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Narayani Steels Ltd.

BSE: 540080 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE715T01015
BSE LIVE 09:55 | 07 Dec 37.50 1.50
(4.17%)
OPEN

37.50

HIGH

37.50

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37.50

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 37.50
PREVIOUS CLOSE 36.00
VOLUME 4000
52-Week high 41.75
52-Week low 22.80
P/E 19.53
Mkt Cap.(Rs cr) 41
Buy Price 0.00
Buy Qty 0.00
Sell Price 39.90
Sell Qty 4000.00
OPEN 37.50
CLOSE 36.00
VOLUME 4000
52-Week high 41.75
52-Week low 22.80
P/E 19.53
Mkt Cap.(Rs cr) 41
Buy Price 0.00
Buy Qty 0.00
Sell Price 39.90
Sell Qty 4000.00

Narayani Steels Ltd. (NARAYANISTEELS) - Auditors Report

Company auditors report

To the Members of Narayani Steels Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Narayani SteelsLimited ("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 fairview of 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.

Auditors' 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 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 andthe disclosures in the financial statements. The procedures selected depend on theauditors' 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 Companyas at 31 March 2017 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 of India in terms of sub-section (11) of section 143 of the Act we give inthe Annexure A a statement on the matters specified in the paragraph 3 and 4 of theOrder 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 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 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 representation 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 our separate reportin

Annexure "B"; and 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 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 29 to the financial statements ii.The Company did not have any long-term contracts including derivative contracts for whichthere were any material foreseeable losses. iii. There were no amounts which were requiredto be transferred to the Investor

Education and Protection Fund by the Company. iv. The company had provided requisitedisclosures in its financial statements as to holdings as well as dealings in SpecifiedBank Notes during the period from 8th November 2016 to 30th December 2016 and these arein accordance with the books of accounts maintained by the company.

Annexure -A to the Independent Auditors' Report

The Annexure referred to in our Independent Auditors' Report to the members of theCompany on the standalone financial statements for the year ended 31 March 2017.

We report that:

i. (a) According to the information and explanations given to us the Company hasmaintained proper records showing full particulars including quantitative details andsituation of fixed assets.

(b) All fixed assets were physically verified by the management in the previous year inaccordance with a planned programme of verifying them once in three years which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. No material discrepancies were noticed on such verification.

(c) According to the information and explanations given by the management the titledeeds of immovable properties included in Property Plant and Equipment are held in thename of the company.

ii. The management has conducted physical verification of inventory at reasonableintervals during the year and no material discrepancies were noticed on such physicalverification.

iii. On the basis of examination of records and according to the information andexplanations given to us the Company has during the year not granted any loans securedor unsecured to companies firms Limited Liability Partnerships or other parties coveredin the register maintained under section 189 of the Act. Accordingly clause iii (a) (b)(c) of the Order are not applicable to the Company and hence not commented upon.

iv. According to the information and explanations given to us the Company has givencorporate guarantee for credit facilities taken by Hari Equipments Private Limited aCompany in which directors of the Company are director/ members in pursuance of the Bankstipulation and resolution passed in the meeting of the Board of Directors of the Companyprior to the date on which Section 185 of the Companies Act 2013 was notified.

According to the information and explanations given to us the Company has provided oneof its property at Visakhapatnam as security with a Bank for credit facilities availed byKedarnath Commotrade Private Limited a Company in which directors of the Company aredirector/ members in pursuance of the Bank stipulation which is not in accordance withthe provisions of section 185 of the Companies Act 2013.

v. The Company has not accepted any deposits from the public. Accordingly theprovisions of clause 3(v) of the Order are not applicable to the Company and hence notcommented upon.

vi. We have broadly reviewed the books of accounts maintained by the Company in respectof products where pursuant to the Rules made by the Central Government of Indiamaintenance of cost records has been prescribed under sub-section (1) of Section 148 ofthe Act and are of the opinion that prima facie the prescribed accounts and records havebeen made and maintained. We have not however made a detailed examination of the recordswith a view to determine whether they are accurate or complete.

vii. (a) Undisputed statutory dues including provident fund employees' stateinsurance income-tax sales-tax service tax duty of custom duty of excise value addedtax cess and other material statutory dues have generally been regularly deposited withthe appropriate authorities though there has been a slight delay in a few cases.

(b) According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees' state insurance income-tax service taxsales-tax duty of custom duty of excise value added tax cess and other materialstatutory dues were outstanding at the year end for a period of more than six monthsfrom the date they became payable.

(c) According to the records of the Company the dues outstanding of income-taxsales-tax service tax duty of custom duty of excise value added tax and cess onaccount of any dispute are as follows:

NAME OF STATUTE NATURE OF DUES AMOUNT (Rs.) PERIOD TO WHICH THE AMOUNT RELATES FORUM WHERE DISPUTE IS PENDING
Income Tax Act 1961 Income Tax 604053 F.Y. 2005-06 CIT (Appeals)Kolkata
Income Tax Act 1961 Income Tax 276137 F.Y. 2007-08 CIT (Appeals)Kolkata
Income Tax Act 1961 Income Tax 239730 F.Y. 2008-09 CIT (Appeals)Kolkata
Income Tax Act 1961 Income Tax 646040 F.Y. 2009-10 CIT (Appeals)Kolkata
Income Tax Act 1961 Income Tax 20552000 F.Y. 2011-12 CIT (Appeals)Kolkata
Income Tax Act 1961 Income Tax 597640 F.Y. 2012-13 CIT (Appeals)Kolkata
Income Tax Act 1961 Income Tax 1497770 F.Y. 2013-14 CIT (Appeals)Kolkata

viii. In our opinion and according to the information and explanations given to us thecompany has not defaulted in repayment of loans or borrowings to any financialinstitution banks or government during the year. The Company has no outstandingdebentures.

ix. In our opinion and according to the information and explanations given by themanagement the Company has utilized the monies raised by way of initial public offer forthe purposes for which they were raised.

x. Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the management we report that no fraud by the company or on the company by theofficers and employees of the Company has been noticed or reported during the year.

xi. According to the information and explanations given by the management themanagerial remuneration has been paid / provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct 2013.

xii. In our opinion and according to the information and explanations given by themanagement the Company is not a nidhi company. Therefore the provisions of clause 3(xii)of the order are not applicable to the Company and hence not commented upon.

xiii. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company provided to us transactions with the relatedparties are in compliance with sections 177 and 188 of the Companies Act 2013 whereapplicable and the details have been disclosed in the notes to the Financial Statements asrequired by applicable Accounting Standards.

xiv. According to the information and explanations given to us the Company has notmade any preferential allotment or private placement of shares/debentures during the yearunder review and accordingly clause (xiv) of the order is not applicable.

xv. According to the information and explanations given to us and on the basis ofreview on an overall basis the Company during the year has not entered into non cashtransactions in terms of section 192 of the Act with directors or persons connected withthem.

xvi. According to the information and explanations given to us and on the basis ofreview on an overall basis the Company is not engaged in financing activity and hence isnot required to be registered under section 45-IA of the Reserve Bank of India Act 1934.

Annexure -B to the 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") (Referred to in our report of evendate)

We have audited the internal financial controls over financial reporting of NarayaniSteels Limited ("the Company") as on 31 March 2017 in conjunction with our auditof the standalone 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 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 Company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe 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 deemed to be prescribed under section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controlsboth applicable to an audit of Internal Financial Controls and both issued by theInstitute of Chartered Accountants of India. Those Standards and the Guidance Note requirethat 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 judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Company's internal financial controls system overfinancial 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 authorisations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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 S. Jaykishan

Chartered Accountants

Firm Registration No. 309005E

CA VIVEK BAGRODIA

Partner

Membership No. 160694

Place: Visakhapatnam

Date: The 29 th day of May 2017.