| We have audited the accompanying financial statements of Aditya Ispat
Limited ("the Company"), which comprise the Balance Sheet as at March
31,2014, and the Statement of Profit and Loss and Cash Flow Statement
for the year then ended, and a summary of significant accounting
policies and other explanatory information.
Management's responsibility for the financial statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act") read with the General Circular
15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in
respect of section 133 of the Companies Act, 2013. This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor's responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the company's preparation of the
financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the company's internal control. An
audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of the accounting estimates made
by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
company as at March 31, 2014;
b) in the case of the statement of Profit and Loss, of the profit for
the year ended on that date; and
c) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the company so far as appears from our examination of those
books
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956 read with the
General Circular 15/2013 dated 13 September 2013 of the Ministry of
Corporate Affairs in respect of section 133 of the Companies Act, 2013;
and
e) on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ADITYA ISPAT LIMITED
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT
(Referred to in paragraph 1 under the heading of other legal and
regulatory requirements of our report of even date)
1. In respect of fixed assets:
(a) The company has maintained proper records showing full particulars
including quantitative details and situation of its fixed assets.
(b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals, no material discrepancies were
noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, no substantial fixed assets have been disposed off during
the year. Therefore it has not affected the going concern status of the
company.
2. In respect of inventories:
(a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and on the basis of our examination of the records,
the company is generally maintaining proper records of its inventory.
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records.
3. (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the company
has not granted any loans, secured or unsecured, to companies, firms or
other parties listed in the register maintained under Section 301 of
the Companies Act, 1956. Accordingly paragraphs 4(iii) (b),(c) and (d)
of the order are not applicable.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the company and the nature of its business, with
regard to the purchase of inventory and fixed assets and also for the
sale of goods and services. During the course of our audit, no major
weakness has been noticed in the internal control system.
5. In our opinion, there were no contracts or arrangements that need
to be entered in the register maintained under Section 301 of the
Companies Act, 1956. Accordingly, the provisions of clause 4(v)(b) of
the Order are not applicable to the company.
6. The company has not accepted any deposits from the public within
the meaning of Section 58A and 58AA of the Companies Act, 1956 and the
rules framed there under.
7. As per information & explanations given by the management, the
company has an internal audit system commensurate with its size and
nature of its business.
8. We have broadly reviewed the books of account relating to
materials, labour and other items of cost maintained by the company
pursuant to the Rules made by the Central Government for the
maintenance of cost records under Section 209(1)(d) of the Companies
Act, 1956 and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained.
9. (a) According to the records of the Company, undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, Cess to the extent applicable and any
other statutory dues have generally been regularly deposited with the
appropriate authorities. According to the information and explanations
given to us, there were no outstanding statutory dues as on 31st of
March, 2014 for a period of more than six months from the date they
became payable.
(b) According to the information and explanations given to us, there
are no amounts payable in respect of Income Tax, Wealth Tax, Service
Tax, Sales Tax, Customs Duty and Excise Duty which have not been
deposited on account of any dispute.
10. The company does not have any accumulated losses at the end of the
financial year. The company has not incurred cash loss during the
financial year covered by our audit and in the immediately preceding
financial year.
11. Based on our audit procedures and on the basis of information and
explanations given by the management, we are of the opinion that, the
company has not defaulted in repayment of dues to the bank. The company
has not issued any debentures so far.
12. According to the information and explanations given to us, the
company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. The company is not a chit fund or a nidhi /mutual benefit
fund/society. Therefore, the provisions of clause 4(xiii) of the
Companies (Auditor's Report) Order, 2003 (as amended) are not
applicable to the company.
14. In our opinion and according to the information and explanations
given to us, the company is not a dealer or trader in shares,
securities, debentures or other investments. Therefore, the provisions
of clause 4(xiv) of the Companies (Auditor's Report) Order, 2003 are
not applicable to the company.
15. According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from a
bank or financial institution.
16. Based on our audit procedures and on the basis of information
given by the management, the term loans have been applied for the
purpose for which they were raised.
17. Based on the information and explanations given to us and on an
overall examination of the balance sheet of the company, we report that
no funds raised on short-term basis have been used for long-term
investment by the company.
18. Based on the audit procedures performed and the information and
explanations given to us by the management, we report that the company
has not made any preferential allotment of shares during the year.
19. There were no debentures issued by the company.
20. The company has not raised any money by public issue during the
year.
21. Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the company
has been noticed or reported during the year, nor have we been informed
of such case by the management.
For DAGLIYA & CO.
Chartered Accountants,
(ICAI Firm Reg.No. 671S)
Pace: Hyderabad
Date: 29.05.2014 (JITENDRA KUMAR JAIN)
Partner
M.No:18398 |