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MSP Steel & Power Ltd.

BSE: 532650 Sector: Metals & Mining
NSE: MSPL ISIN Code: INE752G01015
BSE 15:19 | 16 Feb 22.00 -0.85
(-3.72%)
OPEN

23.45

HIGH

23.45

LOW

21.80

NSE 15:29 | 16 Feb 22.05 -1.15
(-4.96%)
OPEN

23.00

HIGH

23.40

LOW

22.05

OPEN 23.45
PREVIOUS CLOSE 22.85
VOLUME 16889
52-Week high 29.10
52-Week low 12.00
P/E
Mkt Cap.(Rs cr) 194
Buy Price 21.85
Buy Qty 301.00
Sell Price 22.45
Sell Qty 4.00
OPEN 23.45
CLOSE 22.85
VOLUME 16889
52-Week high 29.10
52-Week low 12.00
P/E
Mkt Cap.(Rs cr) 194
Buy Price 21.85
Buy Qty 301.00
Sell Price 22.45
Sell Qty 4.00

MSP Steel & Power Ltd. (MSPL) - Auditors Report

Company auditors report

To the Members of MSP Steel & Power Limited

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of MSP Steel& Power Limited (`the Company`) which comprise the Balance Sheet as at 31st March2017 the Statement of Profit and Loss (including Other comprehensive income) the CashFlow Statement and the statement of changes in Equity for the year then ended and asummary of significant accounting policies and other explanatory information.

Management's Responsibility for the Standalone Ind AS Financial Statements

The Company's Board of Directors is responsible for the matters stated in sub-section 5of section 134 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 flows and 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.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit.

In conducting 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 thereunder.

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing specified under sub-section 10 of section 143 of the Act. Thosestandards require that we comply with ethical requirements and plan and perform the auditto obtain reasonable assurance about whether the standalone Ind AS financial statementsare 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 auditors' 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 sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS financial 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 of the state of affairs of theCompany as at 31st March 2017 and its loss (including other comprehensive income) itscash flow s and the changes in equity for the year ended on that date.

Other Matter

The financial information of the Company for the year ended 31st March 2016 and thetransition date opening balance sheet as at 1st April 2015 included in these standaloneInd AS financial statements are based on the previously issued standalone financialstatements for the year ended 31st March 2016 and 31st March 2015 prepared in accordancewith the Companies (Accounting Standards) Rules 2006 (as amended) which were audited byus on which we expressed an unmodified opinion on those standalone financial statementsdated 27th May 2016 and 6th June 2015 respectively. The adjustments for the differencesin the accounting principles adopted by the Company on transition to the Ind AS have beenaudited by us.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ('the Order') issued bythe Central Government of India in term of sub-section (11) of Section 143 of the Act andon the basis of such checks of the books and records of the company as we consideredappropriate and according to the information and explanations given to us we enclose inthe Annexure A a statement on the matters specified in paragraphs 3 and 4 of the order

2. As required by sub-section 3 of Section 143 of the Act we report that:

a. We have sought and obtained all the information and explanations which to the bestof our kflow ledge and belief were necessary for the purposes of our audit.

b. In our opinion proper books of accounts 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 (including other comprehensiveincome) the Cash Flow Statement and the statement of changes in Equity dealt with by thisReport are in agreement with the books of account.

d. In our opinion the aforesaid standalone Ind AS financial statements comply with theIndian Accounting Standards prescribed under Section 133 of the Act.

e. On the basis of the written 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 31st March 2017 from being appointed as a director in term ofsub-section 2 of Section 164 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'. Our report expresses an unmodified opinion on theadequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

g. With respect to the other matters to be included in the Auditors' Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone Ind AS financial statements; ii. Provision has been made in thefinancial statements as required under the applicable laws or accounting standards formaterial foreseeable losses if any on long-term contracts including derivativescontracts;

iii. There is no amount required to be transferred to the Investor Education andProtection Fund by the Company.

iv. The Company has provided requisite disclosures in the standalone Ind AS financialstatements as regards its holding and dealings in Specified Bank Notes during the periodfrom 8th November 2016 to 31st December 2016. Based on audit procedures performed andthe representations provided to us by the management we report that the disclosures arein accordance with the books of accounts maintained by the Company and as produced to usby the Management.

For Sunil Kumar Agrawal & Associates

Chartered Accountants

Firm Registration No: 323133E

CA Sunil Kumar Agrawal

Partner

Membership No: 057731

Kolkata 27th day of May 2017

Annexure A to Independent Auditors' Report

The Annexure referred to in Independent Auditors' Report to the members of MSP Steel& Power Limited ('the Company') for the year ended 31st March 2017. We reportthat:

(i) (a) According to the information & explanation given to us and based on therecords produced before us we are of the opinion that the Company has maintained properrecords ing full particulars including quantitative details and situation of fixedassets.

(b) According to the information & explanation given to us all the fixed assetshave not been physically veri ed by the management during the year but there is a regularprogramme of veri cation which in our opinion is reasonable having regard to the size ofthe Company and nature of its assets. As informed no material discrepancies have beennoticed on such veri cation.

(c) According to the information and explanations given to us and based on the recordsproduced before us the title deeds of the immovable properties are held in the name ofthe Company except as reported in Note 2A to the standalone Ind AS financial statement.

(ii) According to the information & explanation given to us a part of theinventory has been physically veri ed by the management during the year. In respect ofinventory lying with third parties these have substantially been con rmed by them. In ouropinion the frequency of such veri cation is reasonable.

(iii) According to the information & explanation given to us the Company has notgranted loans to the parties covered in the register maintained under Section 189 of theCompanies Act 2013 ('the Act'). Hence paragraph 3 (iii) is not applicable to the company.

(iv) According to the information & explanation given to us we are of the opinionthat in respect of grant of loans making investments and providing guarantees andsecurities provisions of Section 185 and 186 of the Companies Act 2013 have beencomplied with.

(v) According to the information & explanation given to us the Company has notaccepted any deposits from the public in accordance with the provisions of Section 73 to76 of the Act and the rules framed there under.

(vi) According to the information & explanation given to us the company hasmaintained cost records as specified by Central Government under sub-section (1) ofsection 148 of the Act.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted / accrued in the books ofaccount in respect of undisputed statutory dues including Provident fund Professionaltax Employees' state insurance Income tax Sales tax Value added tax Service taxCustoms duty Excise duty Cess and other material statutory dues applicable to it havebeen regularly deposited during the year by the Company with the appropriate authorities.

According to the information and explanations given to us no undisputed amountspayable in respect of statutory dues as aforesaid were outstanding as at 31st March 2017for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us there are no dues ofsales tax value added tax income tax customs duty service tax excise duty and cesswhich have not been deposited on account of any dispute except:-

Name of the statute Nature of dues Year Amt. in Lacs Forum where dispute is pending
Central and Local Sales Tax Acts(*) Sales Tax including Non collection of C Fofirm and disallow ance of VAT Credit 2004-2012 275.01 Appellate Authority upto Joint Commissi oner Level.
Central Excise Act 1944(**) Excise Duty including interest and penalty if applicable 2004-2012 70.45 Appellate Authority upto Commissi oner's level.
Central Excise Act 1944 Excise Duty including interest and penalty if applicable 2005-2012 1100.07 Customs Excise and Service Tax Appellate Tribunal Deputy/As sistant Commissi
Income-tax Act 1961 Disallow ance of TDS 2004-2005 55.95 oner of Income
(*) ` 21.73 lacs deposited under protest against the dues. Tax

(**) ` 22.22 lacs deposited under protest against the dues.

(viii) According to the information & explanation given to us and based on therecords produced before us the company has defaulted in repayment of dues to financialinstitutions banks or Government. As explained to us the company did not have any duesto debenture holders.

(ix) According to the information & explanation given to us and based on therecords produced before us the Company has not raised moneys by way of initial publicoffer or further public offer (including debt instruments) and term loans during the year.Accordingly paragraph 3(ix) of the order is not applicable.

(x) According to the information and explanations given to us no material fraud by theCompany or on the Company by its of cers or employees has been noticed or reported duringthe course of our audit.

(xi) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid / provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V of the Act.

(xii) 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.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with Section 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures andhence paragraph 3(xiv) of the Order is not applicable to the Company.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non cashtransactions with directors or persons connected with them. Accordingly paragraph 3(xv)of the Order is not applicable.

(xvi) The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.

For Sunil Kumar Agrawal & Associates

Chartered Accountants

Firm Registration No: 323133E

CA Sunil Kumar Agrawal

Partner

Membership No: 057731

Kolkata 27th day of May 2017

Annexure B to Independent Auditors' 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 MSPSteel & Power Limited (`the Company`) as of 31st March 2017 in conjunction withour audit of the standalone Ind AS financial statements of the Company for the year endedon 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the 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') issued by the Institute of Chartered Accountants of India and theStandards on Auditing prescribed under Section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls. 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 were established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidences about the adequacyof the 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 auditors' 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 controls over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparations 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditure of the Company are being made only in accordance withauthorizations of the Management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of Company's assets that could have a material effect on the financialstatements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitation 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 to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31st March 2017 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls over Financial Reporting issued by The Institute of Chartered Accountants ofIndia.

Our opinion in not modified in respect of this matter.

For Sunil Kumar Agrawal & Associates
Chartered Accountants
Firm Registration No: 323133E
CA Sunil Kumar Agrawal
Partner
Membership No: 057731
Kolkata 27th day of May 2017