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Jindal Saw Ltd.

BSE: 500378 Sector: Metals & Mining
NSE: JINDALSAW ISIN Code: INE324A01024
BSE LIVE 11:56 | 12 Dec 118.50 3.90
(3.40%)
OPEN

115.50

HIGH

120.75

LOW

114.30

NSE 11:42 | 12 Dec 118.20 3.35
(2.92%)
OPEN

115.30

HIGH

120.60

LOW

114.35

OPEN 115.50
PREVIOUS CLOSE 114.60
VOLUME 122312
52-Week high 133.60
52-Week low 54.05
P/E 11.97
Mkt Cap.(Rs cr) 3,789
Buy Price 118.30
Buy Qty 636.00
Sell Price 118.35
Sell Qty 5.00
OPEN 115.50
CLOSE 114.60
VOLUME 122312
52-Week high 133.60
52-Week low 54.05
P/E 11.97
Mkt Cap.(Rs cr) 3,789
Buy Price 118.30
Buy Qty 636.00
Sell Price 118.35
Sell Qty 5.00

Jindal Saw Ltd. (JINDALSAW) - Auditors Report

Company auditors report

To The Members of JINDAL SAW LIMITED Report on the Standalone FinancialStatements

We have audited the accompanying standalone financial statements ofJINDAL SAW LIMITED ["the Company") which comprise the Balance Sheet as at March312017 the Statement of Profit and Loss the Statement of changes in equity the CashFlow Statement for the year then ended and a summary of significant accounting policiesand other explanatory information.

Management's Responsibility for the Standalone FinancialStatements

The Company's Board of Directors is responsible for the mattersstated in Section 134[5] of the Companies Act 2013 ["the Act") with respect tothe preparation of these standalone financial statements that give a true and fair view ofthe financial position financial performance and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the IndianAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies [Accounts] Rules 2015 as amended. This responsibility also includes maintenanceof adequate accounting records in accordance with the provisions of the Act forsafeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these financialstatements based on our audit. We have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditingspecified under Section 143(10] of the Act. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence aboutthe amounts and the disclosures in the financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal financial control relevant to theCompany's preparation of the financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as wellas evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the financial statements.

Opinion

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at March 312017 and its profit and its cash flows for the yearended 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 of India in terms of sub-section[11] of section 143 of the Act we give in the Annexure 'A' a statement on thematters specified in the paragraph 3 and 4 of the Order to the extent applicable.

2. As required by Section 143 [3] of the Act we report that:

[a] We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

[b] In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books;

[c] The Balance Sheet the Statement of Profit and Loss the Statementof Change in Equity and the Cash Flow Statement dealt with by this Report are in agreementwith the books of account;

[d] In our opinion the aforesaid financial statements comply with theIndian Accounting Standards specified under Section 133 of the Act read with Rule 7 ofthe Companies [Accounts] Rules 2015 as amended;

[e] On the basis of the written representations received from thedirectors as on March 312017 taken on record by the Board of Directors none of thedirectors is disqualified as on March 312017 from being appointed as a director in termsof Section 164 [2] of the Act.

[f] With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to Annexure 'B'.

[g] With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies [Audit and Auditors]Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us:

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its financial statements - Refer Note - 45 to the financialstatements;

ii. The Company has made provision as required under the applicablelaw or accounting standards for material foreseeable losses if any; on long-termcontracts including derivatives contracts.

iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company other than Rs181.75 lakhs which is held in abeyance due to pending legal case.

iv. The Company has provided requisite disclosures in its financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom 8th November 2016 to 30th December 2016 and these are in accordance with the booksof accounts maintained by the Company [refer note no. 43[e] of notes to accounts].

For N.C. Aggarwal & Co.

Chartered Accountants Firm Registration No. 003273N

G. K. Aggarwal

Partner

M. No. 086622 Date : May 29 2017 Place: New Delhi

(Annexure referred to in our report of even date to the members ofJINDAL SAW LIMITED on the accounts for the year ended

March 312017).

1. [a] The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed

assets.

[b] A major portion of the fixed assets has been physically verified bythe Management in accordance with a phased programme of verification adopted by theCompany. In our opinion the frequency of verification is reasonable having regard to thesize of the Company and the nature of its assets. To the best of our knowledge nomaterial discrepancies have been noticed on such verification.

[c] According to the information and the explanations given to us andon the basis of our examination of the records of the Company the title deeds ofimmovable properties are held in the name of the Company except one land value of Rs 1950lakhs the Conveyance Deed of which is yet to be executed.

2. As explained to us the management during the year has physicallyverified inventories at reasonable interval and in respect of stores and spares there isa perpetual inventory system and a substantial part of such stock has been verified duringthe year. However stocks in the possession and custody of third parties and stock intransit as at March 312017 have been verified by the Management with reference toconfirmation or statement of account or correspondence of third parties or subsequentreceipt of goods. In our opinion the frequency of verification is reasonable. Thediscrepancies noticed during physical verification of inventories as compared to bookrecords were not material and the same have been properly dealt with in the books ofaccount.

3. According to the information and the explanations given to us theCompany has given interest bearing unsecured loans to companies covered in the registermaintained under Section 189 of the Companies Act 2013.

[a] In our opinion the rate of Interest and other terms and conditionson which the loans had been granted to the bodies corporate listed in the registermaintained under section 189 of the Act were not prima facie prejudicial to the interestof the Company.

[b] In respect of aforesaid loan the borrowers have been regular inthe repayment of principal and interest wherever stipulated.

[c] There are no overdue amounts as at the year-end in respect of bothprincipal and interest.

4. In our opinion and According to the information and explanationsgiven to us the company has complied with the provisions of Section 185 and 186 of theAct with respect to the loans and investments made.

5. According to the information and explanations given to us and therecords examined by us the Company has not accepted any deposits from the public duringthe year. Accordingly the Paragraph 3[v] of the Order is not applicable to the Company.

6. We have broadly reviewed the books of account and records maintainedby the company pursuant to the Rules made by the Central Government for the maintenance ofcost records under section 148 [1] of the Companies Act 2013 in respect of thecompany's products and are of the opinion that prima facie the prescribed recordshave been made and maintained. We have however not made a detailed examination ofrecords with a view to determine whether they are accurate or complete.

7. [a] According to the information and explanations given to us theCompany is generally regular in depositing with the

appropriate authorities undisputed statutory dues including providentfund employees' state insurance income tax sales tax service tax duty of customsduty of excise value added tax cess and other statutory dues with the appropriateauthorities. There are no arrears as at March 31 2017 for a period of more than sixmonths from the date they become payable.

[b] The due in respect of income tax sales tax duty of customs andduty of excise that has not been deposited with the appropriate authorities on account ofdispute and the forum where the dispute is pending is given below:

Name of the Statute Year to which the amount relates Forum where matter is pending Amount (Rs lakhs)
Custom Duty Customs Act 1962 2009-10 CESTAT Mumbai 12.50
Excise Duty Central Excise Act 1944 2003-04 CESTAT New Delhi 3.60
Excise Duty Central Excise Act 1944 2004-05 to 2007-08 Commissioner [Appeal] Ahmedabad 32.21
Excise Duty Central Excise Act 1944 2008-09 Commissioner [Appeal] Ahmedabad 26.70
Excise Duty Central Excise Act 1944 2009-10 CESTAT Mumbai 2.01
Excise Duty Central Excise Act 1944 2007-08 to 2009-10 Commissioner [Appeal] Rajkot 24.07
Sales Tax Gujarat Sales Tax Act 2002-03 Hon'ble High Court of Gujarat Ahmedabad 45.42
Income Tax Income Tax Act 1961 AY 2004-05 CIT [Appeals] New Delhi 8.11

8. In our opinion on the basis of books and records examined by us andaccording to the information and explanations given to us the company has not defaultedin repayment of dues to a financial institution banks and debenture holders. The companydoes not have any dues to government.

9. The Company has not raised any money by way of initial public offeror further public offer or debt instruments. In our opinion and according to theinformation and explanation given to us the term loans have been applied for the purposesfor which they were raised other than temporary deployment pending allocation.

10. According to the information and explanations given to us and asrepresented by the Management and based on our examination of the books and records of theCompany and in accordance with generally accepted auditing practices in India we havebeen informed that no case of frauds has been committed on or by the Company or by itsofficers or employees during the year.

11. The Company has paid/ provided for managerial remuneration tomanaging director in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V of the Companies Act 2013.

12. The company is not a Nidhi Company. Accordingly the provisions ofclause 3 [xii] of the Order are not applicable to the Company.

13. According to the information and explanations given to us alltransactions with the related parties are in compliance with section 177 and 188 of Actand where applicable the details have been disclosed in the Financial Statements asrequired by the applicable accounting standards.

14 According to the information and explanations given to us and basedon our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year. Accordingly provisions of clause 3 [xiv] of the Order are notapplicable to the Company.

15 According to the information and explanations given to us and basedon our examination of the records of the Company the Company has not entered into anynon-cash transactions with directors or persons connected with him as covered underSection 192 of the Companies Act 2013. Accordingly provisions of clause 3 [xv] of theOrder are not applicable to the Company.

16 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. Accordingly provisions of clause 3 [xvi] of the Order are not applicable tothe Company.

For N.C. Aggarwal & Co.

Chartered Accountants Firm Registration No. 003273N

G. K. Aggarwal

Partner

M. No. 086622 Date : May 292017 Place: New Delhi

Annexure referred to in our report of even date to the members ofJINDAL SAW LIMITED on the accounts for the year ended March 312017

Report on the Internal Financial Controls under Clause (I) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financialreporting of JINDAL SAW LIMITED ["the Company") as of March 31 2017 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date. Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company and the components of internal controlstated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India [ICAI]. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to Company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting [the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10] of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the ICAI. 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 aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A Company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A Company's internal financial control overfinancial reporting includes those policies and procedures that [1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company; [2] provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31stMarch 2017 basedon the internal control over financial reporting criteria established by the Company andthe components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls over Financial Reporting issued by the ICAI.

For N.C. Aggarwal & Co.

Chartered Accountants Firm Registration No. 003273N

G. K. Aggarwal

Partner

M. No. 086622 Date : May 292017 Place: New Delhi