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Aanchal Ispat Ltd.

BSE: 538812 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE322R01014
BSE 00:00 | 16 Aug 11.17 0
(0.00%)
OPEN

11.40

HIGH

12.05

LOW

10.50

NSE 05:30 | 01 Jan Aanchal Ispat Ltd
OPEN 11.40
PREVIOUS CLOSE 11.17
VOLUME 272598
52-Week high 17.50
52-Week low 7.70
P/E 8.34
Mkt Cap.(Rs cr) 23
Buy Price 10.50
Buy Qty 947.00
Sell Price 10.69
Sell Qty 300.00
OPEN 11.40
CLOSE 11.17
VOLUME 272598
52-Week high 17.50
52-Week low 7.70
P/E 8.34
Mkt Cap.(Rs cr) 23
Buy Price 10.50
Buy Qty 947.00
Sell Price 10.69
Sell Qty 300.00

Aanchal Ispat Ltd. (AANCHALISPAT) - Auditors Report

Company auditors report

To the Members of AANCHAL ISPAT LIMITED

Report on the Financial Statement

We have audited the accompanying Ind AS financial statements of AANCHAL ISPAT LIMITED("the company") which comprises the Balance Sheet as at 31 March 2018 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 Standalone Ind AS 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 thesestandalone Ind AS financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) prescribed under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes the maintenance ofadequate accounting records in accordance with the provision of the Act for safeguardingof the assets of the Company and for preventing and detecting the frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of internal financial control that were operating effectively for ensuringthe accuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Ind AS financial statements basedon our audit.

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 of the Ind AS financial statements in accordance with theStandards on Auditing specified under section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Ind AS financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the Ind AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd AS 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 Ind AS financial statements that give true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by Company's Directors as well as evaluating the overallpresentation of the Ind AS financial statements.

We believe that the audit evidence we have obtained is suffcient and appropriate toprovide a basis for our audit opinion on the Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so require and give a true and fair view in conformity with theaccounting principles generally accepted in India:

a) in the case of the Balance Sheet of the state of affairs of the Company as at March31 2018;

b) in the case of the Statement of Profit and Loss Account of the Profit for the yearended on that date;

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

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 matters specified inparagraph 3 & 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 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 Sheet the 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 Ind AS 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 31 March2018 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2018 from being appointed as a director in terms of Section 164(2) of theAct.

f) With respect to adequacy of internal financial controls over financial reporting ofthe company and the operating effectiveness of such controls refer to our separate reportin annexure 'B'

g) With respect to the other matters included in the Auditor's Report and to our bestof our information and according to the explanations given to us:

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 there were any material foreseeable losses.

iii) No amount is required to be transferred to the Investor Education and ProtectionFund by the Company as on 31 March 2018.

For Raj Chandra & Assosiates
Chartered Accountants
Sd/-
(R. K. Agarwala)
Date: 30th May 2018 Partner
Place: Kolkata (Firm Registration No. 326312E)

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 31st March2018.

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 management atreasonable 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 explanations given to us theprocedure for verification of stock followed by the management is reasonable and adequatein relation to the size of the Company and the nature of its business.

(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 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 the provisions of clause 3 (iii) (a) to (c) of theOrder are not applicable 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 fund employees' stateinsurance sales tax income tax wealth tax service tax duty of customs duty ofexcise value added tax cess and other statutory dues as applicable with theappropriate authorities. b) The particulars of dues of sales tax income tax wealth taxservice tax duty of customs duty of excise value added tax and cess as applicable as at31st March 2018 which have not been deposited on account of a dispute are as follows -

Name of the Statute Nature of Dues Amount Involved Period to which the amount relates Forum where Dispute is Pending
The Central Excise Act 1944 Excise Duty Rs. 7986754/- FY 2007 - 08 Customs & Central Excise Service Tax Tribunal
Income Tax Act 1961 Income Tax Rs.19278200/- FY 2011 - 12 CIT (A) - 1 Kolkata
Income Tax Act 1961 Income Tax Rs.3233690/- FY 2012-13 CIT(A)-1 Kolkata
West Bengal Value Added Tax Act 2003 VAT Rs.25257225/- FY 2012 - 13 Senior Joint 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 performed and the information and explanationsgiven by the management the company has not entered into any non-cash transactions withdirectors or persons connected with him. Accordingly the provisions of clause 3 (xv) ofthe Order are not applicable to the Company and hence not 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 & Assosiates
Chartered Accountants
Sd/-
(R. K. Agarwala)
Date: 30th May 2018 Partner
Place: Kolkata (Firm Registration No. 326312E)

"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 internal financial controls over financial reporting of AANCHALISPAT LIMITED ("the Company") as of March 31 2018 in conjunction with our auditof the Ind AS financial statements 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.

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 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 of controls material misstatements due toerror or fraud may occur and not be detected. Also projections of any evaluation of theinternal financial controls over financial reporting to future periods are subject to therisk that the internal financial control over financial reporting may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures 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 2018 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 & Assosiates
Chartered Accountants
Sd/-
(R. K. Agarwala)
Date: 30th May 2018 Partner
Place: Kolkata (Firm Registration No. 326312E)