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Ashirwad Steels & Industries Ltd.

BSE: 526847 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE338C01012
BSE LIVE 11:58 | 23 May 14.30 0.66
(4.84%)
OPEN

14.00

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14.30

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NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 14.00
PREVIOUS CLOSE 13.64
VOLUME 600
52-Week high 16.00
52-Week low 4.52
P/E 22.70
Mkt Cap.(Rs cr) 18
Buy Price 12.96
Buy Qty 200.00
Sell Price 14.30
Sell Qty 60.00
OPEN 14.00
CLOSE 13.64
VOLUME 600
52-Week high 16.00
52-Week low 4.52
P/E 22.70
Mkt Cap.(Rs cr) 18
Buy Price 12.96
Buy Qty 200.00
Sell Price 14.30
Sell Qty 60.00

Ashirwad Steels & Industries Ltd. (ASHIRWADSTEELS) - Auditors Report

Company auditors report

To the Members of Ashirwad Steels & Industries Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Ashirwad Steels& Industries Limited (‘the Company’) which comprise the balance sheetas at 31 March 2016 the statement of profit and loss and the cash flow statement for theyear then ended and a summary of significant accounting policies and other explanatoryinformation.

Management’s Responsibility for the Standalone Financial Statements

The Company’s Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India includ-ing theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate account-ing policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards re-quire 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 andthe disclosures 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 a true and fair view in order to designaudit procedures that are appropri-ate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Company’s Directors aswell as 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 stand-alone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial state-ments give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31 March 2016 and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the Annexure ‘A’ a statement on the mattersspecified in the paragraph 3 and 4 of the Order to the extent applicable.

2. As required by Section 143 (3) of the Act we report that:

(a) we have sought and obtained all the information and explanations which to the 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 it appears from our examina- tion of those books;

(c) 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;

(d) in our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014 and presented as per the requirements of Regulation -33of SEBI (Listing obligations and disclosure requirements ) Regulation 2015.

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

(f) with respect to the adequacy of the internal financial controls over financialreporting of the Company and the opening effective- ness of such controls refer to ourseparate Report in " Annexure B"

(g) with respect to the other matters to be included in the Auditor’s 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:

i. the Company has disclosed the impact of pending litigations on its financialposition in its financial statements Refer Note 28(b) to the financial statements;

ii. There were no material foreseeable losses if any on long-term contracts includinglong- term derivative contracts therefore the requirement for making any provision doesnot arise.

iii. There has been no event requiring any amount to be transferred to the InvestorEducation and Protection Fund by the Com- pany.

for A.PRADHAN & ASSOCIATES

Chartered Accountants

Firm’s registration number: 325131E

A.Pradhan

(Proprietor)

Membership number: 053543

Place : Kolkata

Date : 16th May 2016

Annexure ‘A’ to the Auditors’ Report

The Annexure referred to in PARA -1 our report to the members of Ashirwad Steels &Industries Ltd. for the year ended on 31st March2016.

We report that:

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed as- sets.

(b) The fixed assets have been physically verified by the management as per a phasedprogram of verification. In our opinion the frequency of is reasonable having regard tothe size of the Company and the nature of its assets. The discrepancies reported such werenot material and have been properly dealt with in the books of accounts.

(c) The title deeds of all the immovable properties (other than self constructedimmovable Properties (Building and Factory Sheds etc.) are held in the name of thecompany.

(ii) As explained to us the management has conducted physical verification of inventoryat reasonable intervals during the year wherever possible and/or required.

(iii) The requirement of clause (iii) a (iii)b and (iii)c of the order are notapplicable since no loans have been given to companies firms limited liabilitypartnerships or other parties covered under Section 189 of the Companies Act 2013.

(iv) In respect of loans given to body corporate and long term investments in equityshares (quoted and un-quoted) of companies; the provisions of section 185 and 186 of theCompanies Act 2013 have been complied with. No loan has been given to any director of thecompany.

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits within the meaning of sections 73 to 76 or any otherrelevant provisions of the Companies Act2013 and the rules framed there under.

(vi) Since the net worth of the Company is less than Rupees one hundred and fiftycrores and the turnover in respect of sponge iron is less than Rupees twenty five crorethe requirement of maintenance of cost records is not necessary as per relevant provisionscompany’s Act 2013.

(vii) (a) The company is generally regular in depositing undisputed statutory duesincluding Staff Provident Fund Employees’ State Insurance Income Tax VAT CSTService Tax Excise Duty Cess duty of customs and other material statutory dues asapplicable to it. There were certain delays in depositing the ESI dues as online system ofthe ESI Department was malfunctioning. However these dues were paid in the currentfinancial year 2016-2017.

(b) According to the information and explanations given to us the following taxes werenot deposited as the same were disputed in appeal at the end of the financial year ended31.03.2016 :

Particulars Disputed/ demanded Amount (Rs.) Forum where dispute is pending in appeal As on 31.03.2016
(i) Asst. Yr. 2008-09 149196 C.I.T. (Appeals)-C-III Kolkata ‘s order is passed but appeal effect of the said order is pending
ii) CENVAT on Capital Goods(Net of payment) 1214662 Central Excise and Service Tax Appellate Tribunal Bangalore (CESTAT)
iii) VAT(Year 2011-12) 1142854 Joint Commissioner (Appeals)Commercial Tax Department Jamshedpur.
(Year 2012-13) 1707612

(c ) In our opinion there is no amount required to be transferred to Investor educationand protection fund in accordance with the relevant provisions of the Companies Act2013and rules framed there under.

(viii) According to the information’s and explanations given to us and the recordsexamined by us the Company has not defaulted in repayment of dues to banks any financialinstitutions government or dues to debenture holders . The company has not accepted anyfund on account of issue of debentures.

(ix) During the year no amount was raised by way of initial public offer or furtherpublic offer (including debt instruments) and term loans.

(x) According to the information’s and explanations given to us no fraud on or bythe Company by its officers or employees has been noticed or reported during the year.

(xi) During the year there was no Director’s managerial remuneration paid orprovided in the accounts. The Managing Director of the com- pany is eligible forremuneration as per the provisions of section 197 of the Companies Act2013 read withschedule –v . However the Managing Director has voluntarily foregone the remunerationin view of continued closure of company’s manufacturing units.

(xii) The company is not a Nidhi Company and therefore clause (xii) of the order is notapplicable to the company.

(xiii) There were no transactions with the related parties during the year as definedunder provision of section 177 and 188 of the Com- panies Act2013. Hence no disclosureunder AS- 18 and section 133 of the said Act read with Rule – 7 of the Companies(Accounts) Rules2014 is required.

(xiv) During the year the company has not made any preferential allotment or privateplacement of shares or fully convertible deben- tures.

(xv) During the year company has not entered into any non-cash transaction withdirectors or person connected with him.

(xvi) The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For A. Pradhan & Associates
Chartered Accountants
Firm’s registration number: 325131E
Place : 28B Kalidas Patitundi Lane A. Pradhan
Kolkata -700026 (Proprietor)
Date: 16th May 2016. Membership number: 053543

"Annexure B" to the Independent Auditor’s Report of even date on theFinancial Statements of Ashirwad Steels & Industries Limited

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 AshirwadSteels & Industries Limited ("the Company") as of March 31 2016 inconjunction with our audit of the financial statements of the Company for the yearended on that date.

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 include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company’s policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required 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 Com-pany’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 reli-ability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted ac-counting principles. A company’s internal financial controlover financial 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 regardingpreven-tion 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 March 31 2016 based on "the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance

Note on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India".

For A PRADHAN & ASSOCIATES

Chartered Accountants

(A. Pradhan)

Proprietor

Membership Number : 053543

FRN : 325131E

Place : Kolkata

Date :16th May 2016.

Auditor’s Report on Quarterly Financial Results and Year to Date Results of theCompany Pursuant to the Regulation 33 of the SEBI (Listing Obligations and DisclosureRequirements) Regulations 2015 for the Financial Year ended on 31st March 2016.

To

The Board of Directors of

Ashirwad steels & Industries Limited

6 Waterloo Street

Kolkata – 700 069.

1. We have audited the quarterly financial results of Ashirwad Steels & IndustriesLimited (‘the Company) for the quarter ended March 31 2016 and the financial resultsfor the year ended March 31 2016 attached herewith being submitted by the Companypursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations andDisclosure Requirements) Regulations 2015. The quarterly financial results are thederived figures between the audited figures in respect of the year ended March 31 2016and the published year-to-date figures up to December 31 2015 being the date of the endof the third quarter of the current financial year which were subjected to a limitedreview. The financial results for the quarter ended March 31 2016 have been prepared onthe basis of the financial results for the nine-month period ended December 31 2015 theaudited annual financial statements as at and for the year ended March 31 2016 and therelevant requirements of Regulation 33 of the SEBI (Listing Obligations and DisclosureRequirements) Regulations 2015 and are the responsibility of the Company’smanagement and have been approved by the Board of Directors of the Company. Ourresponsibility is to express an opinion on these financial results based on our review ofthe financial results for the nine-month period ended December 31 2015 which was preparedin accordance with the recognition and measurement principles laid down in AccountingStandard (AS) 25 Interim Financial Reporting specified under the Section 133 of theCompanies Act 2013 read with relevant rules issued there under and other accountingprinciples generally accepted in India our audit of the annual finan -cial statements asat and for the year ended March 31 2016; and the relevant requirements of Regulation 33of the SEBI (Listing

Obligations and Disclosure Requirements) Regulations 2015.

2. We conducted our audit in accordance with the auditing standards generally acceptedin India. Those Standards require that we plan and perform the audit to obtain reasonableassurance about whether the financial results are free from material misstatements. Anaudit includes examining on a test basis evidence supporting the amounts disclosed asfinancial results. An audit includes assess-ing the accounting principles used andsignificant estimates made by management. We believe that our audit provides a reasonablebasis for our opinion.

3. In our opinion and to the best of our information and according to the explanationsgiven to us these quarterly financial results as well as the year to date results :

i. Are presented in accordance with the requirements of Regulation 33 of the SEBI(Listing Obligations and Disclosure Require- ments) Regulations 2015; and

ii. give a true and fair view of the net loss and other financial informations for thequarter ended March 31 2016 and net profit for the Financial year ended March 31 2016.

4. Further read with paragraph 1 above we report that the figures for the quarterended March 31 2016 represent the derived figures between the audited figures in respectof the financial year ended March 2016 and the published year-to-date figures up toDecem- ber 31 2015 being the date of the end of the third quarter of current financialyear which were subjected to a limited review as stated in Paragraph 1 above as requiredunder Regulation 33 of the SEBI Listing Obligations and Disclosure Requirements)Regulations 2015.

For A PRADHAN & ASSOCIATES

Chartered Accountants

(A. Pradhan)

Proprietor

Membership Number : 053543

FRN : 325131E

Place : Kolkata

Date :16th May 2016.