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Bajaj Steel Industries Ltd.

BSE: 507944 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE704G01016
BSE 15:40 | 19 Jan 208.05 4.90
(2.41%)
OPEN

204.00

HIGH

209.00

LOW

197.10

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 204.00
PREVIOUS CLOSE 203.15
VOLUME 1309
52-Week high 257.80
52-Week low 117.50
P/E
Mkt Cap.(Rs cr) 49
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 204.00
CLOSE 203.15
VOLUME 1309
52-Week high 257.80
52-Week low 117.50
P/E
Mkt Cap.(Rs cr) 49
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Bajaj Steel Industries Ltd. (BAJAJSTEELINDS) - Auditors Report

Company auditors report

To the Members of M/s Bajaj Steel Industries Limited Report on the Standalone FinancialStatements

We have audited the accompanying standalone financial statements of M/s BAJAJ STEELINDUSTRIES LIMITED(the Company) which comprise the balance sheet as at 31 March 2017 thestatement of profit and loss and the cash flow statement for the year then ended and asummary of significant accounting policies and other explanatory information.

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 including 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 accounting 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 accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions 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 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 andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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 standalone financial statements.

Basis of Qualified Opinion

The company is not disclosing the information required under micro small and mediumEnterprises Development Act 2006 [Note 28 (5)] and expenditure towards Corporate SocialResponsibility has not been incurred as required u/s 135 of the Companies Act 2013.[Note28(8)].

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of matter described in the Basis of Qualified Opinionparagraph the aforesaid standalone financial statements give the information required bythe 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 2017 and its profit and its cash flows for the year ended on that date.

Emphasis of Matter

In view of the management's opinion no provisioning for impairment of assets isrequired to be done in respect of the company's investment in its wholly owned subsidiaryM/s Bajaj Coneagle LLC USA amounting to USD 1668000 (equivalent to Rs.10.26 crs). [ReferNote 28(6b)]

Our opinion is not modified in respect of the said matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure A a statement on the matters specified in the paragraph3 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 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 examination 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) the company has provided requisite disclosure in its financial statement as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016 and such disclosure are in accordance with the books ofaccounts maintained by the company;

(e) 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;

(f) on the basis of the written representations received from the directors as on 31March 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2017 from being appointed as a director in terms of Section164 (2) of the Act;

(g) 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"; and

(h) 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 financial statements has to the extent ascertainable disclosed the impact ofpending litigations on the consolidated financial position of the Company - Refer Note28(2) to the financial statements; ;

ii. the Company does not have any material foreseeable losses on long term contractsincluding derivative contracts which would impact its financial position;

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

Place: Nagpur For B. CHHAWCHHARIA & CO.
Date: 27th May 2017. Firm Registration No.305123E
Chartered Accountants
Ketan Chhawchharia
Partner
Membership No. 63422

ANNEXURE - A TO THE AUDITORS' REPORT

The Annexure referred to in Independent Auditors' Report to the members of the

Company on the standalone financial statements for the year ended 31 March 2017

we report that:

(i) (a) Proper records showing full particulars including quantitative details and

situation of fixed assets are being updated by the company.

(b) According to the information and explanation given to us all the fixed assetsincluding capital work in progress have not been physically verified by the managementduring the year but there is a regular program of verification which in our opinion isreasonable having regard to the size of the company and nature of its assets. Asexplained no material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

(ii) According to the information and explanations given to us the management hasconducted physical verification of inventory at reasonable intervals during the yearwhich in our opinion is reasonable having regard to the size of the company and natureof its business. No material discrepancies were noticed on such verification.

(iii) The Company has not granted any loan secured or unsecured to companies firms orparties covered in the register maintained u/s 189 of the Companies Act 2013.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Companies Act 2013in respect of loans investments guarantees and securities made by the company.

(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 of theCompanies Act 2013 and the Companies (Acceptance of Deposits) Rules 2014 (as amended).

(vi) As certified by a Cost Accountant the Company has maintained Cost records for theyear under review as prescribed under sub section (1) of section 148 of the CompaniesAct 2013 to the extent applicable to the Company. We have however not made a detailedexamination of such records.

(vii) (a) According to the records of the company the company is generally regular

in depositing with appropriate authorities undisputed statutory dues includingprovident fund employees' state insurance income-tax sales- tax wealth tax servicetax duty of customs duty of excise value added tax cess and other material statutorydues as applicable and no such statutory dues were outstanding as at the last day of thefinancial year under review for a period of more than six months from the date they becamepayable.

(b) According to the information and explanations given to us there are no dues ofincome-tax sales-tax wealth tax service tax duty of customs duty of excise valueadded tax and cess as applicable which have not been deposited on account of any disputeexcept as detailed in Annexure-I.

(viii) In our opinion and according to the information and explanations given to usthe Term loans have been applied for the purpose for which they were obtained.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year under review.

(x) According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees have been noticed or reportedduring the year.

(xi) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi company.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act and the details of such transactions havebeen disclosed in the financial statements as required by the applicable accountingstandards.

(xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him.

(xvi) In our opinion the Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934.

Place : Nagpur For B. CHHAWCHHARIA & CO.
Date: 27th May 2017 Firm Registration No.305123E
Chartered Accountants
Ketan Chhawchharia
Partner
Membership No. 63422

Annexure 1 as referred in clause [vii (b)] of the Annexure to our Report of even datefor the year ended 31st March 2017

Name of the Statute Nature of the Dues Amount (lacs) Relating to the year Forum where dispute Pending
Central Sales Tax Act 1956 Non submission of Forms 2.16 2001 -2002 Maharashtra Sales Tax Tribunal (Mumbai)
Central Sales Tax Act 1956 Non submission of Forms 1.83 2002-2003 Maharashtra Sales Tax Tribunal (Mumbai)
Central Sales Tax Act 1956 Non submission of Forms 7.09 2003-2004 Deputy Commissioner Sales Tax Nagpur
Bombay Sales Tax Act 1956 Non submission of Forms 2.75 2003-2004 Deputy Commissioner Sales Tax Nagpur
Central Excise Act 1944 Duty on material cleared after Job Work 0.43 Oct-03 to Apr-2004 Assistant Commissioner Chindwara
The Customs Act 1962 Duty and Penalty on import of material 136.60 2002 -2003 &. 2003-2004 High Court Mumbai
Madhya Pradesh Commercial Tax Act 1994 Demand on regular assessment 0.27 2002-2003 Assistant Commissioner Commercial Tax
Madhya Pradesh Entry Tax Act 1976 Entry Tax on Stock transferd goods. 0.38 2010-2011 Deputy Commissioner Commercial Tax (Appeal) Chindwara
Central Excise Act 1944 Non payment of Excuse duty on HydrolicOil. 89.36 May 2009 to Oct 2014 The Additional Commissioner of Central Excise Custom & Service Tax Ngp-1
Central Sales Tax Act 1956 Non submission of Forms 0.54 2006-2007 Deputy Commissioner Commercial Tax (Appeal) Chindwara

ANNEXURE - B TO THE AUDITORS' REPORT

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 BajajSteel Industries Limited ("the Company") as of 31 March 2017 in conjunction withour audit 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 (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation 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 judgment 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 controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures 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 31 March 2017 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.

Place: Nagpur For B. CHHAWCHHARIA & CO.
Date: 27th May 2017. Firm Registration No.305123E
Chartered Accountants
Ketan Chhawchharia
Partner
Membership No. 63422