TO THE MEMBERS OF ESS DEE ALUMINIUM LIMITED
1. Report on the Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Ess DeeAluminium Limited ("the Company") which comprise the Balance Sheet as atMarch 31 2017 the Statement of Profit and Loss (including Other Comprehensive Income)the Cash Flow Statement and the Statement of Changes in Equity for the year then endedand a summary of significant accounting policies and other explanatory information.
2. 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 standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance (including other comprehensive income) cashflows and changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards specified in theCompanies (Indian Accounting Standards) Rules 2015 (as amended) under section 133 of theAct. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Ind AS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
3. Auditor's Responsibility
3.1 Our responsibility is to express an opinion on these Ind AS standalone financialstatements based on our audit.
3.2 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.
3.3 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 Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the standalone Ind AS financial statements. The procedures selected dependon the auditor's judgment including the assessment of the risks of material misstatementof the Ind AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by Company's Directors as well as evaluating the overallpresentation of the Ind AS financial statements.
3.4 We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the Ind AS financial statements.
4. Opinion
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at March 31 2017 and its loss (including other comprehensive income) itscash flows and its changes in equity for the year ended on that date.
5. Emphasis of Matter
We refer to NoteNo. 2.1 to the standalone Ind AS financial statements of the Companyregarding the preparation of the financial statements by the Company based on themanagement's assumption of going concern based on the facts mentioned therein includingthe agreement to participate in the revival of the Company by prospective investors i.e.the funds managed and / or advised by SSG Capital Management and their associates.Further SSG Capital Management has during the year through its asset reconstructionentity in India taken over the loans given by one bank and is in advanced stage ofnegotiations for similar restructuring / settling loans of other banks and lenders thoughthere exists a material uncertainty that may cast a significant doubt about the Company'sability to continue as a going concern. Our audit opinion is not modified in this regard.
Our opinion is not modified in respect of these matters.
6. Report on Other Legal and Regulatory Requirements:
(i) 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 a statement on the matters specified in the paragraph 3 and 4 of the order isgiven in Annexure A.
(ii) As required by sub section (3) of section 143 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 (including other comprehensiveincome) the Cash Flow Statement and the Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account;
(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Accounting Standards specified under section 133 of the Act read with the Companies(Indian Accounting Standards) Rules 2015.
(e) On the basis of written representations received from the Directors and taken onrecord by the Board of Directors all the directors are disqualified as on March 31 2017from being appointed as a director in terms of Section 164(2) of the Act due to failureby the Company to redeem debentures due on 31st July 2015.
(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"; and
(iii) With respect to the other matters to be included in the Auditors' 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 in its Ind AS financialstatements. Refer note no 35 of Ind AS financial statements.;
(ii) Based on the information & explanations provided to us the Companydid nothave any long term contracts including derivative contracts for which there were anymaterial foreseeable losses.
(iii) There were no delays in transferring amounts to the Investor Education andProtection Fund during the year by the Company.
(iv) The Company has provided requisite disclosures in Note no 43 in the Ind ASfinancial statements as to holdings as well as dealings in Specified Bank Notes during theperiod from November 8 2016 to December 30 2016. Based on audit procedures and relyingon the management representation we report that the disclosures are in accordance withbooks of accounts maintained by the Company and as produced to us by the management.
For M P Chitale & Co
Chartered Accountants
Firm Regn No. 101851W
Ashutosh Pednekar
Partner
ICAI M No. 41037
Place : Mumbai.
Date : May 27 2017
(Refer to in paragraph 6 (i) of our report of even date)
i) a) The Company has maintained unit wise fixed assets records and / or compiled itemwise lists showing particulars of all its fixed assets. The aggregate value shown by theserecords agrees with the gross values of fixed assets as per the books of account of theCompany. However these are not proper records showing full particulars includingquantitative details and situation of fixed assets.
b) Based on the information and explanations furnished to us the Company has notphysically verified fixed assets during the year as per its cycle of verification.Accordingly we are unable to state whether material discrepancies were noticed.
c) According to the information and explanations given to us title deeds of immovableproperties classified as fixed assets are in the name of the company.
ii) According to the information and explanations given to us due to the situation offinancial stress inventories have not been physically verified by the Management duringthe year as per its process of verification. Accordingly we are unable to state whethermaterial discrepancies were noted.
iii) a) Based on the information and explanations furnished to us we are of theopinion that the terms and conditions of unsecured loans granted to its overseassubsidiary Ess Dee Aluminium Pte Ltd. Singapore a party covered in the registermaintained u/s 189 of the Companies Act 2013 is prima facie not prejudicial to theinterest of the Company.
b) In case of the above interest free loan to the overseas subsidiary there is nostipulation regarding repayment of principal.
c) In view of the above the question of the loan and the advances being overdue doesnot arise.
iv) According to the information and explanations given to us and on the basis ofrepresentations of the management which we have relied upon the loan to the overseassubsidiary is not covered by Section 185 or Section 186 of The Companies Act 2013 andhence this clause is not applicable.
v) According to the information and explanations given to us the Company has notaccepted deposits from the public in terms of provisions of sections 73 to 76 of theCompanies Act 2013.
vi) According to the information and explanations given to us pursuant to the rulesprescribed by the Central Government for the maintenance of cost records under section148(1) of the Companies Act 2013 we have broadly reviewed the cost records and are ofthe opinion that prima facie the prescribed records have been made and maintained by theCompany.
vii) a) According to the information and explanations given to us and the records ofthe Company examined by us in our opinion undisputed statutory dues including providentfund employees' state insurance income tax sales tax service tax duty of custom dutyof excise value added tax cess have not been regularly deposited with the appropriateauthorities and there have been serious delays in a large number of cases. The extent ofthe arrears of outstanding statutory dues as on the last day of the financial yearconcerned for a period of more than six months from the date they became payable is asunder:
Statement of Arrears of Statutory Dues Outstanding for More than Six Months
| Name of the Statute | Nature of the Dues | Amount (Rs. In Lacs) | Period to Which Amount relates | Due Date | Payment Date | Remarks if any |
| EPFO | PF | 0.33 | June/15 | 15/07/2015 | Nil | |
| | 6.94 | July/15 | 15/08/2015 | Nil | |
| | 7.05 | August/15 | 15/09/2015 | Nil | |
| | 10.65 | September/15 | 15/10/2015 | Nil | |
| | 11.38 | October/15 | 15/11/2015 | Nil | |
| | 14.87 | November/15 | 15/12/2015 | Nil | |
| | 30.61 | December/15 | 15/01/2016 | Nil | |
| | 17.22 | January/16 | 15/02/2016 | Nil | |
| | 16.76 | February/16 | 15/03/2016 | Nil | |
| | 18.93 | March/16 | 15/04/2016 | Nil | |
| | 18.02 | April/16 | 15/05/2016 | Nil | |
| | 17.60 | May/16 | 15/06/2016 | Nil | |
| | 16.90 | June/16 | 15/07/2016 | Nil | |
| | 6.64 | July/16 | 15/08/2016 | Nil | |
| | 1.99 | August/16 | 15/09/2016 | Nil | |
| | 8.01 | September/16 | 15/10/2016 | Nil | |
| | 2.54 | October/16 | 15/11/2016 | Nil | |
| | 1.65 | November/16 | 15/12/2016 | Nil | |
| | 33.78 | December/16 | 15/01/2017 | Nil | |
| | 16.10 | January/17 | 15/02/2017 | Nil | |
| | 2.65 | February/17 | 15/03/2017 | Nil | |
| | 13.93 | March/17 | 15/04/2017 | Nil | |
| ESIC | ESIC | 0.60 | November/15 | 21/12/2015 | Nil | |
| | 0.46 | December/15 | 21/01/2016 | Nil | |
| | 0.47 | January/16 | 21/02/2016 | Nil | |
| | 0.44 | February/16 | 21/03/2016 | Nil | |
| | 0.59 | March/16 | 21/04/2016 | Nil | |
| | 0.15 | April/16 | 21/05/2016 | Nil | |
| | 0.16 | May/16 | 21/06/2016 | Nil | |
| | 0.15 | June/16 | 21/07/2016 | Nil | |
| | 0.03 | July/16 | 21/08/2016 | Nil | |
| | 0.04 | August/16 | 21/09/2016 | Nil | |
| | 0.29 | September/16 | 21/10/2016 | Nil | |
| | 0.03 | October/16 | 21/11/2016 | Nil | |
| | 0.03 | November/16 | 21/12/2016 | Nil | |
| | 0.28 | December/16 | 21/01/2017 | Nil | |
| | 0.07 | January/17 | 21/02/2017 | Nil | |
| | | February/17 | 21/03/2017 | Nil | |
| | 0.09 | | | | |
| | 0.15 | March/17 | 21/04/2017 | Nil | |
| ESIC | 1.92 | Various Dates | Various Due | Nil | |
| Sales Tax | Profession Tax | 0.57 | November/15 | 28/12/2015 | Nil | |
| | 0.70 | December/15 | 28/01/2016 | Nil | |
| | 0.67 | January/16 | 28/02/2016 | Nil | |
| | 0.70 | February/16 | 28/03/2016 | Nil | |
| | 0.78 | March/16 | 28/04/2016 | Nil | |
| | 0.61 | April/16 | 28/05/2016 | Nil | |
| | 0.61 | May/16 | 28/06/2016 | Nil | |
| | 0.59 | June/16 | 28/07/2016 | Nil | |
| | 0.43 | July/16 | 28/08/2016 | Nil | |
| | 0.10 | August/16 | 28/09/2016 | Nil | |
| | 1.53 | September/16 | 28/10/2016 | Nil | |
| | 0.10 | October/16 | 28/11/2016 | Nil | |
| | 0.09 | November/16 | 28/12/2016 | Nil | |
| | 0.09 | December/16 | 28/01/2017 | Nil | |
| | 0.63 | January/17 | 28/02/2017 | Nil | |
| | 0.07 | February/17 | 28/03/2017 | Nil | |
| | 0.47 | March/17 | 28/04/2017 | Nil | |
| Sales Tax | Vat | 4.40 | July/15 | Various Due | Nil | |
| | | | Dates | | |
| | 1.46 | August/15 | | Nil | |
| | 0.21 | September/15 | Nil | | |
| | 0.22 | October/15 | | Nil | |
| | 0.72 | December/15 | | Nil | |
| | 0.42 | March/16 | | Nil | |
| Sales Tax | CST | 0.05 | July/15 | Various Due | Nil | |
| | | | Dates | | |
| | 0.04 | August/15 | | Nil | |
| | 0.05 | September/15 | Nil | | |
| | 0.01 | October/15 | | Nil | |
| Income tax | TDS Contractor | 0.01 | October/15 | 07/11/2015 | Nil | |
| | 0.27 | November/15 | 07/12/2015 | Nil | |
| | 0.06 | December/15 | 07/01/2016 | Nil | |
| | 0.47 | January/16 | 07/02/2016 | Nil | |
| | 0.16 | February/16 | 07/03/2016 | Nil | |
| | 0.69 | March/16 | 07/04/2016 | Nil | |
| | 0.08 | April/16 | 07/05/2016 | Nil | |
| | 0.08 | May/16 | 07/06/2016 | Nil | |
| | 0.08 | June/16 | 07/07/2016 | Nil | |
| | 0.04 | July/16 | 07/08/2016 | Nil | |
| | 0.05 | August/16 | 07/09/2016 | Nil | |
| | 0.04 | September/16 | 07/10/2016 | Nil | |
| | 0.04 | October/16 | 07/11/2016 | Nil | |
| | 0.05 | December/16 | 07/01/2017 | Nil | |
| | 0.03 | January/17 | 07/02/2017 | Nil | |
| | 0.02 | February/17 | 07/03/2017 | Nil | |
| | 0.03 | March/17 | 07/04/2017 | Nil | |
| Income Tax | TDS Professional | 0.25 | November/15 | 07/12/2015 | Nil | |
| | 0.36 | January/16 | 07/2/2016 | Nil | |
| | 5.84 | February/16 | 07/3/2016 | Nil | |
| | 10.11 | March/16 | 07/04/2016 | Nil | |
| | 1.26 | April/16 | 07/05/2016 | Nil | |
| | 0.46 | May/16 | 07/06/2016 | Nil | |
| | 1.39 | June/16 | 07/07/2016 | Nil | |
| | 0.16 | July/16 | 07/08/2016 | Nil | |
| | 0.51 | August/16 | 07/09/2016 | Nil | |
| | 1.05 | September/16 | 07/10/2016 | Nil | |
| | 2.18 | October/16 | 07/11/2016 | Nil | |
| | 0.47 | November/16 | 07/12/2016 | Nil | |
| | 1.55 | December/16 | 07/01/2017 | Nil | |
| | 1.24 | January/17 | 07/02/2017 | Nil | |
| | 2.43 | February/17 | 07/03/2017 | Nil | |
| | 5.41 | March/17 | 07/04/2017 | Nil | |
| Income Tax | TDS Salary | 4.94 | November/15 | 07/12/2015 | Nil | |
| | 8.01 | December/15 | 07/01/2016 | Nil | |
| | 5.82 | January/16 | 07/02/2016 | Nil | |
| | 5.92 | February/16 | 07/03/2016 | Nil | |
| | 12.91 | March/16 | 07/04/2016 | Nil | |
| | 0.08 | April/16 | 07/05/2016 | Nil | |
| | 0.09 | May/16 | 07/06/2016 | Nil | |
| | 0.10 | June/16 | 07/07/2016 | Nil | |
| | 3.77 | July/16 | 07/08/2016 | Nil | |
| | 2.01 | August/16 | 07/09/2016 | Nil | |
| | 1.97 | September/16 | 07/10/2016 | Nil | |
| | 1.90 | October/16 | 07/11/2016 | Nil | |
| | 1.93 | November/16 | 07/12/2016 | Nil | |
| | 1.85 | December/16 | 07/01/2017 | Nil | |
| | 2.01 | January/17 | 07/02/2017 | Nil | |
| | 1.99 | February/17 | 07/03/2017 | Nil | |
| | 7.44 | March/17 | 07/04/2017 | Nil | |
| Income Tax | TDS Interest | 1.05 | November/15 | 07/12/2015 | Nil | |
| | 2.52 | January/16 | 07/02/2016 | Nil | |
| | 2.48 | February/16 | 07/03/2016 | Nil | |
| | 4.29 | March/16 | 07/04/2016 | Nil | |
Further the following are not paid:
Dues of Deferred Sales Tax aggregating Rs.2098.85 lacs as set out below which isOutstanding as at the end of the year:
| Period to which the amount relates | Due Date | Rs. In Lakhs |
| Quarter ended 30.09.96 | 31.10.05 | 12.98 |
| Quarter ended 31.12.96 | 31.01.06 | 25.62 |
| Quarter ended 31.03.97 | 30.04.06 | 31.45 |
| Quarter ended 30.06.97 | 31.07.06 | 29.76 |
| Quarter ended 30.09.97 | 31.10.06 | 42.45 |
| Quarter ended 31.12.97 | 31.01.07 | 51.39 |
| Quarter ended 31.03.98 | 30.04.07 | 51.58 |
| Quarter ended 30.06.98 | 31.07.07 | 33.74 |
| Quarter ended 30.09.98 | 31.10.07 | 48.82 |
| Quarter ended 31.12.98 | 31.01.08 | 41.61 |
| Quarter ended 31.03.99 | 30.04.08 | 53.02 |
| Quarter ended 30.06.99 | 31.07.08 | 65.44 |
| Quarter ended 30.09.99 | 31.10.08 | 79.66 |
| Quarter ended 31.12.99 | 31.01.09 | 89.31 |
| Quarter ended 31.03.00 | 30.04.09 | 84.82 |
| Quarter ended 30.06.00 | 31.07.09 | 68.94 |
| Quarter ended 30.09.00 | 31.10.09 | 67.52 |
| Quarter ended 31.12.00 | 31.01.10 | 71.84 |
| Quarter ended 31.03.01 | 30.04.10 | 71.55 |
| Quarter ended 30.06.01 | 31.07.10 | 76.21 |
| Quarter ended 30.09.01 | 31.10.10 | 68.58 |
| Quarter ended 31.12.01 | 31.01.11 | 56.70 |
| Quarter ended 31.03.02 | 30.04.11 | 53.37 |
| Quarter ended 30.06.02 | 31.07.11 | 59.68 |
| Quarter ended 30.09.02 | 31.10.11 | 61.58 |
| Quarter ended 31.12.02 | 31.01.12 | 45.93 |
| Quarter ended 31.03.03 | 30.04.12 | 30.45 |
| Quarter ended 30.06.03 | 31.07.12 | 35.84 |
| Quarter ended 30.09.03 | 31.10.12 | 39.05 |
| Quarter ended 31.12.03 | 31.01.13 | 39.16 |
| Quarter ended 31.03.04 | 30.04.13 | 39.57 |
| Quarter ended 30.06.04 | 31.07.13 | 46.95 |
| Quarter ended 30.09.04 | 31.10.13 | 43.41 |
| Quarter ended 31.12.04 | 31.01.14 | 66.77 |
| Quarter ended 31.03.05 | 30.04.14 | 60.46 |
| Quarter ended 30.06.05 | 31.07.14 | 53.54 |
| Quarter ended 30.09.05 | 31.10.14 | 63.48 |
| Quarter ended 31.12.05 | 31.01.15 | 58.60 |
| Quarter ended 31.03.06 | 30.04.16 | 78.02 |
Note: Interest due on above Rs.1635.35 lakhs
b) As at the year end according to the records of the Company and information andexplanations given to us the disputed statutory dues that have not been deposited onaccount of appeal matters pending before the appropriate authorities are as under:
| Name of the statute | Nature of dues | Amount (Rs. In lacs) | Period to which the amount relates | Forum where the disputes are pending |
| West Bengal Sales Tax Act/ West Bengal Value Added Tax Act/ Central Sales Tax Act | Sales Tax | 1710.41 | 1982 19841986 19881993 94 to 1999 2001 & 2003 04 | Revision Board (Tribunal) |
| | 451.39 | 2001 02 to 2002 03 | WB Taxation Tribunal |
| | (103.44) | 2004 05 to 2010 11 | Sr. Joint Commissioner (Appeals) / Deputy Commissioner (Appeals) |
| | 584.25 | 2011 12 | Central Audit Cell |
| Goa Sales Tax/VAT | Sales Tax | 106.86 | 2007 08 to 2012 13 | Commissioner Appeals |
| Central Sales Tax | Sales Tax | 280.87 | 2007 08 to 2012 13 | Commissioner Appeals |
| Total | 3030.36 | | |
| Central Excise (EDH) | Excise Duty | 139.50 | 1996 to 2001 | AC/DC/Comr. of Central Excise |
| Central Excise (EDH) | Excise Duty | 355.44 | Apr 2011 to 2012 13 | Comr. of C. Ex. |
| Central Excise (EDK) | Excise & Service Tax | 605.81 | 1999 to 2014 | Comr./Comr. (App)/Tribunal |
| Central Excise (EDK) | Excise & Service Tax | 66.34 | 2010 11 to Sep 15 | AC/JC/Comr. (Appeals) |
| Central Excise (EDT) | Excise Duty | 558.30 | 1996 to 2002 | Comr. & HC |
| Central Excise (ED1) | Excise Duty | 133.58 | 2006 Oct.2009 | Commissioner of Central Excise |
| Central Excise (ED2) | Excise Duty | 379.62 | 2007 08 to Oct 2013 | CESTAT Ahmedabad |
| Central Excise (ED2) | Excise Duty | 67.99 | Nov 2013 to Apr 2015 | Commissioner (Appeals) |
| Central Excise (ED2) | Excise Duty | 14.04 | May 15 to Jan 16 | Asst. Comr. |
| Total | 2320.62 | | |
| DCIT Central Circle | Income tax | 17.52 | FY 2006 07 | CIT APPEAL |
| DCIT Central Circle | Income tax | 211.45 | FY 2007 08 | CIT APPEAL |
| DCIT Central Circle | Income tax | 15.13 | FY 2008 09 | CIT APPEAL |
| DCIT Central Circle | Income tax | 4535.70 | FY 2009 10 | CIT APPEAL |
| DCIT Central Circle | Income tax | 6499.18 | FY 2010 11 | CIT APPEAL |
| DCIT Central Circle | Income tax | 6156.04 | FY 2011 12 | CIT APPEAL |
| DCIT Central Circle | Income tax | 6278.04 | FY 2012 13 | CIT APPEAL |
| DCIT Central Circle | Income tax | 2.66 | FY 2013 14 | CIT APPEAL |
| DCIT Central Circle | Income tax | 4312.15 | FY 2013 14 | CIT APPEAL |
| Total | 28027.88 | | |
viii) According to the records of the Company examined by us and the information andexplanations given to us the Company has during the year defaulted in repayment of loansor borrowing to banks financial institutions and debenture holders. The Company has notborrowed any funds from Government. The lender wise details of defaults as at the year endare as under:
| | | (Rs. In Lakhs) |
| Particulars | Amount of default as at the balance sheet | Period of default | Remarks if any |
| i) Name of the Lenders: | | | |
| In case of: | | | |
| Bank | | | |
| State Bank of India CC | 7942.56 | | |
| State Bank of India CL | 9100.00 | | |
| State Bank of Patiala CC | 2092.89 | | |
| State Bank of Patiala LC Devolvement | 2492.81 | | |
| State Bank of Patiala TL | 2116.13 | | |
| State Bank of Bikaner & Jaipur CC | 2635.61 | | |
| State Bank of Bikaner & Jaipur CL | 4050.02 | | |
| Bank of Baroda CC | 5094.98 | Entire loan has been Recalled vide SARFAESI notice dated 20.07.2016 | |
| Bank of Maharashtra CC | 3042.89 | | |
| Corporation Bank CC | 2499.99 | | |
| AXIS Bank CC | 8978.12 | | |
| AXIS Bank TL | 4502.71 | | |
| IDBI Bank CC | 4733.95 | | |
| IDBI Bank TL | 1133.82 | | |
| The SVC Bank CC | 312.58 | | |
| The SVC Bank TL | 1393.40 | | |
| Union Bank of India | 2652.24 | Entire loan has been Recalled vide SARFAESI notice dated 25.04.2017 | |
| Financial Institution | | | |
| IFCI | 1548.72 | Entire loan has been | |
| HERO Fin Corp | 2668.86 | Recalled vide SARFAESI notice dated 20.07.2016 | |
| Government | | | |
| ii) Debentures | | | |
| LIC | 3000.00 | Entire loan has been Recalled vide SARFAESI notice dated 20.07.2016 | |
| Interest provision on above facilities | 8607.69 | | |
| 80599.99 | | |
ix) To the best of our knowledge and belief and according to the information andexplanations given to us term loans availed by the Company were prima facie applied bythe Company for the purposes for which the loans were obtained. The Company has not raisedany funds by way of initial public offer or further public offer (including debtinstruments).
x) According to the information and explanations given to us and on the basis ofrepresentation of the management which we have relied upon no fraud by the Company or onthe company by its officers or employees has been noticed or reported during the year.
xi) According to the information and explanations given to us managerial remunerationhas been paid in accordance with the provisions of section 197 read with Schedule V to theCompanies Act 2013.
xii) Since the company is not a Nidhi company this clause is not applicable.
xiii) According to the information and explanations given to us all transactions withthe related parties are in compliance with section 177 and 188 of Companies Act 2013 asapplicable and the details have been disclosed in the Ind AS Financial Statements asrequired by the applicable accounting standards.
(xiv) According to the information and explanations given to us the Company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year.
(xv) The Company has not entered into any non cash transactions with directors orpersons connected with them.
(xvi) The Company is not required to be registered under section 45 IA of the ReserveBank of lndia Act 1934.
For M P Chitale & Co
Chartered Accountants
Firm Regn No. 101851W
Ashutosh Pednekar
Partner
ICAI M No. 41037
Place: Mumbai
Date : May 27 2017
ANNEXURE B TO THE INDEPENDENT AUDITORS' REPORT (Refer to in paragraph6 (ii)(f) of ourreport of even date)
Report on the Internal Financial Controls over Financial Reporting under Clause (i) ofSub section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Ess DeeAluminium Limited ("the Company") as of March 31 2017 in conjunction with ouraudit of the standalone Ind AS financial statements of the Company for the year ended onthat 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 Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India (the"ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable 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") issued by ICAI and the Standards on Auditing issued byICAI and deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting were established and maintained and if such controls operatedeffectively in all material respects.
Because of the matter described in disclaimer of opinion paragraph below we wereunable to obtain sufficient appropriate audit evidence to provide a basis for an auditopinion on internal financial controls system over financial reporting of the Company
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 Ind AS financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of Ind AS financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorisations of management and directors of the company; and
(3) Provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the Ind AS financial statements.
Disclaimer of Opinion
According to the information and explanation given to us the Company due to itssituation of financial stress has during the year not established its internal financialcontrols over financial reporting on criteria based on or considering the essentialcomponents of internal controls stated in Guidance Note on Audit and Internal FinancialControls over Financial Reporting issued by the Institute of Chartered Accountants ofIndia. Because of this reason we are unable to obtain sufficient appropriate auditevidence to provide a basis for our opinion whether the Company has adequate internalfinancial controls over financial reporting and whether such internal financial controlswere operating effectively as at March 31 2017.
We have considered the disclaimer reported above in determining the nature timing andextent of audit tests applied in our audit of the standalone Ind AS financial statementsof the Company and the disclaimer does not affect our opinion on the standalone Ind ASfinancial statements
for M P Chitale & Co
Chartered Accountants
Firm Regn No. 101851W
Ashutosh Pednekar
Partner
ICAI M No. 041037
Place : Mumbai.
Date : May 27 2017
