To the Members Aditya Ispat Limited Hyderabad
Report on the financial statements
We have audited the acCompanying financial statements of Aditya Ispat Limited("the Company") which comprise the Balance Sheet as at 31st March 2015 andthe Statement of Profit and Loss and the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.
Managements responsibility for the financial statements
The Companys Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified undersection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating 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.
Our responsibility is to express an opinion on these financial statements based on ouraudit.
We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe 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 theauditors 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 Companyspreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrol system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by the Companys Directors as wellas evaluating the overall presentation 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.
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 of the state of affairs of the Company as at 31stMarch 2015 and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1) As required by the Companies (Auditors Report) Order 2015 issued by theCentral Government of India in terms of sub-section (11) of section 143 of the Act basedon such checks as we considered appropriate and according to the information andexplanations given to us we state that:
i.a) The Company has maintained adequate records of fixed assets with full particularsincluding quantity and location.
b) The fixed assets have been physically verified by the management during the yearwhich in our opinion is reasonable having regard to the size of the Company and thenature of its assets and no material discrepancies have been noticed on such verification.Hence the question of dealing with such discrepancies in the books of account does notarise.
ii.a) The inventory has been physically verified during the year by the management. Inour opinion the frequency of such verification is reasonable.
b) The procedures of physical verification of inventories followed by the managementare reasonable and adequate in relation to the size of the Company and the nature of itsbusiness.
c) The Company is maintaining proper records of inventory. The discrepancies noticed onverification between the physical stocks and the book records were not material havingregard to the nature of business and volume of operations and the same have been properlydealt with in the books of account.
iii. The Company has not granted any loans or advances in the nature of loans toparties covered in the register maintained under section 189 of the Act. Hence thequestion of reporting whether the receipt of principal and interest are regular andwhether reasonable steps for recovery of over-dues of such loans have been taken or notdoes not arise.
iv. In our opinion and according to the information and explanations given to us thereare adequate internal control procedures commensurate with the size of the Company and thenature of its business with regard to purchase of inventory fixed assets and with regardto the sale of goods and services. During the course of our audit we have not observedany continuing failure to correct major weaknesses in internal control system.
v. In our opinion and according to the information and explanations given to us by themanagement the Company has not accepted any loans or deposits which are deposits withinthe meaning of Rule 2(b) of the Companies (Acceptance of Deposits) Rules 2014.
vi. We have broadly reviewed the books of account maintained by the Company pursuant tothe Rules made by the Central Government for the maintenance of cost records under section148(1) of the Companies Act 2013 and are of the opinion that prima facie the prescribedaccounts have been made and maintained.
vii.(a) According to the records of the Company the Company is regular in depositingwith the appropriate authorities undisputed statutory dues including Provident FundEmployees State Insurance Income Tax Sales Tax Wealth Tax Service Tax Duty ofCustoms Duty of Excise Value Added Tax Cess and other material statutory dues to theextent applicable to it.
(b) According to the information and explanations given to us and based on the recordsverified by us we state that there were no undisputed amounts payable in respect ofIncome Tax Wealth Tax Service Tax Sales Tax Value Added Tax Duty of Customs Duty ofExcise or Cess which have remained outstanding as at 31st March 2015 for a period of morethan six months from the date they became payable.
(c) According to the information and explanation given to us there are no dues ofIncome tax Wealth tax Sales tax Value Added Tax Service Tax Duty of Customs Duty ofExcise or Cess which have not been deposited on account of any dispute.
d) There is no amount which is required to be transferred to Investors Education andProtection Fund in accordance with the relevant provisions of The Companies Act 1956 andRules framed there under.
viii. The Company has not incurred any cash loss during the financial year covered byour audit as well as in the immediate previous financial year and also does not have anyaccumulated losses as at the end of the financial year.
ix. According to the records of the Company the Company has not defaulted in repaymentof dues to financial institutions or to banks till 31st March 2015 and has also not issuedany debentures till 31st March 2015.
x. As informed to us the Company has not given guarantees for loans taken by othersfrom banks or financial institutions.
xi. The term loans obtained by the Company have been applied for the purpose for whichthey were raised.
xii. Based on the audit procedures performed and according to the information andexplanations given to us no fraud on or by the Company has been noticed or reportedduring the course of our audit.
2) As required by Section 143(3) of the Act we report that
i. 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;
ii. 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;
iii. The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account;
iv. 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;
v. On the basis of written representations received from the directors as on March 312015 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2015 from being appointed as a director in terms of Section 164(2) theAct.
vi. With respect to the other matters to be included in the Auditors Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:
a) The Company does not have any pending litigations which would impact its financialposition
b) The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses
c) There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company
| ||For DAGLIYA & CO. |
| ||Chartered Accountants |
| ||(ICAI Firm Reg. No. 671S) |
| ||(JITENDRA KUMAR JAIN) |
|Place : Hyderabad ||Partner |
|Date : 29.05.2015 ||M.No: 18398 |