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Nelcast Ltd.

BSE: 532864 Sector: Engineering
NSE: NELCAST ISIN Code: INE189I01024
BSE LIVE 15:40 | 15 Dec 93.65 1.70
(1.85%)
OPEN

94.65

HIGH

96.70

LOW

91.25

NSE 15:56 | 15 Dec 93.70 1.05
(1.13%)
OPEN

93.70

HIGH

96.75

LOW

93.00

OPEN 94.65
PREVIOUS CLOSE 91.95
VOLUME 33964
52-Week high 109.40
52-Week low 47.45
P/E 22.62
Mkt Cap.(Rs cr) 815
Buy Price 0.00
Buy Qty 0.00
Sell Price 93.65
Sell Qty 132.00
OPEN 94.65
CLOSE 91.95
VOLUME 33964
52-Week high 109.40
52-Week low 47.45
P/E 22.62
Mkt Cap.(Rs cr) 815
Buy Price 0.00
Buy Qty 0.00
Sell Price 93.65
Sell Qty 132.00

Nelcast Ltd. (NELCAST) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

NELCAST LIMITED REPORT ON THE FINANCIAL STATEMENTS

We have audited the accompanying standalone financial statements of NELCAST LIMITED("the Company") which comprise the Balance Sheet as at 31st March2017 the Statement of Profit and Loss and 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 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 safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments 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 thereunder. We conducted our audit inaccordance with the Standards on Auditing specified under Section 143(10) of the Act.Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial 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 Companyas at 31st March 2017 and its profit and its cash flows for the year ended onthat date.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by the Companies (Auditor's Report) Order 2017 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section143 ofthe Act we give in the Annexure a statement on the matters Specified in paragraphs 3 and4 of the Order 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 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 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 termsof Section 164(2) of the Act;

f) 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 31st March 2017based on the internal financial controls over financial reporting criteria established bythe Company.

g) in our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014:

i) The Company has disclosed the impact of pending litigations on its financialposition in its financial statements.

ii) The Company did not have any long-term contracts including derivative contracts; assuch the question of commenting on any material foreseeable losses thereon does not arise.

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 financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8thNovember 2016 to 30th December 2016 and the said disclosures are in accordancewith the books of accounts maintained by the Company.

For REDDY A V & CO

Chartered Accountants

A.V. REDDY

Partner

Membership No. 23983

Firm Regn. No. 003256S

Place : Chennai

Date : 24th May 2017

THE ANNEXURE REFERRED TO IN OUR INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF THECOMPANY ON THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH2017 WE REPORT THAT:

i. (a) The Company is maintaining proper records showing full particulars includingquantitative details

and situation of fixed assets;

(b) The Company has a policy of physically verifying its Fixed assets once in a yearwhich in our opinion reasonable having regard to the size of the Company and the nature ofits business. During the year Fixed Assets have been verified by the management at theyear end and no discrepancies were noticed on such verification.

(c) The title deeds of immovable properties are held in the name of the Company.

ii. According to information and explanations given to us the management has conductedphysical verification of inventory at reasonable intervals and no material discrepancieswere noticed on physical verification during the year.

iii. The Company has not granted any loans secured or unsecured to companies firms orother parties covered in the register maintained under section 189 of the Companies Act2013.

iv. According to information and explanations given to us the Company has compliedwith the provisions of Section 185 and 186 of the Companies Act 2013 in respect of loansinvestments guarantees and security.

v. The Company has not accepted any deposits during the year.

vi. We have broadly reviewed the books of accounts maintained by the Company pursuantto the rules made by the Central Government under Section 148(1) of the Act and areopinion that prima facie the prescribed accounts and cost records have been made andmaintained.

vii. (a) According to the information and explanations given to us and on the basis ofexamination of the

records of the Company the Company is regular in depositing undisputed statutory duesincluding provident fund employees' state insurance income-tax sales-tax service taxduty of customs duty of excise value added tax cess and any other statutory dues asapplicable with the appropriate authorities and no dues were in arrears as at 31stMarch 2017 for a period of more than six months form the date they became payable.

(b) According to the records of the Company and on the basis of information andexplanations given to us there are no dues of income-tax service tax duty of customsand which have not been deposited on account of any disputes. However according toinformation and explanations given to us the following dues of sales-tax value addedtax and duty of excise have not been deposited by the Company on account of disputes:

Name of Statue Nature of Dues Amount Involved (Rs. in Lakhs) Period to which the Amount Relates Forum where Dispute is pending
Central Excise Act 1944 CENVAT-INPUTS 51.23 2013-14 Commissioner Appeals Guntur
Central Excise Act 1944 CENVAT-INPUT SERVICES 56.91 2013-14 CESTAT
Central Excise Act 1944 CENVAT-INPUT SERVICES 223.11 2009-10 to 2012-13 CESTAT
Central Excise Act 1944 CENVAT-INPUTS 0.42 2013-14 Commissioner Appeals Guntur
Central Sales Tax CST 23.90 2009-10 Assistant Commissioner (CT)
Value Added Tax VAT 2.40 2009-10 Assistant Commissioner (CT)
Value Added Tax VAT 1.76 2016-17 Commissioner (Appeals) (CT)
Central Excise Act 1944 CENVAT-INPUTS 6.48 2014-15 Commissioner Appeals Guntur
Central Excise Act 1944 CENVAT-INPUTS 0.27 2013-14 Commissioner Appeals Guntur
Central Excise Act 1944 CENVAT-INPUTS 0.51 2014-15 Commissioner Appeals Guntur
Central Excise Act 1944 CENVAT-INPUT SERVICES 9.97 2014-15 CESTAT
Central Excise Act 1944 CENVAT-INPUTS 4.58 2014-15 Commissioner Appeals Guntur
Central Excise Act 1944 CENVAT-INPUT SERVICES 13.44 2014-15 Commissioner Appeals Guntur
Central Excise Act 1944 CENVAT-INPUTS 9.47 2014-15 & 2015-16 Commissioner Appeals Guntur
Central Excise Act 1944 CENVAT-INPUT SERVICES 33.53 2014-15 & 2015-16 Commissioner Appeals Guntur
Central Excise Act 1944 CENVAT-INPUTS 1.39 2014-15 & 2015-16 Commissioner Appeals Guntur
Central Excise Act 1944 CENVAT-INPUT SERVICES 58.44 2012-13 & 2013-14 CESTAT
Central Excise Act 1944 CENVAT-INPUT SERVICES 20.48 2013-14 CESTAT
Central Excise Act 1944 CENVAT-INPUT SERVICES 2.00 Oct 13 to Aug 14 Commissioner Appeals Chennai
Central Excise Act 1944 CENVAT-INPUT SERVICES 28.57 Apr 10 to Jun 13 CESTAT
Central Excise Act 1944 CENVAT-INPUT SERVICES 2.27 Sep 14 to Jul 15 Commissioner Appeals Chennai

viii. The Company has not defaulted in repayment of loans or borrowing to a financialinstitution bank government or dues to debenture holders.

xi. The Company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments) and term loans during the year. The moneys' raised inearlier years by way of public offer and term loans were applied for the purpose for whichthose were raised.

x We have not noticed or reported any fraud by the Company or any fraud on the Companyby its officers/ employees during the year.

xi. The managerial remuneration has been paid or provided in accordance with therequisite approvals mandated by the provisions of Section 197 read with Schedule V to theCompanies Act 2013.

xii. Clause xii of the Order is not applicable as the Company is not a Nidhi Company.

xiii. According to information and explanations given to us all transactions with therelated parties are in compliance with the provisions of sections 177 and 188 of theCompanies Act 2013 where ever applicable and the details have been disclosed in theFinancial Statements etc. as required by the applicable accounting standards.

xiv. According to information and explanations given to us the Company has not madeany preferential allotment or private placement of shares or fully or partly convertibledebentures as per the provisions of Section 42 of the Companies Act 2013 during the yearunder review.

xv According to information and explanations given to us the Company has not enteredin to any non-cash transactions with directors or persons connected with him and theprovisions of section 192 of the Companies Act 2013 have been complied with.

xvi. Clause xvi of the Order is not applicable as the Company is not required to beregistered under Section 45-IA of the Reserve Bank of India Act 1934.

For REDDY A V & CO

Chartered Accountants

A.V. REDDY

Partner

Membership No. 23983 Firm Regn. No. 003256S

Place : Chennai Date : 24th May 2017

ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE FINANCIALSTATEMENTS OF NELCAST LIMITED

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 NelcastLimited ("the Company") as of 31st March 2017 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

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 the ICAI anddeemed to 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company;

2. Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the Company are being made only inaccordance with authorisations of management and directors of the Company; and

3. Provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the Company's assets that could have amaterial 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 31st March 2017based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls over Financial Reporting issued by the Institute ofChartered Accountants of India.

For REDDY A V & CO

Chartered Accountants

A.V. REDDY

Partner

Membership No. 23983

Firm Regn. No. 003256S

Place : Chennai

Date : 24th May 2017