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Deepti Alloy Steel Ltd.

BSE: 539455 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE360S01012
BSE LIVE 15:27 | 21 Sep 26.50 0
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NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 26.50
PREVIOUS CLOSE 26.50
VOLUME 5200
52-Week high 27.55
52-Week low 17.50
P/E 46.49
Mkt Cap.(Rs cr) 10
Buy Price 26.50
Buy Qty 50.00
Sell Price 0.00
Sell Qty 0.00
OPEN 26.50
CLOSE 26.50
VOLUME 5200
52-Week high 27.55
52-Week low 17.50
P/E 46.49
Mkt Cap.(Rs cr) 10
Buy Price 26.50
Buy Qty 50.00
Sell Price 0.00
Sell Qty 0.00

Deepti Alloy Steel Ltd. (DEEPTIALLOY) - Auditors Report

Company auditors report

TO

The Members of DEEPTI ALLOY STEEL LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of DEEPTI ALLOY STEEL LIMITED ("theCompany") which comprise the Balance Sheet as at 31/03/2016 the Statement ofProfit and Loss the cash flow statement for the year then ended and a summary ofthe 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 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 position financial 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 of 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.

Auditor's Responsibility

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 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 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 the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements.

Because of the matter described in the Basis for Disclaimer of Opinion paragraphhowever we were not able to obtain sufficient appropriate audit evidence to provide abasis for an audit opinion.

Basis of Disclaimer of Opinion

We would like to draw attention to the fact that we have been appointed as auditors ofthe Company after March 31 2016 accordingly we were unable to satisfy ourselves byalternative means concerning the cash held at March31 2016 and March 312015 which arestated in the Balance Sheet.

In addition the introduction of a new computerized accounting system has resulted indata corruption and resulted in numerous errors in accounts receivable/payable in thebooks of the company. As of the date of our audit report Management was still in theprocess of rectifying the system deficiencies and correcting the errors. We were unable toconfirm or verify by alternative means accounts receivable/payable included in the BalanceSheet as at March 312016.

As a result of these matters we were unable to determine whether any adjustments mighthave been found necessary in respect of recorded or unrecorded transactions and accountsreceivable/payable in the Balance Sheet and the corresponding elements making up theStatement of Profit and Loss and Cash Flow statement.

In relation to the company we have not been able to verify the transactionai documentsrelating the sale of fixed assets further the account with HDFC bank has been ceased bythe commercial tax department and therefore account statement of the same has not beenavailable therefore we are unable to determine whether any adjustments might have beenfound necessary in respect of recorded or unrecorded transaction with respect to suchtransaction.

The financial statements does not comply with the method of depreciation as specifiedin Schedule II of Companies Act 2013 and continued the method of depreciation as per theprevious provisions of companies Act 1956.

Opinion:

Because of the significance of the matters described in the Basis for Disclaimer ofOpinion paragraph we have not been able to obtain sufficient appropriate audit evidenceto provide a basis for an audit opinion on those matters. Accordingly we do not expressan opinion relating to those portions of on the financial statements Subject to the itemsspecified in above paragraph in our opinion and to the best of our information andaccording to the explanations given to us these financial statements are true and fair.;

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditors' Report) Order2016("the Order")issued by the Central Government of India in terms of sub section (11) of section 143 ofthe Companies Act 2013. We give in the Annexure A statements on the matters specified inparagraphs 3 and 4 of the order to the extent applicable.

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 and the cash flowstatement dealt with by this Report are in agreement with the books of account.

(d) 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. Except as specified in basis of disclaimer paragraph.

(e) On the basis of the written representations received from the directors as on 31/03/2016taken on record by the Board of Directors none of the directors is disqualified as 31/03/2016from 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 operating effectiveness 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.

ii. The Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses.

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

For Marmik G. Shah & Associates
Chartered Accountant
Firm Reg. No. :135024W
CA KENAN SATYAWADI
Place: Ahmedabad Partner
Date: May 31 2016 Membership No. 139533

"Annexure B" to the Independent Auditor's Report of even date on theStandalone Financial Statements of DEEPTI ALLOY STEEL LIMITED Company 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 DEEPTIALLOY STEEL LIMITED Company Limited by shares ("The Company") as of March 312016 in conjunction with our audit of the standalone financial statements of the Companyfor the year ended on that date.

Management's Responsibility for eternal 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 includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe 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 amount the adequacyof the internal financial control system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reportingassessing the risk that a material weakness exists and operating effectiveness ofinternal control based on the assessed risk. The procedures selected depend upon on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial 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 authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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 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 issues by the Institute of CharteredAccountants of India.

For Marmik G. Shah & Associates
Chartered Accountant
Firm Reg. No. :135024W
CA KENAN SATYAWADI
Place: Ahmedabad Partner
Date: May 31 2016 Membership No. 139533

Reports under The Companies (Auditor's Report) Order 2016 (CARO 2016) for the yearended on 31st March 2016

To

The Members of DEEPTI ALLOY STEEL LIMITED

1. In Respect of Fixed Assets

a) The Company has sold all the fixed assets during the year however we have not beenprovided with the documents to verify the transactional documents relating the sale offixed assets sold by the company. As on 31st March 2016 Fixed assets in the books ofaccounts stands at value NIL. No other records are maintained considering all assets aresold.

b) As represented by the management they have verified all the assets before being soldduring the year. As the assets were sold off during the year no further physicalverification was required.

c) As on the balance sheet date there are no assets in the books of account of thecompany and therefore verification of the title deeds for the property is not required.

2. In Respect of Inventories

As represented by the management the physical verification of the inventory wasconducted from time to time however the company does not keep major stock on hand beingin trading business. As represented by management no discrepancies were found.

3. Compliance under section 189 of The Companies Act 2013

The company has not granted any loans secured or unsecured to companies firms orother parties covered in the register maintained u/s 189 of the companies Act-2013. Andtherefore the issues relating to section 189 have not been commented upon by us.

a) N.A.

b) N.A.

c) N.A.

4. Compliance under section 185 and 186 of The Companies Act 2013

As per the records provided to us the company has not provided any loans and advances

5. Compliance under section 73 to 76 of The Companies Act 2013 and Rules framedthereunder while accepting Deposits

The company has not accepted any Deposits therefore this issue is not applicable.

6. Maintenance of cost records

The Company is not required to maintain cost records pursuant to the Rules made by theCentral Government for the maintenance of cost records under sub-section (1) of section148 of the Companies Act 2013.

7. Deposit of Statutory Dues

a) According to the information and explanations given to us undisputed dues inrespect of provident fund investor education and protection fund employees stateinsurance income tax sales tax wealth tax service tax customs duty excise duty cessand other statutory dues which were outstanding at the year end for a period of more thansix months from the date they became payable are as follows:

VAT Payable : 581167

Provision for Taxation :226050

b) As informed to us by the management there is no dispute with the revenue authoritiesfor the taxses. However the sales tax department has ceased the bank account with HDFCbank for the recovery of the amount payable.

8. Repayment of Loans and Borrowings

Based on our audit procedures and as per 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 of debenture holders.

9. Utilization of Money Raised by Public Offers and Term Loan For which they Raised

The company has not raised any money by way of initial public offer or further publicoffer {including debt instruments) and term loans. Hence this clause is not applicable.

10. Reporting of Fraud During the Year

Based on our audit procedures and the information and explanation made available to usand subject to details given in our audit report no such fraud noticed or reported duringthe year.

11. Managerial Remuneration

The Company has not provided for any Managerial Remuneration for the year.

12. Compliance by Nidhi Company Regarding Net Owned Fund to Deposits Ratio As perinformation and records available with us The company is not Nidhi Company.

13. Related party compliance with Section 177 and 188 of companies Act - 2013

Yes All transactions with the related parties are in compliance with section 177 and188 of Companies Act 2013 where applicable and the details have been disclosed in theFinancial Statements etc. as required by the applicable accounting standards.

14. Compliance under section 42 of Companies Act - 2013 regarding Private placement ofShares or Debentures

The company has not made any private placement during the year and therefore thisclause is not applicable.

15. Compliance under section 192 of Companies Act - 2013

company has not entered into any non-cash transactions with directors or personsconnected with him.

16. Requirement of Registration under 45-IA of Reserve Bank of India Act 1934

The company is not required to be registered under section 45-IA of the Reserve Bank ofIndia Act.

For Marmik G. Shah & Associates
Chartered Accountant
Firm Reg. No. :135024W
CA KENAN SATYAWADI
Place: Ahmedabad Partner
Date: May 31 2016 Membership No. 139533