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India Steel Works Ltd.

BSE: 513361 Sector: Metals & Mining
NSE: ISIBARS ISIN Code: INE072A01029
BSE LIVE 10:29 | 18 Oct 2.60 -0.02
(-0.76%)
OPEN

2.60

HIGH

2.70

LOW

2.59

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 2.60
PREVIOUS CLOSE 2.62
VOLUME 327040
52-Week high 5.70
52-Week low 2.19
P/E 13.00
Mkt Cap.(Rs cr) 104
Buy Price 2.60
Buy Qty 629.00
Sell Price 2.64
Sell Qty 2417.00
OPEN 2.60
CLOSE 2.62
VOLUME 327040
52-Week high 5.70
52-Week low 2.19
P/E 13.00
Mkt Cap.(Rs cr) 104
Buy Price 2.60
Buy Qty 629.00
Sell Price 2.64
Sell Qty 2417.00

India Steel Works Ltd. (ISIBARS) - Auditors Report

Company auditors report

To

The Members

INDIA STEEL WORKS LIMITED

1. Report on the standalone Financial Statements

We have audited the accompanying financial statements of INDIA STEEL WORKS LIMITED("the Company") which comprise the Balance Sheet as at 31 March 2017 theStatement of Profit and Loss and Cash Flow statement for the year then ended and asummary of the significant accounting policies and other explanatory information in whichis incorporated the unaudited financial statement of overseas branch.

2. 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 flow 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 (as amended). This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act; safeguarding the assetsof the Company and for preventing and detecting frauds and other irregularities; selectionand application of appropriate accounting policies; making judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

3. 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 controls 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 the appropriateness of the accounting policies usedand the reasonableness of the accounting estimates made by the Company's Directors aswell as evaluating the overall 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 financial statements.

4. Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31March 2017 its profit and its cash flows for the year ended on that date.

5. Other matters

The unaudited financial statement of branch included in the financial statement whichconstitute the total current assets of '26123488/- and net assets of '7132246/- as at31st March 2017 total revenue of '2988747983/ net profit of ' 742323/-and net cash flow amounting to ' 2501739/- for the period ended on that date asconsidered in the financial statement.

6. 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 on the matters specifiedin para 3 and 4 of the said 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 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. 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;

e. on the basis of the written representations received from the directors as at 31March 2017 and taken on record by the Board of Directors none of the directors isdisqualified as at 31 March 2017 from being appointed as a director in terms of Section164(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 litigation on its financial positionin its financial statement Refer Note 29(ii) to the financial statement.

ii. the Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses; and

iii. there were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

iv. The company has disclosed in the financial statements as to holding as well asdealings in Specified Bank Notes during the period from 08 November 2016 to 30 December2016 and these are in accordance with the books of account maintained by the company.(Refer Note No 32 to the financial statement.)

For and on behalf of -
Thanawala & Company
Chartered Accountants
Firm Reg. No. II0948W
[V.K. Thanawala]
Place: Mumbai Proprietor
Date : 30th May 2017 Membership No. 15632

ANNEXURE A REFFERRED TO IN INDEPENDENT AUDITORS' REPORT TO THE MEMBER OF THE COMPANY ONTHE FINANCIAL STATEMENT FOR THE PERIOD ENDED 31 MARCH2017

We Report That -

1. a. The Company has maintained proper records showing full particulars includingquantitative details and situation

of fixed asset.

b. As explained to us the Company has a phased program for physical verification of thefixed asset of the company to cover all locations. In our opinion the frequency ofverification is reasonable considering the size of the Company. No material discrepancieswere noticed on such verification carried on during the year as compared with theavailable records.

c. According to the information and explanation given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties are heldin the name of the company.

2. The inventory have been physically verified by the management except those lyingwith third parties at reasonable intervals during the year. No material discrepancies werenoticed on physical verification of inventories as compared to book records.

3. According to the information and explanation given to us the Company's has notgranted any loans secured or unsecured during the period to companies firms or otherparties covered in the register maintained under section 189 of the companies Act 2013.Accordingly the provision of clause 3(iii) Of the order are not applicable to the company.

4. In our opinion and according to the information and explanation given to us thecompany has complied the provisions of section 185 and 186 of the Companies Act 2013 tothe extend applicable with respect to the loans & investment made.

5. The company has not accepted any deposit from the public in accordance with theprovisions of section 73 to76 of the Act or any other relevant provisions of the Act andrules framed there under.

6. We have broadly reviewed the cost records maintained by the company pursuant to theOrder of the Central Government under Section 148(1) of the Act and are of the opinionthat prima facie the prescribed accounts and records have been made and maintained Weare however not required to make a detailed examination of the records with a view todetermine whether they are accurate or complete.

7. a. According to and on the basis of our examination of the records the company isgenerally regular in depositing undisputed statutory dues including Provident FundEmployees State Insurance Income Tax Sales Tax Custom Duty Cess Excise Duty ServiceTax Value added tax and other material statutory dues during the year with theappropriate authorities. According to the records of the company and information andexplanations given to us there were no arrears of outstanding statutory dues as at 31stMarch 2017 for a period of more than six months from the date they became payable.

b. According to the records of the Company and information and explanations given to usthe following are the particulars of disputed amounts payable in respect of Sales tax andCentral Sales Tax and other statutory dues as at the last day of the period ending 31stMarch 2017 -

Name of Status Nature of dues Amount (In Lakhs) Period to which the amount relates Forum where the dispute is pending
Sales Tax Act Sales Tax 11.24 F.Y.- 2002 / 2003 Sales Tax Officer
Central Excise Act Excise 53.53 F.Y.-2012 / 2013 DGCI
Central Excise Act Excise 406.30 F.Y.-2012 / 2013 FTWL
Central Excise Act Excise 37.99 F.Y.-2005 / 2006 Comm. of Central Excise
Central Excise Act Excise 9.64 F.Y.-2012 / 2013 Addl. Com of Central Excise

8. Based on our audit procedures and on the basis of information and explanations givenby the management we are of the opinion that the Company has not defaulted in therepayment of dues to banks and governments. The company did not have any outstanding duesto debenture holders during the year.

9. The company has not raised any money by way of public issue or further public offerduring the year or in the recent past. Based on the information and explanations given tous by the management.

10. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of fraud on or by the Company its officers or employees noticed or reportedduring the period nor have been informed of such case by the management.

11. According to the information and explanation given to us and based on ourexamination of the books and records of the Company we are the opinion that themanagerial remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with schedule V to the CompanyAct.

12. In our opinion the company is not a Nidhi Companies Therefore provision ofclause 3(xii) of the Order are not applicable to the Company.

13. According to the information and explanation given to us and based on ourexamination of the records all the transactions with related parties are in compliancewith section 177 and 188 of the Companies Act 2013 and all the details have beendisclosed in the financial statement as per Accounting Standard in Note No -30 to theFinancial Statement.

14. According to the information and explanation given to us and based on ourexamination of the records the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debenture during the year under review.

15. According to the information and explanation given to us and based on ourexamination of the records of the Company has not entered into any non-cash transactionsprescribed U/s 192 of the Act the year with directors or persons connected with themduring the year.

16. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For and on behalf of -
Thanawala & Company
Chartered Accountants
Firm Reg. No. II0948W
[V.K. Thanawala]
Place: Mumbai Proprietor
Date : 30th May 2017 Membership No. 15632

ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTSOF INDIA STEEL WORKS LIMITED

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

To the Members of India Steel Works Limited

We have audited the internal financial controls over financial reporting of India SteelWorks Limited ("the Company") as of March 312017 in conjunction with our auditof the standalone financial statements of the Company for the year ended on that 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 Reportingissued by the Institute of Chartered Accountants of India (ICAI). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to the Company's policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditor's 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 as specified under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. 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 was established and maintained and if such controls operatedeffectively 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 judgement 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 internal financial controls system overfinancial 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 ofmanagementand 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 March 31 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.

For and on behalf of -
Thanawala & Company
Chartered Accountants
Firm Reg. No. II0948W
[V.K. Thanawala]
Place: Mumbai Proprietor
Date : 30th May 2017 Membership No. 15632