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Aanchal Ispat Ltd.

BSE: 538812 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE322R01014
BSE LIVE 15:40 | 18 Aug 11.52 -0.48
(-4.00%)
OPEN

11.75

HIGH

12.00

LOW

10.80

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 11.75
PREVIOUS CLOSE 12.00
VOLUME 19051
52-Week high 15.45
52-Week low 3.55
P/E 19.53
Mkt Cap.(Rs cr) 24
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 11.75
CLOSE 12.00
VOLUME 19051
52-Week high 15.45
52-Week low 3.55
P/E 19.53
Mkt Cap.(Rs cr) 24
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Aanchal Ispat Ltd. (AANCHALISPAT) - Auditors Report

Company auditors report

TO THE MEMBERS OF AANCHAL ISPAT LIMITED (Formely known as Vinita Projects Pvt. Ltd.)

Report on the Financial Statements

We have audited the accompanying financial statements of M/s AANCHAL ISPAT LIMITED("the company") which comprise the Balance Sheet as at 31st March 2016 theStatement of Profit and Loss the Cash Flow Statement for the year ended and a summary ofsignificant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

The Company’s Board of Directors is responsible for the matters in section 134(5)of the Companies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

We have taken into account the provisions of the Act and the Rules made thereunderincluding the Accounting standards the accounting standards and auditing standards andmatters which are required to be included in the audit report under the provisions of theAct and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act and other applicable authoritative pronouncements issued by theinstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by Company’s Directors as well as evaluating the overallpresentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide 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 explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India;

a) in the case of balance Sheet of the state of affairs of the Company as at 31stMarch 2016;

b) in the case of Statement of profit and Loss of the profit for the year on thatdate; and

c) in the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.

Report on other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Companies Act 2013 and on the basis of such checks of the books andrecords of the Company as we considered appropriate and according to the information andexplanation given to us we give in the ‘Annexure Aa statement on thematters specified in paragraphs 3 & 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 bestof 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 theCompany so far as appears from our examination of those books.(and proper returns adequatefor the purposes of our audit have been received from the branches not visited by us);

c) The Balance Sheet and the Statement of Profit and Loss and the Cash flow statementdealt with by this report are in agreement with the books of account. (and the returnsreceived from the branches not visited by us);

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

e) On the basis of written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in terms ofSection 164(2) of the Act;

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".

g) With respect to the other matters included in the Auditor’s Report inaccordance with rule 11 of the companies (audit and Auditors) Rules 2014 and in ouropinion and to our best of our information and according to the explanations given to us:-

i. The Company does not have any pending litigations which would impact its financialposition.

ii. The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses.

iii. There were no amounts which required to be transferred to the Investor Educationand Protection Fund by the Company.

For Rajesh Mohan & Associates
Place : Unit 18 5th Floor Firm Registration No. 323131E
Bagati House Chartered Accountants
34 Ganesh Chandra Avenue
Kolkata - 700013
Date : The 30th day of May 2016 [Rajesh Kumar Agrawal]
Partner
ICAI Membership No. 057271

"ANNEXURE A" REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING "REPORT ONOTHER LEGAL AND REGULATORY REQUIREMENTS" OF OUR REPORT TO THE MEMBERS OF AANCHALISPAT LIMITED (FORMELY KNOWN AS VINITA PROJECTS PVT. LTD.) OF EVEN DATE

(i) (a) The company has maintained proper records showing full particulars includingquantitative details and situation of Fixed Assets.

(b) The fixed assets have been physically verified by the management at regularintervals. No material discrepancies were noticed on such verification.

(c) The title deeds of immovable properties are held in the name of the company.

(ii) The Inventory has been physically verified during the year by the management. Inour opinion the frequency of such verification is reasonable and no material discrepancieswere noticed on verification between the physical stocks and with the book records.

(iii) a) to (c) The company has not granted any loans secured or unsecured to anycompanies firms or other parties covered by clause (76) of Section 2 of the CompaniesAct 2013 therefore the provisions of Clause 3 (iii) (a) to (iii) (c) of the Companies(Auditor’s Report) Order 2016 are not applicable to the company.

(iv) According to the information and explanations given to us the company has notadvanced any loans including any loan represented by a book debt to any of its directorsor to any other person in whom the director is interested or given any guarantee orprovided any security in connection with any loan taken by him or such other person. Thecompany has not made any investments during the year. Therefore provisions of Clause 3(iv)of the Companies (Auditor’s Report) Order 2016 are not applicable. The company hasnot granted any loans or provided any gurantees or security to the parties covered undersection 185.

(v) The company has not accepted any deposits therefore provisions of Clause 3(v) ofthe Companies (Auditor’s Report) Order 2016 are not applicable.

(vi) The company has maintained books of account pursuant to the Rules made by theCentral Government for the maintenance of cost records under section 148 of the CompaniesAct 2013.

(vii) (a) Undisputed statutory dues including provident fund employees’ stateinsurance income-tax sales-tax service tax duty of customs duty of excise valueadded tax and any other statutory dues have not generally been regularly deposited withthe appropriate authorities though the delay in deposit have not been serious. The IncomeTax demand of Rs. 3479173/ - has been paid during the course of audit. The company hasnot paid advance income tax of Rs. 1534642/- for the year as and when the same becamedue. The company has also not paid service tax liability of Rs. 433675/-.

(b) According to the information and explanations given to us following dues relatingto income tax/sales tax/ service tax/ custom duty/excise duty have not been deposited onaccount of dispute:-

Statute Name Nature of Dues Amount ( Rs.) Period to which the amount relates Forum where dispute is pending Remarks (if any)
The Central Excise Act 1944 Excise Duty Rs. 10486754/- FY 2007-08 Customs Excise and Service Tax Appellate Tribunal Appeal filed by the Company on 13.07.2012 before ustoms Excise Service Tax Tribunal (The company has already deposited Rs. 2500000/-)
Income Tax Act 1961 Income Tax Rs. 19278200/- FY 2011-12 CIT(A)-1 Kolkata Appeal filed by the company on 16.04.2015 before CIT(A)- 1 Kolkata
The Central Sales Tax Act 1956 CST Rs. 6789194/- FY 2012-13 Senior Joint Commissioner Haora Circle Appeal filed by the company on 07/12/2015 before Senior Joint Commissioner Haora Circle
Income Tax Act 1961 Income Tax Rs. 3233690/- FY 2012-13 CIT(A)-1 Kolkata Appeal filed by the company on 04.04.2016 before CIT(A)- 1 Kolkata
West Bengal Value Added Tax Act 2003 VAT Rs.25227448/- FY 2012-13 Senior Joint Commissioner Haora Circle Appeal filed by the company on 07/12/2015 before Senior Joint Commissioner Haora Circle

(viii) The company has not defaulted in repayment of loans or borrowings to any bankfinancial institution or debenture holders.

(ix) The company has not raised any money by way of Initial public offer of furtherpublic offer (including debt instruments).

According to the information and explanations given to us the company had utilized themoney raised by way of term loan during the year for the purpose for which they wereraised.

(x) According to the information and explanations given to us no fraud on or by thecompany has been noticed or reported during the year.

(xi) The company has paid or provided managerial remuneration in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V of theCompanies Act 2013.

(xii) The company is a not a Nidhi company therefore the provisions of Clause 3(xii)of the Companies (Auditor’s Report) Order 2016 are not applicable to the company.

(xiii) According to the information and explanations given to us the company hasentered into transactions with related parties during the year in accordance with section177 and 188 of Companies Act 2013 and details have been disclosed in the FinancialStatements.

(xiv) During the year the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview therefore the provisions of Clause 3(xiv) of the Companies (Auditor’s Report)Order 2016 are not applicable to the company.

(xv) According to the information and explanations given to us the company has notentered into any non-cash transactions with directors or persons connected with himtherefore the provisions of Clause 3(xv) of the Companies (Auditor’s Report) Order2016 are not applicable to the company.

(xvi) The company is not engaged in the business of financing activity which attractsthe requirements of registration under section 45-IA of the Reserve Bank of India Act1934.

For Rajesh Mohan & Associates
Place : Unit 18 5th Floor Bagati House Firm Registration No. 323131E
34 Ganesh Chandra Avenue Kolkata - 700013 Chartered Accountants
Date : The 30th day of May 2016 [Rajesh Kumar Agrawal]
Partner
ICAI Membership No. 057271

"ANNEXURE B" TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THEFINANCIAL STATEMENT OF AANCHAL ISPAT LIMITED

(FORMELY KNOWN AS VINITA PROJECTS PVT. LTD.)

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of M/s AANCHALISPAT LIMITED ("the company")as of 31st March 2016 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company’s policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company’s internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor’s judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany’s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Rajesh Mohan & Associates
Place : Unit 18 5th Floor Firm Registration No. 323131E
Bagati House Chartered Accountants
34 Ganesh Chandra Avenue
Kolkata - 700013
Date : The 30th day of May 2016 [Rajesh Kumar Agrawal]
Partner
ICAI Membership No. 057271