Mar 31, 2018
INDEPENDENT AUDITORSâ REPORT
TO,
THE MEMBERS OF RMG ALLOY STEEL LIMITED Report on the Ind AS Financial Statements
We have audited the accompanying Ind AS financial statements of RMG ALLOY STEEL LIMITED (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2018, the Statement of Profit and Loss, (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as âthe Ind AS financial statementsâ).
Managementâs Responsibility for the Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these Ind AS financial statements that give a true and fair view of the state of affairs (financial position), loss (financial performance including Other Comprehensive Income), Cash Flows and Changes in Equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and 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 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
Our responsibility is to express an opinion on these Ind AS financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder. We conducted our audit of the Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the 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 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 Board of Directors, as well as evaluating the overall presentation of the Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the Ind AS, of the state of affairs (financial position) of the Company as at 31st March, 2018, and its loss (financial performance including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Emphasis of Matter
We draw attention to Note 30 of the accompanying statement; Companyâs net worth is eroded and the company has continued incurring losses for the current year, indicating the existence of uncertainty that may cast doubt about the companyâs ability to continue as a going concern. Considering the matters set out in the said note, this statement is prepared on a going concern basis.
Our opinion is not modified in respect of matter described in Emphasis of Matter paragraph.
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ), issued by the Central Government of India in terms of Section 143(11) of the Act, we give in the âAnnexure Aâ a statement on the matters specified in the paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit;
b) In our opinion, proper books of account as required by law have been kept by the Company so far as 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 relevant books of account;
d) In our opinion, the aforesaid Ind AS financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act, read with the Companies (Indian Accounting standards) Rules, 2015, as amended;
e) The going concern matter described under the Emphasis of Matter paragraph above, in our opinion, may have an adverse effect on the functioning of the Company,
f) On the basis of the written representations received from the directors as on 31st March, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018 from being appointed as a director in terms of Section 164 (2) of the Act.
g) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ; and
h) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014 in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigation as at 31st March, 2018 on its financial position in its Ind AS financial statements - Refer Note 34 to the Ind AS financial statements;
ii. The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company; and
iv. During the year the disclosure related to Specified Bank Notes as defined in the Notification S.O. 3407(E) dated 8th November, 2016 of the Ministry of Finance is not applicable to the Company.
ANNEXURE âAâ TO THE INDEPENDENT AUDITORSâ REPORT OF EVEN DATE ON THE Ind AS FINANCIAL STATEMENTS OF RMG ALLOY STEEL LIMITED
(Referred to in paragraph 1 under âReport on Other Legal and Regulatory Requirementsâ section of our Report of even date)
i) In respect of Fixed Assets
a) The Company is in the process of updating its fixed assets register showing full particulars including quantitative details and situation of fixed assets.
b) We have been informed that the fixed assets of the Company are physically verified by the Management during the year in a phased periodical manner, which in our opinion is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such physical verification
c) As per the information and explanations provided to us, title deeds of immovable properties are in the name of the Company.
ii) In our opinion the inventories have been physically verified during the year by the Management at reasonable intervals and the discrepancies between physical stocks and the book stocks noticed on physical verification were not material.
iii) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties cover in the register maintained under Section 189 of the Act. Hence Clauses (iii) (a) to Clauses (iii) (c) of Paragraph 3 of the Order are not applicable.
iv) In our opinion and according to the information and explanations given to us, the Company has neither granted loans nor have made investments nor provided guarantee and securities as specified under Section 185 and 186 of the Companies Act, 2013 and hence clause (iv) of paragraph 3 of the Order is not applicable.
v) The Company has not accepted any deposits under the provisions of section 73 to 76 of the Act or any other relevant provisions of the Act and the rules framed there under.
vi) On the basis of records produced to us, we are of the opinion that, prima facie, the cost records prescribed by the Central Government of India under section 148(1) of the Act have been maintained. However, we are not required to and have not carried out any detailed examination of such accounts and records.
vii) a) According to the books and records as produced and examined by us in accordance with the generally accepted auditing practices in India and also based on Management representations, undisputed statutory dues in respect of Provident Fund, Employees State Insurance Dues, Investor Education and Protection Fund, Income Tax, Service Tax, Custom Duty, Excise duty, Value added tax, Goods and Service Tax (GST), Cess and other material statutory dues have generally been regularly deposited, by the Company during the year with the appropriate authorities in India except in few cases with respect to professional tax where the delay ranged from 2 days to 136 days. According to the information and explanation given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31st March, 2018 for a period of more than six months from the date of becoming payable.
b) According to the information and explanation given to us and the records of the company examined by us, the particulars of dues of Income Tax, Service Tax, Sales Tax including Value Added Tax, Goods and Service Tax (GST), duty of Customs and duty of Excise as at 31st March, 2018 which have not been deposited on account of disputes, are as follows:
Name of Statute |
Nature of the dues |
Period to which amount relates |
Forum where dispute is pending |
Amount (Rs. in Lac) |
Finance Act,1994 |
Service Tax |
2005-06 to 2011-12 |
Customs, Excise & Service Tax Appellate Tribunal |
103 |
Finance Act,1994 |
Service Tax |
2004-05 to 2005-06 |
Joint Commissioner Central Excise & Customs |
11 |
Finance Act,1994 |
Service Tax |
2012-13 to 2013-14 |
Assistant Commissioner, Central Excise & Customs |
5 |
According to the information and explanation given to us and the records of the company examined by us, there are no dues of Wealth Tax which have not been deposited on account of any dispute.
viii) Based on our audit procedures and according to the information and explanations given to us, the company has not taken loan or borrowing from financial institution and Government. There were no debentures issued during the year or outstanding at the beginning of the year. the Company has not defaulted in repayment of loans or borrowings to banks except for the following instances of defaults in repayment of principal amount and interest :
Particulars |
Principal |
Interest |
Total |
Period of Default |
Name of Landers : Andhra Bank |
385 |
656 |
1,041 |
From Sep 2017 to Mar 2018 |
Corporation Bank |
53 |
88 |
141 |
Mar-18 |
7 |
99 |
106 |
From Jan, 2018 to Mar 2018 |
|
Laxmi Vilas Bank |
76 |
1,073 |
1,149 |
From Jan, 2018 to Mar 2018 |
2 |
- |
2 |
From Aug, 2017 to Mar 2018 |
|
Bank of Baroda |
555 |
- |
555 |
From Aug, 2017 to Mar 2018 |
45 |
- |
45 |
From Sep, 2017 to Mar 2018 |
|
1123 |
1,916 |
3,039 |
ix) The Company has not raised money by way of initial public offer or further public offer (including debt instruments) during the year. In our opinion and according to the information and explanation given to us, the term loans taken by the Company have been applied for the purpose for which they were raised.
x) In our opinion and according to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.
xi) In our opinion and according to the information and explanations given to us, the Company has paid / provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule
V to the Companies Act, 2013.
xii) In our opinion company is not a Nidhi Company. Therefore, the provisions of clause (xii) of paragraph 3 of the Order are not applicable to the Company.
xiii) In our opinion and according to the information and explanations given to us the Companyâs transactions with its related party are in compliance with Sections 177 and 188 of the Companies Act, 2013, wherever applicable, and details of related party transactions have been disclosed in the Ind AS financial statements as required by the applicable accounting standards.
xiv) In our opinion and according to the information and explanations given to us, the Company has made preferential allotment of Cumulative Redeemable Preference shares during the year in accordance with requirement of section 42 of the Companies Act, 2013 (âthe Actâ). The Company has not made private placement of shares or fully or partly convertible debenture during the year.
xv) In our opinion and according to the information and explanations given to us, during the year, the Company has not entered into any non-cash transactions with its directors or persons connected with him and hence reporting under clause (xv) of Paragraph 3 of the Order is not applicable to the Company
xvi) In our opinion and according to information and explanations provided to us, the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
ANNEXURE âBâ TO THE INDEPENDENT AUDITORâS REPORT OF EVEN DATE ON THE Ind AS FINANCIAL STATEMENTS OF RMG ALLOY STEEL LIMITED
(Referred to in paragraph 2 (g) under âReport on Other Legal and Regulatory Requirementsâ of our report of even date)
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the Internal Financial Control over financial reporting of RMG ALLOY STEEL LIMITED (âthe Companyâ) as of 31st March, 2018 in conjunction with our audit of the Ind AS financial statements of the Company for the year ended on that date.
Management Responsibility for the Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorâs Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing, prescribed under section 143(10) of the Companies Act, 2013 to the extent applicable to an audit of internal financial controls, both issued by 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 auditorâs judgment, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A Companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note.
For Pathak H D & Associates
Chartered Accountants
(Firmâs Registration No: 107783W)
Vishal D. Shah
Place: Mumbai Partner
Dated: 23rd May, 2018 Membership No. 119303
Mar 31, 2016
INDEPENDENT AUDITORâS REPORT
TO,
THE MEMBERS OF RMG ALLOY STEEL LIMITED Report on the Financial Statements
We have audited the accompanying financial statements of RMG ALLOY STEEL LIMITED (âthe Companyâ), which comprises the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss, Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these 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 provision of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of the appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit of the financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the 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 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 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 loss and its cash flows for the year ended on that date.
Emphasis of Matters
We draw attention to Note 27 of the accompanying statement; Companyâs net worth is eroded and the company has continued incurring losses for the current year, indicating the existence of uncertainty that may cast doubt about the companyâs ability to continue as a going concern. Considering the matters set out in the said note, this statement is prepared on a going concern basis.
Our opinion is not modified in respect of matter described in Emphasis of Matter paragraph.
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 section 143(11) of the Act, we give in the âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit;
b) In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;
c) The Balance Sheet, the Statement of Profit and Loss and Cash Flow Statement dealt with by this report are in agreement with the books of account;
d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) The going concern matter described under the Emphasis of Matters paragraph above, in our opinion, may have an adverse effect on the functioning of the Company,
f) 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.
g) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ.
h) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) rule, 2014 in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigation as at 31st March, 2016 on its financial position in its financial statements - Refer Note 36 to the financial statements;
ii. The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the company.
(Referred to in paragraph 1 under âReport on Other Legal and Regulatory Requirementsâ section of our Report of even date)
i) In respect of Fixed Assets
a) The Company is in the process of updating its fixed assets register showing full particulars including quantitative details and situation of fixed assets.
b) We have been informed that the fixed assets of the Company are physically verified by the Management during the year in a phased periodical manner, which in our opinion is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such physical verification
c) As per the information and explanations provided to us, title deeds of immovable properties are in the name of the Company.
ii) In our opinion the inventories have been physically verified during the year by the Management at reasonable intervals and the discrepancies between physical stocks and the book stocks noticed on physical verification were not material.
iii) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured, to companies, firms and other parties listed in the register maintained under Section 189 of the Act. Hence Clauses (iii) (a) to Clauses (iii) (c) of Paragraph 3 of the Order are not applicable.
iv) In our opinion and according to the information and explanations given to us, the Company has neither granted loans nor have made investments nor provided guarantee and securities as specified under Section 185 and 186 of the Companies Act, 2013 and hence clause (iv) of paragraph 3 of the Order is not applicable.
v) The Company has not accepted any deposits under the provisions of section 73 to 76 of the Act or any other relevant provisions of the Act and the rules framed there under.
vi) On the basis of records produced to us, we are of the opinion that, prima facie, the cost records prescribed by the Central Government of India under section 148(1) of the Act have been maintained. However, we are not required to and have not carried out any detailed examination of such accounts and records.
vii) a) According to the books and records as produced and examined by us in accordance with the generally accepted
auditing practices in India and also based on Management representations, undisputed statutory dues in respect of Provident Fund, Employees State Insurance Dues, Investor Education and Protection Fund, Income Tax, Service Tax, Custom Duty, Excise duty, Value added tax, Cess and other material statutory dues have generally been regularly deposited, by the Company during the year with the appropriate authorities in India. According to the information and explanation given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31st March, 2016 for a period of more than six months from the date of becoming payable.
b) According to the information and explanation given to us and the records of the company examined by us, the particulars of dues of Income Tax, Service Tax, Sales Tax including Value Added Tax, duty of Customs and duty of Excise as at 31st March, 2016 which have not been deposited on account of disputes, are as follows:
Name of Statute |
Nature of the dues |
Amount (Rs. in Lac) |
Period to which amount relates |
Forum where dispute is pending |
Finance Act,1994 Finance Act,1994 Finance Act,1994 Central Excise Act |
Service Tax Service Tax Service Tax Excise Duty |
103 11 5 34 |
2005-06 to 2011-12 2004-05 to 2005-06 2012-13 to 2013-14 1996-97 |
Customs, Excise & Service Tax Appellate Tribunal Joint Commissioner Central Excise & Customs Assistant Commissioner, Central Excise & Customs Customs, Excise & Service Tax Appellate Tribunal |
According to the information and explanation given to us and the records of the company examined by us, there are no dues of Wealth Tax which have not been deposited on account of any dispute.
viii) Based on our audit procedures and according to the information and explanations given to us, there have been no defaults in repayment of loan or borrowing to banks and the company has not taken loan or borrowing from financial institution and Government. There were no debentures issued during the year or outstanding at the beginning of the year.
ix) The Company has not raised money by way of initial public offer or further public offer (including debt instruments) during the year. In our opinion and according to the information and explanations given to us, the term loans taken by the Company have been applied for the purpose for which they were raised.
x) In our opinion and according to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.
xi) In our opinion and according to the information and explanations given to us, the Company has paid / provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
xii) In our opinion company is not a Nidhi Company. Therefore, the provisions of clause (xii) of paragraph 3 of the Order are not applicable to the Company.
xiii) In our opinion and according to the information and explanations given to us, the Companyâs transactions with its related party are in compliance with Sections 177 and 188 of the Companies Act, 2013, wherever applicable, and details of related party transactions have been disclosed in the financial statements as required by the applicable accounting standards.
xiv) In our opinion and according to the information and explanations given to us, the Company has made preferential allotment of Cumulative Redeemable Preference shares during the year in accordance with requirement of section 42 of the Companies Act, 2013 (''the Act''). Except Subsection 6 of Section 42 of the Act, which required money received on application Rs. 2800 lac shall be kept in a separate bank account in a Scheduled Bank. The said amount were deposited in the Cash Credit Bank Account of the Company and the amount raised have been used for the purpose for which the fund was raised.
xv) In our opinion and according to the information and explanations given to us, during the year, the Company has not entered into any non-cash transactions with its directors or persons connected with him and hence reporting under clause (xv) of Paragraph 3 of the Order is not applicable to the Company
xvi) In our opinion and according to information and explanations provided to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
ANNEXURE âBâ TO THE INDEPENDENT AUDITOR''S REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTS OF RMG ALLOY STEEL LIMITED
(Referred to in paragraph 2 (g) under âReport on Other Legal and Regulatory Requirementsâ of our report of even date)
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the Internal Financial Control over financial reporting of RMG ALLOY STEEL LIMITED (âthe Companyâ) as of 31st March, 2016 in conjunction with our audit of the financial statements of the Company for the year then ended.
Management Responsibility for the Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorâs Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing, prescribed under section 143(10) of the Companies Act, 2013 to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A Companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March, 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note.
For CHATURVEDI & SHAH
Chartered Accountants
Firm Registration No.: 101720W
Parag D.Mehta
Place: Mumbai Partner
Dated: 25th May, 2016 Membership No.113904
Mar 31, 2015
Report on the Financial Statements
We have audited the accompanying financial statements of RMG ALLOY
STEEL 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 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 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 financial
statements based on our audit.
We have taken into accounts the provisions of the Act, the accounting
and auditing standards and matters which required to be included in
audit report under the provision 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 misstatements.
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 controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the company as
at 31st March, 2015, and its loss and its cash flow for the year ended
on that date.
Emphasis of Matters
We draw attention to Note 27 of the accompanying statement; Company's
net worth is eroded and the company has continued incurring losses for
the current year, indicating the existence of uncertainty that may cast
doubt about the company's ability to continue as a going concern.
Considering the matters set out in the said note, this statement is
prepared on a going concern basis.
Our opinion is not modified in respect of these matters.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015("the
Order"), issued by Central Government of India in terms of sub-section
(11) of section 143 of the Companies Act, 2015, 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 explanation given to
us, We give in the Annexure a statement on the matters specified in
paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations,
which to the best of our knowledge and belief were necessary for the
purpose of our audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as 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 financial statements comply with the
Accounting Standards specified under section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rule, 2014.
e) The going concern matter described under the Emphasis of Matters
paragraph above, in our opinion, may have an adverse effect on the
functioning of the Company,
f) On the basis of written representation received from the directors
as on 31st March, 2015 taken on record by the Board of Directors, none
of the director is disqualified as on 31st March, 2015 from being
appointed as director in terms of Section 164 (2) of the Act.
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)
rule, 2014 in our opinion and to the best of our information and
according to the explanation given to us:
i. The Company has disclosed the impact of pending litigation as at
31st March, 2015 on its financial position in its financial statements
 Refer Note 36 to the financial statements;
ii. The Company did not have any long term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii. There were no amounts which were required to be transferred to
the Investor Education and Protection fund by the company.
ANNEXURE TO INDEPENDENT AUDITOR'S REPORT
(Referred to in paragraph 9 under 'Report on Other Legal and Regulatory
Requirements' section of our report of even date)
1) a) The Company is in the process of updating its fixed asset
register showing full particulars including quantitative details and
situation of fixed assets.
b) We have been informed that the fixed assets of the Company are
physically verified by the Management during the year in a phased
periodical manner, which in our opinion is reasonable having regard to
the size of the Company and the nature of its assets. No material
discrepancies were noticed on such physical verification.
2) a) As explained to us, inventories have been physically verified by
the management at the year end.
b) In our opinion and according to the information and explanation
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 nature of its business.
c) The Company has maintained proper records of inventory and the
discrepancies between physical stocks and the book stocks noticed on
physical verification were not material.
3) The Company has not granted any loans, secured or unsecured, to
companies, firms and other parties listed in the register maintained
under Section 189 of the Act. Hence Clauses (iii) (a), (iii) (b), of
Paragraph 3 of the Order are not applicable.
4) There are adequate internal control systems commensurate with the
size of the Company and the nature of its business with regard to the
purchases of inventories, fixed assets and sale of goods and services
and we have not observed any continuing failure to correct the major
weaknesses in such internal controls.
5) The Company has not accepted any deposits under the provisions of
section 73 to 76 of the Act or any other relevant provisions of the Act
and the rules framed there under.
6) On the basis of records produced to us, we are of the opinion that,
prima facie, the cost records prescribed by the Central Government of
India under section 148(1) of the Act have been maintained. However, we
are not required to and have not carried out any detailed examination
of such accounts and records.
7) a) According to the books and records as produced and examined by us
in accordance with the generally accepted auditing practices in India
and also based on Management representations, undisputed statutory dues
in respect of Provident Fund, Employees State Insurance Dues, Investor
Education and Protection Fund, Income Tax, Wealth Tax, Service Tax,
Custom Duty, Excise duty, Value added tax, Cess and other material
statutory dues have generally been regularly deposited, by the Company
during the year with the appropriate authorities in India. According to
the information and explanation given to us, no undisputed amounts
payable in respect of the aforesaid dues were outstanding as at March
31, 2015 for a period of more than six months from the date of becoming
payable.
b) According to the information and explanation given to us and the
records of the company examined by us, the particulars of dues of
income tax, Service tax, sales tax including value added tax, duty of
customs and duty of excise as at 31st March 2015 which have not been
deposited on account of dispute, are as follows:
Name of Statute Nature of Amount Period to which
the dues (Rs. in Lac) amount relates
Finance Act, 1994 Service Tax 103 2005-06 to
2011-12
Finance Act, 1994 Service Tax 11 2004-05 to
2005-06
Finance Act, 1994 Service Tax 5 2012-13 to
2013-14
Central Excise Act Excise duty 34 1996-97
Custom Act Drawback 7 2012-13
Income tax act Income Tax 77 2004-05
Sales Tax Act Value Added Tax 28 2007-08 to
2008-09
Name of Statute Forum where dispute is pending
Finance Act, 1994 Customs, Excise & Service Tax Appellate Tribunal
Finance Act, 1994 Joint Commissioner Central Excise & Customs
Finance Act, 1994 Assistant Commissioner, central Excise &
Customs
Central Excise Act Customs, Excise & Service Tax Appellate Tribunal
Custom Act Assistant commissioner of Customs
Income tax Act Commissioner of Income tax (Appeal)
Sales Tax Act Joint commissioner, Commercial Tax (appeal)
According to the information and explanation given to us and the
records of the company examined by us, there are no dues of wealth tax
which have not been deposited on account of any dispute.
c) There were no amounts which were required to be transferred to the
Investor Education and Protection fund by the Company.
8) In our Opinion, the accumulated losses of the Company are more than
fifty percent of its net worth as at 31st March, 2015, and the Company
has incurred cash loss during the financial year and in the immediately
preceding financial year.
9) Based on our audit procedures and according to the information and
explanations given to us, there have been defaults in the repayment of
dues to banks as under:
(Rs.in Lacs)
Period of Delay Principal
Amount Interest
Amount Status of Payment
up to 30 Days 163 496 Principal of Rs.163 Lac
unpaid and Interest Paid
31 to 60 Days 163 954 Interest of Rs.87 Lac
unpaid ,Balance Paid
60 days and above 475 661 Interest of Rs.10 Lac
unpaid, Balance Paid
There were no debentures issued during the year or outstanding at the
beginning of the year.
10) The Company has not given any guarantees for loans taken by others
from bank or financial institutions.
11) In our opinion and according to the information and explanation
given to us, the term loans have been applied for the purpose for which
they were raised.
12) During the course of our examination of the books and records of
the company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
material fraud on or by the company, noticed or reported during the
year, nor have we been informed of any such case by the management.
For CHATURVEDI & SHAH
Chartered Accountants
Firm Registration No.: 101720W
Parag D.Mehta
Partner
Membership No.113904
Place: Mumbai
Dated: 28th May, 2015
Mar 31, 2014
We have audited the accompanying financial statements of RMG Alloy
Steel Limited (formerly known as Remi Metals Gujarat Limited) ("the
Company") which comprise the Balance Sheet as at March 31, 2014, the
Statement of Profit and Loss and the Cash Flow Statement for the year
then ended and a summary of the significant accounting policies and
other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards notified under the Companies
Act, 1956 ("the Act") (which continue to be applicable in respect of
Section 133 of the Companies Act, 2013 in terms of General Circular 15/
2013 dated 13th September, 2013 of the Ministry of Corporate Affairs)
and in accordance with the accounting principles generally accepted in
India. This responsibility includes the design, implementation and
maintenance of internal control relevant to the preparation and
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 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 control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company''s internal control. An audit also includes
evaluating the appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the Management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014;
(b) in the case of the Statement of Profit and Loss, of the loss of the
Company for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Emphasis of Matter
We draw attention to notes no.26 of the financial statements regarding
the accounts have been prepared on a going concern basis though the
Company''s accumulated losses exceed its net worth and its total
liabilities exceed its assets, in view of the reasons referred to in
the note therein.
Our opinion is not qualified in respect of this matter.
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 Section
227 (4A) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said Order to the extent
applicable to the Company.
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 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 Balance Sheet, Statement of Profit and Loss and
the Cash Flow Statement comply with the Accounting standards notified
under the Act (which continue to be applicable in respect of Section
133 of the Companies Act, 2013 in terms of General Circular 15/2013
dated 13th September, 2013 of the Ministry of Corporate Affairs).
e) On the basis of the 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 Section 274(1)(g) of the
Act.
(Referred to in paragraph 1 under ''Report on Other Legal and Regulatory
Requirements'' section of our report of even date)
1) a) The Company is in the process of updating its fixed asset
register showing full particulars including quantitative details and
situation of fixed assets.
b) We have been informed that the fixed assets of the Company are
physically verified by the Management during the year in a phased
periodical manner, which in our opinion is reasonable having regard to
the size of the Company and the nature of its assets. No material
discrepancies were noticed on such physical verification.
c) In our opinion, the Company has not disposed off substantial part of
its fixed assets during the year.
2) a) As explained to us, inventories have been physically verified by
the management at the year end.
b) In our opinion and according to the information and explanation
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 nature of its business.
c) The Company has maintained proper records of inventory and the
discrepancies between physical stocks and the book stocks noticed on
physical verification were not material.
3) a) The Company has not granted any loans, secured or unsecured, to
companies, firms and other parties listed in the register maintained
under Section 301 of the Act. Hence Clauses (iii) (a), (iii) (b), (iii)
(c) and (iii) (d) of Paragraph 4 of the Order are not applicable.
b) The Company has taken unsecured loan from one company covered in the
register maintained under Section 301 of the Act. The maximum amount
involved during the year is Rs. 2,613 lac and year end balance was Rs.
Nil.
c) In our opinion and according to information and explanation given to
us, the rate of interest, wherever applicable and other terms and
conditions of above loans taken are not prima facie prejudicial to the
interest of the Company.
d) The principal amounts, are repayable on demand and there is no
repayment schedule.
4) There are adequate internal control systems commensurate with the
size of the Company and the nature of its business with regard to the
purchases of inventories, fixed assets and sale of goods and services
and we have not observed any continuing failure to correct the major
weaknesses in such internal controls.
5) a) In our opinion and according to the information and explanation
given to us, the particulars of contracts or arrangements referred to
in section 301 of the Companies Act, 1956 have been entered in the
register required to be maintained under that section. b) In our
opinion and according to the information and explanation given to us,
the transactions of purchase of goods and material and sale of goods,
material and services made pursuant of contracts or arrangements
entered in the register maintained under section 301 of the Companies
Act, 1956 have been made at a prices which are reasonable having regard
to the prevailing market price at the relevant time.
6) The Company has not accepted any deposits under the provisions of
section 58A and 58AA of the Act or any other relevant provisions of the
Act and the rules framed there under.
7) In our opinion, the Company''s internal audit system is commensurate
with its size and nature of business.
8) On the basis of records produced to us, we are of the opinion that,
prima facie, the cost records prescribed by the Central Government of
India under section 209(1)(d) of the Act have been maintained. However,
we are not required to and have not carried out any detailed
examination of such accounts and records.
9) a) According to the books and records as produced and examined by us
in accordance with the generally accepted auditing practices in India
and also based on Management representations, undisputed statutory dues
in respect of Provident Fund, Employees State Insurance Dues, Investor
Education and Protection Fund, Income Tax, Wealth Tax, Service Tax,
Custom Duty, Excise duty, Cess and other material statutory dues have
generally been regularly deposited, by the Company during the year with
the appropriate authorities in India. According to the information and
explanation given to us, no undisputed amounts payable in respect of
the aforesaid dues were outstanding as at March 31, 2014 for a period
of more than six months from the date of becoming payable. b) As at
March 31, 2014 there have been no disputed dues which have not been
deposited with the respective authorities in respect of Income Tax,
Custom Duty, Wealth Tax, Service Tax, Excise duty and Cess other than
the following:
Name of Statute Nature of the dues Amount Period to which
(Rs. in amount relates
Lac)
Finance Act, 1994 Service Tax 5 2005-06 to 2007-08
Finance Act, 1994 Service Tax 98 2006-07 to 2011-2012
Finance Act, 1994 Service Tax 50 2011-12 to 2012-13
Finance Act, 1994 Service Tax 11 2004-2005 to 2005-06
Central Excise Act Excise Duty 34 1996-97 to 1998-99
Income Tax Act Income Tax 77 2004-05
Sales Tax Act Value Added Tax 16 2007-08
Sales Tax Act Value Added Tax 12 2008-09
Name of Statute Forum where dispute is pending
Finance Act, 1994 Customs, Excise & Service Tax Appellate Tribunal
Finance Act, 1994 Customs, Excise & Service Tax Appellate Tribunal
Finance Act, 1994 Joint Commissioner Central Excise & Customes
Finance Act, 1994 Joint Commissioner Central Excise & Customes
Central Excise Act Customs, Excise & Service Tax Appellate Tribunal
Income Tax Act Commissioner of Income Tax (Appeals)
Sales Tax Act Joint Commissioner, Commercial Tax (Appeal)
Sales Tax Act Joint Commissioner, Commercial Tax (Appeal)
10) In our Opinion, the accumulated losses of the Company are more than
fifty percent of its net worth as at March 31, 2014, and the Company
has incurred cash loss during the financial year and in the immediately
preceding financial year.
11) Based on our audit procedures and according to the information and
explanations given to us, there have been defaults in the repayment of
dues to banks as under:
Period of Delay Principal Amount Interest Amount Status of Payment
(Rs. In Lac) (Rs. In Lac)
up to 30 Days 61 997 Paid
31 to 60 Days 692 508 Principal Rs.150
lac and Interest
60 days and above 2,205 of Rs.39 lac
unpaid ,Balance
Paid
470 Paid
There were no debentures issued during the year or outstanding at the
beginning of the year.
12) The Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
13) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, clause 4(xiii) of the Companies
(Auditor''s report) Order, 2003 is 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
provision of clause 4(xiv) of the companies (Auditor''s report) Order,
2003 is not applicable to the Company.
15) The Company has not given any guarantees for loans taken by others
from bank or financial institutions.
16) In our opinion, the term loans have been applied for the purpose
for which they were raised.
17) On the basis of review of utilization of funds which is based on
overall examination of the balance sheet of the Company, related
information as made available to us and as represented to us by the
Management, we are of the opinion that no funds raised on short term
basis have been used for long term assets.
18) As per information and explanation given to us, the Company has
made preferential allotment of preference shares to a Company covered
in the registered maintained under section 301, at price which is not
prejudicial to the interest of the Company.
19) According to the information and explanation given to us, during
the period covered by our audit report, the Company has not issued any
debentures and no debentures were outstanding at the end of the year.
Therefore, the provisions of clause 4(xix) of Companies (Auditor''s
Report) Order, 2003 are not applicable to the Company.
20) The Company has not raised any money by public issue during the
year.
21) As per the information and explanation given to us and on the basis
of examination of records, no material fraud on or by the Company was
noticed or reported during the year.
For CHATURVEDI & SHAH
Chartered Accountants
Registration No. 101720W
Parag. D. Mehta
Place: Mumbai Partner
Dated: 27th May, 2014 Membership No. 113904
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of RMG
ALLOY STEEL LIMITED (Formerly known as Remi Metals Gujarat Limited)
("the Company") which comprise the Balance Sheet as at
March 31, 2013, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards referred to in Section 211(3C)
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 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 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
the accounting policies used and the reasonableness of the accounting
estimates made by the Management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2013;
(b) in the case of the Statement of Profit and Loss, of the loss of the
Company for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Emphasis of Matter
We draw attention to following notes to the financial statements:
(a) Note no. 25 of the financial statements regarding the accounts have
been prepared on a going concern basis though the Company''s accumulated
losses exceed its net worth and its total liabilities exceed its
assets, in view of the reasons referred to in the note therein.
(b) Note no. 31 regarding remuneration paid to Executive Director
amounting to Rs. 49 lac is subject to approval at the shareholders''
meeting and also from the Central Government in respect of which
application has been made and pending with the Government.
Our opinion is not qualified in respect of these matters.
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 Section
227 (4A) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said Order to the extent
applicable to the Company.
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 dealt with by this report comply with the
accounting standards referred to in Section 211(3C) of the Act;
e) on the basis of written representations received from the directors
of the Company as on March 31, 2013 and taken on record by the Board of
Directors, none of the director of the Company is disqualified as on
March 31, 2013 from being appointed as a director in terms of Section
274(1)(g) of the Act.
ANNEXURE TO INDEPENDENT AUDITOR''S REPORT
(Referred to in paragraph 1 under ''Report on Other Legal and Regulatory
Requirements'' section of our report of even date)
1) a) The Company is in the process of updating its fixed asset
register showing full particulars including quantitative details and
situation of fixed assets.
b) We have been informed that the fixed assets of the Company are
physically verified by the Management during the year in a phased
periodical manner, which in our opinion is reasonable having regard to
the size of the Company and the nature of its assets. No material
discrepancies were noticed on such physical verification.
c) In our opinion, the Company has not disposed off substantial part of
its fixed assets during the year.
2) a) As explained to us, inventories have been physically verified by
the management at the year end.
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 nature of its business.
c) The Company has maintained proper records of inventory and the
discrepancies between physical stocks and the book stocks noticed on
physical verification were not material.
3) a) The Company has not granted any loans, secured or unsecured, to
companies, firms and other parties listed in the register maintained
under Section 301 of the Act. Hence Clauses (iii) (a), (iii) (b), (iii)
(c) and (iii) (d) of Paragraph 4 of the Order are not applicable.
b) The Company has taken unsecured loan from two Companies covered in
the register maintained under Section 301 of the Act. The maximum
amount involved during the year is Rs. 15,085 lac and year end balance
was Rs. Nil.
c) In our opinion and according to information and explanations given
to us, the rate of interest, wherever applicable and other terms and
conditions of above loans taken are not prima facie prejudicial to the
interest of the Company.
d) The principal amounts, are repayable on demand and there is no
repayment schedule.
4) There are adequate internal control systems commensurate with the
size of the Company and the nature of its business with regard to the
purchases of inventories, fixed assets and sale of goods and services
and we have not observed any continuing failure to correct the major
weaknesses in such internal controls.
5) a) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements referred to
in section 301 of the Companies Act, 1956 have been entered in the
register required to be maintained under that section.
b) In our opinion and according to the information and explanations
given to us, the transactions of purchase of goods and material and
sale of goods, material and services made pursuant of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
6) The Company has not accepted any deposits under the provisions of
section 58A and 58AA of the Act or any other relevant provisions of the
Act and the rules framed there under.
7) In our opinion, the Company''s internal audit system is commensurate
with its size and nature of business.
8) On the basis of records produced to us, we are of the opinion that,
prima facie, the cost records prescribed by the Central Government of
India under section 209(1)(d) of the Act have been maintained. However,
we are not required to and have not carried out any detailed
examination of such accounts and records.
9) a) According to the books and records as produced and examined by us
in accordance with the generally accepted auditing practices in India
and also based on management representations, undisputed statutory dues
in respect of Provident Fund, Employees State Insurance Dues, Investor
Education and Protection Fund, Income Tax, Wealth Tax, Service Tax,
Custom Duty, Excise duty, Cess and other material statutory dues have
generally been regularly deposited, by the Company during the year with
the appropriate authorities in India. However, in respect of Sales Tax,
no payment has been made during the year. According to the information
and explanation given to us, no undisputed amounts payable in respect
of the aforesaid dues were outstanding as at March 31, 2013 for a
period of more than six months from the date of becoming payable except
the following:
Name of Statute Nature of Amount period to
the dues (Rs.in which amount
lac) relates
Gujarat Value Added Sales Tax Deferment 673 April 2012
Tax Act, 2003 Loan Installment
Gujarat Value Added Value Added Tax/ 163 April 2012 to
Tax Act, 2003 Central Sales Tax August,2012
Name of Statute Date of Payment
Gujarat Value Added Not paid till date (Refer Note 5(b))
Tax Act,2003
Gujarat Value Added Not paid till date
Tax Act,2003
b) As at March 31, 2013, there have been no disputed dues which have
not been deposited with the respective authorities in respect of Income
Tax, Custom Duty, Wealth Tax, Service Tax, Excise duty and Cess other
than the following:
Name of Statute Nature of Amount Period to which
dues (Rs.in amount relates
lac)
Finance Act, 1994 Service Tax 1 2005-06 to 2007-08
Finance Act, 1994 Service Tax 118 2006-07 to 2011-2012
Central Excise Act Excise Duty 34 1996-97 to 1998-99
Income Tax Act Income Tax 77 2004-05
Sales Tax Act Value Added
Tax 16 2007-08
Sales Tax Act Value Added
Tax 12 2008-09
Name of Statute Forum where dispute is pending
Finance Act, 1994 Customs, Excise & Service Tax
Appellate Tribunal
Finance Act, 1994 Commissioner of Central Excise
Central Excise Act Customs, Excise & Service Tax
Appellate Tribunal
Income Tax Act Commissioner of Income Tax
(Appeals)
Sales Tax Act Joint Commissioner, Commercial
Tax(Appeal)
Sales Tax Act Joint Commissioner, Commercial
Tax (Appeal)
10)In our opinion accumulated losses of the company are more than fifty
percent of its net worth as at March 31,2013, and the company has
incurred cash loss during the financial year and in the immediately
preceding financial year.
11) Based on our audit procedures and according to the information and
explanations given to us, there have been defaults in the repayment of
dues to banks as under:
Period of Delay Principal Amount Interest Amount Status of Payment
(Rs. in Lac) (Rs. in Lac)
up to 30 Days 80 898 Paid
31 to 60 days 119 443 Paid
60 days and
above 500 265 Principal Rs. 40
lac Pa unpaid,
balance paid
There were no debentures issued during the year or outstanding at the
beginning of the year.
12) The Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
13) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, clause 4(xiii) of the Companies
(Auditor''s report) Order, 2003 is 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
provision of clause 4(xiv) of the Companies (Auditor''s report) Order,
2003 is not applicable to the Company.
15) The Company has not given any guarantees for loans taken by others
from bank or financial institutions.
16) In our opinion, the term loans have been applied for the purpose
for which they were raised.
17) On the basis of review of utilization of funds which is based on
overall examination of the balance sheet of the Company, related
information as made available to us and as represented to us by the
Management, we are of the opinion that no funds raised on short term
basis have been used for long term assets.
18) As per information and explanations given to us, the Company has
made preferential allotment of preference shares to a Company covered
in the registered maintained under section 301, at price which is not
prejudicial to the interest of the Company.
19) According to the information and explanations given to us, during
the period covered by our audit report, the Company has not issued any
debentures and no debentures were outstanding at the end of the year.
Therefore, the provisions of clause 4(xix) of Companies (Auditor''s
Report) Order, 2003 are not applicable to the Company.
20) The Company has not raised any money by public issue during the
year.
21) As per the information and explanation given to us and on the basis
of examination of records, no material fraud on or by the Company was
noticed or reported during the year.
For CHATURVEDI & SHAH
Chartered Accountants
Registration No. 101720W
Parag. D. Mehta
Place: Mumbai Partner
Dated: 30th May, 2013 Membership No. 113904
Mar 31, 2012
1.. We have audited the attached Balance Sheet of Remi Metals Gujarat
Limited as at March 31, 2012, the Statement of Profit and Loss and the
Cash Flow Statement for the year ended on that date both annexed
thereto. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An Audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. Without qualifying our opinion, we draw attention to note no.1 A
(c). The accounts have been prepared on a going concern basis though
the Company's accumulated losses exceed its net worth and its total
liabilities exceed its assets, in view of the reasons referred to in
the note therein.
4. As required by the Companies (Auditor's Report) Order, 2003, (as
amended) issued by the Central Government of India in terms of Section
227 (4A) of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order to the extent applicable to the Company.
5. Further to our comments in the Annexure referred to in paragraph 3
above, we report that :-
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) The Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this report are in agreement with the
books of account;
d) In our opinion, the Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in Section 211(3C) of the Act;
e) On the basis of written representations received from the directors,
as on 31 March, 2012 and taken on record by the Board of Directors, We
report that none of the Directors is disqualified as on 31st March,
2012 from being appointed as Director in terms of clause (g) of
sub-section (1) of section 274 of Companies Act, 1956;
f) In our opinion and to the best of our information and according to
the explanation given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India;
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2012;
ii) in the case of the Statement of Profit and Loss, of the Loss for
the year ended on that date; and
iii) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO AUDITOR'S REPORT
Annexure referred to in paragraph 4 of Auditor's report of even date to
the members of Remi Metals Gujarat Limited on the accounts for the year
ended March 31, 2012
1) a) The Company has maintained proper records to show all
particulars, including quantitative details and situations, of its
fixed assets.
b) We have been informed that the fixed assets of the Company are
physically verified by the Management during the year in a phased
periodical manner, which in our opinion is reasonable having regard to
the size of the Company and the nature of its assets. No material
discrepancies were noticed on such physical verification.
c) In our opinion, the Company has not disposed off substantial part of
its fixed assets during the year.
2) a) As explained to us, inventories have been physically verified by
the management at the year end.
b) In our opinion and according to the information and explanation
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 nature of its business.
c) The Company has maintained proper records of inventory and the
discrepancies between physical stocks and the book stocks noticed on
physical verification were not material.
3) a) The Company has not granted any loans, secured or unsecured, to
companies, firms and other parties listed in the register maintained
under Section 301 of the Act.
b) The Company has taken unsecured interest free loan from one Company
covered in the register maintained under Section 301 of the Act. The
maximum amount involved during the year and year end balance was
Rs.14085 lac.
c) In our opinion and according to information and explanation given to
us, terms and condition of loans taken by the Company are not prima
facie prejudicial to the interest of the Company.
d) The principal amounts, are repayable on demand and there is no
repayment schedule.
4) There are adequate internal control systems commensurate with the
size of the Company and the nature of its business with regard to the
purchases of inventories, fixed assets and sale of goods and services
and we have not observed any continuing failure to correct the major
weaknesses in such internal controls.
5) a) In our opinion and according to the information and explanation
given to us, the particulars of contracts or arrangements referred to
in section 301 of the Companies Act, 1956 have been entered in the
register required to be maintained under that section.
b) In our opinion and according to the information and explanation
given to us, the transactions of purchase of goods and material and
sale of goods, material and services made pursuant of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 have been made at a prices which are reasonable
having regard to the prevailing market price at the relevant time.
6) The Company has not accepted any deposits under the provisions of
section 58A and 58AA of the Act or any other relevant provisions of the
Act and the rules framed there under.
7) In our opinion, the Company's internal audit system is
commensurate with its size and nature of business.
8) On the basis of records produced to us, we are of the opinion that,
prima facie, the cost records prescribed by the Central Government of
India under section 209(1)(d) of the Act have been maintained. However,
we are not required to and have not carried out any detailed
examination of such accounts and records.
9) a) According to the books and records as produced and examined by us
in accordance with the generally accepted auditing practices in India
and also based on Management representations, undisputed statutory dues
in respect of Provident Fund, Employees State Insurance Dues, Investor
Education and Protection Fund, Income Tax, Wealth Tax, Service Tax,
Custom Duty, Excise duty, Cess and other material statutory dues have
generally been regularly deposited, by the Company during the year with
the appropriate authorities in India. According to the information and
explanation given to us, no undisputed amounts payable in respect of
the aforesaid dues were outstanding as at March 31, 2012 for a period
of more than six months from the date of becoming payable.
b) As at March 31, 2012, there have been no disputed dues which have
not been deposited with the respective authorities in respect of Income
Tax, Custom Duty, Wealth Tax, Service Tax, Excise duty and Cess other
than the following:
Name of Statute Nature of Amount Period to
which Forum where
dispute is
pending
the dues (Rs. In
lac) amount
relates
Finance Act,1994 Service Tax 12 2005-06 Customs, Excise
& Service Tax
to 2007-08 Appellate
Tribunal
Central Excise
Act Excise Duty 34 1996-97 Commissioner of
Central Excise
to 1998-99 (Appeals)
Finance Act,1994 Service Tax 118 2006-07 Commissioner of
Central Excise
to 2011-12 (Appeals)
Income Tax Act Income Tax 77 2004-05 Commissioner of
Income Tax
(Appeals)
Sales Tax Act Value Added Tax 24 2007-08 Joint
Commissioner,
Commercial
Tax (Appeal)
10) In our Opinion, the accumulated losses of the Company are more than
fifty percent of it's net worth as at March 31, 2012, and the Company
has incurred cash loss during the financial year and in the immediately
preceding financial year.
11) According to information and explanation given to us, we are of the
opinion that the Company has not defaulted in repayment of dues to any
financial institution or bank except principal repayment of Rs. 390 Lac
of bank loan for quarter from January to March 2012, being since paid.
There were no debentures issued during the year or outstanding at the
beginning of the year.
12) The Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
13) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, clause 4(xiii) of the Companies
(Auditor's report) Order, 2003 is 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
provision of clause 4(xiv) of the companies (Auditor's report) Order,
2003 is not applicable to the Company.
15) The Company has not given any guarantees for loans taken by others
from bank or financial institutions.
16) In our opinion, the term loans have been applied for the purpose
for which they were raised.
17) On the basis of review of utilization of funds which is based on
overall examination of the balance sheet of the Company, related
information as made available to us and as represented to us by the
Management, we are of the opinion that no funds raised on short term
basis have been used for long term assets.
18) The company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act during the year.
19) According to the information and explanation given to us, during
the period covered by our audit report, the Company has not issued any
debentures and no debentures were outstanding at the end of the year.
Therefore, the provisions of clause 4(xix) of companies (Auditor's
Report) Order, 2003 are not applicable to the Company.
20) The Company has not raised any money by public issue during the
year.
21) As per the information with us and explanation given to us and on
the basis of examination of records, no material fraud on or by the
Company was noticed or reported during the year.
For CHATURVEDI & SHAH
Chartered Accountants
Registration No. 101720W
Parag. D. Mehta
Place: Mumbai Partner
Dated: 13th July, 2012 Membership No. 113904
Mar 31, 2010
We have audited the attached Balance Sheet of Remi Metals Gujarat
Limited as at March 31, 2010, the Profit and Loss Account and the Cash
Flow Statement for the year ended on that date both 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.
1. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An Audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
2. As required by the Companies (Auditors Report) Order, 2003, as
amended by the Companies (Auditors Report) (Amendment) Order, 2004,
(together the Order), issued by the Central Government of India in
terms of Section 227 (4A) of the Act, and on the basis of such checks
as we considered appropriate, and according to the information and
explanations given to us, we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order to the extent
applicable to the Company.
3. Further to our comments in the Annexure referred to in paragraph 2
above, we report that :-
a) we have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) the Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d) in our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in Section 211(3C) of the Act;
e) on the basis of written representations received from the directors
of the Company as on March 31, 2010 and taken on record by the Board of
Directors, we report that none of the director of the Company is
disqualified as on March 31, 2010 from being appointed as a director in
terms of clause (g) of sub-section (1) of section 274 of the Companies
Act, 1956;
f) without qualifying our opinion, we draw attention to note no.2 part
B of Schedule 13. The accounts have been prepared on a going concern
basis though the Companys accumulated losses exceed its net worth and
its total liabilities exceed its assets, in view of the reasons
referred to in the note therein;
g) In our opinion and to the best of our information and according to
the explanation given to us, the said financial statements together
with the significant accounting policies and notes thereon give the
information required by the Act, in the manner so required, and present
a true and fair view in conformity with the accounting principles
generally accepted in India:-
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2010;
ii) in the case of the Profit and Loss Account, of the Loss for the
year ended on that date; and
iii) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO AUDITORS REPORT
Annexure referred to in paragraph 2 of Auditors report of even date to
the members of Remi Metals Gujarat Limited on the accounts for the year
ended March 31, 2010
1) a) The Company has maintained proper records to
show all particulars, including quantitative details and situations, of
its fixed assets.
b) We have been informed that the fixed assets of the Company are
physically verified by the Management during the year in a phased
periodical manner, which in our opinion is reasonable having regard to
the size of the Company and the nature of its assets. No material
discrepancies were noticed on such physical verification.
c) In our opinion, the Company has not disposed off substantial part of
its fixed assets during the year.
2) a) As explained to us, inventories have been
physically verified by the management at the year end.
b) In our opinion and according to the information and explanation
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 nature of its business.
c) The Company has maintained proper records of inventory and the
discrepancies between physical stocks and the book stocks noticed on
physical verification were not material.
3) a) The Company has not granted any loans, secured
or unsecured, to/from companies, firms and other parties listed in the
register maintained under Section 301 of the Act.
b) The Company has taken unsecured interest free loan from one Company
covered in the register maintained under Section 301 of the Act. The
maximum amount involved during the year and year end balance was Rs.
14085 lac.
c) In our opinion and according to information and explanation given to
us, terms and condition of loans taken by the Company are not prima
facie prejudicial to the interest of the Company.
d) The principal amounts, are repayable on demand and there is no
repayment schedule.
4) There are adequate internal control systems commensurate with the
size of the Company and the nature of its business with regard to the
purchases of inventories, fixed assets and sale of goods and services
and we have not observed any continuing failure to correct the major
weaknesses in such internal controls.
5) a) In our opinion and according to the information and
explanation given to us, the particulars of contracts or arrangements
referred to in section 301 of the Companies Act, 1956 have been entered
in the register required to be maintained under that section.
b) In our opinion and according to the information and explanation
given to us, the transactions of purchase of goods and material and
sale of goods, material and services made pursuant of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 have been made at a prices which are reasonable
having regard to the prevailing market price at the relevant time.
6) The Company has not accepted any deposits under the provisions of
section 58A and 58AA of the Act or any other relevant provisions of the
Act and the rules framed there under.
7) In our opinion, the Companys internal audit system is commensurate
with its size and nature of business.
8) On the basis of records produced to us, we are of the opinion that,
prima facie, the cost records prescribed by the Central Government of
India under section 209(1 )(d) of the Act have been maintained.
However, we are not required to and have not carried out any detailed
examination of such accounts and records.
9) a) According to the books and records as produced and
examined by us in accordance with the generally accepted auditing
practices in India and also based on management representations,
undisputed statutory dues in respect of Provident Fund, Employees State
Insurance Dues, Investor Education and Protection Fund, Income Tax,
Wealth Tax, Service Tax, Custom Duty, Excise duty, Cess and other
material statutory dues have generally been regularly deposited, by the
Company during the year with the appropriate authorities in India.
According to the information and explanation given to us, no undisputed
amounts payable in respect of the aforesaid dues were outstanding as at
March 31, 2010 for a period of more than six months from the date of
becoming payable.
b) As at March 31, 2010, there have been no disputed dues which have
not been deposited with the respective authorities in respect of Income
Tax, Custom Duty, Wealth Tax, Service Tax, Excise duty and Cess except
disputed Sales Tax dues of Rs1.35 lac (under Central Sales Tax Act for
the year 1994-95) pending before Deputy Commissioner (Appeal).
10) In our Opinion, the accumulated losses of the Company are more than
fifty percent of its net worth as at March 31, 2010, and the Company
has incurred cash loss during the financial year and in the immediately
preceding financial year.
11) In our opinion and according to information and explanation given
to us, we are of the opinion that the Company has not defaulted in
repayment of dues to any financial institution or bank. There were no
debentures issued during the year or outstanding at the beginning of
the year.
12) The Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
13) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, clause 4(xiii) of the Companies
(Auditors report) Order, 2003 is 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
provision of clause 4(xiv) of the companies (Auditors report) Order,
2003 is not applicable to the Company.
15) The Company has not given any guarantees for loans taken by others
from bank or financial institutions.
16) In our opinion, the term loans have been applied for the purpose
for which they were raised.
17) On the basis of review of utilization of funds which is based on
overall examination of the balance sheet of the Company, related
information as made available to us and as represented to us by the
Management, we are of the opinion that no funds raised on short term
basis have been used for long term assets.
18) The Company has made an allotment of equity shares on conversion of
preference shares to companies covered in the register maintained under
section 301 of the Act during the year. In our opinion, the price at
which such shares have been issued is not prima facie prejudicial to
the interest of the Company.
19) According to the information and explanation given to us, during
the period covered by our audit report, the Company has not issued any
debentures and no debentures were outstanding at the end of the year.
Therefore, the provisions of clause 4(xix) of companies (Auditors
Report) Order, 2003 are not applicable to the Company.
20) The Company has not raised any money by public issue during the
year.
21) As per the information with us and explanation given to us and on
the basis of examination of records, no material fraud on or by the
Company was noticed or reported during the year.
For CHATURVEDI & SHAH
Chartered Accountants
Registration No. 101720W
Parag. D. Mehta
Partner
Membership No. 113904
Place : Mumbai
Dated : 21st May, 2010