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Balasore Alloys Ltd.

BSE: 513142 Sector: Metals & Mining
NSE: ISPATALLOY ISIN Code: INE135A01024
BSE LIVE 15:53 | 08 Dec 48.25 0.25
(0.52%)
OPEN

49.70

HIGH

49.70

LOW

47.20

NSE LIVE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 49.70
PREVIOUS CLOSE 48.00
VOLUME 130489
52-Week high 52.70
52-Week low 14.65
P/E 17.87
Mkt Cap.(Rs cr) 380.69
Buy Price 48.25
Buy Qty 112.00
Sell Price 0.00
Sell Qty 0.00
OPEN 49.70
CLOSE 48.00
VOLUME 130489
52-Week high 52.70
52-Week low 14.65
P/E 17.87
Mkt Cap.(Rs cr) 380.69
Buy Price 48.25
Buy Qty 112.00
Sell Price 0.00
Sell Qty 0.00

Balasore Alloys Ltd. (ISPATALLOY) - Auditors Report

Company auditors report

TO THE MEMBERS OF BALASORE ALLOYS LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of BALASORE ALLOYSLIMITED (“the Company”) which comprise the Balance Sheet as at 31st March2015 the Statement of Profit and Loss and the Cash Flow Statement for the year thenended and a summary of the 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 preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under section 133 of the Act read with rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provision of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofthe appropriate accounting policies; making judgements and estimates that are reasonableand prudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue 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 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 the auditor'sjudgement including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders 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 but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by the Company's Directors as well as evaluating theoverall 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 standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements 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 31st March 2015 and its profit and its cash flows for the year ended on that date.

Emphasis of Matter

We draw attention to Note 32 to the financial statements regarding demand by NorthEastern Electrcity Supply Company of Orrisa Limited (NESCO) towards revocation of thewaiver of dues granted under a settlement in earlier years.

North Eastern Electricity Supply Company of Orissa Limited (NESCO) has raised totalclaim for Rs. 16699.05 Lacs as at 31st March 2015 (Rs.15769.65 Lacs as at 31st March2014) (including delayed payment surcharge) towards revocation of the waiver of duesgranted under a settlement in an earlier year net of Rs 3400 lacs already paid andprovided in respective year of payment as a matter of prudence by the Company. The matterof revocation of settlement is pending with Honorable High Court of Orissa. Pendingoutcome of the court decision and based on discussion with Company's legal counsel noprovision has been made towards above demand.

Our Opinion is not qualified in respect of the same.

Report on other legal and regulatory requirements

1. As required by the Companies (Auditor's Report) Order 2015 (“the Order”)issued by the Central Government of India in terms of Section 143 (11) of the Act we givein the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order.

2. As required under provisions of 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.

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.

e) There are no observations and comments on the financial transactions accountedduring the year by the company or matters which have any adverse effect on the functioningof the Company.

f) On the basis of the written representations received from the directors as on 31stMarch 2015 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2015 from being appointed as a director in terms ofsection 164(2) of the Act.

g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rules 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 as referred to in Note 26 and Note 29 to 32 to thefinancial statements.

ii. The Company did not have any long term contracts including derivative contractsthat require provision under any law or accounting standards for which there were anymaterial foreseeable losses.

iii. There were no amounts which were required to be transferred to the investorEducation and Protection fund by the Company.

For Chaturvedi & Shah
Chartered Accountants
Firm registration number: 101720W
Amit Chaturvedi
Place : Kolkata Partner
Date : May 27 2015 Membership No. 103141

Annexure to Independent Auditors' Report Referred to in Paragraph 1 under the headingof “report on other legal and regulatory requirements” of our report of evendate

i) In respect of its fixed assets:

a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b) As explained to us fixed assets have been physically verified by the management ina phased periodical manner as per regular program of verification which in our opinion isreasonable having regard to the size of the Company and nature of its assets. No materialdiscrepancies were noticed on such physical verification.

ii) In respect of its inventories:

a) The inventories have been physically verified during the year by the management. Inour opinion the frequency of verification is reasonable.

b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.

c) The Company has maintained proper records of inventories. As explained to us therewere no material discrepancies noticed on physical verification of inventories as comparedto the book records.

iii) In respect of the loans secured or unsecured the Company has granted interestbearing loan to one company covered in the register maintained under Section 189 of theAct. In respect of the said loan Maximum amount outstanding at any time during the yearand year-end balance is Rs 1917 Lacs.

a) The Principal and Interest amount will be paid as per the terms stipulated. e) Inrespect of the said loan there are no overdue amounts at the end of the year.

iv) In our opinion and according to the information and explanations given to us thereis an adequate internal control system commensurate with the size of the Company and thenature of its business for the purchases of inventory and fixed assets and for the sale ofgoods. During the course of our audit we have not observed any continuing failure tocorrect major weaknesses in such internal control system.

v) According to the information and explanations given to us the Company has notaccepted any deposit within the meaning of provisions of sections 73 to 76 or any otherrelevant provisions of the Act and the rules framed thereunder. Therefore the provisionsof clause (v) of paragraph 3 of the Order are not applicable to the Company.

vi) We have broadly reviewed the cost records maintained by the Company as prescribedby the Central Government under subsection (1) of section 148 of the Act and are of theopinion that prima facie the prescribed cost records have been maintained. We havehowever not made a detailed examination of the cost records with a view to determinewhether they are accurate or complete.

vii) In respect of statutory dues:

a) According to the records of the Company undisputed statutory dues includingProvident Fund Employees' State Insurance Income-Tax Sales Tax Wealth Tax ServiceTax Customs Duty Excise Duty Value Added Tax Cess and any other statutory dues havebeen regularly deposited with the appropriate authorities except Income-Tax service taxand excise duty. According to the information and explanations given to us undisputedamounts in respect of the Statutory dues referred above outstanding as at 31st March 2015 for a period of more than six months from the date they became payable are as under:

Nature of Dues Amount (Rs in Lacs) Period to which amount Relates
Income Tax 1940.05 AY 2014-15
Income Tax(Advance Tax) 862.95 AY 2015-16
Total 2803.00

b) The disputed statutory dues aggregating Rs 1471.12 Lacs that have not beendeposited on account of disputed matters pending before appropriate authorities are asunder:

Sl. No. Name of the statute Nature of the Dues Amount (Rs in Lacs) Period to which the amount relates Forum where dispute is pending
1. Income Tax Act 1961 Income Tax (including interest) 31.84 2012-13 Commissioner of Income Tax (Appeal)
2. Central Sales Tax Act 1956 Sales Tax/VAT (including interest and Penalty) 10.97 1996-97 Orissa High Court Cuttack
and Orissa Sales Tax Act 70.92 1997-98 Sales Tax Appellate Tribunal
2.89 1994-97& 2011-12 Additional Commissioner
437.97 2007-2009 & 2010-2013 Orissa High Court Cuttack
3. Entry Tax Act 1999 Entry Tax 98.86 2009-10 & 2011-12 Additional Commissioner
92.96 2007-2009 & 2010-2013 Orissa High Court Cuttack
4. Central Excise Act 1944 Excise Duty (including interest) 43.56 2010-2013 Commissioner Appeals
7.89 2011-12 Commissioner Appeals
5. Chapter V of Finance Act 1994 Service Tax 6.80 2005-2007 Orissa High Court Cuttack
666.46 1996-1998 & 2004-2012 Central Excise & Service Tax Appellate Tribunal
Total 1471.12

c. There were no amounts which were required to be transferred to the InvestorEducation and protection fund in accordance with the relevant provision of the CompaniesAct 1956 and rules made thereunder.

viii) The Company has no accumulated losses at the end of the financial year and it hasnot incurred cash losses in the current year and immediately preceding financial year.

ix) Based on our audit procedures and as per the information and explanations given tous we are of the opinion that the Company has not defaulted in repayment of dues to banksand debenture holders. The Company has not borrowed any funds from financial institutionsduring the year under audit.

x) According to information and explanation given to us the Company has not given anyguarantee for loans taken by others from bank or financial institutions. Therefore theprovisions of clause (x) of paragraph 3 of the Order are not applicable to the Company.

xi) The term loans were applied for the purpose for which the loans were raised.

xii) In our opinion and according to the information and explanations given to us nomaterial fraud on or by the Company has been noticed or reported during the year.

For Chaturvedi & Shah
Chartered Accountants
Firm registration number: 101720W
Amit Chaturvedi
Place : Kolkata Partner
Date : May 27 2015 Membership No. 103141

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