To the Members of
Bothra Metals and Alloys Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Bothra Metals and AlloysLimited ("the Company") which comprise the Balance Sheet as at March 312016 the Statement of Profit and Loss the Cash Flow Statement for the year then endedand a summary of significant 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) ofthe 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.
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 accordancewith the Standards on Auditing specified under section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement. An audit involves performing procedures to obtain audit evidence about theamounts and 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 true and fair view in order to design audit procedures thatare appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating the overall presentation ofthe financial statements. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the financialstatements.
In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India: a) in the case of the Balance Sheet of the stateof affairs of the Company as at March 31 2016; b) in the case of the Statement of Profitand Loss of the loss for the year ended on that date; and c) in the case of theCash Flow Statement of the 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 2015 ("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 statement on the matters specified in paragraphs 3 and4 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 purpose 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 SheetStatement of Profit and Loss and Cash Flow Statement dealt with by this Report are inagreement with the books of account. d) In our opinion the aforesaid financial statementscomply with the Accounting Standards specified under Section 133 of the Act read withRule 7 of the Companies (Accounts) Rules 2014;
e) On the basis of written representations received from the directors as on 31 March2016 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2016 from being appointed as a director in terms of Section 164(2) of theAct;
f) With respect to the other matters to be included in Auditors Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest of our information and according to explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements Refer note no. -28 to the financial statements;
ii. The Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses;
iii. The Company was not required to transfer any amount to Investor Education andProtection Fund.
ANNEXURE TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 1 under Report on Other Legal and RegulatoryRequirements of our report of even date)
On the basis of such checks as we considered appropriate and according to theinformation and explanation given to us during the course of our audit we report that:
1. (a) The company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.
(b) As explained to us fixed assets have not been physically verified by themanagement. However the Company has a program of verification of fixed assets to coverall items in a phased manner which in our opinion is reasonable having regard to thesize of the Company and the nature of its assets
2. (a) As explained to us inventories have been physically verified during the year bythe management at reasonable intervals.
(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) In our opinion and on the basis of our examination of the records the Company isgenerally maintaining proper records of its inventories. No material discrepancy wasnoticed on physical verification of stocks by the management as compared to book records.
3. The Company has not granted any loans secured or unsecured to Companies Firms orother parties covered in the Register maintained under Section 189 of the Act.
4. In our opinion and according to the information and explanations given to us thereis generally an adequate internal control system commensurate with the size of the companyand the nature of its business for the purchase of inventories & fixed assets andpayment for expenses & for sale of goods. During the course of our audit no majorinstance of continuing failure to correct any weaknesses in the internal controlshas been noticed.
5. The Company has not accepted any deposits from public during the year.
6. We have broadly reviewed the books of account maintained by the Company in respectof products where pursuant to the rules made by the Central Government for the maintenanceof cost records under section 148(1) of the Companies Act 2013 and are of the opinionthat prima facie the prescribed accounts and records have been maintained. We are notrequired to carry out and have not carried out a detailed examination of the records witha view to determine whether they are accurate or complete.
7. (a) According to the records of the company undisputed statutory dues includingProvident Fund Investor Education and Protection Fund Employees' State InsuranceIncome-tax Sales-tax Wealth Tax Service Tax Custom Duty Excise Duty cess to theextent applicable and any other statutory dues have generally been regularly depositedwith the appropriate authorities.
(b) According to the information and explanations given to us there were no outstandingstatutory dues as on 31st of March 2016 for a period of more than six monthsfrom the date they became payable except for the following :
|Nature of Statutory Dues ||Amount Involved |
|Service Tax on Director Seating Fees ||Rs. 1450/- |
|Entry Tax ||Rs. 705/- |
(c) According to the information and explanations given to us there is no amountspayable in respect of income tax wealth tax service tax sales tax customs duty andexcise duty which have not been deposited on account of any disputes.
8. The Company does not have any accumulated loss but the company has suffered a lossof Rs.144675546/- for the financial year covered by our audit.
9. Based on our audit procedures and on the information and explanations given by themanagement we are of the opinion that the Company has not defaulted in repayment of duesto a financial institution bank or debenture holders except for the following:-
|SR NO. ||NATURE OF FACILITY ||LIMIT ||OUTSTANDING LIABILITY AS ON 31.03.2016 ||OUTSTANDING FROM |
|1 ||Cash Credit ||220000000/- ||410548312/- ||03.12.2015 |
|2 ||L.C/L.O.U ||235000000/- ||37538262/- ||03.12.2015 |
|3 ||Term Loan ||22100000/- ||10817288/- ||03.12.2015 |
| ||TOTAL ||477100000/- ||458903862/- || |
10. According to the information and explanations given to us the Company has notgiven any guarantees for loan taken by others from a bank or financial institution.
11. Based on our audit procedures and on the information given by the management termloans have been applied for the purpose for which they were raised.
12. Based on the audit procedures performed and the information and explanations givento us we report that no fraud on or by the Company has been noticed or reported duringthe year.
For SSRV & Associates
(CA Satyendra S. Sahu)
M No. 126823