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National Steel & Agro Industries Ltd.

BSE: 513179 Sector: Metals & Mining
NSE: NATNLSTEEL ISIN Code: INE088B01015
BSE LIVE 15:22 | 21 Aug 24.80 0.15
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OPEN 25.00
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VOLUME 4549
52-Week high 30.00
52-Week low 15.45
P/E 5.36
Mkt Cap.(Rs cr) 110
Buy Price 24.40
Buy Qty 200.00
Sell Price 24.80
Sell Qty 100.00
OPEN 25.00
CLOSE 24.65
VOLUME 4549
52-Week high 30.00
52-Week low 15.45
P/E 5.36
Mkt Cap.(Rs cr) 110
Buy Price 24.40
Buy Qty 200.00
Sell Price 24.80
Sell Qty 100.00

National Steel & Agro Industries Ltd. (NATNLSTEEL) - Auditors Report

Company auditors report

TO THE MEMBERS OF NATIONAL STEEL AND AGRO INDUSTRIES LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of NATIONAL STEEL AND AGROINDUSTRIES LIMITED ("the Company") which comprise the Balance Sheet as at 31stMarch 2016 the Statement of Profit and Loss the Cash Flow Statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.

Management’s Responsibility for the 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 financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014("the Rules"). This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularitiesselection and application of appropriate accounting policies making judgements andestimates that are reasonable and prudent and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. 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 accordancewith the Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatements. An audit involves performing procedures to obtain audit evidence about theamounts and the disclosures in the financial statements. The procedures selected depend onthe auditor’s judgement 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 controls relevant to theCompany’s preparation of the financial statements that give a true and fair view inorder to 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 and appropriate toprovide a basis for our audit opinion on the financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2016 and 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 issued by theCentral Government of India in term of sub-section (11) of Section 143 of the Act(hereinafter referred to as the "Order") and on the basis of such checks of thebooks and records of the Company as we considered appropriate and according to theinformation and explanations given to us we give in the "Annexure A" astatement on the matters specified in 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.

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 financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

e) On the basis of the written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the director isdisqualified as on 31st March 2016 from being appointed as a director in termsof Section 164 (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 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 knowledge and belief and according to the information andexplanations given to us:

(i) The Company has disclosed the impact of pending litigations as at 31stMarch 2016 on its financial position in its financial statements as referred in annexureto Auditors’ Report vii(b).

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

(iii) There has been no amounts required to be transferred to the investor Educationand Protection Fund by the Company.

For Gupta Saharia & Co.
Chartered Accountants
FRN-103446W
Place : Indore CA Suresh Saharia
Dated : 27th May 2016 (Partner)
Membership No. 040180

ANNEXURE A TO THE AUDITORS’ REPORT

(Referred to in paragraph (1) of our report of even date)

(i) (a) As explained to us in respect of fixed assets the Company has maintainedproper records showing full particulars including quantitative details and situation offixed assets.

(b) As explained to us the fixed assets have been physically verified by themanagement in accordance with the program of verification adopted by the Company. In ouropinion the frequency of verification is reasonable having regard to the size of theCompany and the nature of its assets. To the best of our knowledge no materialdiscrepancies have been noticed on such verification.

(c) In respect of immovable property title deeds of all the immovable properties arein the name of the Company.

(ii) As explained to us the inventory of the Company has been physically verifiedduring the year by the management. In respect of materials lying with third parties thesehave been confirmed by them. In our opinion the frequency of the verification isreasonable. In our opinion the discrepancies noticed on verification between the physicalstocks and book records were not material having regard to the size of the operations ofthe Company.

(iii) As explained to us the Company has not granted any loans secured or unsecuredto Companies firms Limited Liability Partnerships or other parties covered in theregister maintained under Section 189 of the Companies Act 2013.

(iv) According to the records of the Company examined by us the Company had givencorporate guarantee on behalf of associate and full particulars of the guarantee have beendisclosed in the financial statement.

(v) The Company has not accepted any deposits from the public within the meaning ofSection 73 and 76 of the Companies Act 2013 and the rules framed there under to theextent notified.

(vi) We have broadly reviewed the books of account maintained by the Company in respectof products where pursuant to the rules made by the Central Government of India themaintenance of cost records has been specified under sub-section (1) of Section 148 of theCompanies Act 2013 and are of the opinion that prima facie the prescribed accounts andrecords have been made and maintained. We have not however made a detailed examinationof the records with a view to determine whether they are accurate or complete.

(vii) (a) According to the records of the Company examined by us and the informationand explanations given to us in our opinion the Company is generally regular indepositing the undisputed statutory dues including provident fund employees’ stateinsurance income tax sales tax wealth tax service tax duty of customs duty ofexcise value added tax and other material statutory dues as applicable with theappropriate authorities.

(b) According to the information and explanations given to us and the records of theCompany examined by us the particulars of dues of Income-Tax Sales-Tax Entry-TaxWealth-Tax Service-Tax Customs Duty Excise Duty and Cess as at 31st March2016 which have not been deposited on account of disputes are as follows.

Statement of Disputed Dues

Name of Statute Nature of Dues Amount Disputed Period Forum where dispute is pending
(Rs.)
Excise 1250482 2013-14 Commissioner (Appeals) Bhopal
Duty 488837 2014-15 Commissioner (Appeals) Bhopal
500000 2014-15 Commissioner (Appeals) Bhopal
Penalty 500000 2014-15 Commissioner (Appeals) Bhopal
500000 2014-15 Commissioner (Appeals) Bhopal
The Central Excise Act CENVAT Credit 14791017 2014-15 Commissioner Central Excise Indore
Differential Duty 116322636 2014-15 Central Excise and Service Tax Appellate Tribunal New Delhi
Differential Duty 10304238 2015-16 Commissioner of Central Excise & Service Tax Indore
Custom Duty 19299130 2014-15 Commissioner of Customs Mundra port Gujrat
Entry Tax 5047197 2004-05 M.P. Commercial Tax Appellate Board Bhopal
Sales Tax A ct State Case 519604 2004-05 M.P. Commercial Tax Appellate Board Bhopal
State Case 1868541 2005-06 M.P. Commercial Tax Appellate Board Bhopal
VAT Tax 857947 2010-11 Appeal to Joint Commissioner of Sales Tax Mumbai
Entry Tax 549730 2008-09 Commercial Tax Tribunal Ghaziabad
Sales Tax (Commercial Tax) Entry Tax 1479228 2009-10 Commercial Tax Tribunal Ghaziabad
Entry Tax 12556862 2009-10 Hon’ble Supreme Court of India Ghaziabad
2010-11
VAT Tax 832935 2010-11 Sales Tax (Ghaziabad)

(viii) According to the records of the Company examined by us and the information andexplanation given to us the Company has not defaulted in repayment of loans or borrowingsto any financial institutions banks Govemment or any dues to debenture holders as atbalance sheet date.

(ix) According to the records of the Company examined by us and the information andexplanation given to us the Company has not raised money by way of initial public offeror further public offer (including debt instruments) and term loan.

(x) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or any fraud on the Company by its officers oremployees noticed or reported during the year nor have we been informed of any such caseby the management.

(xi) According to the records of the Company examined by us managerial remunerationhas been paid or provided in excess of the limits prescribed under provisions of Section197 read with schedule V of the Companies Act 2013. As per the information given to usthe Company is in the process of complying with the provisions of the aforesaid section byputting up the matter to Shareholders’ approval in the ensuing General Meeting andthereafter for the requisite consent of Central Government.

(xii) The Company is not a Nidhi company.

(xiii) According to the records of the Company examined by us and the information andexplanation given to us 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 statement as required by applicable accounting standards.

(xiv) According to the records of the Company examined by us the Company has not madeany preferential allotment or private allotment of shares or fully or partly convertiblesdebenture during the year.

(xv) According to the records of the Company examined by us and the information andexplanation given to us the Company has not entered into any non-cash transactions withdirectors or persons connected with him.

(xvi) According to the records of the Company examined by us the Company is notrequired to be registered under Section 45 IA of the Reserve Bank of India Act 1934.

For Gupta Saharia & Co.
Chartered Accountants
FRN-103446W
Place : Indore CA Suresh Saharia
Dated : 27th May 2016 (Partner)
Membership No. 040180

ANNEXURE B TO THE 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 NationalSteel And Agro Industries Limited ("the Company") as of 31st March2016 in conjunction with our audit of the financial statements of the Company for the yearended 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 controls over financial reporting criteriaestablished by the Company considering the essential components of internal controlsstated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India (‘ICAI’).These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to the Company’s policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation of reliablefinancial information 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 ICAI. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial control 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.

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 controlsystem over financial reporting.

Meaning of Internal financial Controls over financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial controlsover financial 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 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. Alsoprojections of any evaluation of the internal financial controls over financial reportingto future periods are subject to the risk that the internal financial controls overfinancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial control system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2016based on the internal controls over financial reporting criteria established by theCompany considering the essential components of internal controls stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by the ICAI.

For Gupta Saharia & Co.
Chartered Accountants
FRN-103446W
Place : Indore CA Suresh Saharia
Dated : 27th May 2016 (Partner)
Membership No. 040180