To the Members of
AANCHAL ISPAT LIMITED
(Formerly: Vinita Projects Private Limited)
Report on the Financial Statement
We have audited the accompanying Financial Statements of AANCHAL ISPAT LIMITED ("thecompany") which comprises the Balance Sheet as at 31 March 2017 the Statement ofProfit and Loss and Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statement
The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation of thesenancial statements that gives a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating 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.
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.
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 performingprocedures to obtain audit evidence about the amounts and disclosures in the financialstatements. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error. In making those risk assessments the auditor considers internalnancial control relevant to the Company's preparation of the financial statements thatgive true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by Company'sDirectors as well as 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.
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 require(Formerly : Kalika Cement Limited and give a true and fair view inconformity with the accounting principles generally accepted in India: a) in the case ofthe Balance Sheet of the state of affairs of the Company as at March 31 2017; b) in thecase of the Statement of Profit and Loss Account of the Profit for the year endedon that date; c) In the case of Cash Flow Statement of the cash flows for the year endedon that date.
Report on the 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 Companies Act 2013 We give in the Annexure A' statement on the mattersspecified in paragraph 3 & 4 of the order.
2. As required by section 143(3) of the Act we report that: a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit; b) In our opinion proper books ofaccount as required by law have been kept by the Company so far as appears from ourexamination of those books. c) The Balance Sheet the Statement of Profit and Loss andCash Flow Statement dealt with by this Report are in agreement with the books of account.d) In our opinion the aforesaid financial statements comply with the Accounting Standardsspecied 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 on31 March 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2017 from being appointed as a director in terms of Section164(2) of the Act. f) With respect to adequacy of internal financial controls overfinancial reporting of the company and the operating effectiveness of such controls referto our separate report in annexure B' g) With respect to the other matters includedin the Auditor's Report and to our best of our informationand according to theexplanations given to us: i. The Company does not have any pending litigations which wouldimpact its financial position. ii. The Company did not have any long-term contractsincluding derivatives contracts for which there were any material foreseeable losses. iii.No amount is required to be transferred to the Investor Education and Protection Fund bythe Company as on 31 March 2017.
For Raj Chandra & Associates Chartered Accountants
Sd/-(R K Agarwala) Partner (Firm Registration No. : 326312E)
Place : Kolkata Date : 29.05.2017
The Annexure A referred to in paragraph 1 of the Our Report of even date to the membersof AANCHAL ISPAT LIMITED on the accounts of the company for the year ended 31stMarch 2017.
On the basis of such checks as we considered appropriate and according to theinformation and explanation given to us during the course of our audit we report that:
1) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets on the basis of information available.
(b) As explained to us fixed assets have been physically verified by the managementreasonable intervals; no material discrepancies were noticed on such verification.
(c) In our opinion and according to the information and explanations given to us nosubstantial part of fixed asset has been disposed off during the year and therefore doesnot affect the going concern assumption.
2) (a) As explained to us the stock is regularly verified by the management atreasonable intervals. (b) In our opinion and according to the information and explanationsgiven to us the procedure for verification of stock followed by the management isreasonable and adequate in relation to the size of the Company and the nature of itsbusiness.
(c) In our opinion and on the basis of our examination of the records the Company isgenerally maintaining proper records of its stocks. No discrepancies have been noticed onverification of stocks statement as compared to book records 3) 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.
Accordingly the provisions of clause 3 (iii) (a) to (C) of the Order are notapplicable to the Company and hence not commented upon.
4) According to the information and explanations given to us the company has notadvanced any loans including any loan represented by a book debt to any of its directorsor to any other person in whom the director is interested or given any guarantee orprovided any security in connection with any loan taken by him or such other person. Thecompany has not made any investments during the year. Therefore provisions of Clause 3(iv)of the Companies (Auditor's Report) Order 2016 are not applicable. The company has notgranted any loans or provided any guarantees or security to the parties covered undersection 185 of Companies Act 2013.
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) We have broadly reviewed the cost records maintained by the Company relating to itsproducts pursuant to the Companies (Cost Accounting Records) Rules 2011 prescribed by theCentral Government under Section 148(1) of the Act and are of the opinion that primafacie the prescribed Cost Records have been made and maintained. We have however notmade a detailed examination of the cost record with a view to determine whether they areaccurate or complete.
7) a) According to the information and explanations given to us the Company isgenerally regular in depositing undisputed statutory dues including provident fundemployees' state insurance sales tax income tax wealth tax service tax duty ofcustoms duty of excise value added tax cess and other statutory dues as applicablewith the appropriate authorities. b) The particulars of dues of sales tax income taxwealth tax service tax duty of customs duty of excise value added tax and cess asapplicable as at 31st March 2017 which have not been deposited on account of a dispute areas follows
|Name of the Statute ||Nature of Dues ||Amount Involved ||Period to which the amount relates ||Forum where Dispute is Pending |
|The Central Excise ||Excise Duty ||Rs. 7986754/- ||FY 2007-08 ||Customs & Central |
|Act 1944 || || || ||Excise Service |
| || || || ||Tax Tribunal |
|Income Tax Act 1961 ||Income Tax ||Rs. 19278200/- ||FY 2011-12 ||CIT(A)-1 |
| || || || ||Kolkata |
|The Central Sales ||CST ||Rs. 6034194/- ||FY 2012-13 ||Senior Joint |
|Tax Act 1956 || || || ||Commissioner |
| || || || ||Howrah Circle |
|Income Tax Act 1961 ||Income Tax ||Rs. 3233690/- ||FY 2012-13 ||CIT(A)-1 Kolkata |
|West Bengal Value ||VAT ||Rs.25227448/- ||FY 2012-13 ||Senior Joint |
|Tax Act 2003 || || || ||Commissioner |
| || || || ||Howrah Circle |
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 & financial institutions.The Company has not taken any loan either from the government and has not issued anydebentures.
9) Based upon the audit procedures performed and the information and explanations givenby the management the company has not raised moneys by way of initial public offer orfurther public offer during the year under review. The company had utilized the moneyraised by way of term loan during the year for the purpose for which they were raised.
10) Based upon the audit procedures performed and the information and explanationsgiven by the management we report that no fraud by the Company or on the company by itsofficers or employees has been noticed or reported during the year.
11) Based upon the audit procedures performed and the information and explanationsgiven by the management the managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act;
12) In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 4 (xii) of the Order are not applicable to the Company.
13) In our opinion 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 Statements as required by the applicable accounting standards.
14) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Accordingly the provisions of clause 3 (xiv) of the Order are not applicable tothe Company and hence not commented upon. 15) Based upon the audit procedures performedand the information and explanations given by the management the company has not enteredinto any non-cash transactions with directors or persons connected with him. Accordinglythe provisions of clause 3 (xv) of the Order are not applicable to the Company and hencenot commented upon.
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 the provisions of clause 3 (xvi) ofthe Order are not applicable to the Company and hence not commented upon.
For Raj Chandra & Associates Chartered Accountants
Sd/-(R K Agarwala ) Partner (Firm Registration No. : 326312E)
Place: Kolkata Date : 29.05.2017
"Annexure B" to the Independent Auditor's Report of even date on theFinancial Statements of AANCHAL ISPAT 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 internalfinancial controls over financial reporting of AANCHAL ISPAT LIMITED ("theCompany") as of March 31 2017 in conjunction with our audit of the financialstatements of the Company for the year ended 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 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 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.
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 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.
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 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 by the Institute of CharteredAccountants of India"
|For Raj Chandra & Associates |
|Chartered Accountants |
|(Firm Registration No. : 326312E) |
|Place : Kolkata |
|Date : 29.05.2017 |