Mar 31, 2023
Opinion
1. We have audited the accompanying standalone financial statements of Jindal Saw Limited (âthe Companyâ], which comprise the Standalone Balance Sheet as at March 31, 2023, and the Standalone Statement of Profit and Loss (including Other Comprehensive Income], the Standalone Statement of Changes in Equity and the Standalone Statement of Cash Flows for the year then ended, and notes to the standalone financial statements, including a summary of significant accounting policies and other explanatory information and which include the financial statements of Jindal Saw Employee Welfare Trust (the âTrustâ] for the year ended on that date.
2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (âthe Actâ] in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2023, and total comprehensive income (comprising of profit and other comprehensive income], changes in equity and its cash flows for the year then ended.
3. We conducted our audit in accordance with the Standards on Auditing (SAs] specified under Section 143(10] of the Act. Our responsibilities under those Standards are further described in the âAuditor''s Responsibilities for the Audit of the Standalone Financial Statementsâ 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 together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
4. We draw your attention to Note 51 to the standalone financial statements regarding related party transactions entered into by the Company, which are in excess of the limits approved by the Audit Committee of the Board of Directors and the shareholders as required under Regulation 23 of the SEBI (Listing Obligations and Disclosure Requirements] Regulations, 2015 (as amended]. The Company has intimated the said non-compliance to the stock exchange(s], and action, if any, against the Company by the Securities and Exchange Board of India is presently not ascertainable.
Our opinion is not modified in respect of this matter.
5. Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key audit matter:5.1 Assessment of the carrying value of investment in and loans granted to a subsidiary, Jindal ITF Limited [Refer to note 3.6, 3.12(a), 4(f) and note 60 to the Standalone Financial Statements]Description of Key Audit Matter:
The carrying amount of the Company''s investment in its subsidiary, Jindal ITF Limited (the âsubsidiary''] as at March 31, 2023 is '' 64,663.28 lakhs, which includes investment in redeemable preference shares (âRPSâ] of the subsidiary amounting to '' 52,550.81 lakhs. During the year, the redemption date of the RPS was extended by five years and a redemption premium payable on maturity with effect from the date of issue of the RPS, was introduced. These modifications to the terms of the RPS resulted in a change in fair value of the debt component of the RPS and recognition of a gain of '' 19,783.01 lakhs in the Statement of profit and loss. Further, the outstanding balance of loans and advances granted to the said subsidiary is '' 144,191.02 lakhs as at March 31, 2023.
The subsidiary had entered into a contract in the financial year 2015-16 with a public sector undertaking (âPSU''] for transporting imported coal to one of the PSU''s power generating stations. The contract was for a period of seven years and the subsidiary was the sole transporter and accordingly, had made significant investments to develop the facility. The contract had a clause for compensation in case the supply was lesser than the minimum guaranteed quantity (âMGQ''] mentioned in the contract and had specific clauses to be adhered to by both the parties before terminating the contract.
The PSU stopped taking the supplies during the first year of operation and refused to pay compensation towards MGQ and terminated the contract subsequently. The matter was referred to arbitration where the arbitrator had awarded an interim award amounting to '' 35,631.18 lakhs in favour of the subsidiary relating to first 2 years of MGQ which was paid by the PSU, against an equivalent amount of bank guarantee furnished by the subsidiary. Subsequently, the arbitrator issued the final order in favour of the subsidiary awarding '' 189,108 lakhs plus interest and applicable taxes.
The PSU has filed an appeal with Hon''ble High Court of Delhi against the final arbitration order. The Hon''ble High Court passed an interim order directing the PSU to pay '' 50,000 lakhs as an interim compensation which was paid by the PSU against an equivalent amount of bank guarantee furnished by the subsidiary. Currently, the matter is under litigation and pending before the Hon''ble High Court of Delhi. The management, in consultation with their legal counsel on the likely outcome of the case, has assessed that the carrying amount of investments in and loans granted to the subsidiary including interest thereon, are good and recoverable.
This has been determined as a key audit matter as the investment made, and loans granted are material to the Standalone Financial Statements and the subsidiary is currently having insignificant operations. Further, the recovery of investment and loan granted depends on the ultimate recovery of the remaining compensation from the PSU by the subsidiary.
How our audit addressed the key audit matter:
We performed the following procedures :
⢠Understood and evaluated the design and performed testing of operating effectiveness of controls over recognition and assessment of recoverability of the investment in and the loans given to the subsidiary.
⢠Obtained an understanding of the matter and enquired about updates over the legal case and the proceedings that took place during the year.
⢠Evaluated appropriateness of the accounting policy of the Company in respect of impairment assessment of equity investments, loans given and modification to the terms of a compound financial instruments (i.e., RPS].
⢠Perused the contract between the subsidiary and the PSU to corroborate the matters stated in the appeal and details of the claim filed by the subsidiary with the Arbitration Tribunal and the final arbitration order issued in this regard.
⢠Evaluated the recoverability of the said loans and investments considering the arbitration order decided in favour of the subsidiary.
⢠Evaluated the opinion obtained from the Company''s external legal counsel on likely outcome of the case which supports the Company''s assessment about recoverability of the said loan and investment balances.
⢠Read the minutes of the meetings of the board of directors and understood the modification to the terms of the RPS of the subsidiary
⢠Read the opinions obtained by the Company and involved auditor''s experts to assess the appropriateness of the gain recognised on modification to the terms of the RPS.
⢠Evaluated the appropriateness of presentation and adequacy of the disclosures made in the standalone financial statements.
Based on the procedures above, the management''s assessment of the carrying value of the investment and loans in the said subsidiary was considered to be reasonable.
5.2 Assessment of carrying value of investments in a subsidiary, Jindal Quality Tubular Limited and an associate, Jindal Fittings Limited [Refer to note 3.6, 3.12(a), 4(f) and note 8 to the Standalone Financial Statements]Description of Key Audit Matter:
The carrying value of Company''s investments include unquoted investments in the form of equity and preference shares in a subsidiary, Jindal Quality Tubular Limited (JQTL) and in an associate, Jindal Fittings Limited (JFL), aggregating '' 14,823.38 lakhs respectively. The Company accounts for equity investments in subsidiaries and associate at cost (subject to impairment assessment) and preference shares are carried at amortised cost. The carrying value of these investments as at the year end has been assessed for impairment by the Company basis an independent valuation carried out by a third party.
The key inputs and judgements involved in the impairment assessment of unquoted investments include:
⢠Forecast cash flows including assumptions on growth rates
⢠Discount rates of 12.82% for JFL and 14.17% for JQTL
⢠Terminal growth rate of 4% for JFL and 1% for JQTL
⢠Economic and entity specific factors incorporated in the valuation.
The assessment of carrying value of such investments is a key audit matter as the determination of recoverable value for impairment assessment involves significant management judgement and estimates.
How our audit addressed the key audit matter:
We performed the following procedures :
⢠Understood and evaluated the design and tested the operating effectiveness of the Company''s controls over monitoring the performance of the subsidiary and associate and performing an impairment assessment.
⢠Evaluated the appropriateness of the accounting policy of the Company in respect of impairment assessment of investments in equity and preference shares.
⢠Obtained the management''s valuation calculations supported by an independent report of a third party and performed enquiries with the management to understand the assumptions, including the discount rate and the growth rates, underlying in the forecast.
⢠Assessed the reasonableness of the growth rates used in the forecast with the current orders in hand and historical growth rates where the impairment indicators exist.
⢠Assessed, with the involvement of auditor''s expert, the appropriateness of financial projections, discount rate and terminal values used in the valuation calculations.
⢠Performed sensitivity tests over the key assumptions and considered them to be within a reasonable and foreseeable range.
⢠Assessed the historical accuracy of the forecasts by comparing the forecast used in the prior year valuation with the actual performance in the current year. In case the actual performance was lower than the forecast, we obtained the reasons thereof from the management.
⢠Tested the mathematical accuracy of the underlying calculations.
⢠Evaluated the appropriateness of presentation and adequacy of the disclosures made in the Standalone Financial Statements.
Based on the above audit procedures, the management''s assessment of the carrying value of the investments in the subsidiary and associate company was considered to be reasonable.
Other Information
6. The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Annual report, but does not include the financial statements and our auditor''s report thereon.
Our opinion on the 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 financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Responsibilities of management and those charged with governance for the standalone financial statements
7. 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, changes in equity 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. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
8. 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.
Auditorâs responsibilities for the audit of the standalone financial statements
9. 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.
10. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to 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 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 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 financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
11. 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.
12. 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.
13. 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.
14. We did not audit the financial statements of the Trust included in the standalone financial statements of the Company, which constitute total assets of '' 1,576.54 lakhs and net assets of '' 70.91 lakhs as at March 31, 2023, total revenue of '' 45.43 lakhs, net excess of income over expenditure of '' 26.89 lakhs and net cash flows amounting to '' (138.87) lakhs for the year then ended. These financial statements have been audited by other auditors whose report has been furnished to us by the management, and our opinion on the standalone financial statements in so far as it relates to the amounts and disclosures included in respect of the Trust, is based solely on the report of such other auditor.
Our opinion is not modified in respect of above matter.
Report on other legal and regulatory requirements
15. As required by the Companies (Auditor''s Report) Order, 2020 (âthe Orderâ), issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the Annexure B a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
16. 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 Standalone Balance Sheet, the Standalone Statement of Profit and Loss (including other comprehensive income), the Standalone Statement of Changes in Equity and the Standalone Statement of Cash Flows dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act.
(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 financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Aâ.
(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 (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 financial statements -Refer Note 52 to the standalone financial statements;
ii. The Company has long-term contracts as at March 31, 2023 for which there are no material foreseeable losses. The Company did not have any long-term derivative contracts as at March 31, 2023;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company except in respect of dividend amounting to '' 334.38 lakhs which according to the information and explanation provided to us by the management, has been kept in abeyance due to legal cases [refer note 30 to the standalone financial statements];
iv. (a) The management has represented that, to the best of its knowledge and belief, as disclosed in the notes
to the accounts, 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 (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries [Refer Note 50(k)(I) to the standalone financial statements];
(b) The management has represented that, to the best of its knowledge and belief, as disclosed in the notes to the accounts, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries [Refer Note 50(k)(II) to the standalone financial statements]; and
(c) Based on such audit procedures that we 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 (a) and (b) contain any material misstatement.
v. The dividend declared and paid during the year by the Company is in compliance with Section 123 of the Act.
vi. As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 (as amended), which provides for books of account to have the feature of audit trail, edit log and related matters in the accounting software used by the Company, is applicable to the Company only with effect from financial year beginning April 1, 2023, the reporting under clause (g) of Rule 11 of the Companies (Audit and Auditors) Rules, 2014 (as amended), is currently not applicable.
17. The Company has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the
provisions of Section 197 read with Schedule V to the Act.
For Price Waterhouse Chartered Accountants LLP
Firm Registration Number: 012754N/N500016
Sougata Mukherjee
Partner
Membership Number: 057084
UDIN: 23057084BGYFRG8367
Place: Gurugram
Date: May 17, 2023
Mar 31, 2022
Report on the audit of the Standalone Financial Statements
Opinion
1. We have audited the accompanying Standalone Financial Statements of Jindal Saw Limited (âthe Companyâ], which comprise the Standalone Balance Sheet as at March 31, 2022, and the Standalone Statement of Profit and Loss (including Other Comprehensive Income], the Standalone Statement of Changes in Equity and the Standalone Statement of Cash Flows for the year then ended, and notes to the Standalone Financial Statements, including a summary of significant accounting policies and other explanatory information and which include the financial statements of Jindal Saw Employee Welfare Trust (the âTrustâ] for the year ended on that date.
2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Financial Statements give the information required by the Companies Act, 2013 (âthe 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 March 31, 2022, and total comprehensive income (comprising of profit and other comprehensive income], changes in equity and its cash flows for the year then ended.
Basis for opinion
3. We conducted our audit in accordance with the Standards on Auditing (SAs] specified under Section 143(10] of the Act. Our responsibilities under those Standards are further described in the âAuditor''s Responsibilities for the Audit of the Standalone Financial Statementsâ 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 together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Emphasis of Matter
4. We draw your attention to Note 61 of the Standalone Financial Statements, which describes the management''s assessment of the financial impact of the events arising out of Coronavirus (COVID-19] pandemic, for which a definitive assessment of the impact in the subsequent period is dependent upon the circumstances as they evolve. Our opinion is not modified in respect of this matter.
Key audit matters
5. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Standalone Financial Statements of the current period. These matters were addressed in the context of our audit of the Standalone Financial Statements as a whole and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
5.1 Assessment of the carrying value of investment in and loans granted to a subsidiary, Jindal ITF Limited [Refer to note 3.6 and note 62 to the Standalone Financial Statements]
Description of Key Audit Matter
The Company has an investment of '' 41,685.78 lakhs and has advanced loans aggregating '' 131,172.39 lakhs to its subsidiary, Jindal ITF Limited (the âsubsidiary''] as at March 31, 2022. The subsidiary had entered into a contract in the financial year 2015-16 with a public sector undertaking (âPSU''] for transporting imported coal to one of the PSU''s power generating stations. The contract was for a period of seven years and the subsidiary was the sole transporter and accordingly, had made significant investments to develop the facility. The contract had a clause for compensation in case the supply was lesser than the minimum guaranteed quantity (âMGQ''] mentioned in the contract and had specific clauses to be adhered to by both the parties before terminating the contract.
The PSU stopped taking the supplies during the first year of operation and refused to pay compensation towards MGQ and terminated the contract subsequently. The matter was referred to arbitration where the arbitrator had awarded an interim award amounting to '' 35,631.18 lakhs in favour of the subsidiary relating to first 2 years of MGQ which was paid by the PSU, against an equivalent amount of bank guarantee furnished by the subsidiary. Subsequently, the arbitrator issued the final order in favour of the subsidiary awarding Rs. 189,108 lakhs plus interest and applicable taxes.
The PSU has filed an appeal with Hon''ble High Court of Delhi against the final arbitration order. The Hon''ble High Court passed an interim order directing the PSU to pay '' 50,000 lakhs as an interim compensation which was paid by the PSU against an equivalent amount of bank guarantee furnished by the subsidiary. Currently, the matter is under litigation and pending before the Hon''ble High Court of Delhi. The management, in consultation with their legal counsel on the likely outcome of the case, has assessed that the carrying amount of investments in and loans granted to the subsidiary including interest thereon, are good and recoverable.
This has been determined as a key audit matter as the investment made and loans granted by the Company to the subsidiary are material to the Standalone Financial Statements and the subsidiary is currently having insignificant operations. Further, the recovery of investment and loan granted depends on the ultimate recovery of the remaining compensation from the PSU by the subsidiary.
How our audit addressed the key audit matter
⢠Understood and evaluated the design and performed testing of operating effectiveness of controls over assessment of recoverability of the investment in and the loans given to the subsidiary.
⢠Obtained an understanding of the matter and enquired about updates over the legal case and the proceedings that took place during the year.
⢠Evaluated appropriateness of the accounting policy of the Company in respect of impairment assessment of equity investments and loans given.
⢠Perused the contract between the subsidiary and the PSU to corroborate the matters stated in the appeal and details of the claim filed by the subsidiary with the Arbitration Tribunal and the final arbitration order issued in this regard.
⢠Evaluated the recoverability of the said loans and investments considering the arbitration order decided in favour of the subsidiary.
⢠Evaluated the opinion obtained from the Company''s external legal counsel on likely outcome of the case which supports the Company''s assessment about recoverability of the said loan and investment balances.
⢠Evaluated the appropriateness of presentation and a dequacy of the disclosures made in the Standalone Financial Statements.
Based on the procedures above, the management''s assessment of the carrying value of the investment and loans in the said subsidiary was considered to be reasonable.
5.2 Assessment of carrying value of investments in a subsidiary, Jindal Quality Tubular Limited and an associate, Jindal Fittings Limited [Refer to note 3.6 and note 8 to the Standalone Financial Statements]
[Refer to note 3.6 and note 62 to the Standalone Financial Statements]
Description of Key Audit Matter
The carrying value of Company''s investments include unqouted investments in the form of equity and preference shares in Jindal Quality Tubular Limited and in an associate, Jindal Fittings Limited, aggregating '' 14,823.38 lakhs respectively. The Company accounts for equity investments in subsidiaries and associate at cost (subject to impairment assessment) and preference shares are carried at amortised cost. The carrying value of these investments as at the year end has been assessed for impairment by the Company basis an independent valuation carried out by a third party.
The key inputs and judgements involved in the impairment assessment of unquoted investments include:
⢠Forecast cash flows including assumptions on growth rates
⢠Discount rates
⢠Terminal growth rate
⢠Economic and entity specific factors incorporated in the valuation.
The assessment of carrying value of such investments is a key audit matter as the determination of recoverable value for impairment assessment involves significant management judgement and estimates.
How our audit addressed the key audit matter
⢠Understood and evaluated the design and tested the operating effectiveness of the Company''s controls over monitoring the performance of the subsidiary and associate and performing an impairment assessment.
⢠Evaluated the appropriateness of the accounting policy of the Company in respect of impairment assessment of investments in equity and preference shares.
⢠Obtained the management''s valuation calculations supported by an independent report of a third party and performed enquiries with the management to understand the assumptions, including the discount rate and the growth rates, underlying in the forecast.
⢠Assessed the reasonableness of the growth rates used in the forecast with the current orders in hand and historical growth rates where the impairment indicators exist.
⢠Assessed, with the involvement of auditor''s expert, the appropriateness of financial projections, discount rate and terminal values used in the valuation calculations.
⢠Performed sensitivity tests over the key assumptions and considered them to be within a reasonable and foreseeable range.
⢠Assessed the historical accuracy of the forecasts by comparing the forecast used in the prior year valuation with the actual performance in the current year. In case the actual performance was lower than the forecast, we obtained the reasons thereof from the management.
⢠Tested the mathematical accuracy of the underlying calculations.
⢠Evaluated the appropriateness of presentation and adequacy of the disclosures made in the Standalone Financial Statements.
Based on the above audit procedures, the management''s assessment of the carrying value of the investments in the subsidiary and associate company was considered to be reasonable.
Other Information
6. The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Board''s report and Management Discussions and Analysis report, but does not include the financial statements and our auditor''s report thereon.
Our opinion on the 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 financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Responsibilities of management and those charged with governance for the standalone financial statements
7. 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, changes in equity 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. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
8. 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.
Auditorâs responsibilities for the audit of the Standalone Financial Statements
9. 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.
10. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the Standalone Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3][i] of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to 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 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 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.
⢠Evaluate the overall presentation, structure and content of the Standalone Financial Statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
11. 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.
12. 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.
13. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Standalone Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Other Matter
14. We did not audit the financial statements of the Trust included in the Standalone Financial Statements of the Company, which constitute total assets of '' 1,544.38 lakhs and net assets of '' 44.01 lakhs as at March 31, 2022, total income of '' 36.12 lakhs, net excess of income over expenditure of '' 23.07 lakhs and net cash flows amounting to '' (327.24) lakhs for the year then ended. These financial statements have been audited by other auditors whose report has been furnished to us by the management, and our opinion on the standalone annual financial statements in so far as it relates to the amounts and disclosures included in respect of the Trust, is based solely on the report of such other auditor.
Our opinion is not modified in respect of above matter.
Report on other legal and regulatory requirements
15. As required by the Companies (Auditor''s Report) Order, 2020 (âthe Orderâ), issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the Annexure B, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
16. 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 Standalone Balance Sheet, the Standalone Statement of Profit and Loss (including other comprehensive income), the Standalone Statement of Changes in Equity and the Standalone Statement of Cash Flows dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act.
(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 with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Aâ.
(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 (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 financial statements - Refer Note 52 to the standalone financial statements;
ii. The Company has long term contracts as at March 31, 2022 for which there are no material foreseeable losses. The Company did not have any long term derivative contracts as at March 31, 2022;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company except in respect of dividend amounting to '' 307.71 lakhs which according to the information and explanation provided to us by the management, has been kept in abeyance due to legal cases (refer notes 21(d) and 31 to 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 notes to the accounts, 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 [âIntermediariesâ], with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries (Refer Note 60(k) to the financial statements);
(b) The management has represented that, to the best of its knowledge and belief, as disclosed in the notes to the accounts, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries (Refer Note 60(k) to the financial statements); and
(c) Based on such audit procedures that we 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 (a) and (b) contain any material misstatement.
v. The dividend declared and paid during the year by the Company is in compliance with Section 123 of the Act.
17. The Company has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the
provisions of Section 197 read with Schedule V to the Act.
For Price Waterhouse Chartered Accountants LLP Firm Registration Number: 012754N/N500016 Chartered Accountants
Sougata Mukherjee Partner
Membership Number: 057084 UDIN: 22057084AJVQGX7886
Place : New Delhi Date : May 30, 2022
Mar 31, 2018
Report on the Standalone Indian Accounting Standards (Ind AS) Financial Statements
1. We have audited the accompanying standalone financial statements of Jindal SAW Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Ind AS Financial Statements
2. 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 to give a true and fair view of the financial position, financial performance (including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards specified in the Companies (Indian Accounting Standards) Rules, 2015 (as amended) under Section 133 of the Act, This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error,
Auditorsâ Responsibility
3. Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit,
4. We have taken into account the provisions of the Act and the Rules made thereunder including the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
5. We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements 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.
6. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorsâ 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.
7 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
8. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2018, and its total comprehensive income (comprising of profit and other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Other Matter
9. The Ind AS financial statements of the Company for the year ended March 31, 2017, were audited by another firm of chartered accountants under the Companies Act, 2013 who, vide their report dated May 29, 2017, expressed an unmodified opinion on those financial statements. Our opinion is not qualified in respect of this matter.
Report on Other Legal and Regulatory Requirements
10. As required by the Companies (Auditorâs Report) Order, 2016, issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act (âthe Orderâ), and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure B a statement on the matters specified in paragraphs 3 and 4 of the Order.
11. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the 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 the Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors 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 with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in Annexure A.
(g) With respect to the other matters to be included in the Auditorsâ Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our knowledge and belief and according to the information and explanations given to us:
i. The Company has disclosed the impact, if any, of pending litigations as at March 31, 2018 on its financial position in its standalone Ind AS financial statements - Refer Note 46 and 56;
11. The Company has made provision as at March 31, 2018, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts - Refer Note 40;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended March 31, 2018 except in respect of dividend amounting to Rs.181.75 lakhs which has been kept in abeyance pursuant to court order.
iv. The reporting on disclosures relating to Specified Bank Notes is not applicable to the Company for the year ended March 31, 2018.
Annexure A to Independent Auditorsâ Report
Referred to in paragraph 11(f) of the Independent Auditorsâ Report of even date to the members of Jindal SAW Limited on the standalone Ind AS financial statements as of and for the year ended March 31, 2018
Report on the Internal Financial Controls with reference to standalone Ind AS financial statements under Clause (i) of Sub-section 3 of Section 143 of the Act
1. We have audited the internal financial controls with reference to Standalone Ind AS financial statements of Jindal SAW 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
2. The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the 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 Act.
Auditorsâ Responsibility
3. Our responsibility is to express an opinion on the Companyâs internal financial controls with reference to Ind AS financial statements 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 deemed to be prescribed under section 143(10) of the Act to the extent applicable to an audit of internal financial controls, both applicable to an audit of internal financial controls and both issued by the ICAI. 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 with reference to Ind AS financial statements was established and maintained and if such controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system with reference to Ind AS financial statements and their operating effectiveness. Our audit of internal financial controls with reference to Standalone Ind AS financial statements included obtaining an understanding of internal financial controls with reference to Standalone Ind AS financial statements, 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 Standalone Ind AS financial statements, whether due to fraud or error.
5. 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 with reference to Standalone Ind AS financial statements.
Meaning of Internal Financial Controls with reference to Standalone Ind AS financial statements
6. A companyâs internal financial controls with reference to Standalone Ind AS financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of Standalone Ind AS financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial controls with reference to Standalone Ind AS financial statements 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 Ind AS financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companyâs assets that could have a material effect on the standalone Ind AS financial statements.
Inherent Limitations of Internal Financial Controls with reference to Standalone Ind AS financial statements
7. Because of the inherent limitations of internal financial controls with reference to standalone Ind AS financial statements, 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 with reference to Standalone Ind AS financial statements to future periods are subject to the risk that the internal financial control controls with reference to standalone Ind AS financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
8. In our opinion, the Company has, in all material respects, an adequate internal financial controls system with reference to standalone Ind AS financial statements and such internal financial controls with reference to standalone Ind AS financial statements were operating effectively as at March 31, 2018 based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
Annexure B to Independent Auditorsâ Report
Referred to in paragraph 10 of the Independent Auditorsâ Report of even date to the members of Jindal SAW Limited on the standalone financial statements as of and for the year ended March 31, 2018
i. (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation, of fixed assets.
(b) The fixed assets are physically verified by the Management according to a phased programme designed to cover all the items over a period of three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the programme, a portion of the fixed assets has been physically verified by the Management during the year and no material discrepancies have been noticed on such verification.
(c) The title deeds of immovable properties, as disclosed in Note 5 on fixed assets to the financial statements, are held in the name of the Company, except for one land value for gross cost of Rs.1,950 lakhs, the conveyance deed of which is yet to be executed.
ii. The physical verification of inventory excluding stocks with third parties have been conducted at reasonable intervals by the Management during the year. In respect of inventory lying with third parties, these have substantially been confirmed by them. The discrepancies noticed on physical verification of inventory as compared to book records were not material
iii. The Company has granted unsecured loans, to six companies covered in the register maintained under Section 189 of the Act.
(a) In respect of the aforesaid loans, the terms and conditions under which such loans were granted are not prejudicial to the Companyâs interest.
(b) In respect of the aforesaid loans, the schedule of repayment of principal and payment of interest has been stipulated, and the parties are repaying the principal amounts, as stipulated, and are also regular in payment of interest as applicable.
(c) In respect of the aforesaid loans, there is no amount which is overdue for more than ninety days.
iv. In our opinion, and according to the information and explanations given to us, the Company has complied with the provisions of Section 185 and 186 of the Companies Act, 2013 in respect of the loans and investments made, and guarantees and security provided by it.
v. The Company has not accepted any deposits from the public within the meaning of Sections 73, 74, 75 and 76 of the Act and the Rules framed there under to the extent notified.
vi. Pursuant to the rules made by the Central Government of India, the Company is required to maintain cost records as specified under Section 148(1) of the Act in respect of its products. We have broadly reviewed the same, and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.
vii. (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing undisputed statutory dues in respect of income tax and employeesâ state insurance, though there has been a slight delay in a few cases, and is regular in depositing undisputed statutory dues, including provident fund, professional tax, labour welfare fund, sales tax, service tax, duty of customs , duty of excise, value added tax, goods and service tax applicable from July 1, 2017 and other material statutory dues, as applicable, with the appropriate authorities.
(b) According to the information and explanations given to us and the records of the Company examined by us, the particulars of dues of income tax, sales tax, service tax, duty of customs and duty of excise duty, stamp duty as at March 31, 2018 which have not been deposited on account of a dispute, are as follows:
Name of the statute |
Nature of dues |
Amount (Rs. lakhs) |
Period to which the amount relates |
Forum where the dispute is pending |
Custom Act, 1962 |
Custom Duty |
12.50 |
2009-10 |
CESTAT, Mumbai |
Bombay Stamp Duty Act, 1958 |
Stamp Duty |
1.20 |
2013-14 |
High Court of Gujrat, Ahmedabad |
Central Excise Act, 1944 |
Excise Duty |
59.82 |
December 2010 to July 2011 |
CESTAT Bangalore (South Zonal Bench) |
Central Excise Act, 1944 |
Excise Duty |
32.21 |
August 2004 to December 2008 |
CESTAT Ahmedabad |
Central Excise Act, 1944 |
Excise Duty |
141.43 |
2007-08 to 2009-10 |
Gujarat High Court |
Central Excise Act, 1944 |
Excise Duty |
159.97 |
2008-09 to 2009-10 |
CESTAT Ahmedabad |
Central Excise Act, 1944 |
Excise Duty |
11.47 |
2004-05 |
CESTAT Ahmedabad |
Central Excise Act, 1944 |
Excise Duty |
24.07 |
2007-08 to 2009-10 |
CESTAT Ahmedabad |
Central Excise Act, 1944 |
Excise Duty |
28.25 |
2003-04 |
CESTAT Ahmedabad |
Service Tax Act, 1994 |
Service Tax |
70.27 |
December 2012 to February 2014 |
CESTAT Ahmedabad |
Central Excise Act, 1944 |
Excise Duty |
41.28 |
January 2008 to June 2009 |
CESTAT, Karnataka |
Central Excise Act, 1944 |
Excise Duty |
2.00 |
2009-10 |
CESTAT, Mumbai |
Central Excise Act, 1944 |
Excise Duty |
22.26 |
February 2011 to June-2012 |
CESTAT Bangalore (South Zonal Bench) |
Central Excise Act, 1944 |
Excise Duty |
0.78 |
2011-12 December 2015 |
Commissioner (A), Delhi |
Central Excise Act, 1944 |
Excise Duty |
65.91 |
February 2010 to March 2012 |
Commissioner (A), Delhi |
Service Tax Act, 1994 |
Service Tax |
3.13 |
2008-09 |
CESTAT , Mumbai |
Service Tax Act, 1994 |
Service Tax |
2.82 |
2008-09 |
Commissioner (Appeal), Nashik |
Service Tax Act, 1994 |
Service Tax |
6.17 |
2007-08 |
Commissioner (Appeals) Lucknow |
Service Tax Act, 1994 |
Service Tax |
19.70 |
2008-09 to 2011-12 |
Commissioner (A), Delhi |
VAT Act, Rajasthan |
Entry Tax |
267.95 |
2011-12 to 2014-15 |
High Court of Rajasthan, |
VAT Act, Uttar Pradesh |
Sales Tax |
17.50 |
1996-97 |
High Court of Allahabad |
VAT Act, Uttar Pradesh |
Sales Tax |
2.40 |
2004-05 |
High Court of Allahabad |
VAT Act, Uttar Pradesh |
Sales Tax |
1.42 |
1991-92 |
High Court of Allahabad |
VAT Act, Uttar Pradesh |
Sales Tax |
3.12 |
1995-96 |
High Court of Allahabad |
VAT Act, Rajasthan |
Sales Tax |
6.92 |
2012-13 |
Deputy Commissioner (A), Ajmer |
VAT Act, Andhra Pradesh |
Sales Tax |
1.09 |
2010-2011 |
Tribunal |
VAT Act, Rajasthan |
Sales Tax |
201.97 |
2015-16 |
Assistant Commissioner, Commercial Tax, Bhilwara |
Income Tax Act, 1961 |
Income Tax |
89.38 |
2016-17 |
CIT (Appeals), New Delhi |
Income Tax Act, 1961 |
Income Tax |
255.22 |
2015-16 |
CIT (Appeals), New Delhi |
Income Tax Act, 1961 |
Income Tax |
11.45 |
2011-12 |
CIT (Appeals), New Delhi |
Income Tax Act, 1961 |
Income Tax |
8.11 |
2004-05 |
CIT (Appeals), New Delhi |
Income Tax Act, 1961 |
Income Tax |
24.30 |
2008-09 |
ITAT, New Delhi |
Income Tax Act, 1961 |
Income Tax |
363.73 |
2011-12 |
ITAT, New Delhi |
Income Tax Act, 1961 |
Income Tax |
172.78 |
2010-11 |
ITAT, New Delhi |
Income Tax Act, 1961 |
Income Tax |
130.56 |
2008-09 |
ITAT, New Delhi |
Income Tax Act, 1961 |
Income Tax |
176.79 |
2007-08 |
ITAT, New Delhi |
Income Tax Act, 1961 |
Income Tax |
835.37 |
2000-01 |
High Court |
Income Tax Act, 1961 |
Income Tax |
26.91 |
1994-95 |
High Court |
viii. According to the records of the Company examined by us and the information and explanation given to us, the Company has not defaulted in repayment of loans or borrowings to any financial institution or bank or Government or dues to debenture holders as at the balance sheet date.
ix. The Company had not raised any money by way of initial public offer or further public offer (including debt instruments). In our opinion, and according to the information and explanations given to us, term loans have been applied for the purposes for which they were obtained.
x. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of material fraud by the Company or on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such case by the Management.
xi. The Company has provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
xii. As the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it, the provisions of Clause 3(xii) of the Order are not applicable to the Company.
xiii. The Company has entered into transactions with related parties in compliance with the provisions of Sections 177 and 188 of the Act. The details of such related party transactions have been disclosed in the financial statements as required under Accounting Standard (AS) 18, Related Party Disclosures specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014/ Indian Accounting Standard (Ind AS) 24, Related Party Disclosures specified under Section 133 of the Act.
xiv. The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of Clause 3(xiv) of the Order are not applicable to the Company.
xv. The Company has not entered into any non cash transactions with its directors or persons connected with them. Accordingly, the provisions of Clause 3(xv) of the Order are not applicable to the Company,
xvi. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the provisions of Clause 3(xvi) of the Order are not applicable to the Company,
For Price Waterhouse Chartered Accountants LLP
Firm Registration Number: 012754N/N500016
Chartered Accountants
Sougata Mukherjee
Partner
Membership Number: 057084
Date : May 25, 2018
Place : New Delhi
Mar 31, 2017
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of JINDAL SAW LIMITED (âthe Companyâ), which comprise the Balance Sheet as at March 31,2017, the Statement of Profit and Loss, the Statement of changes in equity, the Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements
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 Indian Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies [Accounts] Rules, 2015 as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorsâ 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 the disclosures in the financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the 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 March 31,2017 and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies [Auditorâs Report] Order, 2016 [âthe Orderâ] issued by the Central Government of India in terms of sub-section [11] of section 143 of the Act, we give in the Annexure âAâ a statement on the matters specified in the paragraph 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143 [3] of the Act, we report that:
[a] We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
[b] In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
[c] The Balance Sheet, the Statement of Profit and Loss, the Statement of Change in Equity and the Cash Flow Statement dealt with by this Report are in agreement with the books of account;
[d] In our opinion, the aforesaid financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies [Accounts] Rules, 2015 as amended;
[e] On the basis of the written representations received from the directors as on March 31,2017 taken on record by the Board of Directors, none of the directors is disqualified as on March 31,2017 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 Annexure âBâ.
[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 litigations on its financial position in its financial statements - Refer Note - 45 to the 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 derivatives contracts.
iii. There has been no delay in transferring amounts, required to be transferred to the Investor Education and Protection Fund by the Company, other than Rs.181.75 lakhs which is held in abeyance due to pending legal case.
iv. The Company has provided requisite disclosures in its financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016 and these are in accordance with the books of accounts maintained by the Company [refer note no. 43[e] of notes to accounts].
ANNEXURE âAâ TO INDEPENDENT AUDITORSâ REPORT
(Annexure referred to in our report of even date to the members of JINDAL SAW LIMITED on the accounts for the year ended March 31,2017).
1. [a] The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
[b] A major portion of the fixed assets has been physically verified by the Management in accordance with a phased programme of verification adopted by the Company. In our opinion, the frequency of verification is reasonable having regard to the size of the Company and the nature of its assets. To the best of our knowledge, no material discrepancies have been noticed on such verification.
[c] According to the information and the explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company except one land value of Rs.1,950 lakhs, the Conveyance Deed of which is yet to be executed.
2. As explained to us, the management during the year has physically verified inventories at reasonable interval and in respect of stores and spares, there is a perpetual inventory system and a substantial part of such stock has been verified during the year. However, stocks in the possession and custody of third parties and stock in transit as at March 31,2017 have been verified by the Management with reference to confirmation or statement of account or correspondence of third parties or subsequent receipt of goods. In our opinion, the frequency of verification is reasonable. The discrepancies noticed during physical verification of inventories as compared to book records were not material and the same have been properly dealt with in the books of account.
3. According to the information and the explanations given to us, the Company has given interest bearing unsecured loans to companies, covered in the register maintained under Section 189 of the Companies Act, 2013.
[a] In our opinion, the rate of Interest and other terms and conditions on which the loans had been granted to the bodies corporate listed in the register maintained under section 189 of the Act were not, prima facie, prejudicial to the interest of the Company.
[b] In respect of aforesaid loan, the borrowers have been regular in the repayment of principal and interest wherever stipulated.
[c] There are no overdue amounts as at the year-end in respect of both principal and interest.
4. In our opinion and According to the information and explanations given to us, the company has complied with the provisions of Section 185 and 186 of the Act, with respect to the loans and investments made.
5. According to the information and explanations given to us and the records examined by us, the Company has not accepted any deposits from the public during the year. Accordingly, the Paragraph 3[v] of the Order is not applicable to the Company.
6. We have broadly reviewed the books of account and records 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 in respect of the companyâs products and are of the opinion that, prima facie, the prescribed records have been made and maintained. We have, however, not made a detailed examination of records with a view to determine whether they are accurate or complete.
7. [a] According to the information and explanations given to us, the Company is generally regular in depositing with the appropriate authorities undisputed statutory dues including provident fund, employeesâ state insurance, income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, cess and other statutory dues with the appropriate authorities. There are no arrears as at March 31, 2017 for a period of more than six months from the date they become payable.
[b] The due in respect of income tax, sales tax, duty of customs and duty of excise that has not been deposited with the appropriate authorities on account of dispute and the forum where the dispute is pending is given below:
Name of the Statute |
Year to which the amount relates |
Forum where matter is pending |
Amount (Rs.lakhs) |
Custom Duty Customs Act, 1962 |
2009-10 |
CESTAT, Mumbai |
12.50 |
Excise Duty Central Excise Act, 1944 |
2003-04 |
CESTAT, New Delhi |
3.60 |
Excise Duty Central Excise Act, 1944 |
2004-05 to 2007-08 |
Commissioner [Appeal], Ahmedabad |
32.21 |
Excise Duty Central Excise Act, 1944 |
2008-09 |
Commissioner [Appeal], Ahmedabad |
26.70 |
Excise Duty Central Excise Act, 1944 |
2009-10 |
CESTAT, Mumbai |
2.01 |
Excise Duty Central Excise Act, 1944 |
2007-08 to 2009-10 |
Commissioner [Appeal], Rajkot |
24.07 |
Sales Tax Gujarat Sales Tax Act |
2002-03 |
Honâble High Court of Gujarat, Ahmedabad |
45.42 |
Income Tax Income Tax Act, 1961 |
AY 2004-05 |
CIT [Appeals], New Delhi |
8.11 |
8. In our opinion, on the basis of books and records examined by us and according to the information and explanations given to us, the company has not defaulted in repayment of dues to a financial institution, banks and debenture holders. The company does not have any dues to government.
9. The Company has not raised any money by way of initial public offer or further public offer or debt instruments. In our opinion, and according to the information and explanation given to us, the term loans have been applied for the purposes for which they were raised, other than temporary deployment pending allocation.
10. According to the information and explanations given to us and as represented by the Management and based on our examination of the books and records of the Company and in accordance with generally accepted auditing practices in India, we have been informed that no case of frauds has been committed on or by the Company or by its officers or employees during the year.
11. The Company has paid/ provided for managerial remuneration to managing director in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V of the Companies Act, 2013.
12. The company is not a Nidhi Company. Accordingly, the provisions of clause 3 [xii] of the Order are not applicable to the Company.
13. According to the information and explanations given to us, all transactions with the related parties are in compliance with section 177 and 188 of Act, and where applicable the details have been disclosed in the Financial Statements as required by the applicable accounting standards.
14 According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, provisions of clause 3 [xiv] of the Order are not applicable to the Company.
15 According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into any non-cash transactions with directors or persons connected with him as covered under Section 192 of the Companies Act, 2013. Accordingly, provisions of clause 3 [xv] of the Order are not applicable to the Company.
16 According to the information and explanations given to us, the company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, provisions of clause 3 [xvi] of the Order are not applicable to the Company.
For N.C. Aggarwal & Co.
Chartered Accountants
Firm Registration No. 003273N
G. K. Aggarwal
Partner
M. No. 086622
Date : May 29,2017
Place: New Delhi
Mar 31, 2016
INDEPENDENT AUDITORSâ REPORT
To The Members of JINDAL SAW LIMITED
Report on the Standalone Financial Statements (Revised)
We have audited the accompanying REVISED standalone financial statements of JINDAL SAW LIMITED [âthe Companyâ], which comprise the REVISED Balance Sheet [âBalance Sheetâ] as at 31st March, 2016, the REVISED Statement of Profit and Loss [âStatement of Profit and Lossâ], the REVISED Statement of changes in equity [âStatement of changes in equityâ], the REVISED Cash Flow Statement [âCash Flow Statementâ] for the year then ended and a summary of significant accounting policies and other explanatory information in which impact of the Scheme [as stated in Note no. 54] have been incorporated.
Managementâs Responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134[5] of the Companies Act, 2013 [âthe Actâ] with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies [Accounts] Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorsâ 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 the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2016 and its profit and its cash flows for the year ended on that date.
Other Matter
The standalone financial statements of the Company for the year ended 31st March, 2016 were earlier approved by the Board of Directors at their meeting held on 30th May, 2016, on which we had issued our report dated 30th May, 2016. These financial statements have been reopened and revised to give effect to the Scheme as explained in Note No. 54.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies [Auditor''s Report] Order, 2016 [âthe Orderâ] issued by the Central Government of India in terms of sub-section [11] of section 143 of the Act, we give in the Annexure âAâ a statement on the matters specified in the paragraph 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143 [3] of the Act, we report that:
[a] We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
[b] In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
[c] The Balance Sheet, the Statement of Profit and Loss, the Statement of Change in Equity and the Cash Flow Statement dealt with by this Report are in agreement with the books of account;
[d] In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies [Accounts] Rules, 2014;
[e] On the basis of the written representations received from the directors as on 31st March, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st 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 of the Company and the operating effectiveness of such controls, refer to Annexure âBâ.
[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 Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note - 48 to the 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 derivatives contracts
iii. There has been no delay in transferring amounts, required to be transferred to the Investor Education and Protection Fund by the Company, other than Rs. 155.09 lacs which is held in abeyance due to pending legal case.
ANNEXURE âAâ TO INDEPENDENT AUDITORSâ REPORT
[Annexure referred to in our report of even date to the members of JINDAL SAW LIMITED on the accounts for the year ended 31st March, 2016]
1. [a] The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
[b] A major portion of the fixed assets has been physically verified by the Management in accordance with a phased programmed of verification adopted by the Company. In our opinion, the frequency of verification is reasonable having regard to the size of the Company and the nature of its assets. To the best of our knowledge, no material discrepancies have been noticed on such verification.
[c] According to the information and the explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company except one land value of '' 1,950 lacs, the Conveyance Deed of which is yet to be executed.
2. As explained to us, the management during the year has physically verified inventories at reasonable interval and in respect of stores and spares, there is a perpetual inventory system and a substantial part of such stock has been verified during the year. However, stocks in the possession and custody of third parties and stock in transit as at 31st March, 2016 have been verified by the Management with reference to confirmation or statement of account or correspondence of third parties or subsequent receipt of goods. In our opinion, the frequency of verification is reasonable. The discrepancies noticed during physical verification of inventories as compared to book records were not material and the same have been properly dealt with in the books of account.
3. According to the information and the explanations given to us, the Company has given interest bearing unsecured loans to companies, covered in the register maintained under Section 189 of the Companies Act, 2013.
[a] In our opinion , the rate of Interest and other terms and conditions on which the loans had been granted to the bodies corporate listed in the register maintained under section 189 of the Act were not, prima facie, prejudicial to the interest of the Company.
[b] In respect of aforesaid loan, the borrowers have been regular in the repayment of principal and interest wherever stipulated.
[c] There are no overdue amounts as at the year-end in respect of both principal and interest.
4. In our opinion and According to the information and explanations given to us, the company has complied with the provisions of Section 185 and 186 of the Act, with respect to the loans and investments made.
5. According to the information and explanations given to us and the records examined by us, the Company has not accepted any deposits from the public during the year. Accordingly, the Paragraph 3[v] of the Order is not applicable to the Company.
6. We have broadly reviewed the books of account and records 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 in respect of the company''s products and are of the opinion that, prima facie, the prescribed records have been made and maintained. We have, however, not made a detailed examination of records with a view to determine whether they are accurate or complete.
7. [a] According to the information and explanations given to us, the Company is generally regular in depositing with the
appropriate authorities undisputed statutory dues including provident fund, employees'' state insurance, income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, cess and other statutory dues with the appropriate authorities. There are no arrears as at 31st March, 2016 for a period of more than six months from the date they become payable.
[b] The due in respect of income tax, sales tax, service tax, duty of customs, duty of excise and entry tax that has not been deposited with the appropriate authorities on account of dispute and the forum where the dispute is pending is given below:
Name of the Statute |
Year to which the amount relates |
Forum where matter is pending |
Amount (Rs. lacs) |
Custom Duty Customs Act, 1962 |
2009-10 |
CESTAT, Mumbai |
12.50 |
Excise Duty Central Excise Act, 1944 |
2004-05 to 2007-08 |
Commissioner [Appeal], Ahmadabad |
32.21 |
Excise Duty Central Excise Act, 1944 |
2005-06 |
Commissioner [Appeal], Rajkot |
58.97 |
Excise Duty Central Excise Act, 1944 |
2009-10 |
CESTAT, Mumbai |
2.01 |
Excise Duty Central Excise Act, 1944 |
2007-08 to 2009-10 |
Commissioner [Appeal], Rajkot |
24.07 |
Sales Tax Gujarat Sales Tax Act |
2002-03 |
Hon''ble High Court of Gujarat, Ahmadabad |
141.94 |
Entry Tax Rajasthan Entry Tax Act |
2011-12 & 2015-16 |
Hon''ble Supreme Court, New Delhi |
215.20 |
Service Tax Finance Act, 1994 |
2012-13 to 2013-14 |
CESTAT, Ahmadabad |
70.27 |
Income Tax Income Tax Act, 1961 |
AY 2006-07 to AY 2009-10 and AY 2012-13 |
CIT [Appeals], New Delhi |
497.00 |
8. In our opinion, on the basis of books and records examined by us and according to the information and explanations given to us, the company has not defaulted in repayment of dues to banks and debenture holders. The company does not have any dues to financial institutions or government.
9. The Company has not raised any money by way of initial public offer or further public offer or debt instruments. In our opinion, and according to the information and explanation given to us, the term loans have been applied for the purposes for which they were raised, other than temporary deployment pending allocation.
10. According to the information and explanations given to us and as represented by the Management and based on our examination of the books and records of the Company and in accordance with generally accepted auditing practices in India, we have been informed that no case of frauds has been committed on or by the Company or by its officers or employees during the year.
11. The Company has paid/ provided for managerial remuneration to managing director in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V of the Companies Act, 2013.
12. The company is not a Nidhi Company. Accordingly, the provisions of clause 3 [xii] of the Order are not applicable to the Company.
13. According to the information and explanations given to us, all transactions with the related parties are in compliance with section 177 and 188 of Act, and where applicable the details have been disclosed in the Financial Statements as required by the applicable accounting standards.
14 According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, provisions of clause 3 [xiv] of the Order are not applicable to the Company.
15 According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into any non-cash transactions with directors or persons connected with him as covered under Section 192 of the Companies Act, 2013. Accordingly, provisions of clause 3 [xv] of the Order are not applicable to the Company.
16 According to the information and explanations given to us, the company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, provisions of clause 3 [xvi] of the Order are not applicable to the Company.
ANNEXURE âBâ TO INDEPENDENT AUDITORSâ REPORT
Annexure referred to in our report of even date to the members of JINDAL SAW LIMITED on the accounts for the year ended 31st March, 2016
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Act")
We have audited the internal financial controls over financial reporting of JINDAL SAW LIMITED [âthe Companyâ] as of 31st March, 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company and the components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India [ICAI]. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to 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.
Auditorsâ 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 âGuidance Noteâ] and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143[10] of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the ICAI. 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, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March, 2016, based on the internal control over financial reporting criteria established by the Company and the components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the ICAI.
For N.C. Aggarwal & Co.
Chartered Accountants
Firm Registration No. 003273N
G. K. Aggarwal
Partner
M. No. 086622
Date : August 12, 2016
Place : New Delhi
Mar 31, 2015
We have audited the accompanying standalone financial statements of
JINDAL SAW LIMITED ("the Company"), which comprise the Balance Sheet as
at 31st March, 2015, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
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 Companies Act, 2013 ["the Act"] with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts] Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10] of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company''s preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial control system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company''s Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, and its profit and its cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report] Order, 2015 ("the
Order"] issued by the Central Government of India in terms of
sub-section (11] of section 143 of the Act, we give in the Annexure a
statement on the matters specified in the paragraph 3 and 4 of the
Order.
2. As required by Section 143 (3] of the Act, we report that:
(a] We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books;
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account;
(d) In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(e) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) With respect to the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note-29 to the
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 - Refer Note-44
to the 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, other than Rs. 155.09 lacs which is held in abeyance due to
pending legal case.
ANNEXURE TO INDEPENDENT AUDITORSÂ REPORT
(Referred to in paragraph (1) under the heading of "Report on Other
Legal and Regulatory Requirements" of our report of even date for the
year ended 31st March, 2015 )
1. [a] The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) A major portion of the fixed assets has been physically verified by
the Management in accordance with a phased programme of verification
adopted by the Company. In our opinion, the frequency of verification
is reasonable having regard to the size of the Company and the nature
of its assets. To the best of our knowledge, no material discrepancies
have been noticed on such verification.
2. (a) As explained to us, the management during the year has physically
verified inventories at reasonable intervals and in respect of stores
and spares, there is a perpetual inventory system and a substantial part
of such stock has been verified during the year. However, stocks in the
possession and custody of third parties and stock in transit as at 31st
March, 2015 have been verified by the Management with reference to
confirmation or statement of account or correspondence of third parties
or subsequent receipt of goods. In our opinion, the frequency of
verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the Management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventories. The
discrepancies noticed during physical verification of inventories as
compared to book records were not material and the same have been
properly dealt with in the books of account.
3. The Company has given interest bearing unsecured demand loans to
companies, covered in the register maintained under Section 189 of the
Companies Act, 2013.
(a) In respect of aforesaid loan, the amount, principal as well as
interest accrued thereon is repayable on demand and hence, the question
of irregularity on payment of principal and interest does not arise.
(b) The aforesaid loan is repayable on demand and therefore, the
question of overdue amount does not arise.
4. In our opinion and according to information and explanations given
to us, having regard to the explanation that some of the items
purchased are of special nature and suitable alternative sources do not
exist for obtaining comparable quotations, there are adequate internal
control system commensurate with the size of the company and the nature
of its business with regard to purchases of inventories, fixed assets
and with regard to the sale of goods and services. During the course of
our audit, we have not observed any continuing failure to correct major
weaknesses in internal controls.
5. In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Section 73
to 76 of the Companies Act, 2013 and Companies (Acceptance of Deposits)
Rules, 2014 with regard to the deposits accepted from the public.
6. We have broadly reviewed the books of account and records
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 in respect of the company''s products and are of
the opinion that, prima facie, the prescribed records have been made
and maintained. We have, however, not made a detailed examination of
records with a view to determine whether they are accurate or complete.
7. (a) According to the information and explanations given to us, the
Company is generally regular in depositing with
the appropriate authorities undisputed statutory dues including
Provident Fund, Employees'' State Insurance, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added
Tax, Cess and any other statutory dues. There are no arrears as at 31st
March, 2015 for a period of more than six months from the date they
become payable.
(b) According to the information and explanation given to us, the dues
in respect of sales tax, duty of excise, Service tax, Entry tax and
duty of customs that have not been deposited with the appropriate
authorities on account of dispute and the forum where the disputes are
pending are given below:
Nature of Dues and Year to which the Forum where matter is
Name of the Statute amount relates pending
Custom Duty 2009-10 CESTAT, Mumbai
Customs Act,1962
Excise Duty 2004-05 to Commissioner (Appeal),
Central Excise Act, 1944 2007-08 Ahmedabad
Excise Duty 2005-06, Commissioner (Appeal),
Central Excise Act, 1944 2007-08 to Rajkot
2009-10
Excise Duty 2009-10 CESTAT, Mumbai
Central Excise Act, 1944
Sales Tax 2002-03 Hon''ble High Court of
Gujarat Sales Tax Act Gujarat, Ahmedabad
Entry Tax 2011-12 to Hon''ble Supreme Court,
Rajasthan Entry Tax Act 2014-15 New Delhi
Service Tax 2012-13 & CESTAT, Ahmedabad
Finance Act, 1994 2013-14
Nature of Dues and Amount
Name of the Statute ( Rs. in lacs)
Custom Duty 12.50
Customs Act,1962
Excise Duty 32.21
Central Excise Act, 1944
Excise Duty 83.04
Central Excise Act, 1944
Excise Duty 2.01
Central Excise Act, 1944
Sales Tax 141.94
Gujarat Sales Tax Act
Entry Tax 272.71
Rajasthan Entry Tax Act
Service Tax 70.27
Finance Act, 1994
(c) According to the information and explanations given to us and on
the basis of our examination of the records of the Company, the amount
required to be transferred to Investor Education and Protection Fund in
accordance with the relevant provisions of the Companies Act, 1956 (1
of 1956) and rules made there under has been transferred to such fund
within time, other than Rs. 155.09 lacs which is held in abeyance due
to pending legal case.
8. The Company has no accumulated losses at the end of the financial
year. The Company has not incurred any cash losses during the financial
year covered by our audit and in the immediately preceding financial
year.
9. According to the information and explanations given to us, the
Company has not defaulted in repayment of dues to the banks and
debenture holders. The company has not taken any other loan from
Financial Institution.
10. The company has given guarantees for loans taken by others from
banks and financial institutions. According to the information and
explanations given to us, we are of the opinion that the terms and
condition thereof are not prima facie prejudicial to the interest of
the company.
11. In our opinion, and according to information and explanations
given to us, the term loans have been applied for the purpose for which
they were obtained, other than temporary deployment pending
application.
12. During the course of our examination of the books and records of
the Company, and according to the information and explanations given to
us 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 N.C. Aggarwal & Co.
Chartered Accountants
Firm Registration No. 003273N
N. C. Aggarwal
Partner
Place: New Delhi M. No. 005951
Dated: 7th May, 2015
Mar 31, 2014
We have audited the accompanying financial statements of JINDAL SAW
LIMITED (''the Company'') which comprise the Balance Sheet as at March
31, 2014, and the Statement of Profit and Loss and Cash Flow Statement
for the year then ended, and a summary of significant accounting
policies and other explanatory information.
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
accounting principles generally accepted in India, including the
Accounting Standards notified under the Companies Act,1956 read with
General Circular 15/2013 dated 13th September 2013, issued by the
Ministry of Corporate Affairs, in respect of Section 133 of the
Companies Act, 2013. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, we consider
internal control relevant to the Company''s preparation and fair
presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b) In the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account;
d) In our opinion, the Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement comply with the Accounting Standards
notified under the Companies Act, 1956 read with General Circular
15/2013 dated 13th September 2013, issued by 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,
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 INDEPENDENT AUDITORS'' REPORT (REFERRED TO IN PARAGRAPH (1)
UNDER THE HEADING OF "REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS" OF OUR REPORT OF EVEN DATE FOR THE YEAR ENDED 31st MARCH,
2014)
1. a) The Company has maintained proper records
showing full particulars including quantitative details and situation
of fixed assets.
b) A major portion of the fixed assets has been physically verified by
the Management in accordance with a phased programme of verification
adopted by the Company. In our opinion, the frequency of verification
is reasonable having regard to the size of the Company and the nature
of its assets. To the best of our knowledge, no material discrepancies
have been noticed on such verification.
c) The Company has not disposed off substantial part of fixed assets
during the year and the going concern status of the Company is not
affected.
2. a) As explained to us, the management during the year
has physically verified inventories at reasonable intervals and in
respect of stores and spares, there is a perpetual inventory system and
a substantial part of such stocks has been verified during the year.
However, stocks in the possession and custody of third parties and
stock in transit as at 31st March, 2014 have been verified by the
Management with reference to confirmation or statement of account or
correspondence of third parties or subsequent receipt of goods. In our
opinion, the frequency of verification is reasonable
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the Management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventories. The
discrepancies noticed during physical verification of inventories as
compared to book records were not material and the same have been
properly dealt with in the books of account.
3. a) (i) The Company has given interest bearing demand
loans to three subsidiary companies and two other companies, covered in
the register maintained under section 301 of the Companies Act, 1956.
The maximum amount involved during the year and year end balance in
respect of the said three subsidiaries and two other Companies is Rs.
7815.26 lacs and Rs. 7219.69 lacs respectively. The Company has not given
any other loan to any Company or party covered under section 301 of the
Companies Act, 1956. (ii) In our opinion and according to information
and explanations given to us, the interest bearing demand loans with
relevant terms and conditions
on which loan has been given are, prima facie, not prejudicial to the
interest of the Company.
(iii) In respect of aforesaid loan, the amount, principal as well as
interest accrued thereon for one subsidiary is long term in nature (as
the holding company has given the undertakings to the banks that they
will not withdraw the loan and interest accrued thereon until the
repayment of dues of subsidiary). The loans for other two subsidiaries,
the amount are repayable on demand and hence, the question of
irregularity on payment for all the three subsidiaries does not arise.
(iv) The aforesaid loan of subsidiaries is repayable on demand and
therefore, the question of overdue amount does not arise. b) As
informed to us, the Company has not taken any loans, secured or
unsecured from Companies, firms or other parties listed in the register
maintained under section 301 of the Companies Act, 1956.
Thus Paragraph 4 (iii) (f) & (g) of the order, is not applicable.
4. In our opinion and according to information and explanations given
to us, having regard to the explanation that some of the items
purchased are of special nature and suitable alternative sources do not
exist for obtaining comparable quotations, there are adequate internal
control system commensurate with the size of the company and the nature
of its business with regard to purchases of inventories, fixed assets
and with regard to the sale of goods and services. During the course of
our audit, we have not observed any continuing failure to correct major
weaknesses in internal controls.
5. a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that
the particulars of contracts or arrangements that need to be entered
into the register maintained under section 301 of the Companies Act,
1956 have been so entered. b) In our opinion and according to the
information and explanations given to us, the transactions with parties
with whom transactions exceeding the value of Rs. five lacs have been
entered into during the financial year are at prices, which are
reasonable, having regard to the prevailing market prices at the
relevant time.
6. In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
58A and 58AA of the Companies Act, 1956 and the Companies (Acceptance
of Deposits) Rules, 1975 with regard to the deposits accepted from the
public.
7. In our opinion, the Company has an adequate internal audit system
commensurate with the size and the nature of its business.
8. We have broadly reviewed the books of account and records
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 in respect of the company''s products and are
of the opinion that, prime facie, the prescribed records have been made
and maintained. We have, however, not made a detailed examination of
records with a view to determine whether they are accurate or complete.
9. a) According to the information and explanations given to us, the
Company is generally regular in depositing with the appropriate
authorities undisputed statutory dues including Provident Fund,
Employees State Insurance, Sales Tax, Income Tax, Custom duty, Investor
Education & Protection fund, Excise Duty, Cess, Service Tax and
Royalty. There are no arrears as at 31st March, 2014 for a period of
more than six months from the date they become payable. b) According
to the information and explanation given to us, the dues in respect of
sales tax, excise, Service tax, entry tax, income tax and custom duty
that have not been deposited with the appropriate authorities on
account of dispute and the forum where the disputes are pending are
given below:
Nature of the Dues and Year to Forum where Amount
Name of the Statute which the matter is ( Rs. in lacs)
amount pending
relates
Custom Duty
Customs Act,1962 2009-10 CESTAT , Mumbai 12.50
Excise Duty
Central Excise Act,1944 2004-05 to Commissioner 32.21
2007-08 (Appeal),
Ahmedabad
Excise Duty
Central Excise Act,1944 2011-12 Additional 22.26
Commissioner, Belgaum
Excise Duty
Central Excise Act,1944 2007- 8 CESTAT ,
New Delhi 6.62
Excise Duty
Central Excise Act,1944 2007-08 & Commissioner 1.81
2008-09 (Appeal)
Lucknow
Excise Duty
Central Excise Act,1944 2005-06 Commissioner 58.97
(Appeal),
Rajkot
Excise Duty
Central Excise Act,1944 2009-10 CESTAT,
Mumbai 2.01
Excise Duty
Central Excise Act,1944 2007-08 to Commissioner 25.07
2009-10 (Appeal)
Rajkot
Income Tax
Income Tax Act 1961 2009-10 Commissioner 172.78
(Appeal)
New Delhi
Sales Tax
Gujarat Sales Tax Act 2002-03 Hon''ble High
Court 141.94
of Gujarat, Ahmedabad
Entry Tax
Rajasthan Entry Tax Act 2011-12 & Hon''ble High 188.26
2012-13 Court,
Rajasthan
10. The Company has no accumulated losses at the end of the financial
year. The Company has not incurred any cash losses during the financial
year covered by our audit and in the immediately preceding financial
year.
11. According to the information and explanations given to us, the
Company has not defaulted in repayment of dues to the banks and
debenture holders.
12. According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities. Therefore,
the provisions of clause 4(xii) of the Companies (Auditor''s Report)
Order, 2003 are not applicable to the Company.
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 are not applicable to the
Company.
14. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Therefore, the
provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order,
2003 are not applicable to the Company.
15. In our opinion, and according to the information and explanations
given to us, the terms and conditions on which the Company has given
guarantee for loans taken by others from banks, or financial
institutions are not prima facie, prejudicial to the interest of the
company.
16. In our opinion, and according to information and explanations
given to us, the term loans have been applied for the purpose for which
they were obtained, other than temporary deployment pending
application.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the company, in our
opinion, there are no funds raised on short-term basis, which 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 maintained under section 301 of
the Companies Act, 1956.
19. On the basis of records made available to us, the Company has
created necessary security and charge in respect of debentures
outstanding at the end of the year.
20. The Company has not raised any money through a public issue during
the year.
21. During the course of our examination of the books and records of
the Company, and according to the information and explanations given to
us 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 & on behalf of
N.C. Aggarwal & Co.
Chartered Accountants
Firm Registration No. 003273N
N.C. Aggarwal
Place: New Delhi Partner
Dated: 17th May, 2014 M.No. 005951
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of JINDAL SAW
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.
Managements Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India including
Accounting Standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error. Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment
of the risks of material misstatement of the financial statements,
whether due to fraud or error. In making those risk assessments, we
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
b) In the case of the Profit and Loss Account, of the Profit for the
year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003
("the Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d) In our opinion, the Balance Sheet, the Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
referred to in subsection (3C) of section 211 of the Companies Act,
1956;
e) On the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO AUDITORS'' REPORT (REFERRED TO IN PARAGRAPH (A) IN OUR
REPORT OF EVEN DATE FOR THE YEAR ENDED 3IST MARCH , 2013)
1. a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) A major portion of the fixed assets has been physically verified by
the Management in accordance with a phased programme of verification
adopted by the Company. In our opinion, the frequency of verification
is reasonable having regard to the size of the Company and the nature
of its assets. To the best of our knowledge, no material discrepancies
have been noticed on such verification.
c) The Company has not disposed off substantial part of fixed assets
during the year and the going concern status of the Company is not
affected.
2. a) As explained to us, the management during the year has
physically verified inventories at reasonable intervals and in respect
of stores and spares, there is a perpetual inventory system and a
substantial part of such stocks has been verified during the year.
However, stocks in the possession and custody of third parties and
stock in transit as at 3Ist March, 20I3 have been verified by the
Management with reference to confirmation or statement of account or
correspondence of third parties or subsequent receipt of goods. In our
opinion, the frequency of verification is reasonable
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the Management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventories. The
discrepancies noticed during physical verification of inventories as
compared to book records were not material and the same have been
properly dealt with in the books of account.
3. a) (i) The Company has given interest bearing demand loan to three
subsidiary companies and one other company, covered in the register
maintained under section 30I of the Companies Act, I 956. The maximum
amount involved during the year and year end balance in respect of the
said three subsidiaries and one other party is Rs. 8658.33 Lacs and Rs.
7308.62 Lacs respectively. The Company has not given any other loan to
any Company or party covered under section 30I of the Companies Act,
I956.
(ii) In our opinion and according to information and explanations given
to us, the interest bearing demand loans with relevant terms and
conditions on which loan has been given are, prima facie, not
prejudicial to the interest of the Company.
(iii) In respect of aforesaid loan, the amount, principal as well as
interest accrued thereon for one subsidiary is long term in nature (as
the holding company has given the undertakings to the banks that they
will not withdraw the loan and interest accrued thereon until the
repayment of dues of subsidiary. The loans for other three companies,
the amount are repayable on demand and hence, the question of
irregularity on payment does not arise.
(iv) The aforesaid loan of subsidiaries is repayable on demand and
therefore, the question of overdue amount does not arise.
b) As informed to us, the Company has not taken any loans, secured or
unsecured from Companies, firms or other parties listed in the register
maintained under section 301 of the Companies Act, 1956. Thus
Paragraph 4 (iii) (f) & (g) of the order, is not applicable.
4. In our opinion and according to information and explanations given
to us, having regard to the explanation that some of the items
purchased are of special nature and suitable alternative sources do not
exist for obtaining comparable quotations, there are adequate internal
control system commensurate with the size of the company and the nature
of its business with regard to purchases of inventories, fixed assets
and with regard to the sale of goods and services. During the course of
our audit, we have not observed any continuing failure to correct major
weaknesses in internal controls
5. a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that
the particulars of contracts or arrangements that need to be entered
into the register maintained under section 30I of the Companies Act,
I956 have been so entered. b) In our opinion and according to the
information and explanations given to us, the transactions with parties
with whom transactions exceeding the value of Rs. five lacs have been
entered into during the financial year are at prices, which are
reasonable, having regard to the prevailing market prices at the
relevant time.
6. In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
58A and 58AA of the Companies Act, I956 and the Companies (Acceptance
of Deposits) Rules, I975 with regard to the deposits accepted from the
public.
7. In our opinion, the Company has an adequate internal audit system
commensurate with the size and the nature of its business.
8. We have broadly reviewed the books of accounts 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, I956 in respect of the company''s products and are of the opinion
that, prime facie, the prescribed records have been made and
maintained.
We have, however, not made a detailed examination of records with a
view to determine whether they are accurate or complete.
9. a) According to the information and explanations given to us, the
Company is generally regular in depositing with the appropriate
authorities undisputed statutory dues including Provident Fund,
Employees State Insurance, Sales Tax, Income Tax, Custom duty, Investor
Education & Protection fund, Excise Duty, Cess, Service Tax and
Royalty. There are no arrears as at 31st March, 2013 for a period of
more than six months from the date they become payable.
b) According to the information and explanation given to us, the dues
in respect of sales tax, excise, Service tax, entry tax, income tax and
custom duty that have not been deposited with the appropriate
authorities on account of dispute and the forum where the disputes are
pending are given below:
Name of the Dues and Year to Forum where Amount
Name of the Statute which the matter is (Rs. in
lacs)
amount pending
relates
Custom Duty
Customs Act,1962 2009-10 CESTAT , Mumbai 12.50
Excise Duty
Central Excise
Act,1944 2004-05 to Commissioner 32.21
2007-08 (Appeal) Ahmedabad
Excise Duty
Central Excise
Act,1944 2007-08 & CESTAT , New Delhi 2.19
2008-09
Excise Duty
Central Excise
Act,1944 2007-08 CESTAT , New Delhi 6.23
Excise Duty
Central Excise
Act,1944 2005-06 Commissioner 58.97
(Appeal) Rajkot
Excise Duty
Central Excise
Act,1944 2009-10 CESTAT , Mumbai 4.01
Sales Tax
Gujrat Sales Tax Act 2002-03 Hon''ble High Court 141.94
Ahmedabad
Entry Tax
Rajasthan Entry
Tax Act 2011-12 & Hon''ble Supreme 113.52
2012-13 Court, New Delhi
Service Tax
Chapter V of 2004- 05 & Commissioner 57.81
Finance Act 1994 2007-08 (Appeal) Ahmedabad
Service Tax
Chapter V of 2008-09 CESTAT , Mumbai 3.13
Finance Act 1994 Income Tax
Income Tax Act,1961 2007-08 & Commissioner 987.06
2008-09 (Appeals), New Delhi
Land Tax
Rajasthan Land Tax
Act 2006 2010-11 & Deputy Inspector 40.61
2012-13 General of Registration
and Stamps,
Bhilwara (Rajasthan)
10. The Company has no accumulated losses at the end of the financial
year. The Company has not incurred any cash losses during the financial
year covered by our audit and in the immediately preceding financial
year.
11. According to the information and explanation given to us, the
Company has not defaulted in repayment of dues to the banks and
debenture holders.
12. According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities. Therefore,
the provision of clause 4(xii) of the Companies (Auditor''s Report)
Order, 2003 are not applicable to the Company.
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 are not applicable to
the Company.
14. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor''s Report)
Order, 2003 are not applicable to the Company.
15. In our opinion, and according to the information and explanations
given to us, the terms and conditions on which the Company has given
guarantee for loans taken by others from banks, or financial
institutions are not prima facie, prejudicial to the interest of the
company.
16. In our opinion, and according to information and explanation given
to us, the term loans have been applied for the purpose for which they
were raised, other than temporary deployment pending application.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the company, in our
opinion, there are no funds raised on short-term basis, which 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 maintained under section 30I of
the Companies Act, I956
19. On the basis of records made available to us, the Company has
created necessary security and charge in respect of debentures
outstanding at the end of the year.
20. The Company has not raised any money through a public issue during
the year.
21. During the course of our examination of the books and records of
the Company, and according to the information and explanations given to
us 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 & on behalf of
N.C. AGGARWAL & CO.
Chartered Accountants
Firm Registration No: 003273N
N.C. Aggarwal
Place: New Delhi Partner
Dated: 27th May,20I3 M.No. 005951
Mar 31, 2012
We have audited the attached Balance Sheet of JINDAL SAW LIMITED as at
31 st March, 2012, the Profit and Loss Account and the Cash Flow
Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis
for our opinion.
A) As required by the Companies (Auditor's Report) Order 2003 as
amended by the Companies (Auditor's Report) (Amendment) Order, 2004,
issued by the Centra Government of India in terms of sub-section (4A)
of Section 227 of the Companies Act, 1956, we enclose in the Annexure
hereto, a statement on the matters specified n paragraphs 4 and 5 of
the said Order, so far as applicable to the Company.
B) Further to our comments in Annexure referred to in paragraph (A)
above, we report that:
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessar/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, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account of
the Company.
(d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of section 21 I of the
Companies Act, 1956.
(e) Based on written representations received from the directors and
taken on record by the Board of Directors, we report that none of the
directors of the company is disqualified as on 31 st March, 2012 from
being appointed as director of the company as referred to in clause (g)
of sub section (I) of section 274 of the Companies Act 1956.
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with
notes thereon give the information required by the Act in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India.
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012 and
(ii) In the case of the Profit and Loss Account, of the Profit for the
year ended on that date, and
(iii) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO AUDITORS' REPORT (REFERREDTO IN PARAGRAPH (A) IN OUR REPORT
OF EVEN DATE FORTHEYEAR ENDED 31st March;20l2)
1. a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) A major portion of the fixed assets has been physically verified by
the Management in accordance with a phased programme of verification
adopted by the Company. In our opinion, the frequency of verification
is reasonable having regard to the size of the Company and the nature
of its assets. To the best of our knowledge, no material discrepances
have been noticed on such verification.
c) The Company has not disposed off substantial part of fixed assets
during the year and the going concern status of the Company is not
affected
2. a) As explained to us, the management during the year has
physically verified inventories at reasonable intervals and in respect
of stores and spares, there is a perpetual inventor/ system and a
substantial part of such stocks has been verified during the year.
However, stocks in the possession and custody of third parties and
stock n transit as at 31 st March, 2012 have been verified by the
Management with reference to confirmation or statement of account or
correspondence of third parties or subsequent receipt of goods. In our
opinion, the frequency of verification is reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the Management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventories. The
discrepances noticed during physical verification of inventories as
compared to book records were not material and the same have been
properly dealt with in the books of account.
3. a) (i) The Company has given interest bearing demand loan to three
subsidiary companies covered in the register maintained under section
301 of the Companies Act, 1956. The maximum amount involved during the
year and year end balance in respect of said subsidiaries ,s Rs. 8152.71
Lacs. The Company has not given any other loan to any Company or party
covered under section 301 ofthe Companies Act, 1956.
(ii) In our opinion and according to information and explanations given
to us, the interest bearing demand loans with relevant terms and
conditions on which loan has been given are, prima face, not
prejudicial to the interest of the Company.
(iii) In respect of aforesaid loan, the amount, pnncpa as well as
interest accrued thereon for one subsidiary is long term in nature (as
the holding company has given the undertakings to the banks that they
will not withdraw the loan and interest accrued thereon until the
repayment of dues of subsidiary). The loans for other two subsidiary,
the amount are repayable on demand and hence the question of
irregularity on payment does not arise
(iv) The aforesaid loan of two subsidiary is repayable on demand and
therefore, the question of overdue amount does not arise.
b) As informed to us, the Company has not taken any loans, secured or
unsecured from Companies, firms or other parties listed in the register
maintained under section 301 of the Companies Act, 1956. Thus Paragraph
4 (,Ã) (f) & (g) ofthe order, is not applicable.
4. In our opinion and according to information and explanations given
to us, having regard to the explanation that some ofthe items purchased
are of special nature and suitable alternative sources do not exist for
obtaining comparable quotations, there are adequate internal control
system commensurate with the size ofthe Company and the nature of its
business with regard to purchases of inventories, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal controls.
5. a) To the best of our knowledge and belief and according to the
information and explanations given to us, wl are ofthe opinion that the
particulars of contracts or arrangements that need to be entered into
the register maintained under section 301 ofthe Companies Act, 1956
have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions with parties with whom transactions
exceeding the value of Rupees five lacs have been entered into during
the financial year are at prices, which are reasonable having regard to
the prevailing market prices at the relevant time.
6. In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
58A and 58AA ofthe Companies Act 1956 and the Companies (Acceptance of
Deposits) Rules, 1975 with regard to the deposits accepted from the
public
7. In our opinion, the Company has an adequate interna audit system
commensurate with the size and the nature of its business.
8. We have broadly reviewed the accounts and records maintained by the
Company in respect of manufacture of steel and steel products to which
the said rules are made applicable pursuant to the order made by the
Central Government for maintenance of cost records prescribed under
Section 209(1) (d) ofthe Companies Act, 1956 and are ofthe opinion that
prima face, the prescribed records have been made and maintained. We
have not, however, made a detailed examination of such records with a
view to determine whetherthese are accurate and complete.
9. a) According to the information and explanations given to us, the
Company is generally regular in depositing with the appropriate
authorities undisputed statutory dues including Provident Fund,
Employees State Insurance, Sales Tax, Income Tax, Custom duty, Investor
Education & Protection fund, Excise Duty Cess, Service Tax and Royalty.
There are no arrears as at 31 st March, 2012 for a period of more than
six months from the date they become payable.
b) According to the information and explanation given to us, the dues
in respect of sales tax, excise, Service tax, entry tax income tax and
custom duty that have not been deposited with the appropriate
authorities on account of dispute and the forum where the disputes are
pending are given below:
Name of the Statute Year to Forum where Amount
which the matter is (Rs. in lacs)
amount pending
relates
Custom Duty
Under The Customs
Act, 1962 2009-10 CESTAT, Mumbai 12.50
Excise Duty
Under The Central
Excise 2004-05 to Commissioner
(Appeal) 32.2
Act, 1944 2007-08 Ahmedabad
Excise Duty
Under The Central Excise 2005-06 Commissioner
(Appeal) 58.97
Act, 1944 Rajkot
Excise Duty
Under The Central
Excise 2007-08 CESTAT, New Delhi 9.23
Act, 1944
Excise Duty
Under The Central
Excise 2009-10 CESTAT, Mumbai, 4.99
Act, 1944
Excise Duty
Under The Central
Excise 2007-08 & CESTAT, New Delhi 2.19
Act, 1944 2008-09
Sales Tax
Under Gujarat
Sales Tax Act. 2002-03 Hon'ble High
Court of 141.94
Gujarat, Ahmedabad
Sales Tax 2005-06 Sales Tax Tribunal, 10.52
Under Central
Sales Tax Act Ahmedabad
Entry Tax 2011-12 Hon'ble Supreme 27.03
Rajasthan Entry Tax Act Court, New Delhi
Service Tax
Under Chapter V of the 2004-05 to Commissioner(Appeal), 57.8
Finance Act, 1994 2007-08 Ahmedabad
Service Tax
Under Chapter V of the 2005-06 & Commissioner(Appeal), 1.95
Finance Act, 1994 2006-07 Lucknow
Service Tax
Under Chapter V of the 2008-09 CESTAT, Mumbai 3.13
Finance Act, 1994
10. The Company has no accumulated losses at the end of the financial
year. The Company has not incurred any cash losses during the financial
year covered by our audit and n the immediately preceding financial
year.
11. According to the information and explanation given to us, the
Company has not defaulted in repayment of dues to the banks and
debenture holders.
12. According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities. Therefore,
the provision of clause 4(xÃ) of the Companies (Auditor's Report)
Order, 2003 are not applicable to the Company.
13. In our opinion, the Company is not a chit fund or a nidh mutual
benefit fund/socety. Therefore, the provisions of clause 4(x,Ã) of the
Companies (Auditor's Report) Order 2003 are not applicable to the
Company.
14. In our opinion, the Company is not dealing in or trading in shares
securities, debentures and other investments Accordingly, the
provisions of clause 4(x,v) of the Companies (Auditor's Report) Order,
2003 are not applicable to the Company
15. In our opinion, and according to the information and explanations
given to us, the terms and conditions on which the Company has given
guarantee for loans taken by others from banks, or financial
institutions are not prima face, prejudicial to the interest of the
company.
16. In our opinion, and according to information and explanation given
to us, the term loans have been applied for the purpose for which they
were raised, other than temporary deployment pending application.
17. According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the company, in our
opinion, there are no funds raised on short-term basis, which 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 maintained under section 301 of
the Companies Act 1956.
19. The Company has not issued any debentures and hence the company
has not created any security or charge in respect thereof.
20. The Company has not rased any money through a public issue during
the year.
21. During the course of our examination of the books and records of
the Company, and according to the information and explanations gF/en to
us 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 N.C.AGGARWAL & CO.
Chartered Accountants
Firm Registration No. 003273N
N.C Aggarwal
Place : New Delhi PARTNER
Dated : 30th May, 2012 M.No. 005951
Mar 31, 2010
We have audited the attached Balance Sheet of JINDAL SAW LIMITED as at
31 st March, 2010, the Profit and Loss Account and the Cash Flow
Statement for the period ended on that date annexed thereto. These
financial statements are the responsibility of the Companys
management. Our responsibility ,is to express an opinion on these
financial statements based on our audit
We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis
for our opinion.
A) As required by the Companies (Auditors Report) Order 2003 as
amended by the Companies (Auditors Report) (Amendment) Order, 2004,
issued by the Centra Government of India in terms of sub-section (4A)
of Section 227 of the Companies Act, 1956, we enclose in the Annexure
hereto, a statement on the matters specified
in paragraphs 4 and 5 of the said Order, so far as applicable to the
Company.
B) Further to our comments in Annexure referred to in paragraph (A)
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 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, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account of
the Company.
(d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of section 211 of the Companies
Act, 1956.
(e) Based on written representations received from the directors and
taken on record by the Board of Directors, we report that none of the
directors of the company is disqualified as on 3 I st March, 2010 from
being appointed as director of the company as referred to in clause (g)
of sub section (I) of section 274 of the Companies Act 1956.
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with
notes thereon give the information required by the Act in the manner so
required and give a true and far 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 3 I st March, 2010 and
ii) In the case of the Profit and Loss Account, of the Profit for the
period ended on that date, and
iii) In the caseof the Cash Flow Statement,of the cash flows for the
period ended on that date.
ANNEXURE TO AUDITORS REPORT
(REFERRED TO IN PARAGRAPH (A) IN OUR REPORT OF EVEN DATE FOR THE PERIOD
ENDED 31st March;20IO)
1. a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) A major portion of the fixed assets, has been physically verified by
the Management in accordance with a phased programme of verification
adopted by the Company. In our opinion, the frequency of verification s
reasonable having regard to the size of the Company and the nature of
its assets. To the best of our knowledge, no material discrepances have
been noticed on such verification.
c) The Company has not disposed off substantial part of fixed assets
during the year and the going concern status of the Company is not
affected.
2. a) As explained to us, the management during the period
has physically verified inventories at reasonable intervals and in
respect of stores and spares, there is a perpetual inventory system and
a substantial part of such stocks has been verified during the period.
However, stocks in the possession and custody of third parties and
stock n transit as at 3 I st March, 2010 have been verified by the
Management with reference to confirmation or statement of account or
correspondence of third parties or subsequent receipt of goods. In our
opinion, the frequency of verification is reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the Management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventories. The
discrepances noticed during physical verification of inventories as
compared to book records were not material and the same have been
properly dealt with in the books of account.
3. a) (i) The Company has given interest bearing demand
loan to two subsidiary companies covered in the register maintained
under section 301 of the Companies Act, 1956. The maximum amount
nvolved and period end balance during the period n respect of said
subsidiaries is Rs. 44987.80 lacs and Rs. 42663.39 lacs respectively.
The Company has not given any other loan to any Company or party
covered under section 301 of the Companies Act, 1956.
(ii) In our opinion and according to information and explanations given
to us, the interest bearing demand loans with relevant terms and
conditions on which loan has been given are, prima face, not
prejudicial to the interest of the Company.
(iii) In respect of the aforesaid loans, the amount are repayable on
demand, and hence, the question of irregularity on payment does not
arise.
(iv) The aforesaid loans is repayable on demand and therefore, the
question of overdue amounts does notarise.
b) As informed to us, the Company has not taken any loans, secured or
unsecured from Companies, firms or other parties listed in the register
maintained under section 301 of the Companies Act, 1956. Thus Paragraph
4 (v) (f) & (g) of the order, is not applicable.
4. In our opinion and according to information and explanations given
to us, having regard to the explanation that some of the items
purchased are of special nature and suitable alternative sources do not
exist for obtaining comparable quotations, there are adequate internal
control system commensurate with the size of the Company and the nature
of its business with regard to purchases of inventories, fixed assets
and with regard to the sale of goods and services. During the course of
our audit, we have not observed any major weaknesses in internal
control system of the Company.
5. a) To the best of our knowledge and belief and according
to the information and explanations given to us, we are of the opinion
that the particulars of contracts or arrangements that need to be
entered into the register maintained under section 301 of the Companies
Act 1956 have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions with parties with whom transactions
exceeding the value of Rupees five lacs have been entered into during
the financial period are at prices, which are reasonable, having regard
to the prevailing market prices at the relevant time.
6. In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
58A and 58AA of the Companies Act, 1956 and the Companies (Acceptance
of Deposits) Rules, 1975 with regard to the deposits accepted from the
public.
7. In our opinion, the Company has an adequate interna audit system
commensurate with the size and the nature of its business.
8. We have broadly reviewed the accounts and records maintained by the
Company in respect of manufacture of steel and steel products to which
the said rules are made applicable pursuant to the order made by the
Central Government for maintenance of cost records prescribed under
Section 209(l)(d) of the Companies Act, 1956 and are of the opinion
that prima face, the prescribed records have been made and maintained.
We have not, however, made a detailed examination of such records with
a view to determine whether these are accurate and complete.
9. a) According to the information and explanations given to us, the
Company is generally regular in depositing with the appropriate
authorities undisputed statutory dues including Provident Fund,
Employees State Insurance, Sales Tax, Income Tax, Custom duty, Investor
Education & Protection fund, Excise Duty, Cess, Service Tax and
Royalty. There are no arrears as at 31 st March, 2010 for a period of
more than six months from the date they become payable.
b) According to the information and explanation given to us, the dues
in respect of sales tax, excise, Service tax, entry tax, income tax and
custom duty that have not been deposited with the appropriate
authorities on account of dispute and the forum where the disputes are
pending are given below:
Name of the Statute Period to Forum where Amount
which the matter is (Rs.in lacs)
amount pending
related
Sales Tax 2002-03 Honble High 141.94
Under Gujrat Sales
Tax Act. Court of Gujrat,
Ahmedabad
Sales Tax 2005-06 joint Commissioner 39.3
Under Central Sales
Tax, Act (Appeals) Rajkot
Excise Duty 2005-06 Commissioner, Rajkot 58.97
Under The Central
Excise Act, 1944
Excise Duty 2007-08 Addl. Commissioner, 21.20
Under The Central Central Excise
Excise Act, 1944 Lucknow.
Service Tax 2005-06 & CESTAT, New Delhi 1.95
Under Chapter V of the 2006-07
Finance Act, 1994
Service Tax 2003-04 joint Commissioner 28.25
Under Chapter V of the Central Excise Rajkot
Finance Act, 1994
Entry Tax 2008-09 to Honble High Court, 496.60
Under The Uttar Pradesh 2009-10 Allahabad
TaxonEntr/ofGoods.2008
10. The Company has no accumulated losses at the end of the financial
period. The Company has not incurred any cash losses during the
financial period covered by our audit and in the immediately preceding
financial year.
11. According to the information and explanation given to us, the
Company has not defaulted in repayment of dues to the banks and
debenture holders.
12. According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities. Therefore,
the provision of clause 4(xÃ) of the Companies (Auditors Report)
Order, 2003 are not applicable to the Company.
13. In our opinion, the Company is not a chit fund or a nidh mutual
benefit fund/socety. Therefore, the provisions of clause 4(x,Ã) of the
Companies (Auditors Report) Order, 2003 are not applicable to the
Company.
14. In our opinion, the Company is not dealing in or trading in shares,
securities, debentures and other investments.
Accordingly, the provisions of clause 4(x,v) ofthe Companies (Auditors
Report) Order, 2003 are not applicable to the Company.
15. In our opinion, and according to the information and explanations
given to us, the terms and conditions on which the Company has given
guarantee for loans taken by others from banks, or financial
institutions are not prima face, prejudicial to the interest ofthe
company.
16. In our opinion, and according to information and explanation given
to us, the term loans have been applied for the purpose for which they
were rased, other than temporary deployment pending application.
17. According to the information and explanations given to us and on an
overall examination ofthe Balance Sheet of the company, in our opinion,
there are no funds raised on short-term basis, which 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 maintained under section 301 of
the Companies Act, 1956.
19. According to the information and explanations given to us, the
Company has created security for the debentures ssued. The debentures
were, however, paid during the period.
20. The Company has not rased any money through a public issue during
the period.
21. During the course of our examination of the books and records of
the Company, and according to the information and explanations given to
us by the management, we report that no fraud on or by the Company has
been noticed or reported during the course of our audit.
N.C.Aggarwal
Partner
M.No.005951
For & on behalf of
N.C.AGGARWAL & CO.
Chartered Accountants
FR. No. 003273N
Place : New Delhi
Dated :19th July, 2010
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