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Nova Iron & Steel Ltd.

BSE: 513566 Sector: Metals & Mining
NSE: NOVAIRNSTL ISIN Code: INE608C01026
BSE 00:00 | 25 May 7.18 -0.23
(-3.10%)
OPEN

7.11

HIGH

7.18

LOW

7.11

NSE 05:30 | 01 Jan Nova Iron & Steel Ltd
OPEN 7.11
PREVIOUS CLOSE 7.41
VOLUME 96
52-Week high 15.50
52-Week low 6.71
P/E
Mkt Cap.(Rs cr) 26
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 7.11
CLOSE 7.41
VOLUME 96
52-Week high 15.50
52-Week low 6.71
P/E
Mkt Cap.(Rs cr) 26
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Nova Iron & Steel Ltd. (NOVAIRNSTL) - Auditors Report

Company auditors report

To The Members of NOVAIRON&STEEL LIMITED

Report on the Financial Statements

We have audited the accompanying standalone financial statements of NOVA IRON &STEEL LIMITED which comprise the Balance Sheet as at 31st March 2017 the Statement ofProfit and Loss and the Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information for the year then ended.

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. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities selection and application of appropriateaccounting policies making judgments and estimates that are reasonable and prudent anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the provision of the Act the accounting standards andthe matters which are required to be included in the audit report under the provision ofthe act and the Rules made there under. We conducted our audit in accordance with theStandards on Auditing under Section 143(10) of the Act. Those Standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the standalone financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thestandalone financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit

also includes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating 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 standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us we report that the aforesaid standalone financial statements give theinformation required by the Act in the manner so required and give a true and fair viewin conformity with the accounting principles generally accepted in India:-

a) in the case of the Balance Sheet of the state ofaffairs of the Company as at 31stMarch 2017;

b) in the case of the Statement of Profit and Loss of the Profit forthe year ended onthat date; and

c) in the case of Cash Flow Statement of cash flows for the year ended on that date;

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors' Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section 11 of section 143 of theAct we give in Annexure - A a statement on the matters specified in paragraphs 3 and 4of 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 forthe purpose of ouraudit.

b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from ourexamination of those books;

c) The Balance Sheet and Statement of Profit and Loss and Cash Flow Statement dealtwith 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 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 terms ofsection 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 information and according to the explanations given to us;

i The Company has disclosed the impact of pending litigations on its financial positionin its financial statements.

ii The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

FOR ANTIMA & GOEL
Chartered Accountants
Firm Registration No : 009062N
(R.B. GOEL)
Place : New Delhi PARTNER
Date : 30.05.2017 M.NO: 086862

ANNEXURE : A TO THE INDEPENDENT AUDITOR'S REPORT

The Annexure referred to in independent auditor's report to the members of NOVA IRON& STEEL LIMITED ("the Company") on the standalone financial statements forthe year ended March 31 st 2017. We report that:

I. In Respect of its Fixed Assets:

a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b) The Fixed Assets have been physically verified by the management in a phased mannerdesigned to cover all the items over a period of three years which in our opinion isreasonable having regard to the size of the company and nature of its business. Pursuantto the program a portion of the fixed asset has been physically verified by themanagement during the year and no material discrepancies between the books records and thephysical fixed assets have been noticed.

c) According to the information and explanation given to us during the course of ouraudit the title deeds of immovable properties are held in the name of the company ExceptRegistration of Freehold Land amounting to Rs. 19434130/- is pending in the name of theCompany.

II. In Respect of its Inventory:

a) The management has conducted the physical verification of inventory at reasonableintervals.

b) As informed to us no material discrepancies were found on physical verification ofInventory.

III. The Company has not granted and loans secured or unsecured to companies firms orother parties listed in Register maintained u/s 189 of the Companies Act 2013. Thereforethe provisions of Clause 3(iii) (a) to (c) of the said Order are not applicable to theCompany.

IV. In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and 186 of the Companies Act 2013In respect of loans investments guarantees and security.

V. The Company has generally not accepted any deposits from the public and hence thedirectives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 orany other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules2015 with regard to the deposits accepted from the public are not applicable.

VI. To the best of our knowledge the Central Government has prescribed the maintenanceof cost records under Section 148 (1) of the Companies Act 2013 which have beenmaintained by the company and these have been broadly reviewed by us and we are of theopinion that prima facie the prescribed accounts and records have been made andmaintained. However we have not nor we are required carried out any detailedexamination of such accounts and records.

VII. In respect of statutory dues:

a) According to information and explanations given to us and on the basis of ourexamination of the books of account and records the Company has been generally regularin depositing undisputed statutory dues including Provident Fund Employees StateInsurance Income- Tax Sales tax Service Tax Duty of Customs Duty of Excise Valueadded Tax Cess and any other statutory dues with the appropriate authorities. Accordingto the information and explanations given to us no undisputed amounts payable in respectof the above were in arrears as at March 31st 2017 for a period of more than six monthsfrom the date they become payable Except Entry Tax (including interest due) & ServiceTax amounting to Rs. 34244722/- & Rs. 2140012/- respectively.

b) According to records of the Company there are no undisputed dues outstanding ofCustom Duty Service Tax Cess etc. on account of any dispute except Sales Tax(VAT)Income Tax and Excise Duty Entry Tax as per details given below:-

Name of the statute Nature of dues Net of amount paid (Rs. In Lacs) Period to which amount related Forum where dispute is pending
Excise Duty Mod vat Credit Disallowed 72.62 Plus Penalty A.Y. 2004-05 Appeal filed with Custom Excise & Service Tax Appellate Tribunal New Delhi.
Excise Duty Demand 2.90 A.Y. 2007-08 Commissioner Central Excise.
Excise Duty Demand 57.58 Oct-1999 To March - 2004 Commissioner of Central Excise - Raipur.
Excise Duty Demand 126.70 April - 2007 To July-2011 Commissioner of Central Excise - Raipur.
Excise Duty Mod vat Credit Disallowed 14.93 November -2008 To March-2009 Add. Commissioner - Raipur.
Excise Duty Mod vat Credit Disallowed 26.30

March-2014 & January-2015

Commissioner Appeal - Raipur
And Penalty Imposed 13.15
Excise Duty Demand on undervaluation 54.41

Oct-2011 To June -2012

Joint Commissioner - Raipur
And Penalty Imposed 27.20
Income Tax Demand 18.70 A.Y. 1994-95 Appeal Pending before ITAT.
Income Tax Demand 143.38 A.Y. 2007-08 Appeal Pending before ITAT.
VAT Demand 2.23 A.Y. 2004-05 Commissioner of Commercial Tax.
VAT Demand 0.25 A.Y. 2006-07 Revision Pending with Asstt. Commissioner of Commercial Tax.
VAT Demand 530.60 A.Y. 2003-04 Revision filed before Addl. Comm. Commercial Tax was filed and order was issued in favour of the Company Case remanded back to A.C. Commercial Tax.
VAT Demand 594.08 A.Y. 2004-05 Revision filed before Addl. Comm. Commercial Tax was filed and order was issued in favour of the Company Case remanded back to A.C. Commercial Tax.
Entry Tax Tax Demand 5.05 A.Y. 2006-07 Revision Pending with Addl. Commissioner of Commercial Tax

VII. Based on ouraudlt procedure and in accordance with the information and explanationgiven to us by the management the Company has not availed any loan from the FinancialInstitutions or Banks or Debenture holders. Accordingly paragraph 3(VIII) of the order isnot applicable.

IX. Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not raised moneys by way of initial public offeror further public offer including debt instruments and term Loans. Accordingly theprovisions of clause 3 (ix) of the Order are not applicable to the Company.

X. 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.

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

XII. In our opinion and according to the information and explanations given to us bythe management the Company is not a Nidhi Company. Accordingly paragraph 3(xii) of theOrder is not applicable.

XIII. According to the information and explanations given to us by the management andbased on our examination of the records of the Company all transactions with the relatedparties are in compliance with Sections 177 and 188 of the Act where applicable and thedetails of such transactions have been disclosed in the financial statements as requiredby the applicable accounting standards.

XIV. According to the information and explanations given to us by the management andbased on our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year.

XV. According to the information and explanations given to us by the management andbased on our examination of the records of the Company the Company has not entered intonon-cash transactions with directors or person connected with him. Accordingly paragraph3(xv) of the order is not applicable.

XVI. The Company is not required to be registered under section 45-IAof the ReserveBank of India Act 1934.

FOR ANTIMA & GOEL
Chartered Accountants
Firm Registration No : 009062N
(R.B. GOEL)
Place : New Delhi PARTNER
Date : 30.05.2017 M.NO: 086862

ANNEXURE : B TO THE INDEPENDENT AUDITOR'S 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 NOVA IRON& STEEL LIMITED ("the Company") as of March 31st 2017 in conjunction withour audit 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 stated in the Guidance Note on Audit of Internal Financial ControlsOver Financial Reporting 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 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 ofreliable financial 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 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 systemoverfinancial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control overfinancial reporting is a process designed toprovide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in

accordance with generally accepted accounting principles. A company's internalfinancial control over financial reporting includes those policies and procedures that (1)pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect 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 expenditures of the company are being made only in accordance withauthorizations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the 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 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 31st 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 bythe Institute of CharteredAccountants of India.

FOR ANTIMA & GOEL
Chartered Accountants
Firm Registration No : 009062N
(R.B. GOEL)
Place : New Delhi PARTNER
Date: 30.05.2017 M.NO: 086862