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Kanishk Steel Industries Ltd.

BSE: 513456 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE791E01018
BSE LIVE 10:55 | 13 Dec 9.08 0.33
(3.77%)
OPEN

9.08

HIGH

9.10

LOW

9.08

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 9.08
PREVIOUS CLOSE 8.75
VOLUME 4689
52-Week high 12.84
52-Week low 4.51
P/E 69.85
Mkt Cap.(Rs cr) 26
Buy Price 9.08
Buy Qty 2961.00
Sell Price 0.00
Sell Qty 0.00
OPEN 9.08
CLOSE 8.75
VOLUME 4689
52-Week high 12.84
52-Week low 4.51
P/E 69.85
Mkt Cap.(Rs cr) 26
Buy Price 9.08
Buy Qty 2961.00
Sell Price 0.00
Sell Qty 0.00

Kanishk Steel Industries Ltd. (KANISHKSTEEL) - Auditors Report

Company auditors report

To the Members of KANISHK STEEL INDUSTRIES LIMITED Report on the StandaloneFinancial Statements

We have audited the accompanying standalone financial statements of Kanishk SteelIndustries Limited (‘the Company') which comprise the Balance sheet as at 31 March2017 the statement of Profit and Loss and the Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory information.

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 preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgements 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.

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 accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions 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 control 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 theappropriateness of the 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 on the standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in

India of the state of affairs of the Company as at 31 March 2017 and its Profit andits 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) Order2016 ("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 matters specified inthe paragraph 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;

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 standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;

e) On the basis of the written representations received from the directors as on 31March 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 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"; and

g) With respect to other matters to be included in the Auditor's Report in accordancewith Rule 11 of the Companies(Audit and Auditors) Rules 2014 in our opinion and to thebest 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 financial statements - Refer Note 27 (ii) of Additional information to thefinancial statements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses under the applicable law or accountingstandards;

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

iv. The Company has provided requisite disclosures in its standalone financialstatements as to holdings as well as dealings in specified bank notes during period from 8thNovember 2016 to 30th December 2016 and these are in accordance with thebooks of accounts maintained by the Company. Refer the Notes to the financial statements

For CHATURVEDI & COMPANY
CHARTERED ACCOUNTANTS
FRN 302137E
S GanesanFCA
Pace: Chennai PARTNER
Date: 29th May 2017 Membership No. 217119

Annexure A to the Auditors' Report

The Annexure referred to in Independent Auditor's Report to the members of the Companyon the standalone financial statements for the year ended 31 March 2017 we report that:

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Fixed Assets.

(b) As explained to us all the Fixed Assets have been physically verified by themanagement at reasonable intervals during the year. According to the information andexplanations given to us no material discrepancies were noticed on such verification. Inour opinion this periodicity of Physical verification is reasonable having regard to thesize of the Company and the nature of its assets.

(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.

(ii) (a) As explained to us the management has conducted physical verification ofInventories during the year at reasonable intervals. According to the information andexplanations given to us no material discrepancies were noticed on physical verification

(iii) As per the information and explanation given to us and as per the recordsproduced to us the Company has not granted any secured or unsecured loans to companiesfirms or other parties covered in the register maintained under section 189 of theCompanies Act 2013 (‘the Act'). Accordingly the provisions of clause 3 (iii) (a) to(c) of the Order are not applicable to the Company and hence not commented upon.

(iv) In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and 186 of the Companies Act 2013with respect of investments made.

(v) The Company has not accepted any deposits from the public

(vi) We have broadly reviewed the books of account maintained by the company in respectof the products pursuant to the rule made by the Central Government of India regarding themaintenance of cost records and we are of the opinion that prima facie the prescribedaccount and records have been made and maintained. We have not however made a detailedexamination of records with a view to determine whether they are accurate or complete.

(vii) (a) The Company is regular in depositing undisputed statutory dues includingProvident Fund

Employees' State Insurance Income Tax Sales Tax Wealth Tax Service Tax CustomsDuty Excise Duty Value Added Tax Cess and other statutory dues with the appropriateauthorities wherever applicable and no dues are pending for a period of more than sixmonths from the date they become payable.

(b) According to the information and explanations given to us there are no materialdues of sales tax income tax customs duty wealth tax service tax excise duty vatcess and other material statutory dues as applicable which have not been deposited withthe appropriate authorities on account of any dispute. However according to theinformation and explanations given to us the following dues of Excise Duty/VAT have notbeen deposited by the Company on account of disputes (also refer point no. 27 (ii) ofAdditional information to the standalone Financial statements).

Statute Name Nature of dues Amount in Rs. Forum where dispute is Pending
Central Excise Law(SCN No.2268/95 dated 25.07.1995) Dispute relating to deemed Credit Rs.234094/- Commissioner of Central Excise (Appeals) Chennai.
Central Excise Law Dispute relating to re-fixation of Annual capacity of erstwhile OP Steels Limited Rs.3566000/- Plus equal amount of penalty CESTAT Chennai
Central Excise Law (SCN No.2/06 dt 17.1.2006) Dispute relating to differential duty on depot sales. Rs.5238000/- (total demand plus interest and penalty Rs.8725000/- and Rs.3487000/- already paid) Honb'le High Court of Madras.
Central Excise Law Dispute relating to re-fixation of Annual capacity Rs.900000/- Plus equal amount of penalty plus interest thereon. Honb'le High Court of Madras.
Central Excise Law Dispute relating to Central Excise duty Rs.6906945/- plus equal amount of penalty plus interest thereon + Rs. 500000/- fine (total demand Rs.19325930/- And Rs.13645721/- paid there-against) CESTAT Chennai
TNVAT Dispute relating to Input Tax Credit Rs 25635950/- plus penalty of Rs.1768920/- plus interest thereon of Rs. 1791031/- Commercial Tax Officer Chennai / Honb'le High Court of Madras.

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in the repayment of dues to banks. The Company did not haveany outstanding dues to financial institutions or debenture holders during the year.

(ix) Based upon the audit procedures performed and the information and explanationsgiven by the smanagement the company has not raised moneys by way of initial public offeror further public offer including debt instruments and term Loans. Accordingly theprovisions of clause 3 (ix) of the Order are not applicable to the Company.

(x) Based upon the audit procedures performed and the information and explanationsgiven by the management we report that no fraud by the Company or on the company by itsofficers or employees has been noticed or reported during the year.

(xi) Based upon the audit procedures performed and the information and explanationsgiven by the management the managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act;

(xii) In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 4 (xii) of the Order are not applicable to the Company.

(xiii) In our opinion all transactions with the related parties are in compliance withsection 177 and 188 of Companies Act 2013 and the details have been disclosed in theFinancial Statements as required by the applicable accounting standards.

(xiv) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Accordingly the provisions of clause 3 (xiv) of the Order are not applicable tothe Company.

(xv) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not entered into any non-cash transactions withdirectors or persons connected with him. Accordingly the provisions of clause 3 (xv) ofthe Order are not applicable to the Company.

(xvi) In our opinion the company is not required to be registered under section 45 IAof the Reserve Bank of India Act 1934 and accordingly the provisions of clause 3 (xvi)of the Order are not applicable to the Company.

For CHATURVEDI & COMPANY
CHARTERED ACCOUNTANTS
FRN 302137E
S GanesanFCA
Place: Chennai PARTNER
Date: 29th May 2017 Membership No. 217119

"Annexure B" to the Independent Auditor's 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 KanishkSteel Industries Limited ("the Company") as of 31st March 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 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').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 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 ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls 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 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 312017 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 CHATURVEDI & COMPANY
CHARTERED ACCOUNTANTS
FRN 302137E
S GanesanFCA
Place: Chennai PARTNER
Date: 29th May 2017 Membership No. 217119