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Steel Exchange India Ltd.

BSE: 534748 Sector: Others
NSE: STEELXIND ISIN Code: INE503B01013
BSE LIVE 15:40 | 24 Aug 84.45 1.30
(1.56%)
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81.65

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84.90

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NSE 15:31 | 24 Aug 84.45 0.95
(1.14%)
OPEN

81.95

HIGH

84.90

LOW

81.90

OPEN 81.65
PREVIOUS CLOSE 83.15
VOLUME 100183
52-Week high 100.90
52-Week low 45.50
P/E
Mkt Cap.(Rs cr) 642
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 81.65
CLOSE 83.15
VOLUME 100183
52-Week high 100.90
52-Week low 45.50
P/E
Mkt Cap.(Rs cr) 642
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Steel Exchange India Ltd. (STEELXIND) - Auditors Report

Company auditors report

To

The Members of

STEEL EXCHANGE INDIA LIMITED

Report on the Standalone Financial Statements:

We have audited the accompanying financial statements of M/s. STEEL EXCHANGE INDIALIMITED which comprise the Balance Sheet as at March 31 2016 the Statement ofProfit and Loss and the Cash Flow Statement for the period ended 31st March 2016 and asummary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The management and Board of Directors of the company are responsible for the mattersstated in section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation 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 provision of the Act for safeguarding of the assets of the Companyand for preventing and detecting the 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 control 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.

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 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 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 but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes 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 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:

a) in the case of the Balance Sheet of the state of affairs of the Company as at March31 2016;

b) In the case of the Statement of Profit and Loss of the profit for the year ended onthat date; and

c) In the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")as amended issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order.

2. As required by section 143(3) of the Act we further 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 SheetStatement of Profit and Loss account and cash flow statement dealtwith by this Report are in agreement with the books of account;

d) In our opinion the aforesaid financial statements comply with the applicableaccounting 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 March 312016 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2016 from being appointed as a director in terms of Section 164(2) of theAct;

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 financialposition in the financial statements -Refer to note 2.29 to the financial statments.

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 occasions during the year under report to transfer any sums tothe Investor Education and Protection Fund by the company.

For Pavuluri & Co
Chartered Accountants
Firm Registration No: 012194S
CA. P.A.RAMAIAH
Place : Visakhapatnam Partner
Date : 28.05.2016 M.No.: F-203300

ANNEXURE TO INDEPENDENT AUDITORS' REPORT

Referred to in paragraph 1 under the heading 'Report on Other Legal & RegulatoryRequirement' of our report of even date to the financial statements of the Company for theyear ended March 31 2016:

(1) (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 phasedmanner designed to cover all the items over a period of three years which in ouropinion is reasonable having regard to the size of the company and nature of itsbusiness. Pursuant to the program a portion of the fixed asset has been physicallyverified by the management during the year and no material discrepancies between the booksrecords and the physical fixed assets have been noticed.

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

(2) The management has conducted the physical verification of inventory at reasonableintervals. The discrepancies noticed on physical verification of the inventory as comparedto books records which has been properly dealt with in the books of account were notmaterial.

3) The Company has not granted any loans secured or unsecured to companies firmsLimited Liability partnerships or other parties covered in the Register maintained undersection 189 of the Act. Accordingly paragraph 3 (iii) (a) to (C) of the Order are notapplicable.

4) In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and I86 of the Companies Act 2013In respect of loans investments guarantees and security.

5) The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2015 withregard to the deposits accepted from the public are not applicable.

6) As informed to us the maintenance of Cost Records has been specified by the CentralGovernment under sub-section (1) of Section 148 of the Act in respect of the activitiescarried on by the company. We have broadly reviewed the Cost Records maintained by theCompany pursuant to the Company's (Cost Records and Audit) Rules 2014 prescribed by theCentral Government and are of the opinion that prima facie the prescribed cost recordshave been maintained.

(7) (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.

According to the information and explanations given to us no undisputed amountspayable in respect of the above were in arrears as at March 31 2016 for a period of morethan six months from the date on when they become payable.

(b) According to the information and explanation given to us the following dues of theservice tax duty of customs duty of excise value added taxcentral sales tax Cess andany other statutory dues which have not been deposited with appropriate authorities onaccount of any dispute.

Name of the Statute Nature of Dues Period to which the amount relates Amount in Rs. Deposits/ Paid in (Rs.) Forum where the dispute is pending with
CST Act Sales Tax 2003-04 2243895/- 280487/- CTOGajuwaka Visakhapatnam
2004-05 2827172/- 353397/-
CST Act Sales Tax 2005-06 4785829/- 1196457/- STAT-Visakhapatnam.
AP VAT Act 2011-12 1157334/- 289334/-
AP VAT Act Sales Tax 2011-12 1394858/- 348715/- The Hon'ble High Court of Telangana & Andhra Pradesh
AP VAT Act Sales Tax 2013-14 3141694/- 785424/- Appellate Deputy Commissioner Visakhapatnam
Customs Act Customs Duty 2003-04 5435648/- NIL Hon'ble High Court of Telangana & Andhra Pradesh
Customs Act Customs Duty 2012-13 6738452/- NIL CESTAT-Bangalore
Central Excise Act Excise Duty 2007-08 8630228/- 1000000/- CESTAT-Bangalore
2008-09 191708/- NIL
2009-10 to 2011-12 4589094/- NIL
Central Excise Act Excise Duty 2009-10 21421207/- 5000000/- Commissioner of Central Excise Visakhapatnam.
2010-11 & 2011-12
2009-10 3893/- NIL
Central Excise Act Excise Duty 2010-11 1435189/- NIL Hon'ble High Court of Telangana & Andhra Pradesh
Central Excise Act Excise Duty 2014-15 63286487 NIL Commissioner of Central Excise Visakhapatnam.
Central Excise Act Excise Duty 2011-12 & 2012-13 25171939 NIL Commissioner of Central Excise Visakhapatnam.
Central Excise Act Service Tax 2010-11 2011-12 2012-13 2013-14 & 2014-15 26468 NIL Asst. Commissioner of Central Excise Visakhapatnam.
Buildings and Other Construction Workers Welfare Cess Act 1996 Cess 2010-11 12798000/- NIL Hon'ble High Court of Telangana & Andhra Pradesh
AP Registration & Stamps Act Stamp duty 2008-09 4499900/- NIL The District Registrar Vizianagaram.
AP Electricity & Regulatory Authority -EPDC L Cross Subsidy 2009-10 9756021/- NIL Honble High Court of Telangana & AP- Interim Relief Order

8) In our opinion and according to the information and explanations given to us theCompany has not defaulted in the repayment of dues to banks.

9) According to the information and explanations given by the management the companyhas not raised moneys by way of initial public offer or further public offer includingdebt instruments and term Loans. Accordingly paragraph 3 (ix) of the Order are notapplicable.

10) According to the information and explanations given by the management to us nomaterial fraud by the Company or on the company by its officers or employees has beennoticed or reported during the course of audit.

11) According to the information and explanations to us and based on our examination ofthe records of the company the company has paid / provided for managerial remuneration inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act;

12) In our opinion and according to information and explanations given to us theCompany is not a Nidhi Company.

Accordingly paragraph 3 (xii) of the Order is not applicable.

13) According to the information and explanations to us and based on our examination ofthe records of the company transactions with the related parties are in compliance withsection 177 and 188 of Companies Act2013 where applicable and the details of suchtransactions have been disclosed in the Financial Statements as required by the applicableaccounting standards.

14) According to the information and explanations to us and based on our examination ofthe records of the company the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year.Accordingly paragraph 3 (xiv) of the Order are not applicable.

15) According to the information and explanations to us and based on our examination ofthe records of the company the company has not entered into any non-cash transactionswith directors or persons connected with him. Accordingly paragraph 3 (xv) of the Orderare not applicable.

16) In our opinion the company is not required to be registered under section 45-IA ofthe Reserve Bank of India Act 1934 and accordingly paragraph 3 (xvi) of the Order arenot applicable.

For Pavuluri & Co
Chartered Accountants
Firm Registration No: 012194S
CA. P.A.RAMAIAH
Place :Visakhapatnam Partner
Date : 28.05.2016 M.No.: F-203300

"ANNEXURE B" TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THESTANDALONE FINANCIAL STATEMENTS OF STEEL EXCHANGE INDIA 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 STEELEXCHANGE INDIA LIMITED ("the Company") as of March 31 2016 in conjunction withour audit of the standalone financial statements of the Company for the year ended on thatdate.

Management's Responsibility for the Financial Statements

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 theInstitute of Chartered Accountants of India". These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired 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 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 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 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 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 2016 based 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 Pavuluri & Co
Chartered Accountants
Firm Registration No: 012194S
CA. P.A.RAMAIAH
Place :Visakhapatnam Partner
Date : 28.05.2016 M.No.: F-203300

INDEPENDENT AUDITORS REPORT TO THE BOARD OF DIRECTORS OF STEEL EXCHANGE INDIA LIMITED

1. We have audited the accompanying statement of standalone financial results of STEELEXCHANGE INDIA LIMITED ("the company') for the year ended 31 March 2016("the statement") being submitted by the company pursuant to the requirement ofregulation 33 of the SEBI (Listing obligation and Disclosure Requirement) regulation2015. This Statement which is the responsibility of the Company's Management and approvedby the board of directors has been prepared on the basis of related financial statementswhich is in accordance with the accounting standardsprescribed under Section 133 of theCompanies act 2013 as applicable and other accounting principles generally accepted inIndia. Our responsibility to express an opinion on the statement

2. We conducted our audit in accordance with the standards on Auditing issued by theInstitute of Chartered accountants of India Those standards require that we comply withethical requirement and plan and perform the audit to obtain reasonable assurance aboutwhether the statement is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosure in the Statement The procedures selected depend on the auditor judgmentincluding the assessment of the risk of material misstatement of the statement weatherdue to fraud or error in making those risk assessment the auditor consider internalcontrol relevant to the company's preparation and fair presentation of the statements inorder to design audit procedure that are appropriate in the circumstances but not for thepurpose of Expressing an opinion on the effectiveness of the Company's internal control.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the management as well asevaluating the overall presentation of the statement.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion

3. In our opinion and to the best of our information and according to the explanationgiven to us the statement:

(a) Is presented in accordance with the requirement of regulation 33 of the SEBI(Listing obligation and disclosure Requirement) Regulation 2015; and

(b) Gives a true and fair view in conformity with the aforesaid Accounting standardsother accounting principles generally accepted in India of the Net Profit and otherfinancial information of the company for the year ended 31 March 2016.

4. The statement includes the result for the quarter ended 31st March 2016 being thebalancing figure between audited figures in respect of the full financial year to date andpublished year figures up to the third quarter of the current financial year which weresubject to limited review by us.

For Pavuluri & Co
Chartered Accountants
Firm Registration No: 012194S
CA. P.A.RAMAIAH
Place :Visakhapatnam Partner
Date : 28.05.2016 M.No.: F-203300