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Inertia Steel Ltd.

BSE: 512025 Sector: Others
NSE: N.A. ISIN Code: INE767M01011
BSE 05:30 | 01 Jan Inertia Steel Ltd
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Inertia Steel Ltd. (INERTIASTEEL) - Auditors Report

Company auditors report

To

The Members of Inertia Steel Limited

Report on the Financial Statements

We have audited the accompanying financial statements of Inertia Steel Limited ("'theCompany") which comprise the Balance Sheet as at 3IS< March 2017 theStatement of Profit and Loss and Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.

Management's Responsibility' for the Financial Statements

The Company's Board of Directors are responsible for the matters stated in Section 134(5) of the 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. Accounting Standards specified under Section 133of the Act read with Rule 7 of Companies (Accounts) Rules 2014. This responsibility'also includes the maintenance of adequate accounting records in accordance with theprovision of the Act for safeguarding of the assets of the Company and for preventing anddetecting the frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent;design implementation and maintenance of adequate internal financial control 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 viewr and are free from material misstatement whether dueto fraud or error.

Auditors' 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 anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment 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 gives true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Company 's directors as well as evaluating the overall presentationof the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.

Opinion

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 of the state of affairs of the Company as at 31''March. 2017 and its profit and its 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 2016 ("the Order")issued by the Central Government oflndia in terms of sub-section (11) of Section 143 ofthe Act. we give in the "Annexure - A" statement on the matters specified inparagraphs 3 and 4 of the Order.

2. As required by Section 143 (3) of the Act we further 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. Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account;

d. in our opinion the aforesaid financial statements comply with the applicableAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;

e. On the basis of w ritten representations received from the directors as on 31stMarch 2017 and taken on record by the Board of Directors none of the directors isdisqualified as on 3151 March 2017 from being appointed as a director in termsof 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 control refer to ourseparate report in Annexure B.

g. In our opinion and to the best of our information and according to theexplanations given to us. we report as under with respect to other matters to be includedin the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rule 2014:

i. The Company does not have any pending litigations which would impact its financialposition:

ii. The Company did not have any long-term contracts including derivative contracts; assuch the question of commenting on any material foreseeable losses thereon does not arise:

iii. There has not been an occasion in case of the Company during the year under reportto transfer any sums to the Investor Education and Protection Fund. The question of delayin transferring such sums does not arise.

iv. The Company has provided requisite disclosures in its financial statements as toholding as well as dealing in Specified Bank Notes during the period from 8fl November.2016 to 30'1' December 2016 and these are in accordance with the books ofaccounts maintained by the Company and disclosed in Note no - 21 of the financialstatements

For Kaloti & Lathiya

Chartered Accountants

(Registration No : 104589WJ

Sanjeev N. Bajaj

Partner

Membership No : 107678

Place : Aurangabad

Date : 26.05.2017

ANNEXURE - A TO INDEPENDENT AUDITORS' REPORT

(Referred lo in paragraph 1 of our report on other legal and regulatory requirements ofeven date)

i. The Company does not have any Fixed Assets hence clause (i) of paragraph 3 of theOrder is not applicable to the Company.

ii. The Company does not have any Inventory hence clause (ii) of paragraph 3 of theOrder is not applicable to the Company.

iii. According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has not granted any loans secured orunsecured to companies limited liability partnership firm firms or other partiescovered in the register maintained under Section 189 of the Companies Act 2013.Accordingly sub- clause (a) (b) and (c) of clause (iii) of paragraph 3 are notapplicable

iv. In our opinion and according to the information and explanation given to us theCompany has complied with the provision of Section 185 and 186 of act in respect of loaninvestment and guarantees and security to the extent applicable.

v. According to the information and explanations given to us. the Company has notaccepted any deposits from the public and hence directives issued by the Reserve Bank ofIndia and the provisions of Sections 73 to 76 of the Companies Act 2013 and the Rulesframed there under are not applicable for the year under audit.

vi. The Central Government has not prescribed the maintenance of cost records underSection 148 (1) of the Act.

vii. According to the information and explanations given to us in respect of statutorydues:

(a) The Company has generally been regular in depositing undisputed statutory duesincluding Income tax. Sales tax. Service tax and any other statutory dues with theappropriate authorities during the year with the appropriate authorities.

(b) According lo the information and explanations given to us there are no dues ofIncome tax. Sales tax Service tax and any other statutory dues which have not beendeposited on account of any disputes.

viii. The Company does not have any borrowings from any Financial Institution BanksGovernment or debenture holder during the year hence clause (viii) of paragraph 3 of theOrder is not applicable to the Company.

ix. The Company has not raised any money by way of initial public offer / furtherpublic offer (including debt instruments) / term loans during the year. Hence clause (ix)of paragraph 3 of the Order is not applicable to the Company.

x. Based on our audit procedure for the purpose of reporting the true and fair view ofthe financial statements and on the basis of the information and explanations given by themanagement no fraud by the Company or on the Company by its officers or employees hasbeen noticed or reported during the year.

xi. The Company has not paid any managerial remuneration and hence clause (xi) ofparagraph 3 of the Order is not applicable to the Company.

xii. In our opinion the Company is not a Nidhi company and hence clause (xii) ofparagraph 3 of the Order is not applicable to the Company.

xiii. According to the information and explanations given to us and the records of theCompany examined by us. all the transactions with related parties are in compliance withSection 177 and 188 of the Act and details of such transactions have been properlydisclosed in the Financial Statements as required by the applicable accounting standards.

xiv. According to the information and explanations given to us and the records of theCompany examined by us the Company has not any money through preferential allotment /private placements of shares or debentures during the year under review hence clause(xiv) of paragraph 3 of the Order is not applicable to the Company.

xv. According to the information and explanations given to us. the Company has notentered into any non-cash transaction with directors or the persons connected with him.Hence clause (xv) of paragraph 3 of the Order is not applicable to the Company.

xvi. In our opinion and according to the information and explanations given to us theCompany is not required to be registered under Section 45-IA of the Reserve Bank of IndiaAct 1934.

For Kaloti & Lathiva

Cbartered Accountants

(Registration No : 104589W)

8anjeev N. Bajaj

Partner

Membership No : 107678

Place : Aurangabad

Date : 26.05.2017

ANNEXURE - B TO THE INDEPENDET AUDITORS1 REPORT

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 InertiaSteel Limited ("the Company") as of 31 March 2017 in conjunction with ouraudit of the 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 Control Over Financial Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India.These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required 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 and the Standards on Auditing issued by ICA1 and deemed to beprescribed under section 143 (10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively 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 judgment 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 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 financial repotting includes those policiesand procedures that (I) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transaction and dispositions of the assets of thecompany; (2) provide reasonable assurance that transactions are recorded as necessary' topermit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorizations of management and directors of the company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorizedacquisition use or disposition of the company's assets that could have a material effecton 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 31" March 2017 based onthe internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

For Kaloti & Lathiya

Chartered Accountants

{Registration No: 104589W)

Sanjeev N. Bajaj

Partner

Membership No : 107678

Place: Aurangabad

Date : 26.05.2017