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Jindal Stainless (Hisar) Ltd.

BSE: 539597 Sector: Metals & Mining
NSE: JSLHISAR ISIN Code: INE455T01018
BSE 15:47 | 17 Jan 212.25 -3.10
(-1.44%)
OPEN

215.35

HIGH

216.60

LOW

206.00

NSE 15:42 | 17 Jan 211.65 -3.90
(-1.81%)
OPEN

214.20

HIGH

217.00

LOW

205.20

OPEN 215.35
PREVIOUS CLOSE 215.35
VOLUME 70312
52-Week high 252.00
52-Week low 94.15
P/E 18.19
Mkt Cap.(Rs cr) 5,008
Buy Price 212.25
Buy Qty 4144.00
Sell Price 0.00
Sell Qty 0.00
OPEN 215.35
CLOSE 215.35
VOLUME 70312
52-Week high 252.00
52-Week low 94.15
P/E 18.19
Mkt Cap.(Rs cr) 5,008
Buy Price 212.25
Buy Qty 4144.00
Sell Price 0.00
Sell Qty 0.00

Jindal Stainless (Hisar) Ltd. (JSLHISAR) - Auditors Report

Company auditors report

TO THE MEMBERS OF JINDAL STAINLESS (HISAR) LIMITED REPORT ON THE STANDALONE IND ASFINANCIAL STATEMENTS

We have audited the accompanying standalone Ind AS financial statements of JINDALSTAINLESS (HISAR) LIMITED ("the Company") which comprise the Balance Sheet asat 31st March 2017 the Statement of Profit and Loss (including other comprehensiveincome) the Cash Flow Statement for the year then ended and the statement of changes inequity for the year then ended and a summary of the significant accounting policies andother explanatory information in which are incorporated the RETURN for the year ended onthe date audited by the branch auditor of the company's branch at Kothavalasa inVizianagaram district Andhra Pradesh (herein after referred to as "standalone IndAS financial statements").

MANAGEMENT'S RESPONSIBILITY FOR THE STANDALONE IND AS 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 cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) prescribedunder Section 133 of the Act read with relevant rules issued thereunder. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding 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 standalone Ind AS financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

AUDITOR'S RESPONSIBILITY

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based 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 standalone Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the standalone Ind ASfinancial statements.

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 including the Ind AS of thestate of affairs (financial position) of the Company as at 31st March 2017 and itsprofit (financial performance including other comprehensive income)) its cash flows andthe changes in equity 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 of India in terms of sub-section (11) of section 143 ofthe Act and on the basis of such checks of the books and records of the Company as weconsidered appropriate and according to the information and explanations given to usduring the course of audit we give in the Annexure 'A' a statement on the mattersspecified in the paragraphs 3 and 4 of the 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 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 and proper returnsadequate for the purpose of our audit have been received from the branch not visited byus.

(c) The reports on the accounts of the branch office of the company audited under thesection 143(8) of the Act by branch auditors have been sent to us and have been properlydealt with by us in preparing this report.

(d) The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome the Cash Flow Statement and Statement of Change in Equity dealt with by thisReport are in agreement with the books of account and with the returns received from thebranch not visited by us.

(e) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Accounting Standards specified under Section 133 of the Act read with relevant ruleissued thereunder.

(f) On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms of Section164 (2) of the Act.

(g) As required by section 143(3)(i) of the Companies Act 2013 and based on thechecking of the books and records of the Company as we considered appropriate andaccording to the information and explanations given to us our separate report withrespect to the adequacy of the internal financial controls over financial reporting of theCompany and the operating effectiveness of such controls is as per Annexure 'B'.

(h) 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 standalone Ind AS financial statements - refer Note no. 33 &42 to thestandalone Ind AS financial statements.

(ii) The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long term contracts includingderivatives contracts.

(iii) There was no amount which was required to be transferred to the InvestorEducation and Protection Fund by the Company.

(iv) The company had provided requisite disclosures in its Standalone Ind AS 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. 59 to the standalone Ind ASfinancial statements.

For LODHA& CO. For S.S. KOTHARI MEHTA & CO.
Chartered Accountants Chartered Accountants
ICAI-FRN: 301051E ICAI-FRN: 000756N
N.K. LODHA SUNILWAHAL
Partner Partner
Membership No. 85155 Membership No. 87294
Place: New Delhi
Dated: 15th May 2017

ANNEXURE "A" REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING "REPORT ONOTHER LEGAL AND REGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATE ON THE STANDALONEIND AS FINANCIAL STATEMENTS OF JINDAL STAINLESS(HISAR) LIMITED FOR THE YEAR ENDED 31STMARCH 2017

1. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The Company has a regular programme of Physical Verification of its Fixed assets bywhich fixed asset have been verified by the management according to the programme ofperiodical physical verification in a phased manner which in our opinion is reasonablehaving regard to the size of the Company and the nature of its fixed assets. Thediscrepancies noticed on such physical verification were not material.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company read with footnote (#) of Note No. 2 of the standalone IndAS financial statements.

2. The inventories of the Company (except stock lying with the third parties and intransit) have been physically verified by the management at reasonable intervals. In ouropinion the procedures of physical verification of inventory followed by the Managementare reasonable in relation to the size of the Company and nature of its business. Thediscrepancies noticed on such physical verification of inventory as compared to bookrecords were not material.

3. The Company has granted loans unsecured to one company covered in the registermaintained under section 189 of the Companies Act 2013:-

(a) According to the information and explanations given to us and based on the auditprocedures conducted by us we are of the opinion that terms and conditions of aforesaidloans so granted are not prejudicial to the interest of the Company.

(b) In respect of aforesaid loan repayment of principal & payment of interest hasbeen stipulated and principal & Interest (read with footnote @ to note no. 51) has notbecome due for payment as on 31st March 2017.

4. According to the information explanations and representations provided by themanagement and based upon audit procedures performed we are of the opinion that inrespect of loans investments guarantees and security the Company has complied with theprovisions of the Section 185 and 186 of the Companies Act 2013.

5. In our opinion and according to the information and explanations given to us theCompany has complied with the directive issued by the Reserve Bank of India and theprovisions of Section 73 to 76 of the Act or any other relevant provisions of the Act andthe rules framed there under (to the extent applicable) with regard to deposit acceptedfrom the public. Based on the records and information and explanations provided to us thecompany has not accepted any deposit from the public during the year. We have beeninformed that no order has been passed by the Company Law Board or National Company LawTribunal or Reserve Bank of India or any Court or other Tribunal in this regard.

6. We have broadly reviewed the books of account maintained by the company pursuant tothe rules made by the Central Government for the maintenance of cost records under section148(1) of the Act in respect of the company's products to which the said rules are madeapplicable and are of the opinion that prima facie the prescribed records have been madeand maintained. We have however not made a detailed examination of the said records witha view to determine whether they are accurate or complete.

7. (a) According to the records of the Company the Company is regular in depositingundisputed statutory dues including provident fund

employees' state insurance income tax sales-tax service tax duty of customs dutyof excise value added tax cess and other material statutory dues with the appropriateauthorities to the extent applicable and there are no undisputed statutory dues payablefor a period of more than six months from the date they become payable as at 31st March2017.

(b) According to the records and information & explanations given to us there areno dues in respect of Income tax and value added tax that have not been deposited with theappropriate authorities to the extent applicable on account of any dispute and the dues inrespect of service tax duty of customs duty of excise and sales tax that have not beendeposited with the appropriate authorities on account of any dispute and the forum wherethe dispute is pending are given below:-

Name of the Statute Nature of Dues Amount (Rs. in Crore) Period (Financial Year) Forum where dispute is pending
Central Excise Act Excise Duty 0.02 April 1995-June 95 High Court New Delhi
6.58 Jan 1999- Dec 04 High Court of Punjab & Haryana
2.87 Oct 11 - Jul 13 Revisionary Authority New Delhi
0.25 July'11-Sept'11 Revisionary Authority New Delhi
2.17 Oct 13 - Jun 14 Commissioner (Appeals) Delhi-I
1.80 Aug-08 to 'June-09 CESTAT Chandigarh
0.74 Aug-09 to 'Feb-10 CESTAT Chandigarh
0.54 Jan 05-June 05 High Court of Punjab & Haryana
0.08 2000-01 CESTAT Chandigarh
14.80 July 05- Dec 07 Commissioner Rohtak
2.91 2006-2007 CESTAT Chandigarh
0.08 1994-95 Addl. Commissioner of Central Excise Rohtak
0.01 April 07 to Oct 07 High Court of Punjab & Haryana
0.05 May 07 to Oct 07 High Court of Punjab & Haryana
0.05 July-2009 High Court of Punjab & Haryana
0.84 May 10-June 10 CESTAT Chandigarh
0.21 Sep. 10 - Dec. 10 CESTAT Chandigarh
0.02 Dec-06 To Oct-07. Commissioner (Appeals) Visakhapatnam
1.61 Oct-14 To Dec-14. Commissioner (Appeals) Delhi-Ill Gurgaon
2.36 Jan-15 To Mar-15. Commissioner (Appeals) Delhi-Ill Gurgaon
0.47 Jan-15 To Mar-15. Commissioner (Appeals) Delhi-Ill Gurgaon
The Custom Act 1962 Custom Duty 0.10 2012-13 CESTAT Delhi.
Finance Act Service Tax 5.23 Dec 03- March-06 CESTAT Chandigarh
0.06 2005-06 to 2010-11 Commissioner (Appel) Delhi III Gurgaon
0.03 2010-11 Commissioner (Appel) Delhi III Gurgaon
The Central Sales Tax 1956 Sales Tax 0.03 1993-94 High Court of Punjab & Haryana

Also refer note no. 42

8. In our opinion on the basis of audit procedures and according to the informationand explanations given to us no default exists at balance date in repayment of loans andborrowings to financial institutions banks government and dues to debenture holders asapplicable.

9. On the basis of information and explanations given to us term loan were applied forthe purpose for which the loans were obtained. No moneys have been raised during the yearby way of initial public offer or further public offer.

10. Based on the audit procedure performed and on the basis of information andexplanations provided by the management no fraud by the Company and no material fraud onthe Company by its officers or employees has been noticed or reported during the course ofthe audit.

11. According to the information and explanations given to us and based on ourexamination of the records of the Company managerial remuneration has been paid/providedin accordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule Vto the Companies Act.

12. In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

13. According to the information and explanations and records made available by themanagement of the Company and audit procedure performed for transactions with the relatedparties during the year the Company has complied with the provisions of Section 177 and188 of the Act where applicable. As explained and as per records details of relatedparty transactions have been disclosed in the standalone Ind AS financial statements asper the applicable Accounting Standards [Read with note no. 51]

14. According to the information and explanations given to us the Company has not madeany preferential allotment or private placement of shares or fully or partly convertibledebentures during the year except allotment of equity shares on conversion ofcompulsorily convertible warrants as stated in note no. 14 and 37 in respect of whichrequirement of section 42 of the Act have been complied with and the amount raised hasbeen used for the purpose for which the funds were raised.

15. On the basis of records made available to us and according to information andexplanations given to us the Company has not entered into noncash transactions with thedirectors or persons connected with him.

16. The Company is not required to be registered under section 45-IAof the Reserve Bankof India Act 1934.

For LODHA&CO. For S.S. KOTHARI MEHTA & CO.
Chartered Accountants Chartered Accountants
FRN: 301051E FRN:000756N
N.K. LODHA SUNIL WAHAL
Partner Partner
Membership No. 85155 Membership No. 87294
Place: New Delhi
Dated: 15th May 2017

ANNEXURE 'B' TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE IND ASFINANCIAL STATEMENTS OF JINDAL STAINLESS (HISAR) LIMITED

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 JINDALSTAINLESS (HISAR) LIMITED ("the Company") as of March 31 2017 in conjunctionwith our audit of the standalone Ind AS financial statements of the Company for the yearended on that date in which are incorporated the RETURN for the year ended on the dateaudited by the branch auditor of the company's branch at Kothavalasa in Vizianagaramdistrict Andhra Pradesh.

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 Company's policies the safeguarding of its assets theprevention 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 issued by the Institute ofChartered Accountants of lndia( ICAI) and deemed to be prescribed under section 143(10) ofthe Companies Act 2013 to the extent applicable to an audit of internal financialcontrols both applicable to an audit of Internal Financial Controls and both issued bythe Institute of Chartered Accountants of India. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial 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 standalone Ind AS financial statements whether due to fraudor 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 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 LODHA& CO. For S.S. KOTHARI MEHTA & CO.
Chartered Accountants Chartered Accountants
ICAI-FRN: 301051E ICAI-FRN: 000756N
N.K. LODHA SUNIL WAHAL
Partner Partner
Membership No. 85155 Membership No. 87294
Place: New Delhi
Dated: 15th May 2017