, debentures and other
investment and timely entries have been made therein. All shares (except
the shares held in the name of nominees of the Company in wholly owned
subsidiaries), debentures and other investments have been held by
Company in its own name.
15. The Company has given corporate guarantee for securing working
capital facilities sanctioned by Banks to its Subsidiary Companies. In
our opinion, the terms and conditions on which the Company has given
said guarantees are not prejudicial to the interest of the Company.
16. In our opinion and according to information and explanations given
to us by the Company the term loans have been applied for the purpose
for which they were raised.
17. According to the information and explanations given to us and on
an 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.
18. According to the information and explanations given to us, the
Company has made allotment of 10,00,000 Equity Shares on preferential
basis ( on conversion of equal number share warrant already issued
entitling the warrant holder to one equity share of Rs.10 each for each
warrant) to parties and Companies covered in the register to be
maintained under section 301 of the Act and in our opinion , the
premium at which share have been issued is not prejudicial to the
inherent of the Company
19. During the period covered by our audit report, the Company has not
issued any debentures.
20. The Company has not raised any money from public issue and as such
question of end use of money raised by public issue does not arise.
21. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the course of our audit
for the year ended March 31, 2012.
For VAPS & Co
Chartered Accountants,
Firm Regn. No. 003612 N
(P.K.JAIN)
Date : September 3, 2012 Partner
Place Delhi M.N. 082515
Mar 31, 2011
1. We have audited the attached Balance Sheet of APL Apollo Tubes
Limited as at March 31, 2011 and also the Profit & Loss Account and
Cash Flow Statement for the year ended on that date annexed hereto.
These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financia 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 materia 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 financia statement
presentation. We believe that our audit provides a reasonable basis for
our opinion
3. As required by the Companies (Auditors' Report) Order, 2003, as
amended by the Companies (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 and on the basis of such
checks as we considered appropriate and according to the explanations
furnished to us during the course of our audit, we give in the Annexure
a statement specified in paragraph 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 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 accounts as required by law has kept
by the company so far as it appears from our examination of such books.
(c) The Balance Sheet and Profit & Loss Account and Cash Flow Statement
referred to in this report are in agreement with the books of account.
(d) In our opinion the Balance Sheet, the Profit & Loss Account and
Cash Flow Statement are in compliance with the Accounting Standards
referred to in sub section (3c) of section 211 of the Companies Act,
1956
(e) 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 and Cash Flow Statement read together with the notes thereon
give the information as required by the Companies Act,1956 in the
manner so required and give a true and fair view:
i) In so far as it relates to the Balance Sheet of the State of Affairs
of the company as at March 31, 2011,
i) In the case of Profit & 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 of the
company for the year ended on that date
(f) Based on representation made by all the Directors of the company to
the Board and the information and explanations as made available to us
by the company, none of the directors of the company prima-facie have
any disqualification as referred to in clause (g) of sub-section (1) of
Section 274 of the Companies Act, 1956.
Referred to in paragraph 3 of our report of even date
1. a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) A substantial portion of the fixed assets has been physically
verified by the management during the year and in our opinion the
frequency of verification is reasonable having regard to the size of
the Company and the nature of its assets. No material discrepancies
were noticed on such physical verification
c) Fixed assets disposed off during the year were not significant.
According to the information and explanations given to us, we are of
the opinion that the disposal of fixed assets has not affected the
going concern status of the company.
2. a) The inventories (excluding stocks with the third parties) have
been physically verified during the year by the management. In respect
of inventory lying with the third parties, these have substantially
been confirmed by them In our opinion, the frequency of verification is
reasonable.
b) 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 according to the information and explanations
given to us, the company is maintaining proper records of inventory and
no material discrepancies were noticed on physical verifications.
3. a) The company has granted unsecured loan to its wholly owned
subsidiary company, covered in the register maintained under Section
301 of the Companies Act, 1956. The Maximum amount involved during the
year was Rs. 2,359 Lacs (Rupees Two Thousand Three Hundred and Fifty Nine
Lacs Only) and the year end balance of loan given to this company was Rs.
1,491 Lacs (Rupees One Thousand Four Hundred and Ninety One Lacs Only).
In our opinion the rate of interest and other terms and conditions on
which loans have been given to companies, firms or other parties
covered in the register maintained under section 301 of the Companies
Act, 1956 are not, prima facie, prejudicial to the interest of the
company.
b) The company has not taken any unsecured loan from companies, firms
or other parties covered in the register maintained under section 301
of the Companies Act, 1956
c) The rate of interest and other terms and conditions of the
above-mentioned loan are not prima facie prejudicial to the interest of
the company.
d) The repayment of principal and interest are as per the agreed terms.
4. 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 nventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit, no major weakness
has been noticed in the internal controls system
5. a) In our opinion and according to information and explanations
given to us the transactions that needed to be entered in the register
maintained under section 301 of the Act have been entered in the
register.
b) As per information and explanations given to us aforesaid
transactions have been made at price which are reasonable having regard
to the prevailing market price at the relevant time.
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 provisions of sections of 58A, 58AA or any other relevant
provisions of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules, 1975
7. In our opinion the company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account relating to
materials, labour and other items of cost maintained by the company
pursuant to the Rules made by the Centra Government for the maintenance
of cost records under section 209 (1) (d) of the Companies Act, 1956 we
are of the opinion that prima facie the prescribed accounts and record
have been made and maintained. We have not made however a detailed
examination of the record with a view to determine whether they are
accurate or complete.
9. (a) According to the records of the company, the company is regular
in depositing with appropriate authorities undisputed statutory dues
including Provident Fund, Investor Education Protection Fund, Employees
State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise
Duty, Service Tax, Cess and other materia statutory dues applicable to
it.
(b) According to the information and explanations given to us, no
undisputed amount payable in respect of Income Tax, Wealth Tax, Sales
Tax, Customs Duty and Excise Duty, Service Tax, Cess etc. were
outstanding as at March 31, 2011 for a period of more than six months
from the date they became payable.
(c) According to the information and explanation given to us and
records of the company examined by us, the particulars 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, are as
follows:
Name of the Nature of Dues Amount (Rs.) Period to which
Statue dues Related
Central Excise Central Excise levied
u/s 11A of Central
Excise 36,70,183 07.08.1996
Act,1944 Act,1944.
,, Penalty u/s 11 AC of
Central Excise Rules,
1944 read 36,70,183 07.08.1996
with Rule 9(2) & 173Q
of Central Excise
Act,1944.
,, Recovery u/s 57 I (4)
of Central Excise
Act,1944 of 3,52,445 07.08.1996
modvat credit availed
and utilised in
contravention
of the provisions of
Rule 57F(3) of
Central Excise
Rules, 1944.
,, Penalty u/s 11AC of
Central Excise Rules,
1944 read 3,52,445 07.08.1996
with Rule 9(2) & 173Q
of Central Excise
Rules,1944.
Central Excise duty
levied u/s 11 A
of Central Excise 4,53,676 15.08.1999
Act,1944.
,, Penalty u/s 11 AC of
Central Excise
Act,1944. 4,53,676 15.08.1999
Penalty under Rule
9(2) and 173Q of
Central Excise 1,00,000 15.08.1999
Rules,1944.
,, Penalty u/s 11 AC
read with Rule 25
of Central 40,00,000 1.12.2001 to
Excise Rule 2001/2002
and 173Q of
Central Excise Rules,
1944. 31.03.2004
,, Central Excise duty
demanded on Zinc
ash/Dross in 6,46,425 May-08 to
terms of section 11A
of Central Excise
Act,1944. July-08
,, Demand in Terms of
section 11A on Zinc
Ash/Dross 10,83,460 July-08 to
clearance. Mar-09
Penalty under Rule 25
of Central Excise
Rules 2002 30,000
read with section
11AC of Central Excise
Act 1944.
U.P. Tax on The constitutional
validity of U.P. Tax
on Entry of 4,47,60,767 Nov-08 to
Entry of Goods Goods in to Local
areas Act, 2007
had been Mar-11
in to Local Challenged.
areas Act, 2007
Value Added Reversal of Input tax
credit on
Consignment / 61,49,143 Jan-08 to
Tax Act-2008 Stock Transfer Mar-08
Name of the Statute Authority where the Dispute is
Pending for Decision
Central Excise Act,1944 Before the High Court Judicature
of Allahabad
,, Before the High Court Judicature
of Allahabad
,, Before the High Court Judicature
of Allahabad
,, Before the High Court Judicature
of Allahabad
,, Commissioner (Appeals)
Central Excise, Noida
,, Commissioner (Appeals)
Central Excise, Noida
,, Commissioner (Appeals)
Central Excise, Noida
,, CESTAT, New Delhi
,, CESTAT, New Delhi
,, CESTAT, New Delhi
U.P. Tax on Entry of Goods
in to Local areas Act, 2007 Before the High Court
Judicature of Allahabad
Value Added Tax Act-2008 Commercial Tax Tribunal,
Ghaziabad
10. The company has no accumulated losses as at March 31, 2011 and has
not incurred any cash losses during the financial year covered by our
audit and in the immediately preceding financial year.
11. In our opinion and according to 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, bank or
debenture holders.
12. We have been informed that the company has not granted loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities. Hence paragraph 4(XII) of the order is
not applicable.
13. In our opinion, the company is not a chit fund or a nidhi / mutual
benefit fund/society. Therefore, the provisions of clause 4 (xiii) of
the Companies (Auditors' Report) Order, 2003 as amended 2004 are not
applicable to the company.
14. The Company has maintained proper records of transactions and
contracts in respect of trading in securities, debentures and other
investment and timely entries have been made therein. All shares
(except the shares held in the name of nominees of the company in
wholly owned subsidiaries), debentures and other investments have been
held by company in its own name.
15. The company has given corporate guarantee for securing working
capital facilities sanctioned by Banks to its Subsidiary Companies. In
our opinion, the terms and conditions on which the company has given
said guarantees are not prejudicial to the interest of the company.
16. In our opinion and according to information and explanations given
to us by the company the term loans have been applied for the purpose
for which they were raised.
17. According to the information and explanations given to us and on
an 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.
18. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to Parties
and Companies covered in the register to be maintained under section
301 of the Act. However, during the year 1,641,953 warrants were
allotted on preferential basis to promoters group entity covering in
the register to be maintained under Section 301 of the Act, entitling
the warrant holder to get one equity share of Rs. 10 each for each
warrant, converting withing 18 months from the date of allotment of
warrants.
19. During the period covered by our audit report, the company has not
issued any debentures.
20. The company has not raised any money from public issue and as such
question of end use of money raised by public issue does not arise.
21. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the company has been noticed or reported during the course of our audit
for the year ended March 31, 2011
for VAPS & Co.
Chartered Accountants,
Firm Regn. No. 003612 N
P K Jain
Place: New Delhi Partner
Date: August 30, 2011 Membership No. 82515
Mar 31, 2010
1. We have audited the attached Balance Sheet of APL Apollo Tubes
Limited as at March 31, 2010 and also the Profit & Loss Account and
Cash Flow Statement for the year ended on that date annexed hereto.
These financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003, as
amended by the Companies (Auditors Report) (Amendment) Order, 2004,
issued by the Central Government of India in terms of sub-section (4A)
of Section 227 of the Companies Act, 1956 and on the basis of such
checks as we considered appropriate and according to the explanations
furnished to us during the course of our audit, we give in the Annexure
a statement specified in paragraph 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 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 accounts as required by law has kept
by the Company so far as it appears from our examination of such books.
c) The Balance Sheet and Profit & Loss Account and Cash Flow Statement
referred to in this report are in agreement with the books of account.
d) In our opinion the Balance Sheet, the Profit & Loss Account and Cash
Flow Statement are in compliance with the Accounting Standards referred
to in sub section (3c) of section 211 of the Companies Act, 1956.
e) 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 and Cash Flow Statement read together with the notes thereon
give the information as required by the Companies Act,1956 in the
manner so required and give a true and fair view:
i) In so far as it relates to the Balance Sheet of the State of Affairs
of the Company as at March 31, 2010,
ii) In he case of Profit & 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 of the
Company for the year ended on that date.
f) Based on representation made by all the Directors of the Company to
the Board and the information and explanations as made available to us
by the Company, none of the directors of the Company prima-facie have
any disqualification as referred to in clause (g) of sub- section (1)
of Section 274 of the Companies Act, 1956.
Annexure to the Auditors Report
Re: APL Apollo Tubes Limited (formerly Bihar Tubes Limited)
Referred to in paragraph 3 of our report of even date
1. a) The Company has maintained proper records showing full parti
-cular including quantitative details and situation of fixed
assets.
b) A substantial portion of the fixed assets has been physically
verified by the management during the year and in our opinion the
frequency of verification is reasonable having regard to the size of
the Company and the nature of its assets. No material discrepancies
were noticed on such physical verification.
c) Fixed assets disposed off during the year were not significant.
According to the information and explanations given to us, we are of
the opinion that the disposal of fixed assets has not affected the
going concern status of the Company.
2. a) The inventories (excluding stocks with the third parties)
have been physically verified during the year by the management. In
respect of inventory lying with the third parties, these have
substantially been confirmed by them. In our opinion, the frequency of
verification is reasonable.
b) 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 according to the information and explanations
given to us, the Company is maintaining proper records of inventory and
no material discrepancies were noticed on physical verifications.
3. a) The Company has granted unsecured loan to two
companies (Wholly owned subsidiary companies), firm or other parties
covered in the register maintained under Section 301 of the Companies
Act, 1956. The Maximum amount involved during the year was ? 2,044 Lacs
(Rupees Two Thousand and Forty Four Lacs Only) and the year end balance
of loan given to such parties was ? 778 Lacs (Rupees Seven Hundred and
Seventy Eight Lacs Only). In our opinion the rate of interest and other
terms and conditions on which loans have been given to companies, firms
or other parties covered in the register maintained under section 301
of the Companies Act, 1956 are not, prima facie, prejudicial to the
interest of the Company.
b) The Company has not taken any unsecured loan from companies, firms
or other parties covered in the register maintained under section 301
of the Companies Act, 1956.
c) The rate of interest and other terms and conditions of the
above-mentioned loan are not prima facie prejudicial to the interest of
the Company.
d) The repayment of principal and interest are as per the agreed terms.
4. 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. During the course of our audit, no major weakness
has been noticed in the internal controls system.
5. a) In our opinion and according to information and
explanations given to us the transactions that needed to be entered in
the register maintained under section 301 of the Act have been entered
in the register
b) As per information and explanations given to us aforesaid
transactions have been made at price which are reasonable having regard
to the prevailing market price at the relevant time.
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 provisions of sections of 58A, 58AA or any other relevant
provisions of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rule 1975.
7. In our opinion the Company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account relating to
materials, labour and other items of cost 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 we are of the opinion that prima facie the prescribed
accounts and record have been made and maintained. We have not made
however a detailed examination of the record with a view to determine
whether they are accurate or complete.
9. a) According to the records of the Company, the
Company is regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, Investor Education
Protection Fund, Employees State Insurance, Income Tax, Sales Tax,
Wealth Tax, Custom Duty, Excise Duty, Service Tax, Cess and other
material statutory dues applicable to it.
b) According to the information and explanations given to us, no
undisputed amount payable in respect of
Income Tax, Wealth Tax, Sales Tax, Customs Duty and Excise Duty,
Service Tax, Cess etc. were outstanding as at March 31, 2010 for a
period of more than six months from the date they became payable.
c) According to the information and explanation given to us and records
of the Company examined by us, the particulars 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, are as
follows:
Name of the Nature of Dues
Statute
Central Excise Central Excise levied u/s 11A of Central Excise
Act, 1944 Act, 1944.
Penalty u/s 11 AC of Central Excise Rules, 1944 read
with Rule 9(2) & 173Q of Central Excise Act, 1944.
Recovery u/s 57 I (4) of Central Excise Act,1944 of
modvat credit availed and utilized in contravention
of the provisions of Rule 57F(3) of Central Excise
Rules, 1944.
Penalty u/s 11AC of Central Excise Rules, 1944 read
with Rule 9(2) & 173Q of Central Excise Rule, 1944.
Central Excise duty levied u/s 11 A of Central
Excise Act, 1944.
Penalty u/s 11 AC of Centeral Excise Act, 1944.
Penalty under Rule 9(2) and 173Q of Centeral
Excise Rule, 1944.
Penalty u/s 11 AC read with Rule 25 of Central Excise
Rule 2001/2002 and 173Q of Central Excise Rule,1944.
Central Excise duty on Zinc Ash/Dross demanded
under Rule 12 of Cenvat credit Rules 2002/Rule 14 of
Cenvat credit/ Rule 2004, read with Rule 6(3)(b)
[explanation II ] of cenvat credit Rules 2002/2004 and
proviso to section 11 A of Central Excise Act, 1944.
Penalty under Rule 13(2) of Cenvat Credit Rules 2001/
Rule 15 of Cenvat credit Rules 2004 read with
section 11 AC of Central Excise Act, 1944.
Central Excise duty demanded on Zink ash/Dross in
terms of section 11A of Central Excise Act, 1944.
Central Excise duty demanded on Zink ash/Dross in
terms of section 11A of Central Excise Act, 1944.
Penalty under Rule 25 of Central Excise Rules 2002 read
with section 11AC of Central Excise Act, 1944.
Demand in Terms of section 11A on Zinc Ash/
Dross clearance.
Penalty under Rule 25 of Central Excise Rules 2002
read with section 11AC of Central Excise Act, 1944.
U.P. Tax on The constitutional validity of U.P. Tax on Entry of
Entry of Goods Goods in to Local areas Act, 2007 had been
in to Local Challenged.
areas Act, 2007
Name of the amount period to which Authority where the
Statute dues relates dispute is pending
for decision
Central Excise 36,70,183 07.08.1996 Before the High Court
Act,1944 Judicature of Allahabad
36,70,183 07.08.1996 Before the High Court
Judicature of Allahabad
3,52,445 07.08.1996 Before the High Court
Judicature of Allahabad
3,52,445 07.08.1996 Before the High Court
Judicature of Allahabad
4,53,676 15.08.1999 Commissioner (Appeals)
Central Excise, Noida
4,53,676 15.08.1999 Commissioner (Appeals)
Central Excise, Noida
1,00,000 15.08.1999 Commissioner (Appeals)
Central Excise, Noida
40,00,000 1.12.2001 to CESTAT, New Delhi
31.03.2004
47,17,737 March-04 to CESTAT, New Delhi
September-07
47,17,737 March-04 to CESTAT, New Delhi
September-07
6,46,425 May -08 to CESTAT, New Delhi
July- 08
3,12,663 May -08 to Commissioner (Appeals)
June- 08 Central Excise, Noida
65,000
10,83,460 July-08 to Commissioner (Appeals)
March-09 Central Excise, Noida
30,000
U.P.Taxon 3,96,07,117 November-08 to Deputy Commissioner
Entry of Goods March-10 (Assessment) Commercial
in to Local Tax, Sikandrabad
areas Act,2007
10. The Company has no accumulated losses as at March 31, 2010 and has
not incurred any cash losses during the financial year covered by our
audit and in the immediately preceding financial year.
11. In our opinion and according to 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, bank or
debenture holders.
12. We have been informed that the Company has not granted loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities. Hence paragraph 4(XII) of the order is
not applicable.
13. In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund/society. Therefore, the provisions of clause 4 (xiii) of
the Companies (auditors report) Order, 2003 as amended 2004 are not
applicable to the Company.
14. The Company has maintained proper records of transactions and
contracts in respect of trading in securities, debentures and other
investment and timely entries have been made therein. All shares,
debentures and other investments have been held by Company in its own
name.
15. The Company has given corporate guarantee for securing working
capital facilities sanctioned by Union Bank of India to its Subsidiary
Companies. In our opinion, the terms and conditions on which the
Company has given said guarantees are not prejudicial to the interest
of the Company.
16. In our opinion and according to information and
explanations given to us by the Company the term loans have been
applied for the purpose for which they were raised.
17. According to the information and explanations given to us and on
an 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.
18. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to Parties
and Companies covered in the register to be maintained under section
301 of the Act.
19. During the period covered by our audit report, the Company has not
issued any debentures.
20. The Company has not raised any money from public issue and as such
question of end use of money raised by public issue does not arise.
21. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the course of our audit
for the year ended March 31, 2010.
For VAPS & Co.
Chartered Accountants
Firm Regn. No.: 003612 N
P. K. Jain
Place: New Delhi Partner
Dated: September 1, 2010 Membership No.: 82515
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