Niraj Ispat Industries Ltd.
|BSE: 538386||Sector: Industrials|
|NSE: NIRAJISPAT||ISIN Code: INE326T01011|
|BSE 05:30 | 01 Jan||Stock Is Not Traded.|
|NSE 19:19 | 26 Oct||Stock Is Not Traded.|
|BSE: 538386||Sector: Industrials|
|NSE: NIRAJISPAT||ISIN Code: INE326T01011|
|BSE 05:30 | 01 Jan||Stock Is Not Traded.|
|NSE 19:19 | 26 Oct||Stock Is Not Traded.|
INDEPENDENT AUDITORS' REPORT
THE MEMBERS OF
NIRAJ ISPAT INDUSTRIES LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of Niraj Ispat Industries Limited("the Company") which comprise the Balance Sheet as at March 31 2017 theStatement of Profit and Loss and Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.
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 financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
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 there under and the Order under section 143(11)of the Act.
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 anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give true and fair view in order to design audit procedures thatare appropriate in the circumstances. An audit also includes evaluating theappropriateness of 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.
In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner 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 March31 2017 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 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in Annexure A' a statement on the matters specified in paragraphs 3and 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 purpose 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 written representations received from the directors as on March 312017 taken on record by the Board of Directors none of the Directors is disqualified ason 31st March 2017 from being appointed as a Director in terms of 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" to this report.
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) Rules2014 in our
opinion and to the best of our information and according to the explanations given tous :
(i) The Company does not have any pending litigations which would impact its financialposition;
(ii) The Company did not have any long term contracts including derivatives contractsfor which they have any material foreseeable losses;
(iii)There were no amounts which required to be transferred by the company to theInvestor Education and Protection Fund.
(iv)The company has provided requisite disclosures in the financial statements as toholding as well as dealing in Specified Bank Notes during the period from 8thNovember 2016 to 30th December 2016. Based on audit procedures and relying onthe management representation we report that the disclosures are in accordance with thebooks of account maintained by the company and as produced to us by the management. Referto note no. 29.
ANNEXURE B' TO THE INDEPENDENT AUDITORS' REPORT
(Referred to paragraph 2(f) under Report on Other Legal and RegulatoryRequirements' section of our report of even date)
We have audited the internal financial controls over financial reporting of Niraj IspatIndustries Limited ("the Company") as on March 31 2017 in conjunction with ouraudit of the financial statements of the company for the year ended and as 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 essential components of internal control stated inthe Guidance Note on Audit of Internal Financial Controls over Financial Reporting issuedby the Institute of Chartered Accountants of India (the Guidance Note'). Thesesresponsibilities 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 asset the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of the reliablefinancial information as required under the Act.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards of Auditing prescribedunder Section 143(10) of the Act and the Guidance Note to the extent applicable to anaudit of internal financial controls. Those standards and the Guidance Note require thatwe comply with the 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 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 judgment including the assessment of the risks ofmaterial misstatement of the standalone financial statements whether due to fraud orerror.
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 andpreparation 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 controlsover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
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 March 31 2017 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note.
ANNEXURE A' TO THE INDEPENDENT AUDITORS' REPORT
(Referred to in paragraph 1 under Report on Other Legal and Requirement' sectionof our report of even date)
Report on Companies (Auditor's Report) Order 2016 ("the Order") issued bythe Central Government of India in terms of section 143(11) of the Companies Act 2013(the Act') of Niraj Ispat Industries Limited ("the Company"):
1. In respect of fixed assets of the Company:
a. The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b. The fixed assets were physically verified during the year by the Management inaccordance with a regular programme of verification which in our opinion is reasonablehaving regard to the size of the company and the nature of its assets. According to theinformation and explanations given to us no material discrepancies were noticed on suchverification.
c. According to the information and explanations given to us and the records examinedby us we report that the company is not having freehold properties. In respect ofimmovable properties taken on lease and disclosed as fixed assets in the financialstatements the lease agreements are in the name of the company.
2. As explained to us the inventories were physically verified during the year by theManagement at reasonable intervals and no material discrepancies were noticed on suchverification.
3. According to the information and explanations given to us the company has notgranted any loans secured or unsecured to companies firms limited liabilitypartnerships or other parties covered in the register maintained under section 189 of theAct.
4. In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of Sections 185 and 186 of the Act in respect ofgrant of loans making investments and providing guarantees and securities as applicable.
5. The company has not accepted any deposits during the year and does not have anyunclaimed deposits as on 31st March 2017.
6. Reporting under clause 3(vi) of the Order is not applicable as the Company'sbusiness activities are not covered by the Companies (Cost Records and Audit) Rules 2014.
7. According to the information and explanations given to us in respect of statutory
a. The Company has generally been regular in depositing undisputed statutory duesincluding provident fund employees' state insurance Income tax sales tax service taxvalue added tax duty of customs duty of excise cess and any other material statutorydues applicable to it with appropriate authorities.
b. There were no undisputed amounts payable in respect of provident fund employees'state insurance Income tax sales tax service tax value added tax duty of customsduty of excise cess and any other material statutory dues in arrears as at 31stMarch 2017 for a period of more than six months from the date they became payable.
8. In our opinion and according to the information and explanations given to us thecompany has not defaulted in repayment of loans or borrowings to the banks. The Companydoes not have any outstanding dues in respect of financial institutions and debentureholders during the year.
9. Based on the information and explanations given to us by the management term loanwas applied for the purpose the loan was raised. The Company has not raised any money byway of initial public offer or further public offer (including debt instrument).
10. According to the information and explanations given to us no material fraud by thecompany or on the company by its officers or employees has been noticed or reported duringthe course of our audit.
11. According to the information and explanations given to us the management has paidmanagerial remuneration in accordance with the provisions of section 197 read withSchedule V to the Companies Act 2013.
12. In our opinion the Company is not a nidhi company. Therefore the provisions ofclause 3(xii) of the order are not applicable.
13. According to the information and explanations given to us the transactions withthe related parties are in compliance with Section 177 and 188 of the Companies Act 2013where applicable and details have been disclosed in the notes to the financial statementsas required by the applicable accounting standards.
14. During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures hence reporting under clause3(xiv) of the order is not applicable to the Company.
15. According to the information and explanations given to us the company has notentered in to any non-cash transaction with the director or persons connected with him asreferred to in section 192 of the Companies Act 2013.
16. According to the information and explanations given to us the provisions ofsection 45-IA of the Reserve Bank of India Act 1934 are not applicable to the Company.